ENTERPRISE RESOURCE PLANNINGPRESENTED BY: JANEA LOWERY

Course: INSS 587 Management of Information SystemsProfessor: Dr. Dessa David

Morgan State UniversityMay 2, 2012

AGENDA WHAT IS AN ERP?

ERP VIDEO

HISTORY

STRUCTURE

IMPLEMENTATION

COMMON VENDORS

ADVANTAGES/

DISADVANTAGES

SUCCESS STORIES

HORROR STORIES

CLOSING REMARKS

SUGGESTED LINKS

RESOURCESMAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 2

WHAT IS AN ERP?

An information system that integrates business activities across departmental boundaries, including planning, manufacturing, sales, marketing and so on.[1]

Services the entire enterprise by providing various modules based on similar application interfaces and a common database.

Replaces stand alone applications that only service portions of the enterprise.

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 3

ERP VIDEO

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 4

HISTORY.

1960s:

Inventory & Management

Control

1970s:

Material Requirement

Planning (MRP)

1970s:

Material Requirement

Planning (MRP II)

1990s:

Enterprise Resource Planning

(ERP)

2000s:

Interned Enabled and

Service Oriented

Architecture based ERPs

Future:

Merging of SAP, Oracle,

Infor and Microsoft and

cloud computing

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 5

ERP Core Components

1. Financial Management

Supports: Accounting, Financial Reporting, Performance Management and Corporate Governance

2. Operations Management

Simplify, Standardize and Automate business processes for: In/Outbound Logistics, Product Development, Manufacturing, Sales and Service.

3. Human Resource Management

Support: Employee Recruitment, Assignment Tracking, Performance Reviews, Payroll and Regulatory Requirements.

STRUCTURE

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 6http://www.hqsolutions.ro/wp-content

The six steps to ERP success:

1. Define the organization’s desirable outcomes

2. Prioritize the organization’s problems and goals

3. Avoid modifying the software’s code

4. Access current practices and make recommendations

5. Seek executive support for ERP selection and implementation

6. Budget the personnel and expertise

IMPLEMENTATION

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 7

COMMON VENDORS

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 8

ADVANTAGES/DISADVANTAGES

Advantages:

Efficiency Increase

Data Redundancy Decrease

Accounting and Reporting Cost

Decrease

Accuracy Increase

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 9

Disadvantages:

Expensive

Customization Difficult

Potential Compatibility Issues

System Complexity

Personnel Turnover

SUCCESS STORIES

Autodesk

IBM

Fujitsu Microelectronics

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 10

HORROR STORIES

Dell

Applied Material

FoxMeyer Drug

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 11

CLOSING REMARKS

ERPs:

Dynamically improved since the 1960s

Replaces legacy systems within organizations

Consists of 3 core components

Entails systematic implementation procedures

Provided by Oracle, Microsoft, SAP, SYSPro and others

Present both benefits and risks to an organization

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 12

SUGGESTED LINKS

1.www.top10erp.org/

2.www.business-software.com/BestERP

3.www.oracle.com/ERP

4.www.sap.com/solutions/business-suite/erp/index.epx

5.erp.softwareadvice.com/

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 13

RESOURCES1. Valacich, Joe and Schneider, Christoph. 2012. Information Systems Today:

Managing in the Digital World. Fifth Edition. Prentice Hall.

2. http://www.youtube.com/watch?v=PVRgIXLWDHs

3. http://www.erpandmore.com/erp-reference/erp-history/

4. Granlund, M. a. (2002). Moderate impact of ERPS on management accounting:

a lag or permanent outcome? Retrieved April 24, 2012, from Management

Accounting Research Vol. 13, pp.299–321:

5. Okrent, M. a. (2004). Process mapping in successful ERP implementations.

Retrieved April 24, 2012, from Industrial Management & Data Systems Volume

104; No. 8; pp. 637–643:

http://orennahum.dyndns.org/PDFs/ERP/ERP_Paper1.pdf

MAY 2, 2012 ENTERPRISE RESOURCE PLANNING SLIDE 14