Post on 03-Apr-2018
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Nimisha M.NMBA.FTRoll no.23
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A business strategy and set of industry-domain-specific
applications that build customer and shareholder
communities value network system by enabling and
optimizing enterprise and inter-enterprise collaborative
operational and financial processes(Source: Gartners
Research Note SPA-12-0420)
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Historically, companies created islands of automation. A hodge -
podge of various systems that operated or managed various
divergent business processes. Sometimes these systems wereintegrated with each other and sometimes they werent.
Sometimes they were loosely interfaced and sometimes they were
more tightly interfaced.
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To support business goalsIntegrated, on-line, secure, self-serviceprocesses for businessEliminate costly mainframe/fragmentedtechnologiesImproved Integration of Systems and
ProcessesLower CostsEmpower EmployeesEnable Partners, Customers and Suppliers
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Infrastructure, including both basic and ITinfrastructure, constitutes the basic
Prerequisite for ERP implementation. ERPcuts across several functions, including theinternal operations of the company itself andits suppliers, customers, banks, etc. Thesoundness of the entire infrastructure isnecessary to facilitate complete value chainmanagement enabled by ERP.
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Implementing an ERP system involvesreengineering the existing business processes tothe best business process standard. ERP systems
are built on best practices that are followed in theindustry. One major benefit of ERP comes fromreengineering the company's existing way of doingbusiness. All the processes in a company mustconform to the ERP model. The cost and benefitsof aligning with an ERP model could be very high.This is especially true if the company plans to rollout the system worldwide
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Build business flexibility ??? ERP inherently a rigid system
IT cost reduction The main reason CEOs adopt ERP
Increased IT capability
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Corresponding failure-Dont meet design objectives
Process failure-Not on time &/or not within budgetInteraction failure
-System not used as designedExpectation failure
-Return not what stockholders expected
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Evolving:Enterprise Systems are changing rapidly
Architecturally: Mainframe, Client/Server,Web-enabled, Object-oriented,ComponentizationFunctionally: front-office (i.e. salesmanagement), supply chain (advancedplanning and scheduling), data warehousing,specialized vertical industry solutions, etc.
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ERP vendors talk to many different businesseswithin a given industry as well as academics todetermine the best and most efficient way of
accounting for various transactions andmanaging different processes. The result isclaimed to be industry best practices.The general consensus is that business processchange adds considerably to the expense andrisk of an enterprise systems implementation.Some organization's rebel against theinflexibility of these imposed business practices
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Only the software is integrated, not thecomputing platform on which it runs. Mostcompanies have great difficulty integrating theirenterprise software with a package of hardware,operating systems, database managementsystems software, and telecommunicationssuited to their specific needs.Interfaces to legacy systemsThird-party bolt-on applicationsBest of Breed Strategy
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Its all really about control, its about aligningyour people process and technology so that
they master the raging waters of your highvolume transactional system.People who have experiencedProcess You have to row in a certain wayTechnology You have to have a decent boat
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Definition and Analysis:
Hold discussions with various functional personnel to
establish the actual number of systems operating at clientsite, what they are used for, why and how often
Produce the Project Scoping Document outlining current
situation, proposed solution and budgeted time
Challenge : REQUISITE EXPERTISE - No two clients are
the same
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People- Project Structure-Should be aligned to processes
Process-Implementation Process (outlined in detail)-Adapt your processes to those of the ERP.
Technology-Hardware-Software-Integrated Systems
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Design:
Prepare various functional reports - specifies current scenario and wish
list
Prepare Design document which specifies how the system is going to
work
Prepare test scripts to be followed on system testing
Map out the interface paths to various modules
Challenge : INFORMATION SHARING - Availability of staff
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Production:Official hand holding
Effectiveness assessmentBusiness and Technical Directionrecommendations
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Technology is an enabler, not the driver (it is there to assist the
organization to achieve business goals)
It is a means to an end, not the end
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ERP systems provide a mechanism for implementing systems
where a high degree of integration between applications is
required
The Business Case or Value Proposition for implementation must
be outlined
To successfully implement a proper mix of people, processes and
technology should be maintained
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Simplified Deployment
Other advantages of this architecture become apparent when we look atapplication deployment.
In client server environments, you would need to install the application on eachdesktop. If you add new users, you need to install the application. If you want toupgrade.... you need to install the application.If weve learned one thing from Y2K compliance, its that upgrading 100s or1000s of desktops is a challenge best avoided.
The true, three-tier architecture avoids this pitfall.By storing the application on the middle tier, the ICA requires you to upgrade
only the servers. Clients upgrade themselves. As soon as the browser detectsthat a new application version exists, its downloaded automatically.
Even some web tools use plug ins that load windows components as opposedto IC architecture. These can be as difficult to uninstall as typical windowsapplications
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ERP systems provide a mechanism for implementing systems where a
high degree of integration between applications is required The Business Case or Value Proposition for implementation must be
outlined To successfully implement a proper mix of people, processes and
technology should be maintained
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