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Nimisha M.NMBA.FTRoll no.23

s4

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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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