Enterprise Systems

Sessions of ES
• Introduction of Enterprise Systems
• Enterprise Systems Architecture
• ERP Life Cycle
• Business Blueprinting
• Strategies for Successful implementation
• ERP Implementation
• Post implementation Support
• Audit of Enterprise Systems

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Sessions of ES
• New Models of Deploying ERP
• ERP Security
• ERPs for Different Industries

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Sessions of ES
• Beyond ERP
– Customer Relationship Management
– Supply Chain Management
– Data Warehousing Data Mining
– Business Intelligence
– Dashboards for CXO’s
– Knowledge Management
– E-business
– Mobile ERP Solutions

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What is Enterprise system?
• Enterprise systems (ES) are large-scale
application software packages that support
business processes, information flows,
reporting, and data analytics in complex
organizations.

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Enterprise Applications
• Applications in various Industry
verticals such as Banking and Finance,
Retail, Telecom, Healthcare etc
• Enterprise Resource Planning (ERP)
• Supply Chain Management
• Customer Relationship management
• Knowledge Management
• Enterprise Content Management
• Enterprise Portals

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Challenges with Traditional systems
• In-house design limits connectivity
outside the company
• Tendency toward separate IS’s within firm
– lack of integration limits communication within
the company
• Strategic decision-making not
supported
• Long-term maintenance costs high
• Limits ability to engage in process
reengineering

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Traditional Systems Architecture
• Similar in concept to flat-file approach
– data remains the property of the application
– fragmentation limits communications
• Existence of numerous distinct and
independent databases
– redundancy and anomaly problems
• Paper-based
– requires multiple entry of data
– status of information unknown at key points

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 Business Enterprise

Products Materials

Manufacturing
Order Entry and Procurement Purchases
Orders Supplier
Customer System Distribution System
System

Customer Production Vendor

Sales Scheduling Accts Pay
Account Rec Shipping Inventory

Customer Database Manufacturing Procurement

Database Database

Traditional Information System with Closed

Database Architecture
 An ERP Example: Before ERP

Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files Customers

Checks for Parts

Calls back “Not in stock”
Accounting “We ordered the parts”
Files

Accounting
Invoices Sends report
Sends report
accounting
Ships parts
Vendor
Warehouse
Order is placed “We Need parts #XX”
with Vendor
Inventory
Purchasing Files
Files “We ordered the parts”
Purchasing

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An ERP Example: After ERP

Orders Inventory Data

Parts If no parts,
order is placed
Customers Sales Dept. through DB Accounting

Financial Data exchange;

Books invoice against PO

Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO

Order is
placed
with Vendor
Warehouse
Vendor Purchasing

Ships parts
And invoices accounting

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Evolution of Enterprise system / ERP

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ERP Architecture
• Interaction

• Database

• Business Logic

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ERP Architecture – Interaction
• User Interface : Data Entry
• Communications and information
exchange with other systems –
Electronic fund transfer

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ERP Architecture – Database
• Centralized Database
– Single database for ALL modules of
enterprises

• Configuration Data
– Country, Language, Currency ….

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ERP Architecture – Database
• Master Data
– Company information
– Accounts, Assets
– Material Information
– Vendor information, Customer information
– Storage Locations, Warehouses

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ERP Architecture – Database
• Transaction Data
– Purchase Orders
– Material Receipts / Quality
– Inventory Information
– Sales Orders
– Accounting Transaction

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ERP Architecture – Business Logic
• ERP support Business Logic with best
in class Business processes

• Best Business practices for specific

business are part of ERP
– Manufacturing
– Sales
– Logistics

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ERP Architecture – Business Logic
• ERP comes with industry specific
solutions
– Oil and Gas
– FMCG
– Pharmaceutical
– Metal and Mining

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ERP Architecture – Main Frame
• Main Frame
– Central Server
– Dumb terminal
– Wide Area Network

– IBM Major player with powerful Mainframe

servers

– Bottleneck during peak loads

• Month End
• High demand during seasonal sales

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ERP Architecture – Client server
• Client – Server
– Distributed Architecture
– Central Server

– Client server
– PC

– Wide Area Network

– Local Area Network

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ERP Architecture – Internet
• Internet
– Central Server

– Internet

– PC
– Laptop
– Mobile devices

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ERP modules – Financial Accounting
• General Ledger
• Accounts Payable
• Account Receivable
• Special Purpose Ledger
• Bank Accounting
• Asset Accounting
• Extended Ledger
• Funds Management
• Travel Management
• Consolidation

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ERP modules – Controlling
• Cost Element Accounting
• Cost Centre Accounting
• Internal Orders
• Activity-Based Costing
• Product Cost Controlling
• Profitability Analysis
• Profit Centre Accounting
• Overhead Cost controlling
• Material Ledger

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ERP modules – Asset Management
• Purchase
• Sale
• Depreciation
• Tracking

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ERP modules – Human Capital Management
• Organization Management
• Personnel Administration
– Personnel Administration
– Applicant Management
– Benefits
– Employee Management
– Incentive wages
– Payroll
– Time Management
– Travel Expenses

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ERP modules – Human Capital Management

• Recruitment
• Time Management
• Travel Management
• Payroll
• Benefits
• Compensation Management
• Personal Cost Planning
• Budget Management
• Training and Event Management

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ERP modules – Sales & Distribution
• Master Data
• Sales Support
• Sales
• Shipping
• Transportation
• Billing
• Sales Information System
• Electronic Data Interchange (EDI)
• General Sales Functions
• Logistic Execution

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ERP modules – Material Management
• Purchasing
• Inventory Management
• Warehouse Management
• Invoice Verification
• Information System
• Consumption Based Planning
• Electronic Data Interchange
• Materials Requirement Planning
• Material Ledger

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ERP modules – Production Planning
• Sales and Operations Planning
• Capacity Requirement Planning
• Master planning
• Assembly orders
• Basic Data
• Information System
• Kanban/Just-in-Time
• Material Requirements Planning
• Plant Data Collection
• Production Planning for Process Industries
• Repetitive Manufacturing
• Production orders
• Detailed Scheduling

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ERP modules – Plant Maintenance
• Equipment and Technical Objects
• PM Information System
• Preventive Maintenance
• Maintenance Projects
• Service Management
• Maintenance Orders Management

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Business Process Modeling
• Business Process

Input Process Output

Control
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Challenges with BP Governance

Process
Process Process
designed &
Implemented Executed
Documented

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BP Modelling Maturity Level

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Business Benefits

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Purposes of Process Modeling
Organizational
Analysis

“AS IS”
Process
Models

Process “TO BE”

Process Models
Improvement
Measures for Analysis & Design

Target Values
Process Process
Evaluation Implementation

Process Models
Executable
Process
Process
Metrics Enactment &
Monitoring

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ERP Life cycle
• Evaluation and selection of ERP

• Configuration and Roll out

• Go Live

• Post Implementation

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Evaluation and Selection of ERP package

• ERP vendors
– Leaders in Global Organization
• SAP
• Oracle
• PeopleSoft
– Small and Medium business
• Microsoft
• Epicor
• Infor

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ERP Selection Process
• Select ERP best suited for
– Industry Sector
– Can Address Size of organization … Global
or Local

• Select IT Solution that has Best in class

Business process for Organization
– Best business Practices built in the
solution

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ERP Selection Process
• Identify solution that has Business
Processes 80% match with the
Organization Business Processes
– Check Business Process Fitment of ERP
– Must be more than 80%

• Conduct Class Room Pilot

– Select Cross functional team from within
organization
– Conduct Pilot to check BP differences
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ERP Selection Process
• Create a feature/function list
• Create a software candidate list
• Narrow the field to four to six serious
candidates
• Create the request for proposal (RFP)
• Review the proposals
• Select two or three finalists
• Have the finalists demonstrate their
packages
• Finalise ERP Vendor
• Justify the investment

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How to Justify Investment in ERP
• Identify Tangible benefits

• Implication on Manpower

• Incremental Top Line

• Reduction in Costs

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ERP Sourcing
• Turn-key
OR

• Do-it-Yourself
OR

• Hybrid

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ERP resourcing
• Project implementation partner
– Servers, Networking & Communication
– Database & Application

• Training

• Post implementation partners

– Servers, Networking & Communication
– Database & Application

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ERP resourcing
• Project implementation partner -
Consultants
– Servers, Networking & Communication
– Database & Application

• Deploy own IT Team and Business team

to work with Implementation partner

• Train IT team to Support post

Implementation
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ERP resourcing
• Any Upgrades
– Reduce no of Consultants
– Give Key Responsibilities to IT team

• New Extension
– No Consultant needed
– IT team to implement

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