8/3/2019 ASB Show 01 Oct09
1/83
Enterprise
ResourcePlanning &
Management
Oct-Nov09
N RaveendranGeneral Manager Enterprise wide solutionsSakthi Finance Ltd., [email protected]
8/3/2019 ASB Show 01 Oct09
2/83
The class room approach
With practical examples
Very theoretical - Should be interactive Syllabus focused
Doubts have to be cleared for the benefit of all
More homework to be done by the students
Theory to be covered using multiple books
Extra study materials to be provided, wherever
necessary
8/3/2019 ASB Show 01 Oct09
3/83
Team Formation
For Functional representation
Finance
Manufacturing
Distribution & Logistics
Sales & marketing
To handle business cases
8/3/2019 ASB Show 01 Oct09
4/83
SESSION PLAN
Sl. Topic Readings1 Course Introduction. An Overview of ERP Lecture Notes2 What is an ERP System TB 1 pp 1-11, TB
2 Ch. 1 & 73 A tour of an ERP System Bancroft Ch. 14 IT strategy and ERP fit Norris Ch. 25 Impact of ERP on Finance Norris Ch. 3
6 Impact of ERP on Manufacturing Norris Ch. 47 Impact of ERP on Distribution /Logistics Norris Ch. 48 Impact of ERP on Sales and Marketing Norris Ch. 49 SAP Basics Windows / Training / User Group Bancroft Ch. 210 Re-engineering and ERP Bancroft Ch. 511 Preparing for ERP Implementation Bancroft Ch. 6
12 Focus Bancroft Ch. 713 As Is Picture Bancroft Ch. 814 To Be Design Bancroft Ch. 915 Construction / Testing / Implementation Bancroft Ch. 1016 Managing the Implementation process: Partners
in ImplementationNorris Ch. 9
17 Change Management Bancroft Ch. 1118 Team formation and development Bancroft Ch. 1219 Risk Management Norris Ch. 1320 Project and Program Management Norris Ch. 1421 Changes in Users and IT Roles Bancroft Ch. 1322 Integration Management Norris Ch. 2023 Lessons Learnt Bancroft Ch. 14
24-27 Project Report presentations
8/3/2019 ASB Show 01 Oct09
5/83
Presentation - Path
ERP General ConceptsERP based applications - Options
ERP @ Pricol A case
Beyond ERP
Overall Summary - Recap
8/3/2019 ASB Show 01 Oct09
6/83
World without computer engineers
8/3/2019 ASB Show 01 Oct09
7/83
8/3/2019 ASB Show 01 Oct09
8/83
8/3/2019 ASB Show 01 Oct09
9/83
ERP General Concepts
What is ERP?
The Current Scenario
Why ERP?
Definition Evolution
Expectations
BPR & ERP
BPR The StepsEnte
rpriseResourcePlan
ning
8/3/2019 ASB Show 01 Oct09
10/83
What is ERP?
facilitates company-wide integratedinformation systems, covering all
functional areas
performs core Corporate activities andincreases customer service augmentingCorporate Image
ERP is a solution, which
Ente
rpriseResourcePlan
ning
8/3/2019 ASB Show 01 Oct09
11/83
The Current Scenario
Islands of InformationDifficult to get timely & accurate informationHeterogeneous Hardware & Softwareplatforms & practices
Poor connectivity between differentorganizational locationsSticking with obsolete technology
Resist to changeLack of proven man-power to developintegrated software
Ente
rpriseResourcePlan
ning
8/3/2019 ASB Show 01 Oct09
12/83
Information Islands [existing]
B
Finance
Sales
Production
Human
Resources
Materials
Planning
8/3/2019 ASB Show 01 Oct09
13/83
Information @ an Enterprise [Need to be]
Finance
Sales
Production
Human
Resources
Materials
Planning
8/3/2019 ASB Show 01 Oct09
14/83
Why ERP?
For Management to know what is happening
in the companyOne integrated solution for better ManagementTransparency of Information thro single data sourceFor cycle time reduction
To achieve cost control & low working capitalTo marry latest technologiesTo shun the geographical gaps
To satisfy the customers with high expectationsTo be Competitive & for survivalEnte
rpriseRes
ourcePlan
ning
8/3/2019 ASB Show 01 Oct09
15/83
ERP - Definition
Software solution that addresses theEnterprise needs, taking a process view ofthe overall organization to meet the goals,
by tightly integrating all functions andunder a common software platform
Ente
rpriseRes
ourcePlan
ning
8/3/2019 ASB Show 01 Oct09
16/83
Enterprise Resource Planning (ERP), is a
software driven business managementsystem which integrates all the facets ofbusiness, including planning,
manufacturing, sales and marketing.
ERP as a business solution aims to help themanagement by setting better business
practice and equipping them with the rightinformation to take timely decision
ERP - Definition [As per Frost & Sullivan]
Ente
rpriseRes
ourcePlan
ning
8/3/2019 ASB Show 01 Oct09
17/83
Evolution of ERP1960s - Systems Just for Inventory Control
1970s - MRP Material Requirement Planning(Inventory with material planning & procurement)
1980s - MRP II Manufacturing Resources Planning
(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990s - ERP Enterprise Resource Planning(Covering all the activities of an Enterprise)
2000 onwards ERP II Collaborative Commerce(Extending ERP to external business entities)
Ente
rpriseRes
ourcePlan
ning
8/3/2019 ASB Show 01 Oct09
18/83
BPR & ERP
Just automating the existing business practices
will not help ERP to achieve the anticipated resultsbecause, OO + NT = EOO
Business Process Re-engineering [BPR] brings out the
deficiencies of the existing setup
BPR and ERP will give way to implement newsystems and the long pending improvements in theexisting systems
BPR may be time consuming but the scope can berestricted & controlled by the Management
Busines
sProcessRe-engineering
8/3/2019 ASB Show 01 Oct09
19/83
BPR - Steps
AutomateSimplify/ImproveUnderstand
Implement
with the helpof ERP
Draft & frame the
possibilities & waysto simplify or
Improve or
eliminate the
processes
Understand
the existingsystems
associated
with all the
functionalities
Step 3Step 2Step 1
Busines
sProcessRe-engineering
8/3/2019 ASB Show 01 Oct09
20/83
ERP for an Enterprise
The options
8/3/2019 ASB Show 01 Oct09
21/83
Just to Relax
8/3/2019 ASB Show 01 Oct09
22/83
Crazy Maths
8/3/2019 ASB Show 01 Oct09
23/83
ERP OptionsOPTION 1 MAKE [Using Internal resources]
Developing a custom-built ERP package, specific to therequirements of the organization, with the help of thein-house IT department
OPTION 2 - BUY
Going for Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSoft etc.
OPTION 3 MAKE [using External resources]
Developing a custom-built ERP package, specific to therequirements of the organization, with the help of asoftware solution provider
Ente
rpriseRes
ourcePlan
ning
8/3/2019 ASB Show 01 Oct09
24/83
Building ERP solutionsusing
Internal Sources
8/3/2019 ASB Show 01 Oct09
25/83
ERP Building using Internalresources The Facts
Lack of adequate & qualified manpower
Not driven with clear focus on expectations,time & cost
Poor software project management Lack of seriousness with the Management & the
IT Team High employee turnover Lot of schedule gaps during Project execution Normally project life is more Frequent change in the scope with the approval
of the Management
8/3/2019 ASB Show 01 Oct09
26/83
Tailor-made
ERP
Solutions
8/3/2019 ASB Show 01 Oct09
27/83
About
Generalized off the shelf application s/w packages
Modules based on rich functionalities for all businessfunctionsUser tested with lot of installationsNo lead time requirement for software developmentTuned for more users/networks with adequate & in-built securityParameterized for flexibility
Can sit on latest hardware & software platformsUpgradation of functionalities with version controlTailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
28/83
Execution phases
ERP product selection
Preparations
Production
Implementation
Post-ImplementationTailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
29/83
ERP Product selection Phase
ERP Team formation for selection
Appointment of Consultants [if needed]
Scoping study
Product selection Implementation partners selection
Hardware/Communication cost estimation
Tailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
30/83
Technology
Support
Costs
5 Strategic5 StrategicRequirementRequirement
LevelsLevels
FunctionalityGoal:Goal:
To select theTo select the
Most Suitable SoftwareMost Suitable SoftwarePackage SolutionPackage Solution
Vendor
ERP Product selection Criteria
8/3/2019 ASB Show 01 Oct09
31/83
Reputed ERP Products [partial list]
Tailor-madeE
RPsolutio
ns
[Ax/Nav/GP]
[MFG Pro]
[Ver 9.0]
8/3/2019 ASB Show 01 Oct09
32/83
Preparation Phase
Framing ERP Implementation Strategies
Formation of Apex & Steering committees
Functional & IT team formation
Training on ERP functions & features
Scope finalization [as is & to be]
GAP analysis
Action plan to resolve the gapsTailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
33/83
ERP product acceptance - options
1. Adapting directly, all the functions available in
the ERP Product [Applicable for startup companies]
2. Change the way the firm does the business to fitthe product [Compromising]
3. Customize the ERP product to suit the businessProcesses. [Customization]
Tailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
34/83
GAP Analysis
This is the process to identity the gaps by mapping
the expectations of the company with thecapabilities of the ERP product
Results of Gap Analysis
Directly SupportedWorkaround suggestedExtension required
Change in business process suggestedNot fully supportedManual not under the scope of ERP
Tailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
35/83
Production Phase
Installing the ERP software & hardware
Tuning the ERP software to meet thecustomization needs
Master & Control data arrival as perthe Product data structures
Location & people specific roles & rights
allocation for module access & securityTailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
36/83
Implementation Phase
Conference Room Pilot [Parallel run]
Resolving the Parallel run issues
Training the end users
Live run
Tailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
37/83
Post-Implementation Phase
Regular monitoring
Tuning [hardware/software] for patchingthe performance issues
Maintenance
Tailor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
38/83
Pitfalls & Points of concern
Costly comparing to custom-built options
Lot of hidden costs Chances of cost & time overrun are high The Level of customization/Indianization Compulsion to pay for redundant modules/features
Vigorous involvement of all during implementation Non-availability of special practices like Customer
Complaint, Logistics Linking historical data offline & painful
The requirement of Change Management is a must Dependency on outsiders is high IT department Poor grip on the Implemented systems
Tai
lor-madeE
RPsolutio
ns
8/3/2019 ASB Show 01 Oct09
39/83
Critical Success Factors
Tai
lor-madeE
RPsolutio
ns The firm & optimistic approach of the Management
- on adapting the ERP product driven methodologies- on customization- on monetary commitments
The dedicated Team Good Training Strict adherence to the Project schedules Right technical infra-structure
Change Management
?
8/3/2019 ASB Show 01 Oct09
40/83
Just to Relax
Go
8/3/2019 ASB Show 01 Oct09
41/83
The cheapest car is
Tata Nano
Do you want to see the
Cheapest Bike?
8/3/2019 ASB Show 01 Oct09
42/83
8/3/2019 ASB Show 01 Oct09
43/83
Custom-built
ERP
Solutions
using external resources
8/3/2019 ASB Show 01 Oct09
44/83
Building ERP using Ext.sources
About this option
The Principle! The Steps
Why?
Points of Concern
Software Vendor selection
Critical Success factors
8/3/2019 ASB Show 01 Oct09
45/83
About
Here the whole package is designed & built
by keeping a specific enterprise & its businessPractices in mind
by incorporating the improvements/additions
with due integration without compromising or changing the current way
of doing the business and providing flexibility to accommodate your business
fluctuationsCustom-Built
ERPsolutions
8/3/2019 ASB Show 01 Oct09
46/83
The Principle!
Custom-Built
ERPsolutions
The best as seen elsewhere, need not be the
the best for you.
What is your best is whatcan be successfully implemented
8/3/2019 ASB Show 01 Oct09
47/83
Custom-Built
ERPsolutions
The Steps
1. Software vendor selection
2. Detailed study by the vendor3. Scope & platform finalization4. Freezing the commercials5. Development
6. Hardware addition/upgradation7. Old master/transaction data migration8. Parallel run with Integration & connectivity check9. Implementation
10.Maintenance
8/3/2019 ASB Show 01 Oct09
48/83
Custom-Built
ERPsolutions
Why?
Very economical while comparing the cost of implementing
tailor-made ERP solutions Less prone for hidden-cost hits
The company can opt for its choice of Hardware, Software &
communication platforms based on the skill availability
The company and the software vendor have the direct
relationship during the project execution. The proximity
would be high & convenient.
IT department has good control over the Project
What is required only would be considered under the scope
No redundancy
8/3/2019 ASB Show 01 Oct09
49/83
Why? - Cont.
The requisite flavor of E-Biz & work-flow components
can be embraced towards value edition The existing practices & applications can be tuned and
linked with the proposed package
Maintenance & improvements are easy & less costlier.
Even IT team can maintain the setup after getting thesource code
8/3/2019 ASB Show 01 Oct09
50/83
Points of Concern
Software development vendor selection
Requirement/scope finalization [high chances ofretaining the islands as it is]
Less chances of Value addition
Not time tested
Chances of Prolonged project duration
8/3/2019 ASB Show 01 Oct09
51/83
Custom-Built
ERPsolutions
The Critical Success Factors
Clear Vision & support of the Management
Capabilities of the software development vendor Scope & Expectations finalization towards
meeting the ERP concepts Strict implementation schedules & periodical
monitoring The involvement of the IT & functional teams
8/3/2019 ASB Show 01 Oct09
52/83
What is your
Choice?
8/3/2019 ASB Show 01 Oct09
53/83
Just to Relax
Go
8/3/2019 ASB Show 01 Oct09
54/83
Good advts.
8/3/2019 ASB Show 01 Oct09
55/83
Big Bazar Women's Day Celebrations....... They have gone.... what about you???????
Creative advts.
8/3/2019 ASB Show 01 Oct09
56/83
ERP/SAP @
Pricol A Case
8/3/2019 ASB Show 01 Oct09
57/83
8/3/2019 ASB Show 01 Oct09
58/83
Beyond ERP !!!
Beyond ERP [ERP II]
8/3/2019 ASB Show 01 Oct09
59/83
Key ProcessIntegration
via ERP
Key ProcessIntegration
via ERP
ProductLifecycle
Management
ProductLifecycle
Management
Supply ChainManagement
Supply ChainManagement
CustomerManagement
CustomerManagement
SupplierCollaboration
SupplierCollaboration
DesignPartners
DesignPartners
Consumersand Channels
Consumersand Channels
ERP in the Supply chain
8/3/2019 ASB Show 01 Oct09
60/83
8/3/2019 ASB Show 01 Oct09
61/83
Summary
of key points
8/3/2019 ASB Show 01 Oct09
62/83
Why should you adopt and ERP
8/3/2019 ASB Show 01 Oct09
63/83
Greater accessibility to data, allowing management up-to-the-minute access to information needed to makekey decisions
Ability to track actual costs of activities and performactivity based costing
Elimination of duplication and the current practice ofbuilding stand-alone databases and spreadsheets to
enter and manipulate data for reporting purposes Establishment of uniform processes that are based onrecognized best business practices
Replaces aging, non-integrated core legacy systemsthat are costly to support and maintain
Enables a single integrated data repository thatprovides superior reporting and data analysiscapabilities and promotes information sharing
Improves workflow and efficiency
ERP Project Macro level steps
8/3/2019 ASB Show 01 Oct09
64/83
Step 1:
Evaluate your needs and requirements useful as a
guide for the project, used as a benchmarkCompare solutions more gap means more costlycustomization, choose that fits need best
Step 2: While developing the contract- consider:
Fixed costs Vs time and materials, with or without a cap
Build flexibility into the contract to accommodatechanging technology
Check references
Step 3: Limit customizations
ERP Project Macro level steps [cont]
8/3/2019 ASB Show 01 Oct09
65/83
Step 4: Address key functional issues
Need and gap analysis
Process engineering
Process documentation
Audit of data and system
Step 5: Address key technical issuesSizing the system (inclusive ofdesktop & network)
Distributed versus centralizedproduction
Conversion of data and reportdevelopment
Conference room pilot
Validation of data and
systemsStaffing and training
Change management andproblem tracking
Help desk and ongoing
supportPlanned upgrades andrevisions
What factors influence the purchase of an ERP
8/3/2019 ASB Show 01 Oct09
66/83
Industry
functionality
Degree ofcustomization
Platform
compatibilityScalability
Vendor
reputation
Implementation
time
Real Timeprocessing
Price of
software
Technology
and expertise
Cost and
Perception
p
8/3/2019 ASB Show 01 Oct09
67/83
ERP Implementation methodology
8/3/2019 ASB Show 01 Oct09
68/83
Forming Core Team for each Module Understanding Client Business processes Requirement Specification Sign off Master Data Templates & Client Resources
Data Migration strategy (eg. Handling pipe-line transactions) Configuration Board Room Pilot 1 (Sample Data) Core Team training Master Data &
Sample Transactions Legacy Data Upload Board Room Pilot 2 (Live Data) Parallel run
Go live
8/3/2019 ASB Show 01 Oct09
69/83
8/3/2019 ASB Show 01 Oct09
70/83
8/3/2019 ASB Show 01 Oct09
71/83
Critical Success factors
8/3/2019 ASB Show 01 Oct09
72/83
Top Management Involvement (weekly reviews)- on adapting the ERP product driven
methodologies- on customization decisions
- on monetary commitments Dedicated Core Team Training &Change management Right technical infra-structure
Efforts required during parallel run The right strategy to handle the transactions in
pipe-line while going live Involving clients technical team during ABAP and
Script program developments. Pre-printed formats & Printer arrangements Strict Process / Procedure discipline Project schedule adherence
Post Implementation support/maintenance
?
ERP 7 Keys for Success
8/3/2019 ASB Show 01 Oct09
73/83
Scope is realistic and managed
Work and schedule are predictable
Team is high-performing
Stakeholders are committed
Business benefits are realized
Risks are mitigated
Delivery organization benefits are realized
8/3/2019 ASB Show 01 Oct09
74/83
8/3/2019 ASB Show 01 Oct09
75/83
ERP .. As a System
8/3/2019 ASB Show 01 Oct09
76/83
8/3/2019 ASB Show 01 Oct09
77/83
8/3/2019 ASB Show 01 Oct09
78/83
ERP - Cost Vs. Benefit
8/3/2019 ASB Show 01 Oct09
79/83
Business Systems Are The Heart Of Your Business
8/3/2019 ASB Show 01 Oct09
80/83
If you needed a heart transplant,you would want
The best surgeon has done this hundreds of times
The best heart can last as your body changes & grows
The best procedure proven successful
The best support continued care to insure your health
You want whatever it takes to get it right
the first time. You want to
Do It Once, Do It Right,Make It Last
8/3/2019 ASB Show 01 Oct09
81/83
8/3/2019 ASB Show 01 Oct09
82/83
Open
Session
8/3/2019 ASB Show 01 Oct09
83/83