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Nimisha M.N MBA.FT Roll no.

23 s4

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)

Historically, companies created islands of automation. A hodgepodge of various systems that operated or managed various divergent business processes. Sometimes these systems were integrated with each other and sometimes they werent. Sometimes they were loosely interfaced and sometimes they were more tightly interfaced.

To support business goals Integrated, on-line, secure, self-service processes for business Eliminate costly mainframe/fragmented technologies Improved Integration of Systems and Processes Lower Costs Empower Employees Enable Partners, Customers and Suppliers

Infrastructure, including both basic and IT infrastructure, constitutes the basic Prerequisite for ERP implementation. ERP cuts across several functions, including the internal operations of the company itself and its suppliers, customers, banks, etc. The soundness of the entire infrastructure is necessary to facilitate complete value chain management enabled by ERP.

IS implementation issues in general have been long explored (Lucas et al., 1988, Debone and McLean, 1992). However, the complexity of ERP makes it challenging to implement. Studies on ERP implementation have appeared in recent years (Davenport, 1998; Binge et al., 1999; Holland and Light, 1999; Kohl et al., 2000). The following framework (Figure 1) in the global context is derived from the literature and our previous research (Huang and Pavia, 2000a, b).The implementation of ERP is affected by two broad categories of factors: national/environmental and organizational/internal, each of which comprises five variables.

Implementing an ERP system involves reengineering the existing business processes to the best business process standard. ERP systems are built on best practices that are followed in the industry. One major benefit of ERP comes from reengineering the company's existing way of doing business. All the processes in a company must conform to the ERP model. The cost and benefits of aligning with an ERP model could be very high. This is especially true if the company plans to roll out the system worldwide

Packages: Enterprise systems are not developed in-house IS life cycle is different Mapping organizational requirements to the processes and terminology employed by the vendor and Making informed choices about the parameter setting. Organization's that purchase enterprise systems enter into long-term relationships with vendors. Organization's no longer control their own destiny.

Build business flexibility


??? ERP inherently a rigid system

IT cost reduction
The main reason CEOs adopt ERP

Increased IT capability

What the organization must do well to succeed For IS Projects:


Top management support
Inherent in ERP

Clearly stated objectives


Inherent in ERP

End User involvement

Corresponding failure -Dont meet design objectives Process failure -Not on time &/or not within budget Interaction failure -System not used as designed Expectation failure -Return not what stockholders expected

Evolving: Enterprise Systems are changing rapidly Architecturally: Mainframe, Client/Server, Web-enabled, Object-oriented, Componentization Functionally: front-office (i.e. sales management), supply chain (advanced planning and scheduling), data warehousing, specialized vertical industry solutions, etc.

ERP vendors talk to many different businesses within a given industry as well as academics to determine the best and most efficient way of accounting for various transactions and managing different processes. The result is claimed to be industry best practices. The general consensus is that business process change adds considerably to the expense and risk of an enterprise systems implementation. Some organization's rebel against the inflexibility of these imposed business practices

Only the software is integrated, not the computing platform on which it runs. Most companies have great difficulty integrating their enterprise software with a package of hardware, operating systems, database management systems software, and telecommunications suited to their specific needs. Interfaces to legacy systems Third-party bolt-on applications Best of Breed Strategy

Financial
ERP package selection

Behavioral
Communication Process management Training & education Cultural & structural changes Project management Legacy systems management Systems integration Systems testing

Technical

Its all really about control, its about aligning your people process and technology so that they master the raging waters of your high volume transactional system. People who have experienced Process You have to row in a certain way Technology You have to have a decent boat

Definition and Analysis: Hold discussions with various functional personnel to establish the actual number of systems operating at client site, 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

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

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

Production: Official hand holding Effectiveness assessment Business and Technical Direction recommendations

Configure system as per set up document specifications i.e. transfer conceptual model into reality Test system to verify accuracy (preliminary tests) Challenge : TECHNICAL ENVIRONMENT System functionality

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

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

Simplified Deployment
Other advantages of this architecture become apparent when we look at application deployment.

In client server environments, you would need to install the application on each desktop. If you add new users, you need to install the application. If you want to upgrade.... you need to install the application. If weve learned one thing from Y2K compliance, its that upgrading 100s or 1000s 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 detects that a new application version exists, its downloaded automatically. Even some web tools use plug ins that load windows components as opposed to IC architecture. These can be as difficult to uninstall as typical windows applications

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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