Enterprise Information Systems and ERP systemsJing Shao

What is ERP System Letter meaning: Enterprise Resource Planning SystemsResource: All resources in an organization, including: capital, equipment, material, intelligence, and so on.What and how to Plan

Definition : ERP systems is a software solution that addresses the enterprise needs. It takes the process view of an organization to meet the organizational goals and tightly integrates all functions in that organization.

1. Data exchange blocks; Software applications built to run on different operating systems cannot be connected to run together on the same operating system. We need to re-entry data from one system to another system in order to exchange information, thus leading to data inconsistency;

2.Stove-piped operations and stove-piped systems;

Why Enterprise Have to Use ERP Systems-------Problems in enterprise information system

Why Enterprise Have to Use ERP Systems-------Problems in enterprise information system(continue)Authorization; It is not always the cast that the more communication, the better organizational performance

business process reengineering. Examine the business process, question the necessity step by step Analyze the purpose of those processesReengineering stepsOld processesExpectOptimisticPessimisticP1P2P3Q1Q2Q3Price and demand curve

SolutionIntegrated enterprise information systems It is a set of communication channels in a business organization, combined together in such a way as to form one network by which information is gathered and disseminated.

======ERP System Widely integrated information systems covering all functional areas. It integrates database, applications, interfaces, tools, and business process reengineering ( BPR ).

Departments

Customers

Suppliers

ERP systemServer

Network(data exchange) ERP Working Theory

What ERP Systems Can Offer to an Enterprise? Benefits

ERP creates value through 1. integrating activates across a firm, 2. Implementing best practices for each business process 3. Standardizing processes within organizations 4. Creating one-source data 5. Providing on-line access to information ---facilitate better organizational planning, communication, and collaboration.

Advantages and Disadvantages

ERP ModulesReasons of designing ERP systems in Modules

1. Obtain specific functionality2. Cost3. Implement the system in bits rather than bring entire massive system online at one time

M o d u l e s

Market Trend and VendorsMarket: 60 percent of Fortune 500 companies had adopted ERP systems before 2000. The market spending was $13.4Billion in 2003 The predicted market spending is $15.8 Billion in 2008

Vendors: over fifty vendors, such as SAP, Oracle, Baan, and J.D. Edwards

Ways to Developing ERP System

ERP System Selection Risks The cost, time, and risk of an ERP project depends on following factors:

Project management ability; Experience with this type of environment;Experience with the programming environment;Experience with the language or system used;Familiarity with modern programming practices;Availability of critical equipment, software, and programming language;Completeness of project team;Personnel turnover;Relative control of project manager over project team.

Questions from Last Discussion How the business processes are modeled in ERP systems ?

2. How ERP system installed in an organization? Is it simple replace old separated operation systems or it can be combined with old systems?

3. How to combine ERP system with business process?

Measurement of ERP Project Intangible factors increases in market share improved customer service better corporation image employee satisfaction supply chain integration ability to support e-business operation Hidden outcomes change how people do their jobs The changing nature of information technology high dynamic technology and long-term project for implementing ERP

ERP Project Management

Cost

timeTool Critical Path Method

Right system

Critical Success Factors in ERP1. Clear understating of strategic goals2. Commitment by top management3. Excellent implementation project management4. Great implementation team5. Successful coping with technical issues6. Organizational commitment to change7. Extensive education and training8. Data accuracy9. Focused performance measures10. Multisite issues resolved

Open Source ERP Reasons of Choosing open source ERP 1. cost 2. Free redistribution 3. Available source code

Available providers There are about 20 vendors providing open source ERP systems. For example: 1. Open MFG 2. FISTERRA 3. ERP 54. Compiere

Compiere Open Source ERPArchitecture Compiere is a 100% pure Java solution based on Oracle database technology, and it is working on database independence.client application component is written entirely in Java The application server component is implemented in Java based on J2EE technology using the JBoss server infrastructure.

FunctionalityBusiness processes rather than traditional departments drive Compiere's design. quote-to-cash, requisition-to-pay, partner relationship management, supply chain management, performance analysis, web storeSeven Modules:

Quote-to-Cash

Requisition-to-Pay

Customer relations management

Partner Relations Management

Supply Chain Management

Performance Analysis

Web Store

Thank You

Application client --- network ----- application serverHTML ---- network ---- application server