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By: Mosab Mohamd Zakaria
History of organizational systems
 Calculation systems .
 Functional systems .
 Integrated systems .
Calculation systems
 1950-80
 Single purpose
 Eliminate tedious human work
 Examples: Payroll, General ledger, Inventory
 Technology used: Mainframes, magnetic tapes, batch
processing
A System/370 Model 145 (1970’s)
removable-disk hard drives
Hard drives
A very nice-looking magtape-drive
Printer
Functional systems
 1975-20
 Use computers to improve operations
 Applications: Human resources, order entry,
manufacturing resource planning
 Technologies: Mainframes, PC’s, LAN’s
Minicomputer
Functional systems
 Typically contained within a department
 Islands of automation
 Applications independently developed and deployed
 Driving force: availability of mini-computers
Functional system applications
 Human resources System
 Accounting and finance systems
 Sales and marketing System
 Operations management System
 Manufacturing Systems
Problems with function based application
 Sharing of data between systems
 Data duplication
 Data inconsistency
 Applications that don’t talk to one another
 Limited or lack of integrated information
 Isolated decisions lead to overall inefficiencies
 Increased expenses
ERP
 An ERP system is an attempt to integrate all functions
across a company to a single computer system that can
serve all those functions’ specific needs.
 “Integration” is the key word for ERP implementation.
 Enterprise Resource Planning (ERP) is not software. One
more time: ERP is not software
 ERP system is a set of integrated business applications, or
modules which carry out common business functions such
as general ledger, accounting, or order management
ERP
 An ERP system is a packaged business software
system that allows a company to “automate and
integrate the majority of its business processes;
share common data and practices across the
enterprise; and produce an access information in a
real-time environment” – Deloitte Consulting
 An ERP system provides an enterprise database
where all business transactions are entered,
processed, monitored, and reported
Why ERP?
3 Major Reasons:
 To integrate financial data.
 To standardize manufacturing processes.
 To standardize HR information.
Types of Organizational information Systems
 Administrative systems
 Scheduling / Transaction systems
 Value oriented systems
 Reporting and controlling systems
 Analysis and information systems
 Planning and decision support systems
Before ERP:
Customers
Customer
Demographic
Files
Sales Dept.
Vendor
Orders
Parts
Accounting
Accounting
Files
Purchasing
Purchasing
Files
Order is placed
with Vendor
Invoices
accounting
Inventory
Files
Warehouse
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
“We Need parts #XX”
“We ordered the parts”
Sends report
Sends report
Sends report
Ships parts
28
After ERP:
Database
Customers Sales Dept.
Purchasing
Warehouse
Accounting
Vendor
Inventory Data
If no parts,
order is placed
through DB
Orders
Parts
Order is submitted
to Purchasing.
Purchasing record
order in DB
Order is placed
with Vendor
And invoices accounting
Financial Data exchange;
Books invoice against PO
Books inventory
against PO
Ships parts
Modules
Functionality
Human
Resources
Financial
Accounting
Management
Accounting
Sales Order
Processing
Purchasing
Production
Planning
Example: Supply Chain
□Operational processes
□ Daily activities (prospecting, contact management,
telemarketing, direct mail)
□ Contact management (tracks customer preferences, sales
history, history of sales calls, closely connected with CRM)
□Management control processes
□ Sales management
□ E.g. How should territories be shaped?
□ E.g. How can we allocate salesperson time to call on the highest
potential accounts?
□ Sales forecasting
□ Advertising and promotion
□ Product pricing
ERP: Sales and Marketing
ERP: Production and Materials Management
ERP: Production and Materials Management
□ Operational processes
□ Purchasing
□ Receiving
□ Quality Control (QC)
□ Inventory management/control
□ Management control processes
□ Material requirements planning
□ Just-in-time (JIT) manufacturing
□ Capacity planning
□ Production scheduling
□ Product design
ERP: Human Resources
□Operational processes
□ Creating and maintaining employee
information
□ Position information
□ Job application screening
□ Placement process
□ Government reporting
□ Payroll administration
□ Performance management
□Management control processes
□ Design job specifications
□ Recruit and retain highly qualified individuals
□ Design compensation packages
□ Employee training
□ Improve productivity
□ Maintain loyalty and moral
ERP: Accounting and Finance
□Operational processes
□ General ledger
□ Fixed asset
□ Sales order
□ Account receivable
□ Accounts payable
□ Inventory control
□ Purchase order
□ Payroll
□Management control
processes
□ Cash Management
□ Capital budgeting
Re-engineering
Re-engineering
 Fundamental rethinking and radical redesign of
business processes
 Goal is to achieve major improvements in performance
Efficient redesign of value chain:
 Primary activities
- Inbound logistics, operations, outbound logistics, marketing and sales, service
 Secondary activities
- Organizational activities, human resources, technology, purchasing
Business Process Re-engineering (BPR)
• Technology used to mechanize work
• Create new business rules
• Remove outdated rules
• Improve responsiveness
• Reduce costs
Business Process Re-engineering (BPR)
• Decentralize decision making
–Become responsive to customer’s needs
–Flatten organization
• Facilitated by information technology
• Redesign of jobs
–New levels of judgment
–New types of leaders
• The main challenge in implementing ERP is
whether:
- Change organization's business process to fit
the software.
Or
- Modify the software to fit the organization’s
business process
ERP Implementation
Traditional Systems Development Life Cycle
•Detailed analysis of system using tools and techniques to
determine problem areas
–Process models
–Data models
•Phases
–Problem definition
–Feasibility study
–Systems analysis
–Systems design
–Detailed design
–Implementation
–Maintenance
New Approaches
•Prototyping
–Models shown to end-users for feedback, guidance
–Not necessarily faster
•End-user development
–End-users create information systems using
spreadsheets and databases
–Not effective for large-scale development
•Software packages
–Economies of scale in development, enhancement,
maintenance
ERP Alternatives
– Human Resources
– Quality Management
– Controlling
– CRM
– Financial Accounting
– Materials Management
Sales module may be integrated with:
Production Systems
• Objectives
–Create production plan
–Acquire raw materials
–Schedule equipment, facilities, human
resources
–Design products
–Produce appropriate quantities and
expected quality level
Human Resources Problems
• Maintaining accurate employee information
• Job analysis and design
• Applicant selection
• Compensation
• Benefit administration
• Training
• Governmental reporting
Factors Influencing IS Project Success
• Number of modifications
• Effective communications
• Authority for project implementation
• Business management
• Ability to generate additional funds to cover
implementation
Factors Causing Information Systems
Project Failures
• Poor technical methods
• Communication failures
• Poor leadership
• Initial evaluation of project
Business Process Re-Engineering
vs.
Customizing
BusinessProcess (Re-) Engineering
□Definition:
□ “the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in
critical, contemporary measures of performance, such as
cost, quality, service and speed” (Hammer and Champy,
2003)
□Motivations for re-engineering
□ Customer sophistication
□ Deregulation
□ Increasing competition on global level
□ Adjustment of an information system to
customers needs
□ Standard software solutions does not fit at all
□ Enterprises are too different
□ Individual adjustments are necessary
□ Support of unique business processes are
possible
□ May results in a competitive advantage
□ Very expensive
ERP Customizing
Re-engineering vs. Customizing
□Select commercial ERP and re-engineer business processes to
fit the software
□ Take advantages of generic business processes (best-
practices)
□ May disrupt the organization
□ Does not support unique business processes
□Select commercial ERP and customize ERP software to fit the
business processes
□ Unique business processes are possible
□ Expensive & difficult customization
□ Upgrade to newer versions difficult
Risks
□Technology risks
□ How consistent is the current corporate infrastructure with the new
technology?
□ Inconsistencies such as different databases, operating systems and
network management structures increase the risk
□Organizational risks
□ Business process redesign to fit the package decrease the risk of
excessive time and cost investments
□ Customization increase project cost and risk
□People factors
□ If the current skill mix of the IT staff does not include knowledge of
application specific ERP packages the organization will incur costs in re-
skilling the workforce
□Project size
□ ERP can be the largest single investment
□ The sheer size of these projects (measured in time, staff commitment,
budget, scope) poses considerable risk
Hidden Costs of ERP
 Training
 Integration and testing
 Data conversion
 Data analysis
 Consultants
 Replacing best and brightest staff after
implementation
 Implementation teams can never stop
 Waiting for ROI
 Post-ERP depression
ODOO
 In 2005, Fabien Pinckaers, the founder and current
CEO of Odoo, started to develop his first software
product, TinyERP .
 three years later The name was changed to OpenERP
 focus on building a strong partner network and
maintenance offers
ODOO
 in 2013 it won a Deloitte award for being that fastest
growing company in Belgium, with 1549% growth over
a five-year period
 In May 2014, the company was renamed Odoo, a name
that has no restrictions and can allow the company to
grow in whichever direction
 in 2015, Odoo was named one of the fastest growing
companies in Europe
Source code model:
 Odoo have released software as Open Source but
starting with the V9.0 release, the company has
transitioned to an open core model which provides
subscription-based proprietary Enterprise software
and cloud-hosted Software as a service
 Odoo has been used as a component of university
courses
Software & architecture
 Odoo uses Python scripting and PostgreSQL database.
The software is accessed via a web browser in a one
page app developed in JavaScript.
□Mary Sumner, Enterprise Resource Planning, 2005 Pearson
Eduction
Rs :
Thanks for your attention.

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Odoo ERP functional

  • 2. History of organizational systems  Calculation systems .  Functional systems .  Integrated systems .
  • 3. Calculation systems  1950-80  Single purpose  Eliminate tedious human work  Examples: Payroll, General ledger, Inventory  Technology used: Mainframes, magnetic tapes, batch processing
  • 4. A System/370 Model 145 (1970’s)
  • 7. A very nice-looking magtape-drive
  • 9. Functional systems  1975-20  Use computers to improve operations  Applications: Human resources, order entry, manufacturing resource planning  Technologies: Mainframes, PC’s, LAN’s
  • 11. Functional systems  Typically contained within a department  Islands of automation  Applications independently developed and deployed  Driving force: availability of mini-computers
  • 12. Functional system applications  Human resources System  Accounting and finance systems  Sales and marketing System  Operations management System  Manufacturing Systems
  • 13. Problems with function based application  Sharing of data between systems  Data duplication  Data inconsistency  Applications that don’t talk to one another  Limited or lack of integrated information  Isolated decisions lead to overall inefficiencies  Increased expenses
  • 14.
  • 15. ERP  An ERP system is an attempt to integrate all functions across a company to a single computer system that can serve all those functions’ specific needs.  “Integration” is the key word for ERP implementation.  Enterprise Resource Planning (ERP) is not software. One more time: ERP is not software  ERP system is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management
  • 16. ERP  An ERP system is a packaged business software system that allows a company to “automate and integrate the majority of its business processes; share common data and practices across the enterprise; and produce an access information in a real-time environment” – Deloitte Consulting  An ERP system provides an enterprise database where all business transactions are entered, processed, monitored, and reported
  • 17. Why ERP? 3 Major Reasons:  To integrate financial data.  To standardize manufacturing processes.  To standardize HR information.
  • 18. Types of Organizational information Systems  Administrative systems  Scheduling / Transaction systems  Value oriented systems  Reporting and controlling systems  Analysis and information systems  Planning and decision support systems
  • 19.
  • 20.
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  • 26.
  • 27. Before ERP: Customers Customer Demographic Files Sales Dept. Vendor Orders Parts Accounting Accounting Files Purchasing Purchasing Files Order is placed with Vendor Invoices accounting Inventory Files Warehouse Checks for Parts Calls back “Not in stock” “We ordered the parts” “We Need parts #XX” “We ordered the parts” Sends report Sends report Sends report Ships parts
  • 28. 28 After ERP: Database Customers Sales Dept. Purchasing Warehouse Accounting Vendor Inventory Data If no parts, order is placed through DB Orders Parts Order is submitted to Purchasing. Purchasing record order in DB Order is placed with Vendor And invoices accounting Financial Data exchange; Books invoice against PO Books inventory against PO Ships parts
  • 32. □Operational processes □ Daily activities (prospecting, contact management, telemarketing, direct mail) □ Contact management (tracks customer preferences, sales history, history of sales calls, closely connected with CRM) □Management control processes □ Sales management □ E.g. How should territories be shaped? □ E.g. How can we allocate salesperson time to call on the highest potential accounts? □ Sales forecasting □ Advertising and promotion □ Product pricing ERP: Sales and Marketing
  • 33. ERP: Production and Materials Management
  • 34. ERP: Production and Materials Management □ Operational processes □ Purchasing □ Receiving □ Quality Control (QC) □ Inventory management/control □ Management control processes □ Material requirements planning □ Just-in-time (JIT) manufacturing □ Capacity planning □ Production scheduling □ Product design
  • 35. ERP: Human Resources □Operational processes □ Creating and maintaining employee information □ Position information □ Job application screening □ Placement process □ Government reporting □ Payroll administration □ Performance management □Management control processes □ Design job specifications □ Recruit and retain highly qualified individuals □ Design compensation packages □ Employee training □ Improve productivity □ Maintain loyalty and moral
  • 36. ERP: Accounting and Finance □Operational processes □ General ledger □ Fixed asset □ Sales order □ Account receivable □ Accounts payable □ Inventory control □ Purchase order □ Payroll □Management control processes □ Cash Management □ Capital budgeting
  • 38. Re-engineering  Fundamental rethinking and radical redesign of business processes  Goal is to achieve major improvements in performance Efficient redesign of value chain:  Primary activities - Inbound logistics, operations, outbound logistics, marketing and sales, service  Secondary activities - Organizational activities, human resources, technology, purchasing
  • 39. Business Process Re-engineering (BPR) • Technology used to mechanize work • Create new business rules • Remove outdated rules • Improve responsiveness • Reduce costs
  • 40. Business Process Re-engineering (BPR) • Decentralize decision making –Become responsive to customer’s needs –Flatten organization • Facilitated by information technology • Redesign of jobs –New levels of judgment –New types of leaders
  • 41. • The main challenge in implementing ERP is whether: - Change organization's business process to fit the software. Or - Modify the software to fit the organization’s business process ERP Implementation
  • 42. Traditional Systems Development Life Cycle •Detailed analysis of system using tools and techniques to determine problem areas –Process models –Data models •Phases –Problem definition –Feasibility study –Systems analysis –Systems design –Detailed design –Implementation –Maintenance
  • 43. New Approaches •Prototyping –Models shown to end-users for feedback, guidance –Not necessarily faster •End-user development –End-users create information systems using spreadsheets and databases –Not effective for large-scale development •Software packages –Economies of scale in development, enhancement, maintenance
  • 45.
  • 46.
  • 47. – Human Resources – Quality Management – Controlling – CRM – Financial Accounting – Materials Management Sales module may be integrated with:
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  • 51. Production Systems • Objectives –Create production plan –Acquire raw materials –Schedule equipment, facilities, human resources –Design products –Produce appropriate quantities and expected quality level
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  • 54. Human Resources Problems • Maintaining accurate employee information • Job analysis and design • Applicant selection • Compensation • Benefit administration • Training • Governmental reporting
  • 55. Factors Influencing IS Project Success • Number of modifications • Effective communications • Authority for project implementation • Business management • Ability to generate additional funds to cover implementation
  • 56. Factors Causing Information Systems Project Failures • Poor technical methods • Communication failures • Poor leadership • Initial evaluation of project
  • 57.
  • 58.
  • 60. BusinessProcess (Re-) Engineering □Definition: □ “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed” (Hammer and Champy, 2003) □Motivations for re-engineering □ Customer sophistication □ Deregulation □ Increasing competition on global level
  • 61. □ Adjustment of an information system to customers needs □ Standard software solutions does not fit at all □ Enterprises are too different □ Individual adjustments are necessary □ Support of unique business processes are possible □ May results in a competitive advantage □ Very expensive ERP Customizing
  • 62. Re-engineering vs. Customizing □Select commercial ERP and re-engineer business processes to fit the software □ Take advantages of generic business processes (best- practices) □ May disrupt the organization □ Does not support unique business processes □Select commercial ERP and customize ERP software to fit the business processes □ Unique business processes are possible □ Expensive & difficult customization □ Upgrade to newer versions difficult
  • 63. Risks □Technology risks □ How consistent is the current corporate infrastructure with the new technology? □ Inconsistencies such as different databases, operating systems and network management structures increase the risk □Organizational risks □ Business process redesign to fit the package decrease the risk of excessive time and cost investments □ Customization increase project cost and risk □People factors □ If the current skill mix of the IT staff does not include knowledge of application specific ERP packages the organization will incur costs in re- skilling the workforce □Project size □ ERP can be the largest single investment □ The sheer size of these projects (measured in time, staff commitment, budget, scope) poses considerable risk
  • 64. Hidden Costs of ERP  Training  Integration and testing  Data conversion  Data analysis  Consultants  Replacing best and brightest staff after implementation  Implementation teams can never stop  Waiting for ROI  Post-ERP depression
  • 65.
  • 66. ODOO  In 2005, Fabien Pinckaers, the founder and current CEO of Odoo, started to develop his first software product, TinyERP .  three years later The name was changed to OpenERP  focus on building a strong partner network and maintenance offers
  • 67. ODOO  in 2013 it won a Deloitte award for being that fastest growing company in Belgium, with 1549% growth over a five-year period  In May 2014, the company was renamed Odoo, a name that has no restrictions and can allow the company to grow in whichever direction  in 2015, Odoo was named one of the fastest growing companies in Europe
  • 68. Source code model:  Odoo have released software as Open Source but starting with the V9.0 release, the company has transitioned to an open core model which provides subscription-based proprietary Enterprise software and cloud-hosted Software as a service  Odoo has been used as a component of university courses
  • 69. Software & architecture  Odoo uses Python scripting and PostgreSQL database. The software is accessed via a web browser in a one page app developed in JavaScript.
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  • 71. □Mary Sumner, Enterprise Resource Planning, 2005 Pearson Eduction Rs :
  • 72. Thanks for your attention.