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
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
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
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
47. – Human Resources
– Quality Management
– Controlling
– CRM
– Financial Accounting
– Materials Management
Sales module may be integrated with:
48.
49.
50.
51. Production Systems
• Objectives
–Create production plan
–Acquire raw materials
–Schedule equipment, facilities, human
resources
–Design products
–Produce appropriate quantities and
expected quality level
52.
53.
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
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.