This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as a business strategy and set of applications that enables optimization of collaborative operational and financial processes across an enterprise. The document discusses how ERP systems provide seamless integration of information flows, implement standardized best practices, and require customization to organizational needs. Key benefits of ERP include improved information access, process efficiency, and decision making through a single version of the truth across departments. Challenges in ERP implementation relate to the need for change management, technical integration, and vendor dependence.

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Rabbia Irshad(11142)
Qazi Naveed ur Rehman(11090)
Umair Butt (10987)
Mohmmad Salman (L-11264)

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What is an ERP System?
Why implement an ERP system?
How should ERP systems be
implemented?
Conclusion
Questions and Answers

4. Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
“a business strategy and set of industry-domainspecific applications that build customer and
shareholder communities value network system
by enabling and optimizing enterprise and interenterprise collaborative operational and
financial processes”(Source: Gartner’s Research Note SPA-12-0420)

5. 
Historically, companies created “islands of
automation”. A hodge-podge of various
systems that operated or managed various
divergent business processes. Sometimes
these systems were integrated with each
other and sometimes they weren’t.
Sometimes they were loosely interfaced
and sometimes they were more tightly
interfaced.

6. Integration
seamless integration of all the information
flowing through a company – financial and
accounting, human resource information,
supply chain information, and customer
information.

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

8. Best Practices
 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
organisations rebel against the inflexibility of these
imposed business practices.

9. Some Assembly Required
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

10. 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.

11. Interaction
Channels
Analytical
Applications
Business
Applications
Web
Internet
Mobile
Wireless
e-Mail
Call Center
ICM/Telephony
Marketing
Intelligence
Sales
Intelligence
Customer
Intelligence
Call Center
Intelligence
Marketing
Sales
ecommerce
OSS
HR
Installed Base
CRM
Foundation
E-Business
Foundation
Resources
Territories
Assignment Engine
Tasks
Notes
Calendar
1-to-1 Fulfillment
TCA
Escalations
Interaction History
Universal Work Q
Common Data and Object Models, Security, Interfaces, Globalisation
Tech Stack
E-business Platform

12. 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

13. 
Obtain the right mix of people, processes
and technology!!

14. 
People
 Project Structure
 Should be aligned to processes
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Process
 Implementation Process (outlined in detail)
 Adapt your processes to those of the ERP.
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Technology
 Hardware
 Software
 Integrated Systems

15. 1. 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

16. 2. 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

17. 3. Build
 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

18. 4. Transition
 Train users on their specific areas
 Assist in test data compilation and system
testing by users
 Finalise the Live system and captured
opening balances
Challenge : USER RESISTANCE
Understanding and acceptance
data preparation

19. 5. Production
 Official hand holding
 Effectiveness assessment
 Business and Technical Direction
recommendations

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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

21. The organization before ERP ( systems)
Isolated Information: their own systems
Update issues Redundant (jobless)
Inaccurate and different
Different in the different databases
Can’t access information maintained by another department
Can’t make of the entire organization

22. integrates (or integrated set of IT systems) so that employees
can make enterprise wide decisions by viewing enterprise
wide information on all business operations (enterprise wide
information)
Keyword in
ERP is
“enterprise”
ERP systems focus
on
all processes,
departments and
operations for the
entire enterprise

24. 
ERP systems
and correlates the data generating an enterprise
wide view that is consistent and real-time.
involved in sourcing, producing and delivering a
company’s product
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Complete

Real time

Consistent

25. 
Three core components focus on
(accounting/finance, production/materials management and HR)

Extended components typically focus on
and require interactions with customers, suppliers and business partners

Typically
Internet
enabled.
Make sure that
you know what
each component
typically handles.
Skipped details
slides follow

26. 
Accounting and finance component – manages
accounting data and financial processes within
the enterprise with functions such as general
ledger, accounts payable, accounts receivable,
budgeting, and asset management
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Human resource component – tracks employee
information including payroll, benefits,
compensation, performance assessment, and
assumes compliance with the legal requirements
of multiple jurisdictions and tax authorities

27. 
Production and
materials management
component – handles the
various aspects of
production planning and
execution such as
demand forecasting,
production scheduling,
job cost accounting, and
quality control

28. 
Extended ERP components include:
 Business intelligence
▪ Tools to help analyze your business information and better
understand it so that you can better understand the business.
 Customer relationship management
 Supply chain management
 E-business
▪ E-logistics – manages the transportation and storage of
goods
▪ E-procurement – the business-to-business (B2B) purchase
and sale of supplies and services over the Internet

29. 
At the heart of all ERP systems
when a user enters or updates information

31. 1.
2.
Having integrated systems helps that many businesses had
previously started to use (also didn’t have to fix those old legacy
systems)
Integrate financial information and customer order information
3.
Everyone working with the same information and removes
misinformation
4.
Standardize and speed up manufacturing processes, as well as
reduce inventory
5.
ERP addresses the
6.
One of the greatest benefits of an ERP system is
Provides organizations with information that was previously
difficult (if not impossible) to obtain, allowing the organization to
perform more efficiently and effectively.

32. Difficult to
Employees
• Costly in terms of One vendor risks: too costly to Company essentially held
hostage.

33. Microsoft Business
Solutions Great Plains
Dynamics

34. Conclusion
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