ERP Systems-2

Enterprise Resource Planing (ERP)--2

ERP Risks
• Technical Risk (Easy to fix)
o Result of IT
• Business Risk
o Result of methodologies, and processes related to ERP implementation
o Cohesion of process through the supply chain
• Organizational Risks (Hard to fix)
o Result of environment - organizational structure

ERP Trends and Future
• Outsourcing
• Extended enterprise system
• Data warehousing
• Business Intelligence
• CRM

ERP Outsourcing

• IDC Study : Business process outsourcing is 60% of all outsourcing worldwide

Data Warehousing

• A vital enterprise technology that is revolutionizing the way companies are
accessing information and using it to create data storage
• Data warehouse is a subject oriented database, designed specifically for decision support
• Data mart a subject specific data warehouse often departmental
• On-line Analytical processing (OLAP) - Multi dimensional analytical tools for
accessing storing and manipulating decision support and EIS - style information
• Data mining - knowledge discovery process of extracting previously stored data

Data warehouse and the Web
• Benefits
o less expensive
o universal interface
o less administration
o portable code
• Disadvantages
o stateless/sessionless

CRM
Today the important business issues or opportunities within the organization are, its customers and its competitive landscape Looking at that many organizations have decided that a Customer Relationship Management (CRM) initiative will enable you to tackle them. Though you know that CRM is a strategic initiative that extends far beyond the technical solution, you are also aware that technology is an instrumental driver of your final success. Organizations can leverage the CRM –ERP integration to the enhancement of operational effectiveness. By linking front office, customer-facing systems (CRM) with back-office systems (ERP, HRM, SCM), organizations can build an infrastructure that enables streamlined business processes, which in turn will lead to operational effectiveness enhancement.
In our next part we will talk about Workflow management.

ERP Systems--1

Enterprise Resource Planning (ERP)--1

Some organizations - typically those with sufficient in-house IT skills to integrate multiple software products - choose to implement only portions of an ERP system and develop an external interface to other ERP or stand-alone systems for their other application needs. How does a organization get to this stage. The stage of implementing full ERP system.
How ERP became part of business life over a period of time?

New World Disorder

• Standards change or became irrelevant very quickly
• Rules are set by consensus
• Speed is the only sustainable competitive advantage
• You will compete with your partners
• Surprise! Technology is driving business again!
• Networks will make platforms almost indistinguishable
• The web is becoming business platform

IT and Business

• Focus of the 80s automate IT as a substitute to processes and tasks
• Late 80s - Integration to increase effectiveness between applications - when IT augments, it informations!
• Focus of the 90s - Realized that IT alone cannot provide sustained competitive advantage - need outstanding execution of business process.
• Focus of the New Millennium - Best business practices are required to be competitive. CRM and Inter organizational process are new focus.
In next part we will look at ERP Risks, ERP Trends & Future, and Workflow Management.