Untitled

• Enterprise Resource Planning is otherwise known as ERP261, and taught at the Belgium Campus iTversity in 2025

The Driver's License Process

• The traffic department implemented an online appointment system to improve the process of obtaining a driver's license
• This is a significant change to their existing method

Business Process Reengineering (BPR)

• Business Process Reengineering was first developed in the 1990s by Michael Hammer, a former MIT professor
• He argued there was a need for a "radical redesign" of business processes to keep up with fast-paced changes in markets and technology
• Mallach defines BPR as a radical redesign, especially when enabled by new technology
• BPR is also known as business process redesign or business transformation

Business Process Reengineering (BPR) Process

• Includes identifying processes, reviewing/updating/analyzing current processes, designing new processes, and implementing the new process
• Business process reengineering helps organizations become more efficient and modernized
• Requires radical redesign to benefit the organization
• Adopting a new ERP system can be seen as a part of BPR

Moving to an ERP System

• A large company that moves to an ERP system is undergoing BPR
• The move involves numerous considerations and comes with risks

Benefits of an ERP System

• Major benefits include seamless service and centralized data that interconnects all departments

Advantages of ERP Systems

• ERP software aims to integrate business processes across departments into a single enterprise-wide information system to reduce operating costs
• ERP simplifies daily tasks, centralizes functions like sales and accounting, facilitating day-to-day management
• ERP systems are flexible to expand and reduce as needed, so existing systems can grow with changes, offering scalability
• ERP systems enable real-time reporting to track performance across finance, manufacturing, customers, etc.
• ERP systems lead to improved customer service through improved coordination of sales and centralization of customer information, which increases sales
• With ERP, historical data from across departments, stored in a single database, can be used for forecasting future demand or profit

ERP Systems and Data

• A major advantage of a single ERP system is the central database, as every module uses the same data
• A central database reduces data redundancy and maximizes data integrity
• With a central database, all departments access the same data
• When a CRM module updates a customer’s address, the SCM will have access to the new address without having to be updated separately

Cost of ERP

• The cost of ERP depends on the business and if open-source packages are available to assist

Costs of Implementing ERP Systems

• Choosing to use only core modules versus adding additional modules, like ordering/warehouse, depends on the business’ needs, and will affect cost
• Hosting an ERP system on existing hardware versus in the cloud will impact costs
• Consulting and training costs to implement the ERP package are important to factor
• Adopting a new ERP system can result in reduced productivity and lost time for at least 6 months, which has an impact
• Additional expenses may occur when troubleshooting errors requiring tech support

Small/Medium Enterprise Considerations

• It is important to know when an SME should switch to using an ERP system
• ERP vendors now provide custom solutions for smaller businesses

When to Upgrade to an ERP System

• You may need an ERP system if you are struggling to meet customer demands
• You may need an ERP system if there is complicated inventory management
• You may need an ERP system if data is disorganized from multiple sources
• You may need an ERP system if there are too many manual processes
• You may need an ERP system if there are software integration issues

Necessity of an ERP System

• An ERP system is not always necessary
• Some parts of a company could prefer to remain separate from the ERP system

Single ERP System vs Multiple Systems (EAI)

• A company can select a single ERP solution, or select separate products
• Oracle and SAP are 2 big vendors that provide a single solution covering all functional areas
• Enterprise Application Integration (EAI) is using separate applications

EAI Advantages

• It can be difficult to select a single enterprise solution or separate systems
• Smaller business might need to start with separate systems and transition to a single solution ERP
• EAI is easy to replace in a system-by-system approach which decreases risk
• With EAI, only one system may freeze
• Maintenance on one system can be done without affecting the others with EAI
• It will be easier to select the best solution available for actual demand

EAI Disadvantages

• EAI can lead to the potential for duplicate data
• EAI requires knowledge of many systems and platforms
• Requires contact and relationship maintenance with many suppliers
• Potentially poor integration between separate systems

ERP Advantages

• All data is available in one system
• There is one supplier to contact
• Online data from all functional areas is always accessible
• Only knowledge on one system or platform needed
• The vendor continuously develops new releases/updates
• You can get support from large suppliers with significant resources and international support

ERP Disadvantages

• ERP may not have the best possible functionality in all areas
• A release update affects the entire system, making it more complex to implement
• It requires significant internal resources from the entire orgnization for implementation

ERP Implementation

• An ERP system affects all stakeholders
• Implementing an ERP system is a crucial undertaking
• An ERP team will likely need to be designated
• Can find problems and mistakes in chapter 1, page 15

Adopting an ERP

• Implementing an ERP has 2 main components: deciding on the software package and the implementation of the system

Selecting ERP Software

• Project preparation and planning involves conduct an analysis of current business processes, gap analysis, weak points, and strengths
• Evaluate the technical integration, as ERP is both a business and technical venture
• It is useful to determine business requirements as process-based needs, dividing into mandatory, value-added, and nice-to-have
• Select a few ERP vendors based on cost, reputation, and experience
• Request demonstrations, remembering to negotiate, from a shortlist of vendors to base the final decision
• There are 5 phases to selecting software

Implementation Steps

• Implementation can be hazardous, as it has significant changes on the enterprise
• It is recommended to start by developing an ERP implementation plan
• There should be a dedicated team and a budget for implementation and software
• Create an implementation schedule for the processes to be affected
• Implementation completion can take between 6 months and 2 years
• The data that is scattered needs to be migrated to the ERP system
• Employees are trained on using the system on a day-to-day basis, which is usually provided by the vendor
• Consider network stability & speed, backup procedures, and feedback from testers
• After launching assess the productivity, if the company is surviving, profit, and human error
• Key is to prepare, schedule, migrate, train, test, and launch

Implementation Methods

• There are multiple moving from an old system to a new system
• An old system is known as a legacy system
• Moving to a new system is challenging
• Recommendations are on BC connect

Project Management: PERT Discussion

• Project management is a key role
• Focus on PERT for ERP Implementation
• PERT looks at various tasks required and predicts completion time
• It takes an optimistic and a pessimistic view of completion time
• PERT stands for Project Evaluation and Review Technique
• Think of what could go wrong during different stages to result in a delay