Enterprise Resource Planning PDF

Enterprise Resource Planning, 1st Edition by Mary Sumner Planning, Design, and Implementation of Enterprise Resource Planning Systems © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-1  Objective U...

Enterprise Resource Planning, 1st Edition by Mary Sumner Planning, Design, and Implementation of Enterprise Resource Planning Systems © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-1  Objective Understand the information systems development process for enterprise systems, including planning, design, and implementation © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-2 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 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-3 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-4  Traditional Systems Development Life Cycle, continued Automating current system is counter- productive – Inherit old problems and flaws Provides opportunity to re-engineer current system Create logical database design before details are refined Takes too much time Uses a great deal of resources Expensive © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-5  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 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-6 ERP Systems Design Process Phases – Planning – Requirements analysis – Design – Detailed design – Implementation – Maintenance © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-7  Planning and Requirements Phases – Planning Needs assessment Business justification – Tangible and intangible benefits – Requirements analysis Identify business processes to be supported “Best practices” offered by vendors – Models of supported functions Checklist of activities and factors © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-8  Design Phase Re-engineering business processes to fit software – Traditional SDLC defines new business requirements and implements conforming software Re-engineering versus customization – Re-engineering can disrupt organization Changes in workflow, procedures – Customizing Upgrading can be difficult © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-9  Alternative Designs “Vanilla” – Easy to implement Follow vendor prescribed methodology Employ consultants with specialized vendor expertise – Usually on time and on budget implementations Customized – Time and costs increase – Not easily integrated into new version © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-10 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-11 Alternative Designs, continued Maintain legacy systems and add ERP modules – Support specific functions – Cost-effective – Organization doesn’t get full benefit of ERP – Less disruptive – Lacks integration Outsourcing – External vendor operates ASPs provide on time-sharing basis Depends on reliability and stability of vendor © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-12 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-13  Detailed Design Phase Team selects the models, processes, and information to be supported – “Best practices” methodology provides models Select applicable business processes Discard inapplicable processes Those processes that do not match the system will serve as foundation for re-engineering Identify any areas not covered as candidates for customization Interactive prototyping Extensive user involvement © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-14 © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-15  Implementation Phase Implementation – Address configuration issues Data ownership and management Security issues – Migrate data Ensure accuracy – Build interfaces – Documentation review – User training – Reporting – Testing © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-16  Implementation Strategies Big bang – Cutover approach Rapid Requires many resources Small firms can employ Mini big bang – Partial vendor implementation Phased by module – Module-by-module – Good for large projects Phased by site – Location-based implementation © Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner 3-17