Understanding ES/ERP in 5 minutes.

BY

BIME FAI

ES

Enterprise system

y This is an extreme powerful tool which provides a

seamless information system to support the various functional business modules of an enterprise. y These are packages of computer applications that support many, even most, aspects of a company s (or a nonprofit organization s, university s, or government agency s) information needs

ERP

Enterprise resource planning

y From accounting to manufacturing, from sales to

service, ES modules support thousands of business activities y Cross functional enterprise backbone y Integration & Automation of business processes y Integrated real-time view of core business processes

MAJOR BENEFITS
y 1. Cycle time reduction. y 2.Faster information transactions y 3. Enhanced security management y 4. Laying the groundwork for electronic business.

y ERP

fig 1

DONT FORGET THIS ATLEAST.!!! LOL

CHALLENGES AND COST

y high cost of implementation y change adamant employees y high complexity of conversion
y The software and hardware spending alone for ESs is well over

$15 billion per year worldwide, and professional services fees add another $10 billion. Revenues for ES vendors have grown between 50 and 100 percent a year. Very large companies, such as Hewlett-Packard, Procter & Gamble, and Intel, speculate that their ES expenditures will easily top $1 billion before they are finished-by T.H. DAVENPORT - 2000 MISSION CRITICAL.

Causes of ES IMPLENTATION FAILURE

y Underestimating complexity y Less Employee Involvement y Conversion

Too much & Too Fast

y Data Conversion & Testing y Training y Overreliance on vendors or consulting firm