What is ERP System

Presented to : Dr. Mahmoud Youssef

Presented By : Omar Khaled
Wael Omar
Sherif Aly
Ismail Shanab
Sherif Abdallah

FEB-2010 Management information System: ERP Page 1

Overview

A- Introduction
B- What is ERP System
C- SPIRIDON implementation – Siemens Egypt
1- What is Spiridon
2- Project Plan
3- Change Why, What & How
4- Change Lifecycle
5- Benefits

FEB-2010 Management information System: ERP Page 2

Introduction

The initials ERP originated as an extension of MRP (Material Requirements Planning; later
(manufacturing resource planning) and CIM (Computer Integrated Manufacturing). It was
introduced by research and analysis firm Gartner in 1990. ERP systems now attempt to
cover all core functions of an enterprise, regardless of the organization's business or
charter. These systems can now be found in non-manufacturing businesses, non-profit
organizations and governments.

ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem
(real or imagined) in their "legacy" systems. Many companies took this opportunity to
replace such information systems with ERP systems. This rapid growth in sales was
followed by a slump in 1999, at which time most companies had already implemented their
Y2K solution.

ERP II, a term coined in the early 2000s, is often used to describe what would be the next
generation of ERP software. This new generation of software is web-based and allows both
employees and external resources (such as suppliers and customers) real-time access to
the system's data.
EAS — Enterprise Application Suite is a new name for formerly developed ERP systems
which include (almost) all segments of business using ordinary Internet browsers as thin
clients.
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Introduction

Best practices are incorporated into most ERP vendor's software packages. When
implementing an ERP system, organizations can choose between customizing the
software or modifying their business processes to the "best practice" function delivered in
the "out-of-the-box" version of the software.

Prior to ERP, software was developed to fit individual processes of an individual business.
Due to the complexities of most ERP systems and the negative consequences of a failed
ERP implementation, most vendors have included "Best Practices" into their software.
These "Best Practices" are what the Vendor deems as the most efficient way to carry out a
particular business process in an Integrated Enterprise-Wide system. A study conducted
by University of Applied Science surveyed 192 companies and concluded that companies
which implemented industry best practices decreased mission-critical project tasks such
as configuration, documentation, testing and training. In addition, the use of best practices
reduced over risk by 71% when compared to other software implementations.

The use of best practices can make complying with requirements such as IFRS, Sarbanes
Oxley, easier.

FEB-2010 Management information System: ERP Page 4

Overview

A- Introduction
B- What is ERP System
C- SPIRIDON implementation – Siemens Egypt
1- What is Spiridon
2- Project Plan
3- Change Why, What & How
4- Change Lifecycle
5- Benefits

FEB-2010 Management information System: ERP Page 5

What is ERP ?
Enterprise Resource Planning (ERP) is a business management system that integrates all facets
of the business, including planning, manufacturing, sales and marketing. ERP systems are
originated to serve the information needs of manufacturing companies. Over time though, they
have grown to serve other industries, including financial services, customer good sector, supplier
chain management and human resource sector. With this growth, ERP systems, which first ran
on mainframes before migrating to client or server systems, are now migrating to the Web and
include numerous applications. ERP is a product that helps automate a company's business
process by employing an integrated user interface, an integrated data set, and an integrated code
set.

ERP business software integrates the information used by an organization's many different
departmental functions into an unified computer system. It is designed to model and automate
many of the basic processes of a business organization, from finance to the manufacturing
management, with a goal of integrating information across the company and eliminating complex,
expensive links between computer systems that were never meant to 'talk' to each other. It uses
web as a platform to bring customers, vendors, suppliers, manufacturers and employees
together.

To be considered an ERP system, a software package must provide the function of at least two
systems. For example, a software package that provides both payroll and accounting functions
could technically be considered an ERP software package.
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What is ERP ?
Examples of modules in an ERP which formerly would have been stand-alone applications include:
Product lifecycle management, Supply chain management (e.g. Purchasing, Manufacturing and
Distribution), Warehouse Management, Customer Relationship Management (CRM), Sales Order
Processing, Online Sales, Financials, Human Resources, and Decision Support System.[citation
needed
Ideally, ERP delivers a single database that contains all data for the various software modules that
typically address areas such as:
Manufacturing 
Engineering, bills of material, scheduling, capacity, workflow management, quality control, cost
management, manufacturing process, manufacturing projects, manufacturing flow
Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning,
supplier scheduling, inspection of goods, claim processing, commission calculation
Financials 
General ledger, cash management, accounts payable, accounts receivable, fixed assets
Project management 
Costing, billing, time and expense, performance units.
Human resources 
Human resources, payroll, training, time and attendance.

FEB-2010 Management information System: ERP Page 7

Overview

A- Introduction
B- What is ERP System
C- SPIRIDON implementation – Siemens Egypt
1- What is Spiridon
2- Project Plan
3- Change Why, What & How
4- Change Lifecycle
5- Benefits

FEB-2010 Management information System: ERP Page 8

What is Spiridon ?
SAP is a multinational software development and consulting corporation, which provides enterprise
software applications and support to businesses of all sizes globally.
Started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's
third-largest independent software vendor. The original name for SAP was German: Systeme,
Anwendungen, Produkte. It means "Systems Applications and Products." The goal of the company
was to provide large enterprise customers with the ability to interact with a corporate database in
real-time. Today, the company states that its goal is "to offer the industry's most comprehensive
portfolio of business performance and optimization solutions for companies of all sizes."

Spiridon is a global program for harmonizing processes in the Siemens Local Companies supported
by a highly integrated IT platform on the basis of SAP ERP standard software.
Standardization of processes and information structures across all operating units, countries and
business systems ensure vertical optimization and horizontal integration, enabling Siemens to take
advantage of internal synergies more quickly and minimize its global IT costs.
Siemens was quick to recognize the challenges and opportunities provided by globalization. The
company, which is active in many different markets in more than 190 countries, aims to pool its
services and skills in all sectors and regions and combine them into successful,profitable and
innovative solutions
The success of Spiridon proven methodology for program delivery has become an area of interest
and model for other listed companies in automotive,energy, food and mechanical engineering.

FEB-2010 Management information System: ERP Page 9

Project Plan

122 Days to Go
Week 1 Week 2 Week 3 Week 4

3 4 5 8 11 13 14 15 19 26 28
Project
April Initial Workshop
Preparation
PU
May
Training
PU
June
Training
Process
July
Workshop
Integration
August
Test
Test Data
September
Migration
Data Migration End-user
October
Training

November GO
GOLIVE
LIVE

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Change Why & What
Why?
Ensure company and staff are ready for changes in the work style
Implementation of a standardized process or ERP solution i.e. Spiridon which
is used widely in ME region.
Common platform for all Divisions for daily business to improve quality, flexibility,
integrated process and reduced processing cost
- WHAT?
Work Profile/Job Description (Addition/Deletion )
Work Flow/Process Documentation (Revision)
Signature Regulation
Organizational Structure

* Signature Regulation: To ensure that the companies signature regulations are met when using
the new SPIRIDON system different methods have to be used:
Physical Procedures
Vouchers, Forms and Stamps
System Authorizations

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Change How
- How?
Communication method

 Awareness program
 Educate staff about what is coming

 Seminar/Workshop for focus group

 Newsletter (Involvement of Cluster MEA Communication Team)

 General information about SAP and SPIRIDON

 Intranet - information on SPIRIDON in the intranet

 Access to Share point

 Available to Project Team and Power Users
 Information on complete project structure, plan, etc
 Documentation on Spiridon

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Change Lifecycle

Dynamics
Dynamicsof
ofChange
Changeover
overtime
time

Awareness
Awareness Questioning
Questioning Acceptance
Acceptance Sustaining
Sustaining

Change Lifecycle

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Awareness Phase

The awareness phase is the period people recognize that the change is
going to occur.
R
e • Unclear on scope, rationale, and nature of change
s
p • Unrealistic expectations
o
n • Rumors
s
e • Seeking information

T
a
• Ensure compelling business reasons are clear to all
c
t
employees
i
c
• Set expectations and begin preparing people to change
s

T
• Change announcement
o
o
• Project vision/desired state document
l
s

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Questioning Phase

The questioning phase is the period people begin to assess whether the
benefits of the change outweigh the struggle of the transition.

R
e
• Realization of the effort and complexity
s
p
• Uncertainty and confusion
o • Fear of the unknown
n
s • Concern over personal impact
e

T
a
• Clearly define the change
c • Communicate personal impact
t
i • Allow for 2-way communication opportunities
c
s

T
• Communications - E-Mail, Newsletter, Other
o • Question and answer sessions
o
l • Focus group, workshops
s

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Acceptance Phase

The acceptance phase is the period in which the people are beginning to
support the change by experimenting with the new technology.

R
e • Recognition of personal benefits
s
p • Value to the organization is understood
o
n • Comfort achieved
s
e • Willing to use the technology

T
a
• Influence people to try to accept the new way of doing things
c
t
• Emphasize benefits
i
c
• Develop skill required
s

T
• Performance measures
o
o
• Training
l
s
• Progress reporting

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Sustaining Phase

The sustaining phase is the period in which people have effectively

adapted to the change and are working efficiently with the new
technology.

R
e
• Change internalized
s
p
• Supporting behaviors demonstrated
o
n
• Improved performance
s
e

T
• Reinforce the desired behavior in the changed organization
a
c
• Promote the internal rationalization of new behaviors to
t
i establish new culture
c
s
• To encourage sustained acceptance and internalization of
the new culture
T
• Rewards and recognition
o
o
• Progress reports
l
s
• Performance measures
• Success stories

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Benefits
Benefits
 People clearly understand the vision, and the
role of the change in achieving that vision
Result
 Resistance to change is proactively managed
 Performance levels are maintained during the
transition period, and significantly enhanced after
the transition period
Successful
 People understand the change activities that are Implementation
underway, and have realistic expectations of the of ERP system
impact of those changes
 The change initiative gains momentum
throughout all levels in the organization
 The business benefits of the change initiative are
realized
 Less System maintenance work
 Consistent Standard and Control
 Cost & time savings

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 Thank for Listening . . . .

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