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Enterprise Resource Planning
• Serves as a cross-functional enterprise backbone that integrates & automates many internal business processes and information systems • All functional departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, logistics, and Information Technology, this would include accounting, human resources, marketing, and strategic management. • Helps companies gain the efficiency, agility, & responsiveness needed to succeed today
Enterprise Resource Planning…
• Gives a company an integrated real-time view of its core business processes • ERP software suites typically consist of integrated modules of…
– – – – – Manufacturing Distribution Sales Accounting Human Resource Management
Enterprise Resource Planning…
• What it does:
– Attempts to integrate all data and processes of an organization into a unified system. – A typical ERP system will use multiple components of computer software and hardware to achieve the integration. – A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.
• Definition of an ERP system – ERP or Enterprise Resource Planning systems are software systems for businesses management encompassing modules supporting functional areas such as sales and marketing. inventory management. distribution accounting. . project management. transportation and e-business etc. production. maintenance. human resource management. finance.
Enterprise Resource Planning… • Benefits – Quality and efficiency • Helps improve the quality and efficiency of customer service. and IT support staff . & distribution by creating a framework for integrating and improving internal business processes – Decreased Costs • Reductions in transaction processing costs and hardware. production. software.
Enterprise Resource Planning… – Decision support • Provides cross-functional information on business performance to assist managers in making better decisions – Enterprise agility • Results in more flexible organizational structures. and work roles • Challenges – Costs of ERP • The costs and risks of failure in implementing a new ERP system are substantial. . managerial responsibilities.
Enterprise Resource Planning… .
Enterprise Resource Planning… • Causes of ERP failures – Underestimating the complexity of the planning. and training required – Failure to involve affected employees in the planning & development phases and change management programs – Trying to do too much. too fast – Insufficient training – Believing everything the software vendors and/or consultants say . development.
Enterprise Resource Planning… • Trends – Flexible ERP – Web-enabled ERP – Interenterprise ERP – E-Business Suites .
Traditional View of Information Systems • Within the business: – There are functions. each having its uses of information systems • Outside the organization’s boundaries: – There are customers and vendors – Functions tend to work in isolation .
Functions Of Enterprise Sales Human resources Engineering Design Inventory Enterprise Production Planning Finance Quality legal Maintenance Controlling .
Enterprise Systems .
ERP systems provide current status only. 3. Managers often need to look past status to find trends and patterns that aid better decisionmaking.Managers cannot generate custom reports or queries without the help from a programmer and this inhibits them from obtaining information quickly. which is essential for making a competitive advantage. such as open orders. .Limitations of the ERP System 1.The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence. 2.
500.000 users in over 50 countries n An average of 25% of revenue invested in R&D . Germany n 4th largest software supplier in the world n Revenues over $5 billion in 1998 n SAP growing over 40% a year n 18.000 installations at 6.SAP .000 companies with more than 2.The Company • • • • • • • • • • Founded in 1972 in Waldorf.330 employees worldwide (9/98) n 1997 market share was 31% of the worldwide client/server enterprise application software n Over 9.
SAP .The Product .
automatic posting. document matching. document blocking. user locks. release strategy • SAP Work Flow • Application Security – Access definitions.SAP . tolerances.Control Features • SAP standard delivered automated enablers – Document balancing. ABAP Query. match codes. • SAP configurable enablers – Credit checking. transaction locks. change documents. Report Writer . system parameters • Reports – ABAP. database integrity.
000 employees worldwide 2.900 clients worldwide 1997 market share was 8.4% of total ERP software license market • International growth and expansion will be focus through 2000 .The Company • • • • • • Revenues over $1.PeopleSoft .3 billion in 1998 2nd largest ERP supplier in the world Growing over 60% a year 7.
Time & Labor • Accounting and Control – General Ledger. Cash Management • • • • • • • Treasury Management Materials Management Supply Chain Planning Service Revenue Management Procurement Enterprise Performance Management Project Management . Budgets. Receivables. Asset Management. Expenses. Projects. Pension Administration. Payables. Benefits. Human Resources.The Product • HRMS – Payroll.PeopleSoft .
trial mode vs.PeopleSoft . statistical auditing.Control Features • PeopleSoft delivered automated enablers – Document balancing. preferences • Reports – Query. workflow approvals. row level security. control data. audit trails. final mode. edits and validations • PeopleSoft configurable enablers – Required fields. PS/nVision. positive pay banking • Application Security – Menu/panel security. field security. workflow security. SQR . correction access.
Oracle .The Company • • • • Founded in 1977 2nd largest software supplier in the world Revenues over $8 billion in 1998 41.000 U. .not just applications business • More than 6. – Reflects total company .000 employees worldwide.000 customers in 76 countries • 1997 ERP market share was 8. significantly less than its rivals. 16.3% of total ERP license revenue – 50% of applications revenue comes from services • Oracle’s applications license revenue is growing at 18% a year.S.
Analyzer) Analysis Consolidation Expenditure Management Billing and Cash Collection Cash Management Asset Management Strategic Procurement Non-production Procurement Strategic Souring Catalogue Management • Supply Chain .The Product • Financials – – – – – – – – – – – Planning (G/L.Oracle .
The Product… • Projects – – – – Costing Billing Time and Expense Activity Management Gateway • Human Resources • Materials Management – Inventory – Purchasing • Manufacturing – – – – – – Factory & Item Definition Planning & Simulation Materials Management Production Cost Management Integrated Technologies .Oracle .
Oracle .Control Features • Oracle standard delivered automated application enablers • Oracle standard delivered configurable enablers • Oracle “Work Flow” configurable enablers • Oracle “Alert” configurable enablers • Application Security • Reports – standard delivered – newly developed .
98 • • • • Revenues over $684 million in 1997 3.The Company • Founded in 1978 in the Netherlands • 5.500 employees worldwide – Announced 20% headcount reduction in Oct.Baan .000 clients in 5.000 sites worldwide 1997 ERP market share was 5% Sales strategy changed in 1997 to drive 50% of sales through channels and value-added resellers .
The Product • BaanERP – – – – – – Sales order management Procurement Inventory Warehousing Project Management Manufacturing • • • • • • • BaanFrontOffice Sales Management Marketing Management Call Center Product Configuration BaanMaintenance BaanService .Baan .
The Product… • BaanCorporateOffice – Accounting – Finance – Human Resource Management • BaanSCS – Supply Chain Management – Demand Forecasting – Manufacturing Execution • BaanDEMse • BaanEngineering • Baan-On-Board .Baan .
Market Outlook • 1997 worldwide enterprise applications market grew at 20.4 billion (licenses and maintenance) • Top 10 ERP vendors growth rate was 32.9% collectively and they have a > 40% share of the total market • ERP industry remains healthy and growth rate projections are 30-33% annually for the next 3-5 years • This represents a decline from the 60-100% growth rates some vendors have experienced in the past few years .2% to $14.
Top 10 ERP Vendors • • • • • • • • • SAP PeopleSoft Oracle Computer Associates Baan J. D. Edwards System Software Associates Geac Computer Corp. IBM JBA Holdings .
Zope.. MySQL GPL GPL GPL/Commerci al GPL Dolibarr ERP/CRM for SME. India. Argentina. Belgium. France. PostGreSQL Java PHP. Spain. MySQL. Brazil.. MySQL. Germany. PostgreSQL Python. freelancers or foundations based on unified model US. Japan Sénégal ERP5 GPL .ERP Vendors ERP Package Language Base License Other Info started as a fork of Compiere Developer Country Spain Adempiere BlueErp Compiere Java PHP. France.
0 businesses .ERP Vendors ERP Package Language Base License Other Info Developer Country India Fedena Ruby ERP for Apache License Schools/Univer sities GPLv3 AGPL LGPL ERP for small and medium businesses GNU Enterprise Python HeliumV JFire Kuali Foundation LedgerSMB OFBiz Java Java Austria. Java GPL ERP for small Apache License and medium 2. Germany Java Perl Apache.
ERP Vendors ERP Package Language Base Perl. PostgreSQL Python PHP. MySQL License Other Info Developer Country SQL-Ledger Tryton WebERP GPL GPLv3 GPLv2 started as a fork of OpenERP LAMP based system .
Proprietary ERP software • 1C:Enterprise from 1C Company • 24SevenOffice Start.Smart Business Suite . Professional and Custom from 24SevenOffice • abas ERP from ABAS Software • Accpac from The Sage Group • Acumatica from Acumatica • Agresso Business World from Unit 4 Agresso • AMS Advantage from CGI Group (formerly American Management Systems) • BatchMaster ERP from BatchMaster Software • CGram Enterprise from CGram Software • Clear Enterprise from Clear Objective • COA Solutions Ltd . Premium.
Enterprise) from Infor Global Solutions .Proprietary ERP software… • • • • • • • • • • • • • Comarch Altum from Comarch Compass ERP from Transtek Compiere professional edition Comprehensive Patient Administrator EFACS from Exel Computer Systems Epicor Enterprise from Epicor ERP Adage (aka Adage) from Infor Global Solutions ERP FACTS (aka FACTS) from Infor Global Solutions ERP LN (aka Baan ERP) from Infor Global Solutions ERP LX (aka BPCS) from Infor Global Solutions ERP SL (aka SyteLine) from Infor Global Solutions ERP Swan (aka Swan) from Infor Global Solutions ERP SX.Enterprise (aka SX.
com based on Microsoft Dynamics NAV Kingdee from Kingdee kVASy4 from SIV.AG Lawson M3 from Lawson Software earlier * Movex from Intentia .Proprietary ERP software… • • • • • • • • • • • • • ERP VE (aka Visual Enterprise) Infor Global Solutions ERP XA (aka MAPICS) from Infor Global Solutions Global Shop Solutions One-System ERP Solutions HansaWorld products IFS Applications from Industrial and Financial Systems Intacct Intacct and Intacct Accountant Edition IRIS Exchequer from IRIS Software JD Edwards EnterpriseOne from Oracle JD Edwards World from Oracle JustFoodERP.
Inc. Maximo (MRO) from IBM Microsoft Dynamics AX (formerly Axapta) from Microsoft Microsoft Dynamics GP (formerly Great Plains) from Microsoft Microsoft Dynamics NAV (formerly Navision) from Microsoft Microsoft Dynamics SL (formerly Solomon) from Microsoft Momentum from CGI Group mySAP from SAP MyWorkPLAN from Sescoi NetSuite from NetSuite Inc.Proprietary ERP software… • • • • • • • • • • • • • Lawson S3 from Lawson Software Log-net from LOG-NET. Openda QX from Openda OpenMFG from xTuple .
Applications from Ramco Systems Ramco On Demand ERP from Ramco Systems Rapid Response Manufacturing from ProfitKey International SAGE ERP ACCPAC from The Sage Group SAGE ERP X3 from The Sage Group Sage MAS 90. MAS 200 and Sage MAS 500 from The Sage Group SAGE PFW ERP from The Sage Group .Proprietary ERP software… • • • • • • • • • • • • Oracle e-Business Suite from Oracle PeopleSoft from Oracle Plex Online from Plex Systems QAD Enterprise Applications (formerly MFG/Pro) from QAD Inc Ramco Enterprise Series 4.x from Ramco Systems Ramco e.
Proprietary ERP software… • • • • • • • • • • • SAGE PRO ERP from The Sage Group SAP Business All-in-One from SAP SAP Business ByDesign from SAP SAP Business One from SAP SAP Business Suite from SAP SYSPRO from Syspro TaskHub from Synergix Technologies Technology One from Technology One Visibility.net from Visibility WorkBook Software from WorkBook Software A/S WorkPLAN Enterprise from Sescoi .
25 7.38 17.33 21.Vendors of popular E Market share 2005 according to Gartner Dataquest # 1 2 3 4 5 Vendor SAP Oracle Applications The Sage Group Microsoft Dynamics SSA Global Technologies Revenue (million $) 1949 1374 1121 916 464 Market share (%) 30.44 14.22 .
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