University of Economics, Nizwa Administration & Information system

ERP

Enterprise Resource Planning

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Done by: Yaqoub Younis Al-Abri For Dr. john D Haynes

Overview
What is an ERP System? Why we need ERP system? Advantage of ERP system. Disadvantage of ERP system. How should ERP systems be implemented? Examples for ERP system. Conclusion

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What is an ERP System?

a

business strategy and set of industrydomain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes

REF : Gartners Research Note SPA-12-0420)

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What is an ERP System?

According

to ERP.com In a very simple explanation it means a single software system that can administer your entire business, from accounting to manufacturing, with just one piece of software. It is a software system that is designed to manage every area of your business. http://www.erp.com/

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What is an ERP System?

IICE Technologies : "Enterprise Resource Planning (ERP) is an enterprise re-engineering solution that uses new business computing paradigms to integrate IT processes across your company's division and departments".

Ref:http://www.iicetech.com/erpconsulting.htm

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Why we need ERP system?

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Why we need ERP system?

To feel with those need lets think if an employee get alone from his company so, the company must cut 100 OR each month and his salary is 1000 OR. In addition, he get bonus when he work overtime. And he has delay penalties during the month must be deducted from the his salary. Imagine how can the accountant know the salary of this employee ?

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Advantage of ERP system

Information

integration. Design engineering Order tracking. Protection against embezzlement and industrial espionage

Ref: Alexis Leon,ERP Demystified 2nd Edition), 2008.

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Disadvantage Of ERP system

Customization is problematic. Reengineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities ERP can cost more than less integrated and/or less comprehensive solutions. High switching costs associated with ERP can increase the ERP vendor's negotiating power which can result in higher support, maintenance, and upgrade expenses. Overcoming resistance to sharing sensitive information between departments can divert management attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations. Due to ERP's architecture (OLTP On-Line Transaction Processing) , ERP systems are not well suited for production planning and supply chain management (SCM) Ref :http://en.wikipedia.org/wiki/Enterprise_resource_planning

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5 Steps To Successful ERP Implementation Ref:6.

5.Go Live and 4.Training and Evaluatio Testing n 3.Data Collection and Clean-Up 2.Procedure Review 1. Strategic Planning
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1. STRATEGIC PLANNING
Assign a project team from different department. Examine current business processes and information flow. Set objectives. Develop a project plan.

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2. PROCEDURE REVIEW
Review

software capabilities for the project team. And train them about ERP. Identify manual processes. Evaluate which processes that are manual and should be automated with the ERP system. Develop standard operating procedures for every aspect of your business.

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3. DATA COLLECTION & CLEAN-UP

Convert data. Collect new data. Review all data input. Clean-up unneeded data.

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4. TRAINING AND TESTING

Pre-test the database. Verify testing. Train the Trainer. Perform final testing to make sure that the employee and the system work probably .

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5. GO LIVE AND EVALUATION

Develop a final Go-Live Checklist. Evaluate the solution :check if achieve the goals and objectives that were set in the planning stage.

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Examples for ERP software

Microsoft

Dynamics Microsoft Dynamics Microsoft Dynamics Microsoft Dynamics SAP Oracle

GP (Great Plains) Axapta Navision Solomon

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Conclusion:
ERP

is a single software that help the company to administrate its business. It has a lot of advantage and disadvantage. It can be implemented through 5 step:
Strategic Planning

Procedure Review Data Collection and Clean-Up Training and Testing Go Live and Evaluation

Examples

for ERP software

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References :
1. 2. 3. 4.

5.

6.

Gartners Research Note SPA-12-0420) http://www.erp.com/ www.iicetech.com/erpconsulting.htm Alexis Leon,ERP Demystified 2nd Edition), 2008. http://en.wikipedia.org/wiki/Enterprise_resource_ planning Sean W. ODonnell, President, Datacor, 5 Steps To Successful ERP Implementation, 1981.

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