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ERP Implementation

ERP Implementation. O6PLM Gladys Natalia – 1501165476 Kevin Lisay – 1501147113 Rendy Winarta – 1501149226 Stefani Trifosa – 1501158893 Steven Ekaputranto - 1501148362. Background.

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ERP Implementation

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  1. ERP Implementation O6PLM Gladys Natalia – 1501165476 Kevin Lisay – 1501147113 RendyWinarta – 1501149226 Stefani Trifosa – 1501158893 Steven Ekaputranto - 1501148362

  2. Background Enterprise resource planning (ERP) system solutions are currently in high demand by both manufacturing and service organizations because they provide a tightly integrated solution to an organization’s information system needs. During the last decade, ERP systems have received a significant amount of attention from researchers and practitioners from a variety of functional disciplines. ERP is now considered to be the price of entry for running a business, and at least at present, for being connected to other enterprises in a network economy to create “business to business” electronic commerce. Furthermore, many multinationals restrict their business to only those companies that operate the same ERP software as the multinational firm. This paper will discuss about advantages and disadvantages of ERP, ERP tools, kind of industry that applied ERP, effectiveness of ERP and does ERP increase profit or not.

  3. Scope • Advantages and disadvantages of Enterprise Resource Planning. • What kind of industry that have Enterprise Resource Planning application? • Enterprise Resource Planning tool explanation. • The effectiveness of using Enterprise Resource Planning. • Do the Enterprise Resource Planning increase profit?

  4. Advantages and disadvantages of Enterprise Resource Planning.

  5. Advantages of Enterprise Resource Planning. • Visibility • Automatic workflow • Reporting • Same Software • Business Intelligence • E-Commerce integration • Various modules • Modular Software • Centralized software/backup • Secure • Collaboration • Integration to other system • Easy tracking & Forecasting • Manage enterprise

  6. Disadvantages of Enterprise Resource Planning. • Cost • Time • User participation • Additional Indirect Cost • Customization • Migration • Decentralized Organizations • Single Vendor Lock-in • Evaluation

  7. What kind of industry that have Enterprise Resource Planning application?

  8. Wholesale For wholesale organizations like Wine.com, Red Hare, Lionel, Siracom, etc, ERP helps in sales, cut costs, leverage market opportunity, boost customer relationship. • Retail Magellan GPS, Guitar Center Pro, Igloo, Aflloral.com has all chose ERP and managed to triple its productivity, reduce IT costs, serves more customers, helps its growth, etc. • Manufacturing Go Pro and Anisa International are two different companies that uses ERP. Both receives helps in growth after implementation. • Service Path and Adtegrity had both growth and efficiency for their ERP implementation. • Software For software maker like Siemens, Solar Winds, Software AG, ERP helps to cut admin costs, help its growth, helps planning, and even triple profit margin with process automation. • Nonprofit BDO Solutions have helped a lot of non profit organizations, implementing ERP and help tighten up their budgets and spending as well as improve their operation.

  9. ERP TOOLS / SAP • http://www.youtube.com/watch?v=GX_s_eEA5ZY

  10. SAP SAP is beautifully and neatly integrated ERP software. SAP is a leader when it comes to easy integration among all the departments. It provides industry specific solutions for different industries other then its basic SAP modules. SAP suit contains SAP FI, CO, SD, MM, PP, HR, PA and other modules. It also comes with SAP PS,FSCM, CRM and BO/BI modules. Although it will be client's decision whether they want to buy all modules or some specific modules. SAP comes with some industry specific solutions as well such as Insurance, Security, Apparel and Footwear (AFS) etc.

  11. SAP Modules

  12. The effectiveness of using Enterprise Resource Planning.

  13. Consensus on the need to change Consensus on the need to change is a key factor in helping enterprise navigate their way trough significant change. The more they feel there is a problem with their current system, the easier they will accept the goals of a new and improved system. They will also work harder to reach these goals. • Knowledgeable, experienced, and dedicated staff Having knowledgeable, experienced, and dedicated staff is the second most-mentioned strength to facilitate a successful ERP system implementation. These staff members are the people who are dedicated to the organization and care about its mission and service to people. They are also the ones who will be critically involved in the project and are most often affected directly by the change. • Supportive and aligned leadership Alignment and support from leadership was the third most-mentioned key factors indicated would be helpful when implementing ERP system. Leaders should take responsibility for determining, clarifying, and communicating a consistent message of support for the initiative s well as reinforcing the need. Leadership must also recognize the volume of work involved in implementing the change and impact upon various function of the enterprise. • Technical Capabilities and support For large technology project like implementing ERP system, it is important to have internal technical capabilities, strong technical support, and commitment to technology. Having these capabilities can facilitate the implementation process and the effective transfer of knowledge and necessary skills. If these are not available, hiring a third-party to provide can be advantageous. • Teamwork Teamwork is a critical component for implementing large-scale projects. Teamwork can be built when working on a project, but starting with people who already know each other and work well across functions can help to make a significant change or large project easier and more effective. This knowledge is helpful when putting together project teams who will be assigned specific activities and tasks.

  14. Do the Enterprise Resource Planning increase profit?

  15. Profitable? Yes. While the process of setting up ERP can be complex, the goal for a company who uses this system is none other than to be more productive and efficient. By implementing ERP system, a company can improve its bottom line. If ERP systems are combined with high quality business processes, a company can see a great return on their investment. In order for this to happen the ERP system firstly must be implemented in a conjunction with a Business Process Optimization program. The future state of the system must be well defined as well. When this happen, the goal of the company will be directly connected with the project and business process will be altered in a way that will allow it to be efficient. Once this happens, the software can be correctly utilized and the company will see improvement on their bottom line, leading to its efficiency and more profit.

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