Enterprise software systems concepts implementation experiences
Download
1 / 29

ENTERPRISE SOFTWARE SYSTEMS : Concepts & Implementation Experiences - PowerPoint PPT Presentation


  • 117 Views
  • Uploaded on

ENTERPRISE SOFTWARE SYSTEMS : Concepts & Implementation Experiences. Session in Management Development Programme for Power Grid Corporation Indian Institute of Management, Lucknow December 2003. IN PERSPECTIVE .

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'ENTERPRISE SOFTWARE SYSTEMS : Concepts & Implementation Experiences' - napua


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Enterprise software systems concepts implementation experiences l.jpg

ENTERPRISE SOFTWARE SYSTEMS:Concepts & Implementation Experiences

Session in

Management Development Programme for

Power Grid Corporation

Indian Institute of Management, Lucknow

December 2003


In perspective l.jpg
IN PERSPECTIVE ...

  • “There is nothing more dangerous nor doubtful of success than implementation of a new system.”

    • Paraphrased from Machiavelli

  • “Computers make it easier to do a lot of things, but most of the things they make easier to do may not need to be done.”

    • Andrew Rooney, Journalist

  • “Technology is dominated by two types of people: those who understand what they don't manage, and those who manage what they don't understand.”

    • Putt's Law


Information technology s roles in value chain management l.jpg
INFORMATION TECHNOLOGY'S ROLES IN VALUE CHAIN MANAGEMENT

  • Data Capture

  • Data Transmission

  • Data Organization & Display

  • Transaction & Business Process Execution

  • Planning & Decision Support

  • Creating New Business Models


Slide4 l.jpg

Enterprise IT Applications

Enterprise Resource Planning

Supply Chain Planning

E Commerce

E Commerce

Customer Relationship Management

Logistics/Supply Chain Execution

CIM

Engg & Design


Enterprise resource planning l.jpg
ENTERPRISE RESOURCE PLANNING

  • A Short Definition

    • Software solutions for integrating and dynamically managing all the enterprise processes, functions and resources


Enterprise software anatomy l.jpg
ENTERPRISE SOFTWARE ANATOMY

W

O

R

K

S

&

B

A

C

K

O

F

F

I

C

E

F

R

O

N

T

O

F

F

I

C

E

C

U

S

T

O

M

E

R

E

N

D

S

U

P

P

L

I

E

R

E

N

D

Finance &

Accounts

Reporting

Applications

Sales &

Delivery

Central

Database

Operations/

Manu-

facturing

Service

Supply &

Inventory

Human

Resource

Mgmt.


Enterprise resource planning contd l.jpg
Enterprise Resource Planning (Contd)

  • More Specifically,

    • Integrated suites of business application software

    • Automate business functions (e.g. Manufacturing, Finance) and processes (e.g. Order Fulfillment)

    • Assist in planning, executing, coordinating, and monitoring entire enterprise

    • Keep track of transactions (computerized records of events), e.g., receipt of material or issue of a work order

    • Serve as data source/ backbone for other IT solutions (e.g., Supply Chain Management software)

    • Promise common database, application and user interface across the entire enterprise


Order management in erp l.jpg
ORDER MANAGEMENT IN ERP

For processing & fulfillment of customer orders through the enterprise

Sample Order Flow Process

Proposal

Promising

Commercials

Configure

Delivery

Billing

Collection

ERP Modules Involved

Sales &

Delivery

Production

Planning

Sales &

Delivery

Production

Planning

Sales &

Delivery

Sales &

Delivery

Financials

Materials

Management

Financials

Financials


Why erp ceos perspective l.jpg
WHY ERP: CEOs’ PERSPECTIVE

  • Improve information availability & accuracy (67%)

  • Improve management decision making (61%)

  • Reduce cost/ improve efficiency (51%)

  • Upgrade technology (38%)

  • Resolve a tactical issue e.g. Y2K (31%)

  • Grow Revenue (24%)

  • Not done it yet (15%)

  • Other (4%)


Why not erp l.jpg
WHY NOT ERP ?

  • Inflexibility to incorporate business peculiarities

  • Capabilities may be inferior to "best of breed"

  • Impose "Command and Control" structure

  • Difficult to "tinker" around, may even be discouraged

  • Expensive, and difficult to assess monetary payback

  • Long implementation periods

  • Availability of skilled personnel and support could be an issue


Erp installation costs l.jpg
ERP INSTALLATION COSTS

  • Major elements (with purely indicative ranges):

    • Computer hardware & infrastructure (15-20%)

    • Computer Software (10-15%)

    • Consulting Services (10-40%), depends on internal expertise

    • Internal implementation costs (15-50%), varies as above

    • Internal disruption costs (10-15%), through wasted time, business losses, delays etc.

  • Altogether may run into crores for large company-wide deployment



Early erp s in india some reports l.jpg
EARLY ERP’s IN INDIA:SOME REPORTS

  • Average implementation cost overrun ~ 178%

  • Average schedule overrun ~ 230% of original expectation

  • 55% of ERP implementation overrun on every sphere

  • The packages cost like hell, take ages to implement and at the end of the day deliver little.

    (Adapted from a Gartner group study, 2001)


The erp scenario now l.jpg
THE ERP SCENARIO NOW

  • More success stories, e.g.:

    • BPCL’s SAP R/3 implementation has resulted in annual savings of 40 crores (claimed)

    • Fosters India brought down inventory from 20 days to less than a week with QAD MFG/PRO etc.

  • Emergence of consultants implementing third party vendor solutions

  • Growth of e-business in India with ERP incorporating SCM and CRM


Enterprise software in india l.jpg
ENTERPRISE SOFTWARE IN INDIA

  • COMPANY L

    • Early adopter of IT as well as ERP

    • Low-end Mfg-Pro software

    • Strong Sales & Distribution capabilities

    • Less expensive to buy and implement

    • Fast implementation

    • Extensive Customisation, esp. Excise and Indian peculiarities

    • Hard-core Manufacturing (e.g. MRP) under-implemented

    • Now implementing Supply Chain Planning software


Enterprise software in india16 l.jpg
ENTERPRISE SOFTWARE IN INDIA ..

  • CONTINENTAL PAINTS

    • Good homegrown ERP-like legacy software

    • Complex Supply Chain structure and decision-making

    • First adopted SCM software from i2 (first in India)

    • Implemented module by module, claimed complete in 6 months

    • Faster implementation and quicker payoffs than ERP

    • Later adopted SAP as well


Enterprise software in india17 l.jpg
ENTERPRISE SOFTWARE IN INDIA ..

  • NATIONAL AUTOMOBILE COMPANY

    • IT-pushed MAPICS software in 1988 - only 10% utilised

    • Major BPR effort in early-mid 1990's

    • Changed to user driven team initiative

    • Massive computer literacy drive

    • SAP chosen and India version developed here

    • Five modules implemented in 3-phase approach

    • Much process adaptation, configuration, and add-ons

    • Several benefits in aggregate, but not appropriate to isolate benefits of ERP and BPR


Enterprise software perils l.jpg
ENTERPRISE SOFTWARE PERILS

  • HANUMAN INDUSTRIES

    • Delphi ERP package in 1997-98

    • Strong IT group, several legacy features better than ERP

    • At end of training, only 4 out of 40 persons trained on the software remained in the company

    • Software still unused ("yet to be implemented")

    • IT Head in-charge of project, left after a year and presently reported to be Delphi consultant in US


Enterprise software in india19 l.jpg
ENTERPRISE SOFTWARE IN INDIA ..

  • GODREJ TELECOM

    • Mid-sized company, live on Baan in 122 days

    • Motivation: bottlenecks posed by stand-alone software, and change to Make-to-Order scenario

    • Foundation for Supply Chain Management & E-Business

    • HR Manager as Team Leader

    • Full-time team

    • No formal BPR, processes mapped to software models

    • Multi-level training and benefits explanation

    • ISO 9001 helped to create process orientation

    • Sacrosanct deadline

    • Total employee involvement, including CEO




Enterprise software perils23 l.jpg
ENTERPRISE SOFTWARE PERILS ...

  • DELL COMPUTERS

    • Began SAP in 1994, abandoned in 1996

    • Business model changed from worldwide to segmented regional focus

    • SAP too monolithic to alter to business needs

    • Later, chose i2 for Materials Management, Oracle for Order Management, Glovia for Manufacturing

    • Implemented one piece at a time, each delivering quicker value than one huge ERP system


Enterprise software perils24 l.jpg
ENTERPRISE SOFTWARE PERILS ...

  • FOXMEYER DRUG, USA

    • Filed for bankruptcy in 1996, citing failed ERP implementation

    • Claimed that system crippled the business - messed up orders and could handle max. 10,000 orders per night (manual system could apparently do up to 420,000)

    • Blamed SAP and Andersen Consulting, who allegedly claimed annual savings of $50 million

    • Dismissed as "preposterous" by SAP and Andersen


Enterprise software perils25 l.jpg
ENTERPRISE SOFTWARE PERILS ...

  • ANOMYMOUS (from Wall Street Journal)

    • Project more challenging than beneficial

    • Considering human factors, functionality gaps, and costs incurred

    • Short in Systems and Process expertise

    • Under-estimated amount of business change required for implementation

    • Environment ill-defined for ERP


The value chain l.jpg
THE VALUE CHAIN

  • Business is about creating value through products/ services

  • The process of creating these products/ services is the Value Chain

  • A collection of primary and supporting activities that result in customer and/ or business value


Value chain perspectives l.jpg
VALUE CHAIN PERSPECTIVES

Supply Chain View

Supplier

Manu-

facturer

Distri-

butor

Retailer

Customer

Order Flow View

Order

Design

Procure-

ment

Manu-

facturing

Delivery/

Service

Factory Material Flow View

Recei-

ving

Storage

Manu-

facturing

Ware-

housing

Shipping


Supply chain challenges today l.jpg
SUPPLY CHAIN CHALLENGES TODAY

  • Visibility into entire supply chain status

  • Instant recognition of end-item demand

  • Quick replenishment & order response

  • Network-wide, inter-process plan optimization

  • Quick replanning


Supply chain planning software functionalities l.jpg
SUPPLY CHAIN PLANNING SOFTWARE FUNCTIONALITIES

  • Forecasting & Demand Planning

  • Advanced Planning Systems

    • Supply/ Demand Chain Network Design

    • Supply/ Demand Chain Master Planning

    • Manufacturing Planning

    • Dynamic Manufacturing Scheduling

    • Sourcing/ Supply Planning

  • Enhanced Order Fulfillment

  • Collaborative Planning & Replenishment