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Step 2: Estimate Staffing to Lead the Project and Support Each Process Area
Step 3: Estimate Custom and Interface Development Step 4: Assess Data Conversion Magnitude Step 5: Estimate Project Duration
Step 2: Estimate Staffing to Lead the Project and Support Each Process Area Step 3: Estimate Custom and Interface Development Custom Development
Interface Development
Step 8: Create a Time-Phased, Resource-Loaded Project Plan Step 9: Estimate Resource Rates and Apply Them to the Plan
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ERP enables better, faster decisions by unleashing the power of the integrated enterprise ERP provides a backbone to further extend functionality through bolt-ons and other solutions Issues and obstacles show dramatic shifts in emphasis after going live An ERP implementation is at its core a people project There are twelve best practices for accelerating, maximizing, and sustaining the benefits of the ERP journey
ERP also yields significant returns from unexpected benefits Companies should anticipate a temporary dip in performance after going live There are three distinct stages in each wave after going live
9
10
7 8 9
Process Expertise
2
3 4 5 6
Alignment
Extending Capabilities
Breadth of Change
Commonality
Business Case
10 11 12
Using Capabilities
Post-Implementation Plan
Benefits Ownership
Role Transition
Metrics
Information Sharing ERP focus is on internal information , ebusiness provides ability to share info internally & externally Optimization Focus ERP focus is across one value chain, ebusiness focus is on multiple value chains Internet Substitute ERP one in all in application opposed to standalone apps linked on internet backbone Technology Obstacle Closed client/server vs. open standards
Increased revenue
Reduced costs, inventories, and collection efforts Shorter cycle times Capability to manufacture to actual demand Improved cash management
Disintermediation Manufacturers interact directly with consumers, bypassing intermediaries such as wholesalers and retailers Impact on a companys business processes Warehouse must now manage a large number of low-volume orders Accounts receivable must now process a large number of invoices and accommodate increased collection activity Customer service may be inundated with calls Customer returns must now be managed by manufacturer
Impact
Time
Affects individual roles within the organization. Staff reductions are often seen, or staff may be moved into other areas (in expanding companies).
e-storefront, e-catalog, e-billing, e-payment, e-procurement Focuses on efficiency in selling, marketing and purchasing E-business Uses IT and open standards to connect suppliers and customers at all steps along the value chain. Requires trust among business partners, and agreement on standard ways of working. Focuses on effectiveness through improved customer service, reduced costs and streamlined business processes. Many companies enter e-business by first engaging in e-commerce.
ERP is focused on internal process efficiency and effectiveness while EBusiness is focused on external, cross-enterprise process efficiency, operational effectiveness, and product promotion. ERP technology supports current business strategy while E-business opens the door to new strategic opportunities. E-business is best supported by a well-tuned ERP system.
What lies behind the web page is important. ERP is necessary to fulfill the promises made on the Web page, that is, the promise of e-business. Enterprises need some sort of internal transaction engine to match the internal information flow with the actual flow of goods and/or services. Key issue is to blend ERP and Web-based technology successfully and to push each to achieve its maximum benefit.
Integrates resource planning, supply-chain management, demand-chain management and knowledge management. Achieved through tightly integrated modules for Finance, Manufacturing, Logistics, Human Resources, and Sales & Marketing. Enables improved customer focus (individualized service, low-cost products, short cycle times, and accurate delivery dates) and customer relationship management Enables interactive relationships with value-chain partners
Communication with partners in the supply chain and customers in the value chain is not enough. Collaboration and coordination are also important. Processing logic is required in order to respond to information available across the Internet.
Industry Partnership
Convergence
Greenfield Non-integrated systems Limited / SingleFunction ERP Integrated BusinessUnit ERP Integrated Enterprise ERP
1. Start-Up
E-Business Examples
CHANNEL ENHANCEMENT - Point solutions such as selling over the Web, providing customer self-service and conducting Webbased indirect procurement. (e-commerce) VALUE CHAIN INTEGRATION (e.g. Adaptec) - Integrate customers and suppliers operations with their processes and systems (e-CRM and e-SCM). INDUSTRY TRANSFORMATION (e.g. Solectron and Ingram Micro) - Boundaries between companies and their partners become less pronounced as they link internal systems through the Web, creating new markets, new opportunities, new customers and new products and services. There is an intense relationship between the partners to create an environment for shared business improvements, mutual benefits and joint rewards.. (Collaborative Advantage) CONVERGENCE (e.g. Shell, Mobil, BP, GM and GE) - Coming together of companies from different industries to provide goods and services to consumers. This is not solely a function of e-business technologies: it is equally a function of industry deregulation, globalization of business, evolving customer demand and new competitive tactics. However, it is helped by decreasing costs and rapid adoption of technology. (Industry Convergence)
Browser, Portals, IT
Simple Intuitive