Transcript Users of ERP systems

IS 466
ADVANCED TOPICS IN
INFORMATION SYSTEMS
LECTURER : NOUF ALMUJALLY
19 – 9 – 2011
College Of Computer Science and Information, Information Systems Department
Teaching Staff
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Nouf Almujally - Unit Lecturer
Office: 9 \ 2003
Email: [email protected]
Consultation Hours:
 Saturday 11-12 am
 Monday 9-10 am
 Other time welcome but please email first
Timetable
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CLASS
DAY
TIME
LOCATION
Lecture
Monday
12:30 – 1:20
10 \ 2037
Lecture
Wednesday
10 - 12
10 \ 2037
Tutorial
Saturday
10 - 11
11 \ 2007
Assessment
4
Item
No.
1
Type
Individual or Group
Weight
Due Date
Tutorial
Individual
5% submission
5% class work
Weekly
2
Case Study
Group
10%
Week 9
3
2 Quizzes
Individual
10%
Week 5
Week 12
4
Midterm Exam
Individual
20%
Week 9
5
Final Exam
Individual
50%
Exams Week
What you need to do to get A+
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To gain a good understanding of the unit and of course to
pass the unit
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Attend the lectures and tutorial
All lecture and tutorial material is examinable
 Including tutorial case studies
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Attempt ALL tutorial Questions prior to the tutorial
Participation
 Required Reading
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Consult with the Lecturer
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If you have any difficulties or problems with the assignments
please don't hesitate to contact me. I will try to be as helpful as
possible.
Course Policies
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Assignments deadlines are very strict
Tutorials are due on Friday of each week
Participation = Marks 
Daily penalties apply to late work
Students who are absent on the quiz day will not be
allowed to make up the quiz.
Students who are absent on Midterm exam day due to
illness are required to bring a signed medical excuse
letter.
It is the student’s responsibility to contact the Lecturer if
the midterm exam was missed within one (1) day
following the scheduled exam date.
Course Objective
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This course intends to introduce special topics of
current trends in information systems and information
technology:
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Enterprise resource planning (ERP)
Requirements Engineering
Geographical Information System (GIS)
Telemedicine and Medical Informatics
Human Computer Interface (HCI)
Simulation
Questions ?
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Enterprise Resource Planning (ERP) - Overview
Objectives
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ERP Definition
The History of ERP
ERP Characteristics
Example: Before & after ERP
The benefits of the ERP System
ERP Disadvantages
ERP Components
ERP Vendors
Current Situation
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Islands of information
The Problems ?
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Difficult to get timely & accurate information
Heterogeneous hardware & software platforms &
practices
Poor connectivity between different organizational
locations
Sticking with out of date technology
Resist to change
Lack of proven man-power to develop integrated
software
The Solution !!
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What is ERP ?
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Enterprise Resource Planning = ERP
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ERP systems are packaged software systems that
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Automates and integrates business processes
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Shares common data and practices across the entire
enterprise
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Produces and accesses information in a real-time
environment
Formal Definition ..
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It is a company-wide computer software system that
allows companies to integrate all their operations and
resources founded in the core business areas such as
accounting, human resource management,
manufacturing and sales and distribution, and
manage them through one program.
History of ERP
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1960’s - Systems Just for Inventory Control
1970’s - MRP – Material Requirement Planning
(Inventory with material planning & procurement)
1980’s - MRP II – Manufacturing Resources Planning
(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000 onwards – ERP II – Collaborative Commerce
(Extending ERP to external business entities)
History of ERP
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ERP Characteristics
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attempts to integrate all data and processes of an
organization into a unified system.
provide information updated and on real time
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People in different departments all see the same information
and can update it
A typical ERP system will use multiple components of
computer software and hardware to achieve the
integration.
ERP Characteristics (con.)
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A key ingredient of most ERP systems is the use of a
unified database to store data for the various system
modules.
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Less Management
Less Complexity
Less Integration
In ERP , you can get answer of any query by its
powerful query and filtering facility
ERP system can easily use in Government , healthcare ,
financial , retail and other service sectors
ERP Characteristics (con.)
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Computer security is included within an ERP system
to protect against both outsider and insider crime
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User / Password level authentication
Tracking of changes made by users
Restriction in modifying the transaction after approval is
done
Example of QU
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QU wants to buy a new Printer.
For this reason Secretary gives a purchasing order
by filling purchasing order forms.
Next slide shows how this purchasing request
process flow was working before ERP systems.
New Printer Purchasing Process
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1.
Purchase order form for a new printer
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Head of Department Confirmation- Faculty Head
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Purchase order document sent to QU Account Office
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Account Office Secretary sents the purchase order to the Responsibles
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Purchase order- Responsible personal Confirmation
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Purchasing department- Manager Confirmation
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Transfer to Finance Department Secretary for processing
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Finance Department Responsible’s Confirmation
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Transfer to Rector’s Office
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Rector’s Secretary- Confirmation
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Confirmation Transfer, to Purchase Department Secretary
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Purchase Responsible personal commends with Purchase
Example : before using ERP system
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Department x
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Account Office
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Purchasing Dept.
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Finance Dept.
Manager
before using ERP system !!
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QU after ERP Systems
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Example QU - IT Faculty
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Information TechnologyFaculty wants to buy a new
HP Printer.
For this reason Secretary gives a purchasing order
with using QU Online ERP systems.
Next slide shows the purchasing order process flow
with ERP Systems.
QU After ERP Systems
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SECRETARY
CONFIRMATION
REQUEST OF NEW
HP PRINTER
SAP SYSTEM ONLINE
PURCHASEING MANAGER
SAP SYSTEM ONLINE
FINANCE DEPARTMENT
CONFIRMATION
SAP SYSTEM ONLINE
HEAD OF DEPARTMENT
CONFIRMATION
SAP SYSTEM ONLINE
PURCHASE
RESPONSIBLE
FINANCIAL
ACCOUNTING
SAP SYSTEM ONLINE
RECTORS OFFICE
PURCHASE
OF NEW
HP PRINTER
CONFIRMATION
SAP SYSTEM ONLINE
PURCHASE DEPARTMENT
The benefits of the ERP System
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Online data flow decreases the process time
One common system – less duplication – more efficient
Fast & online confirmation
Less paperwork
No need for folder storage
Database security
Open communication among business partner
Less employee needed
Easy financial management
Better ınventory management
Disadvantages
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There are several disadvantages to enterprise resource
planning:
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Cost
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Implementing ERP is very expensive, price can range from
$30,000 - $500,000, depending on the size of the
company.
ERP vendors can charge a license renewal fee annually
which can also be costly for any business.
Consultants may need to be used for installation or to
maintain the ERP.
Employees may need to be trained in ERP so they can fully
utilize the system. Training times takes away from work time
and can also cost additional funds.
Disadvantages (con.)
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Expertise
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Success of ERP depends on the skill level and
experience of the company’s work force.
Proper training of the workforce is dependent to
success with ERP.
New employees must be trained before they can
properly start working because of the ERP system
Disadvantages (con.)
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Flexibility
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ERP’s can be very rigid and may not fit the business
flow of the company trying to use it.
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Company’s may need to customize their ERP package
which isn’t allowed by most ERP vendors.
Disadvantages (con.)
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Change
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Employees may be needed to change the way they
work to become more efficient. They may feel resistant
to change which can be a negative.
ERP Component
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An ERP System includes:
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Business Processes
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ERP has been promoted as solutions for supporting or
streamlining business processes at all levels.
Users of ERP systems
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The users of ERP systems are employees of the
organization at all levels, from workers, supervisors, midlevel managers to executives.
ERP Component (con.)
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Hardware and Operating Systems that run ERP
applications
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Many large ERP systems are UNIX based. Windows NT and
Linux are other popular operating systems to run ERP
software. Legacy ERP systems may use other operating
systems.
ERP Component (con.)
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ERP software
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Module based ERP software is the core of an ERP
system. Each software module automates business
activities of a functional area within an organization.
Common ERP software modules include:
production planning, purchasing, inventory control, sales
and distribution, finance, accounting and human
resources aspects of an organization.
Note: The failures in one or more of those four components could
cause the failure of an ERP project. The failures of multi-million dollar
ERP projects are reported once in a while even after 20 years of ERP
implementation.
ERP Vendors
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ERP Vendors (con.)
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SAP
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Oracle
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Systems Application and Products
Honda - IBM – Almarai – Aramco
The leading provider of relational database management
systems
Kodak
The Sage Group
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Provider of human resources software
Adidas - Helton Hotels
Questions ??
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