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What is ERP System

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  1. What is ERP System Presented to : Dr. Mahmoud Youssef Presented By : Omar Khaled Wael Omar Sherif Aly Ismail Shanab Sherif Abdallah

  2. Overview A- Introduction B- What is ERP System C- SPIRIDON implementation – Siemens Egypt

  3. Introduction The initials ERP originated as an extension of MRP (Material Requirements Planning; later (manufacturing resource planning) and CIM (Computer Integrated Manufacturing). It was introduced by research and analysis firm Gartner in 1990. ERP systems now attempt to cover all core functions of an enterprise, regardless of the organization's business or charter. These systems can now be found in non-manufacturing businesses, non-profit organizations and governments. ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem (real or imagined) in their "legacy" systems. Many companies took this opportunity to replace such information systems with ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time most companies had already implemented their Y2K solution. ERP II, a term coined in the early 2000s, is often used to describe what would be the next generation of ERP software. This new generation of software is web-based and allows both employees and external resources (such as suppliers and customers) real-time access to the system's data. EAS — Enterprise Application Suite is a new name for formerly developed ERP systems which include (almost) all segments of business using ordinary Internet browsers as thin clients.

  4. Introduction Best practices are incorporated into most ERP vendor's software packages. When implementing an ERP system, organizations can choose between customizing the software or modifying their business processes to the "best practice" function delivered in the "out-of-the-box" version of the software. Prior to ERP, software was developed to fit individual processes of an individual business. Due to the complexities of most ERP systems and the negative consequences of a failed ERP implementation, most vendors have included "Best Practices" into their software. These "Best Practices" are what the Vendor deems as the most efficient way to carry out a particular business process in an Integrated Enterprise-Wide system. A study conducted by University of Applied Science surveyed 192 companies and concluded that companies which implemented industry best practices decreased mission-critical project tasks such as configuration, documentation, testing and training. In addition, the use of best practices reduced over risk by 71% when compared to other software implementations. The use of best practices can make complying with requirements such as IFRS, Sarbanes Oxley, easier.

  5. Overview A- Introduction B- What is ERP System C- SPIRIDON implementation – Siemens Egypt

  6. What is ERP ? Enterprise Resource Planning (ERP) is a business management system that integrates all facets of the business, including planning, manufacturing, sales and marketing. ERP systems are originated to serve the information needs of manufacturing companies. Over time though, they have grown to serve other industries, including financial services, customer good sector, supplier chain management and human resource sector. With this growth, ERP systems, which first ran on mainframes before migrating to client or server systems, are now migrating to the Web and include numerous applications. ERP is a product that helps automate a company's business process by employing an integrated user interface, an integrated data set, and an integrated code set. ERP business software integrates the information used by an organization's many different departmental functions into an unified computer system. It is designed to model and automate many of the basic processes of a business organization, from finance to the manufacturing management, with a goal of integrating information across the company and eliminating complex, expensive links between computer systems that were never meant to 'talk' to each other. It uses web as a platform to bring customers, vendors, suppliers, manufacturers and employees together. To be considered an ERP system, a software package must provide the function of at least two systems. For example, a software package that provides both payroll and accounting functions could technically be considered an ERP software package.

  7. What is ERP ? Examples of modules in an ERP which formerly would have been stand-alone applications include: Product lifecycle management, Supply chain management (e.g. Purchasing, Manufacturing and Distribution), Warehouse Management, Customer Relationship Management (CRM), Sales Order Processing, Online Sales, Financials, Human Resources, and Decision Support System.[citation needed Ideally, ERP delivers a single database that contains all data for the various software modules that typically address areas such as: Manufacturing Engineering, bills of material, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commission calculation Financials General ledger, cash management, accounts payable, accounts receivable, fixed assets Project management  Costing, billing, time and expense, performance units. Human resources Human resources, payroll, training, time and attendance.

  8. Overview A- Introduction B- What is ERP System C- SPIRIDON implementation – Siemens Egypt

  9. What is Spiridon ? SAP is a multinational software development and consulting corporation, which provides enterprise software applications and support to businesses of all sizes globally. Started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's third-largest independent software vendor. The original name for SAP was German: Systeme, Anwendungen, Produkte. It means "Systems Applications and Products." The goal of the company was to provide large enterprise customers with the ability to interact with a corporate database in real-time. Today, the company states that its goal is "to offer the industry's most comprehensive portfolio of business performance and optimization solutions for companies of all sizes." Spiridon is a global program for harmonizing processes in the Siemens Local Companies supported by a highly integrated IT platform on the basis of SAP ERP standard software. Standardization of processes and information structures across all operating units, countries and business systems ensure vertical optimization and horizontal integration, enabling Siemens to take advantage of internal synergies more quickly and minimize its global IT costs. Siemens was quick to recognize the challenges and opportunities provided by globalization. The company, which is active in many different markets in more than 190 countries, aims to pool its services and skills in all sectors and regions and combine them into successful,profitable and innovative solutions The success of Spiridon proven methodology for program delivery has become an area of interest and model for other listed companies in automotive,energy, food and mechanical engineering.

  10. 122 Days to Go 4 3 19 26 28 5 8 11 14 13 15 Initial Workshop Project Preparation PU Training PU Training Process Workshop Integration Test Test Data Migration Data Migration End-user Training GO LIVE Project Plan Week 3 Week 4 Week 2 Week 1 April May June July August September October November

  11. Change Why & What Why? Ensure company and staff are ready for changes in the work style Implementation of a standardized process or ERP solution i.e. Spiridon which is used widely in ME region. Common platform for all Divisions for daily business to improve quality, flexibility, integrated process and reduced processing cost - WHAT? Work Profile/Job Description (Addition/Deletion) Work Flow/Process Documentation (Revision) Signature Regulation Organizational Structure * Signature Regulation: To ensure that the companies signature regulations are met when using the new SPIRIDON system different methods have to be used: Physical Procedures Vouchers, Forms and Stamps System Authorizations

  12. Change How - How? Communication method • Awareness program • Educate staff about what is coming • Seminar/Workshop for focus group • Newsletter (Involvement of Cluster MEA Communication Team) • General information about SAP and SPIRIDON • Intranet - information on SPIRIDON in the intranet • Access to Share point • Available to Project Team and Power Users • Information on complete project structure, plan, etc • Documentation on Spiridon

  13. Change Lifecycle Dynamics of Change over time Awareness Questioning Acceptance Sustaining Change Lifecycle

  14. Awareness Phase The awareness phase is the period people recognize that the change is going to occur. • Unclear on scope, rationale, and nature of change • Unrealistic expectations • Rumors • Seeking information R e s p o n s e • Ensure compelling business reasons are clear to all employees • Set expectations and begin preparing people to change T a c t i c s • Change announcement • Project vision/desired state document T o o l s

  15. Questioning Phase The questioning phase is the period people begin to assess whether the benefits of the change outweigh the struggle of the transition. • Realization of the effort and complexity • Uncertainty and confusion • Fear of the unknown • Concern over personal impact R e s p o n s e • Clearly define the change • Communicate personal impact • Allow for 2-way communication opportunities T a c t i c s • Communications - E-Mail, Newsletter, Other • Question and answer sessions • Focus group, workshops T o o l s

  16. Acceptance Phase The acceptance phase is the period in which the people are beginning to support the change by experimenting with the new technology. R e s p o n s e • Recognition of personal benefits • Value to the organization is understood • Comfort achieved • Willing to use the technology • Influence people to try to accept the new way of doing things • Emphasize benefits • Develop skill required T a c t i c s • Performance measures • Training • Progress reporting T o o l s

  17. Sustaining Phase The sustaining phase is the period in which people have effectively adapted to the change and are working efficiently with the new technology. R e s p o n s e • Change internalized • Supporting behaviors demonstrated • Improved performance • Reinforce the desired behavior in the changed organization • Promote the internal rationalization of new behaviors to establish new culture • To encourage sustained acceptance and internalization of the new culture T a c t i c s • Rewards and recognition • Progress reports • Performance measures • Success stories T o o l s

  18. Benefits • Benefits • People clearly understand the vision, and the role of the change in achieving that vision • Resistance to change is proactively managed • Performance levels are maintained during the transition period, and significantly enhanced after the transition period • People understand the change activities that are underway, and have realistic expectations of the impact of those changes • The change initiative gains momentum throughout all levels in the organization • The business benefits of the change initiative are realized • Less System maintenance work • Consistent Standard and Control • Cost & time savings Result Successful Implementation of ERP system

  19. Thank for Listening . . . .