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ERP Systems Implementation

ERP Systems Implementation. Prepared by: Chandra Agarwal PGDM V SEC A. INTRODUCTION- ERP SOFTWARE SOLUTION.

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ERP Systems Implementation

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  1. ERP Systems Implementation Prepared by: Chandra Agarwal PGDM V SEC A

  2. INTRODUCTION- ERP SOFTWARE SOLUTION EnterpriseResource Planning – An information system (multi-module application software) that integrates all manufacturing and related applications for an entire enterprise. Different ERP Software solutions vendors – BAAN, – RAMCO, – Oracle, – People soft, – JD Edwards, – SAP, etc SAP is the market leader in ERP Software solutions.

  3. SAP ORGANISATION

  4. S.A.P The name SAP being a German company, is acronym for “Systeme Anwendungen, Produkte in der Datenverarbeitung”. This is translated into English as “System ,Applications and Products in Data Processing ”

  5. COMPANY PROFILE Founded Weinheim (1972)Headquarters Walldorf, Germany Key people Henning Kagermann, CEO Shai Agassi Development ERP INDUSTRYCOMPUTER SOFTWARE Revenue8.5 billion EUR (2005) (or 10.2 billion USD) Employees35,873 (2005) Website www.sap.com

  6. SAP AG is the largest European software enterprise. • SAP is the 3rd largest software company in the world. • It ranks after Microsoft, IBM, in terms of market capitalization. • It is also the largest business application and Enterprise Resource Planning (ERP) solution software provider in terms of revenue.

  7. The company's main product is My SAP ERP. The name of its predecessor, • SAP R/3. • Other major product offerings include Advanced Planner and Optimizer • (APO), Business Information Warehouse Business Information Warehouse • (BW), Customer Relationship Management (CRM), Supply Chain • Management (SCM), Supplier Relationship Management (SRM), Human • Resource Management Systems (HRMS), Product Lifecycle Management • (PLM), Exchange Infrastructure (XI), Enterprise Portal (EP) and SAP • Knowledge Warehouse (KW). • The company also offers a new technology platform, named SAP • NetWeaver.

  8. R/3 • R/3 is SAP integrated software solution for client/server and distributed open systems. • R/3 meets the needs of a customer from the small companies to multi-billion dollar companies. • In R/3 we have got three layer Concept 1st Layer PRESENT LAYERATION 2nd Layer APPLICATION LAYER 3rd Layer DATABASE LAYER

  9. R/3 Real Time Three TierArchitecture

  10. Architecture

  11. BASIS • BASIS is similar to a kernel for R/3. • It provides the runtime environment for ABAP/4 programs. Basis is essential to run ABAP/4 programs. • It is a collection of R/3 system programs that present you with an interface

  12. ABAP • ABAP stands for Advanced Business Application Programming / 4th Generation Language • ABAP/4 cannot run directly on an operating system. It requires a set of programs to load, interpret, and buffer its input and output.

  13. Task-Technology Fit (TTF)

  14. DeLone & McLean (Updated) Model of Information Systems Success

  15. Unified Theory of Use and Acceptance of Technology (UTAUT)

  16. IS Project Failure (CHAOS Report) • Incomplete Requirements 13.1% • Lack of User Involvement 12.4% • Lack of Resources 10.6% • Unrealistic Expectations 9.9% • Lack of Executive Support 9.3% • Changing Requirements & Specifications 8.7% • Lack of Planning 8.1% • Didn't Need it any Longer 7.5% • Lack of IT Management 6.2% • Technology Illiteracy 4.3% • Other 9.9%

  17. Lessons for ERP Systems … • "Those who fail to learn history are doomed to repeat it" (Winston Churchill) • In the field of MIS, “issues seen as ‘new’ turn out to have long roots” (Keen, 1991) • What of ERP Systems ? • ERP systems are large scale, expensive projects • ERP systems may involve dramatic changes to work practices and organisational processes • They are not “quick fix” solutions and need to be implemented with care POOR DUMP SAP LET BE THE LESSON

  18. It’s All About the Requirements ! • “In nearly every software project that fails to meet performance and cost goals, requirements inadequacies play a major and expensive role in project failure” (Alford & Lawson, 1979) • “The hardest single part of building a software system is deciding precisely what to build. No other part of the conceptual work is as difficult as establishing the detailed technical requirements ... No other part of the work so cripples the resulting system if done wrong.” (Brooks, 1987) • Build the correct system (product) + Build the system correctly (process)

  19. t0 t1 t2 t3 t4 t5 Playing Catch-up with User Needs User Needs Actual System Capabilities FUNCTIONALITY TIME

  20. SAP R/3 TYPICAL BUSINESS BLUEPRINT

  21. ERP Implementation Framework

  22. ERP Critical Success Factors

  23. THANK YOU For Your Kind Attention

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