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E NTERPRISE R ESOURCE P LANNING

E NTERPRISE R ESOURCE P LANNING. Every Monday, 13:30 – 16:00. Syllabus. Introduction ERP Platform ERP Component ERP Development (Cost & Benefit Analysis) System Life Cycle References:

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E NTERPRISE R ESOURCE P LANNING

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  1. ENTERPRISE RESOURCE PLANNING Every Monday, 13:30 – 16:00 ERP – Ir. H. Noor Hidayat, MMT.

  2. Syllabus Introduction ERP Platform ERP Component ERP Development (Cost & Benefit Analysis) System Life Cycle References: The effective measurement and management of IT costs and benefits, 2nd, Dan Remenyi, Butterworth Heinemann, 2000. Information Economics, Linking Business performance to Information Technology, Marilyn M. Parker, Prentice Hall, 1988. EkonomiTeknik, Gerald J. Thuesen, PT. Prenhallindo, Jakarta ERP – Ir. H. Noor Hidayat, MMT.

  3. Nature of IT Benefits Business community demands: IT benefit always expressed in terms of financial values, i.e. How much money was saved or how much extra money was made as result of the IT investment. BUT!.... Some IT investment benefits cannot be satisfactorily stated in monetary terms.

  4. TechincalvsBusines Aspects Technical issues have frequently been central importance to the success of business computing. BUT! This emphasis has been largely at the: • expense of a business • management understanding of information system and what their potential and actual benefits are likely to be

  5. Measuring IT Benefits Measuring and managing IT benefits is a difficult business challenge on IT industry. Main reason: No comprehensive or rigorous economics of information has been developed

  6. Measuring IT Benefits Four major areas that contribute to the problems with IT benefit measurement and management: • Benefits and identifiable performance improvements • The issue of information systems reach • Tangible and intangible benefits • Benefit evolution.

  7. IT Investment • IT investment has no direct value in its own right. • IT investment has a potential for derived value. • IT benefits are not directly a technology issue as such, but are to do with business initiatives.

  8. IT Investment That’s Why… They need to be measured and managed by P&L (profit & loss) people focusing on business processes and practices.

  9. Changes to processes and practices IT investment to supported improvement Business performance improvement Improved profit and ROI Business Process, IT Investment, and Benefit

  10. IT Benefit Success IT investment on innovation and improvement? • Improvement in productivity more goods and services are produced for the same amount of input, or that the same number of products or services is produced for less input. This is a cost pricing issue, also improve the quality of the product and perhaps also have a positive impact on the morale of the manufacturing workers. • Improvement in customer satisfaction. This benefits are clearly measurable and they can give the organization a major competitive advantage in the marketplace. However such a system might also improve the cost effectiveness of serving customer.

  11. IT Benefit As consequence…. IT investment only drives its value to the organization though its business applications, which can only effected in the hands of the systems’ principal stake holders. It is this individuals who need to manage the evaluation of the investment.

  12. Looking for Benefits and Value The main implication of this notion of the derived value of IT is that the actual benefits of an IT investment cannot be perceived directly or on their own.

  13. Looking for Benefits and Value Only when IT is coupled with other resources, and especially the principal stakeholders, can any benefits or value be perceived. There is no standard way of combining IT with other resources or with people.

  14. Looking for Benefits and Value Combination of information systems, people and other resources are entirely dependent on the context of the business process or practice but in general.

  15. Looking for Benefits and Value unless IT is an integral part of a greater program of process innovation and improvement it is quite unlikely that much value or benefits will be derived.

  16. Questions ???

  17. End of ERP Development Last Updated: 31 March 2009 ERP – Ir. H. Noor Hidayat, MMT. 17

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