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THE ROLE OF ENTERPRISE RESOURCE PLANNING (ERP) FOR EFFECTIVENESS THE OF GLOBALIZED BUSINESS BY ASMAMAW MENGISTIEWashington DC, USAEmail – asmamaw.mum@gmail.comAUGUST, 2010
Introduction What is ERP System? ,[object Object],“The ERP is an application that provides a unified system. The different data processes and sources from the different departments of an organization or institution are integrated in one comprehensive system with the ERP software.” Source: ERP 100 Success Secretes, Glen Godfrey2008, P. 55 ,[object Object],[object Object],[object Object]
Most Common Modules in ERP Manufacturing   ,[object Object]
  Bills of material,
  Work orders,
  Scheduling,
  Capacity,
  Workflow management,
  Quality control,
  Cost management,
  Manufacturing process,
  Manufacturing projects,
  Manufacturing flow ,[object Object]
  Inventory,
  Order entry,
  Purchasing,
  Product configuration,
  Supply chain planning,
  Supplier scheduling,
  Inspection of goods,
  Claim processing,
  Commission calculation ,[object Object]

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The role of erp for global businesses

  • 1. THE ROLE OF ENTERPRISE RESOURCE PLANNING (ERP) FOR EFFECTIVENESS THE OF GLOBALIZED BUSINESS BY ASMAMAW MENGISTIEWashington DC, USAEmail – asmamaw.mum@gmail.comAUGUST, 2010
  • 2.
  • 3.
  • 4. Bills of material,
  • 5. Work orders,
  • 8. Workflow management,
  • 9. Quality control,
  • 10. Cost management,
  • 11. Manufacturing process,
  • 12. Manufacturing projects,
  • 13.
  • 15. Order entry,
  • 17. Product configuration,
  • 18. Supply chain planning,
  • 19. Supplier scheduling,
  • 20. Inspection of goods,
  • 21. Claim processing,
  • 22.
  • 23. Cash management,
  • 24. Accounts payable,
  • 25. Accounts receivable,
  • 26.
  • 28. Time and expense,
  • 29. Performance units,
  • 30.
  • 33. Time and attendance,
  • 34.
  • 37. Customer contact,
  • 38.
  • 39. Management of user privileges
  • 40.
  • 41. What is Globalization What is Globalization?
  • 42. What is Globalization Globalization Defection: “Globalization refers to those processes that have made the world increasingly interconnected through important technological innovations in transport and communications, facilitating a spread of goods, services, information, capital, labor and knowledge across international boundaries worldwide.” Source: Globalization, Regional Development and Local Responses, Leendert de Bell, 2005
  • 43.
  • 44. Lower manufacturing costs
  • 45. Flexibility to ship products
  • 46. improve customer service
  • 47. Reduce time from order to fulfillmentSource: Aberdeen Group
  • 48. Enterprise Resource PlanningERP Problems of Distributed Applications System Manufacturing Financials Receivables App. 1 HRM App. 5 Purchasing App. 2 Fixed Asset Procurement Marketing Projects CRM App. 3 App. 4 Supply Chain Services MGMT Logistics BI
  • 49. Enterprise Resource PlanningERP Integrated ERP System CRM Project MGMT BI Analytics & Reporting Payables Receivables Financial Accounting HRM Marketing Purchasing Quality MGMT Fixed Asset Projects Procurement HRM Marketing Service/ Maintenance CRM Sales Logistics Supply Chain Services MGMT Manufacturing
  • 50.
  • 51. Easy for system control - Efficiency
  • 52. Cost reduction which will result in increase in profit
  • 53.
  • 54. Integrated information of all parties (vendors, clients, employees, agents, distributors etc)
  • 55. Integrated business operation locally and internationally
  • 56. Process improvement with the use of workflows.
  • 57.
  • 58. The knowledge economy
  • 59. Rising customer expectation and business growth rate
  • 60.
  • 61. Integration complexity
  • 62. Long term implementation phase
  • 63. Mostly, single vendor dependency

Notas do Editor

  1. Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
  2. Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
  3. Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
  4. Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.