Planning, design and implementation of enterprise resource planning systems.

The main challenge in implanting erp is whether to change the organizations business processes to fit the software or to modify the software to fit the organizations business processes. The problem with the traditional system development life cycle is that it takes too much time and costs too much. The traditional life cycle using waterfall followed by design and detailed design and also implementation. These are the steps being used in traditional approach : Problem definition , to identify problems with the current system Feasibility study ases the need for a systems project Systems analysis, undertake a detailed analysis to the current system System design, to development of objectives for the new system Detailed design, design of specification for the proposaed system Implementation, software implementation and training end users Maintenance, ongoing technical support, ongoing upgrades and enchements.

These are the design process on ERP systems : Planning, conduct a needs assessment to provide a bussines justification based upon the difference between the existing system and the proposed system. Requirements analysis, to analyze current business processes and specify the processes to be supported Design, re-rengineering business proceses around the best practices processes around the model of erp systems to customize the software. Detailed design, choose standard models processes, inputs and outputs Implementation, to configure the system, migrate data from the olf system to the new system Maintenance and continous improvement, provide technical support to upgrades.

Planning: making the business case for ERP is to make justifications for the ERP included tangible and intangible benefits including inventory reduction, operating cost reductions, overdue accounts collection, process improvement and reduction in cycle times. Requirements analysis, requirements analysis activities involce the business process to support by the erp package. Design: Re-engineering versus customizing, the fundamental in rtp systems design in reengineering versus customizing in approach is the team selects a commercial off the slef and making requirements.

Alternative ERP design options Erp systems can be designed using various approaches, the complete vanilla ERP package is easiest to implent because of organization can follow the vendot prescribed. To selecting ERP system : Create the vision, develop corporate objectives for ERP Create a feature or function to familiar with the company processes Create a software candidate list, narrow the field based on size of company industry Narrow the fielf to four or six serious candidates Create the requests for proposal Review the proposals Justify the investment Negotiate the contract run a pre implementation pilot Validate the justification

Comparison between re engineering and customizing approach : In customizing approach, supports unique business processes and strategic processes are maintened. In re-engineering approach suprted by an ERP solution to take advantage of shared or generic processes within industries best practices may present to improved the documents. Re-engineering business processes Organizational fit Re-engineering approach Support re-engineering processes to fit the software system Works well with minmal organizational change Customizing approach Re-engineering is independent of the tool being implemented May disrupt the organization less because of software designd to support current method Evolution can support unique user requirements May involve lengthy system development activities Involve extensive cost of ustom implementation Provides greater flexibility for meeting Do not have to use software to which everyone in the industry has access Requirements may not be

Evolution Timeliness Cost Requirements Competitiveness

Ecolution depends upon vendor upgrades Software is available and ready to implement Implementation is cost effective Puts boundaries on the deisgn Other firms have access to the same design Requirements will be

fit

External consulting

supported by ERP system supported by and ERP system More of a trunker approach May entail the expense of using a vanilla implementation much external consulting