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ERP (Business Process Reengineering (type of BPR (what would the process…
ERP
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Telecommunication
net neutrality
- everyone has equal access
- no toll road and public road
- package is delivered at the same speed for any companies
- heavy package does not pay more and cause problem
- preferential access to internet, such as hospital
- internet access is becoming monetized
- one toll road all road becomes private lane
WIFI
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- packet sniffing
record packet
man in the middle
- honey pots
hacker run the router
- shared folders
access to dropbox and change stuff
- full duplex
e.g. telephone, ethernet
- half duplex
e.g. wifi; walkie-talkie send one way not the same time
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fiber optic
- about 186,000 miles
very destruptive
- almost speed of light - not in straight line
the curve of the earth slows down transmission
- limitation of max transmission distance frequencies of light is infinite
muti mode fiber transfer different information
hard to hack
- no EM field
- very thin
go thru walls easily
- no rust
- does not heat up
high electrical resistance
- zero fire risk
- expensive
joint gov't work
- hard to cut
enhance security
- need translator to turn light signal to electric signals
slow the speed
- cannot deliver electricity
Satellite
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- the higher the more coverage lower signal strength
- inactive are put in the orbit
- broadcast media
hub - communicate to everyone
point to multipoint
- can go to remote areas
- point to the south to receive signals from equator
- microwave effect
- high cost to launch
- slow
- frequency congestion in politician areas
Copper wire
- last long history
- already in place and cheap
4 million miles
- speed is not affected in the house
- easy to get info
- STP
shielded twisted pair reduce EM interference
- slow for long distance
- UTP
interference problem
- not designed for videos
- low bandwidth - 3,000
phone line dropped
- message degrade needs repeaters
relay message and start to weaken
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Software Selection
5x start up costs = total cost of ownership
5% software/hardware/consulting = maintenance per year
20% start up costs = operational costs
start up cost
- installation
implementation servies
- soft/hard ware
hardware replaces 5 years
do no fix hardware
server is getting cheap
- data migration
- user license
- training
- customization
- remover old system
- external interfaces
Operational cost
about 20% of start up costs per year
- security/version patching
- renew license: competition keeps it low
- training for new versions
- enhancement application
- user support: outsource
- disaster recovery: hot site - outsource
- data center: air condition costs
database license
- scheduled downtime: necessary
- server depreciation: outsource
- security: constant new way to hack
End
- data export
- data archive
e.g. in law suite need to open old file
- shadow copy of old application to read
- old license
why change
- lack of compliance:
regulatory requirement
- lack of scalability
sales growing can't handle
- old system can't answer questions
- technology is outdated, expensive to run
- competition need to keep up: Uber vs. Ford
- strategic M&A: best ERP of two systems
- business process: best practices to be installed;
management wants new process
Planning
- project scope needs money and people
- requirement document: installment alternation - scope creep - change the cost and people
- do not have part-time people
Project team: make decisions as a team
Project manager: less charming; can make tough decisions
fire people in the team
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Steps in selection
Fit Gap Analysis:
- functionality gap means serious problem because the SW cannot do it
- process gap can be an opportunity because it can be best practice
reference visits:
- vendor provides customer list
- good vendor can let buyer talk to any customers
- ask customers functionality and performance
functionality means solve the business problem
performance can be easily improved
not talk to competitor
ask the cost of initial and final
ask for lessons learned and things can do differently
- do not pollute the meeting with chatter
- local support is not the same with national support
- post installation services are important
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requirement analysis:
40 things that need from software
any change need more money and people
limit the hidden costs - no perception of free
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Implementation method
- not choose vendor
- implementation team from outside company
- implementation team and employees can jointly own things
- force them to marry responsibilities
- measure the deliverable - it becomes important, more serious if they do not talk about it
- have update every two weeks or a week - tap record the meeting, anyone can stop process and set up meeting
Proposal:
- annual fees for support
- hardware can be lowed from SAP
- high level project plan
Decisions and negotiations
- give losing vendors part of project
vendor solvency - financial ratios
cross vendor impacts - compatibility
fist mover discounts - first in the industry beta testing
culture fit - local vendors is similar to yours
IT Infrastructure
interface
dashboard
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- the rate of change is more important
e.g. new commercial leads to rate of change
- manager can see the business running
do we make money right now?
e.g. breathing financial statements
- can communicate the deceleration
- include outside information
e.g. weather is driving the sales of drink
social media reveals demand
back office: not customer facing
e.g. HR, financials oeprations
front office: facing customer and suppliers
e.g. SCM, CRM
bolt-ons: add functionality to modules
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configuration:
- setting up to fit the needs of customer, through configuration table
e.g. credit management - block no pay customer
default currency
fiscal year
- not changing the source code,
changing lanes,
- before GO Live there are lots of configuration decisions to make
- cumulative changes
- not easy to undo b/c affecting the database
e.g. reporting relationship, organizational structure
- is customization under control
customization
- changing the code
regulartory requirement
- bad idea to do unless changing the report in backend
- expensive and time consuming
- stop your support
- enhancement is more tolerable
Clients
fat
- make decisions and get freedom
- they can configure
- save money and time for business
- airline industry let customers to do the work
- people with phone changing wallpaper
thin
- receive information from authorized source
- application need thin client
- nuclear engineer is tightly controled
SAP
R3
the data and applications are split onto separate servers
a database server and an application server
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R2
two tier architecture
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- the server cannot respond multiple request same time, as a result it cause a data integrity issue
- single point of failure
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History
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ERP one database
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single storage
Database mirroring
- ensure continuous data availability and
- minimize or avoid downtime that might otherwise result from data corruption or loss, or from a situation when the operation of a network is partially compromised.
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organizing the company and forcing best practices
how to integrate end to end and optimize the process
compliance with govt regulations
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Made ERP possible
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WWW:
people accessing the internet
- employees
- decision makers
- customers
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Evolution
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- manufacturing
Material Requirements Planning
Production Management
resources needed when they were needed.
- finance and labor
Manufacturing Resource Planning
What should be made?
- all information in one place
Enterprise Resource Planning
not just production-related but also planning focus
How can we best operate
- internal customers and suppliers
Extended Enterprise Resource Planning
a web platform accessible to suppliers and customers
Where does our system need to run to service the strategic business goals
- external suppliers provide information
extended SCM
- business intelligence, web, data mining
Enterprise System
Thank you for being late
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Land-Agriculture
Factory-Machine
computerization, technology, Moore's Law cost jobs
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