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 Assignment 12 (Due: February 24, 2012, before 01:00pm)

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PostSubject: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Fri Jan 13, 2012 9:54 am

From a news article or internet information, find an example of an organization that is installing an ERP package. If possible get a copy of the over-all project plans and analyze thae various activities and compare them with a standard SDLC.
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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Thu Feb 23, 2012 4:09 pm

About ERP

Enterprise Resource Planning or ERP the most recent high end solution to business application brought by information technology. The purpose of ERP is to look for the streamline and incorporate operation procedures and the flow of information in the company to be able to amalgamate the resources of a company or an organization, which are the man power, materials, money and machines by means of information. At first, only the very large Multi National Companies and Infrastructure Companies have the capabilities to install and upgrade an ERP package, having the reason that it involves high cost. The need for Enterprise Resource Planning software increased because organizations and business around the world are became conscious on the fast changing business environment. For that reason, it is unachievable for the companies to produce and sustain a conventional software package that has the capability to meet all their requirements and also be fully up-to-date.

But nowadays, since technology keeps on upgrading that leads to easy collection and dissemination of information, a number of companies engaged in applying different Enterprise Resource Planning Strategies offered by ERP software vendors like Oracle and Microsoft. Through this, companies will be able to compete globally with their contenders in their field of business.

We are all aware that in business, a company needs a constant upgrade of their production, managing tactics, business equipments like machines and computers, and information system application. For that reason, there are some demands that are necessary to meet by a company. These demands are:
o Aggressive Cost control initiatives
o Need to analyze costs / revenues on a product or customer basis
o Flexibility to respond to changing business requirements
o More informed management decision making
o Changes in ways of doing business

Features of ERP

Some of the major features of ERP and what ERP can do for the business system are as below:
o ERP ameliorates the wide Integrated Information of the a company, which includes all the functional areas such as the Manufacturing, Human Resources, Inventory, etc.
o ERP executes the company’s core activities and increases customers service that leads to supplementing the company’s image.
o ERP serves as the bridge in between the gap of information in an organization.
o ERP serves as the only possible solution for a better Project Management
o ERP has the capability to adopt in the latest technologies like internet, intranet, Ecommerce, etc.
o ERP removes various business problems like inventory problems, shortage in materials, quality problems, etc.
o ERP provides the opportunity of constantly developing, improving and refining business procedures.
o ERP offers business intelligence tools such as ROBOTS for early warning system that help the people in good decision making and improve business tactics.

Components of ERP

To enable the easy handling of the system the ERP has been divided into the following Core subsystems:
o Sales and Marketing
o Master Scheduling
o Material Requirement Planning
o Capacity Requirement Planning
o Bill of Materials
o Purchasing
o Shop floor control
o Accounts Payable/Receivable
o Logistics
o Asset Management
o Financial Accounting

About the Company

ORIGIN: Founded in Charlotte, North Carolina by J.B. Harrison.

FUNCTIONS: Coca-Cola Bottling Co. Consolidated (CCBCC) makes, sells and delivers sparkling and still beverages, primarily products of The Coca-Cola Company. it operates in eleven states all ove the world, primarily, in the southeast.

TRADEMARK: COKE is the trademark of CCBCC as the U.S. Supreme Court ruled.

PURPOSE: To serve others …To pursue excellence … and To grow profitably. Above all, we strive To honor God in everything we do.


Courage and Conviction
Honesty and Integrity


We will strive to...

Make, sell and deliver products and services better than anyone else.

Develop servant leaders.

Build personal and trusting relationships.

Be leaders in the Coca-Cola System and in the beverage industry.

Provide long-term rewards for our employees.

Build long-term value for our customers.

Generate long-term profitable growth for our shareholders.

What are the needs of CCBCC?

Coca-Cola Bottling Co. Consolidated (CCBCC) is one of the largest companies that is aware of the importance of engaging into a high technology applications to be able to have an efficient and effective strategic plan that would attract more customers and clients for more income. CCBCC looked for an upgrade in their old version of ERP system that could cater their needs in improving the potentials in finance, Human Capital Management (HCM), sales, procurement, and other enterprise operations that are obtainable in the upgraded version. CCBCC was using SAP r/3 4.7 and Unicode was needed with all new SAP product. CCBCC decided to upgrade their SAP R/3 Enterprise system to SAP ERP 6.0. in order to completely upgrade the system, the company needs to upgrade its existing Oracle Database, and buy extra Oracle License or change into a different database platform.


The CCBCC came up to a decision of engaging to a new database platform which is the IBM DB2, instead of upgrading the Oracle Database.


"Combining the database migration with the SAP Unicode conversion saved time and money. Initial results show that DB2 delivers a reduction in storage needs of approximately 40 per cent. The duration of manufacturing runs was reduced by more than 65 per cent. The migration was completed under budget and ahead of schedule. The company has reduced licensing and maintenance costs by avoiding the purchase of additional Oracle licenses, and predicts savings in the next five years of about US$750,000." This statement from IBM company, in accordance to the result of its system used by CCBCC, shows that their product really fits to what CCBCC really wants. IBM is able to meet the requirements of CCBCC in their database while having an upgrade in their ERP system.

Comparison of ERP with SDLC

The Enterprise Resource Planning is one of the most used strategic system nowadays. Basically, although most of the companies who are engaging in this system are the large one, it still believed to be appropriate for the needs of a company. It can cater all the enterprise functions that a company wants since ERP is installed in accordance to what the company requires. It can be customize and upgraded. Options are presented (in terms of upgrading), depending on the flexibility of the ERp. For instance, SAP R/3 Enterprise system was used together with Oracle database. Since SAP R/3 ERP has been upgrade to SAP 6.0, CCBCC decided to use the IBM DB2 instead of upgrading the Oracle database because it can cost much beyond the budget of the company. On the other hand, SDLC or the System Development Life Cycle requires more time and money since it follows a cycle or step by step procedure. Customization on the system using SDLC can take longer time and need more budget since it requires to take the very first step to be done before proceeding to the next one.

In conclusion, as far as information technology is concern, its more practical (for me) to engage in ERP system. But we must consider also the company background of the vendor that sell such ERP system or application so that we can secure reliability and efficiency of the product. Investing to a new improved system could cost beyond a company's budget but the probable outcome of that one could bring the company to its fame and could have more profit or income.



Last edited by Ailene_Madato on Fri Feb 24, 2012 1:26 pm; edited 1 time in total
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viktor immanuel calonia

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PostSubject: Subject: Assignment 12 (Due: February 24, 2012, before 01:00pm)   Thu Feb 23, 2012 9:09 pm

M. Lhuillier Philippines Inc.
M. Lhuillier Philippines Inc. is a pawnshop company that provides non pawnshop financial services like banking, remittance, non-life insurance. it has 1400 branches all over the world.
The installation of Enterprise resource plan was developed and implemented by Macario Moraleja in over 900 branches worldwide. The project was done within 1 year and 7 months from July 2006 to January 2008.
The Software she used were:
• Windows XP,2000 Advance,2003 with IIS
• Microsoft SQL Server 2000
• Visual Basic .NET, ASP
• Crystal Reports
• Exact Globe
• Exact e-Synergy
The over-all project plan is not available maybe due to its confidentiality. However, the activities that will be undergone along the development of ERP have commonalities.

Activities in Enterprise Resource Planning

Strategic Planning
In doing the strategic planning, the following will be done:
• Assign a project team.
• Examine current business processes and information flow.
• Set objectives.
• Develop a project plan.
Procedure Overview
In doing the overview procedure, the following must be done
• Review software capabilities.
• Identify manual processes.
• Develop standard operating procedures.

Data Collection and Clean Up
In doing the data collection and clean up, the following must be implemented
• Convert data.
• Collect new data.
• Review all data input.
• Clean-up data.
Training and Testing
In this phase, the following is usually done
• Pre-test the database.
• Verify testing.
• Train the Trainer.
• Perform final testing.

Go Live and Evaluation
In doing this step, the following must be implemented
• Develop a final Go-Live Checklist.
• Evaluate the solution.

Compared to Standard SDLC

it is the phase where there is a gathering of information about the current system and identifying the view of the intended project and determine the goals of the project
Requirements gathering and analysis
It is identifying the goal for the system. It is also to determine where the problem is and finding ways to fix the system

Functions and operations are described in detail, including screen layouts, business rules, process diagrams and other documentation

Build or coding
Coding for the system will be done

The code will be tested at various levels of software testing

Operations and maintenance
Changes and enhancements before the decommissioning or sunset of the system
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Michael S. Palacio

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PostSubject: Enterprise Resource Planning   Fri Feb 24, 2012 12:55 am

ERP System
ERP System or Enterprise Resource Planning System is a complete solution package including the software and hardware utilities provided for the business organizations and institutions. This system is developed for the enterprise-wide systems which supports all the operational functions of an entire organization.
The introduction of ERP systems into organizations is very successful due to the fact that it is produced for enterprise-wide systems. And because it is enterprise-wide, it is a major undertaking and would need longer time to install and is very costly.
The advantage for having an ERP system is that the new system is obtained at a lower cost and risk compared to having an in-house software development. The cost is lower because major functions of the system are already present on the base system. The risk is lower because the base system is well-developed and tested, and a lot of other organizations are already using it making it have a successful track record.

SAP is one of the software developing companies that provide ERP systems to many enterprise-wide organizations. Large corporations such as IBM and Microsoft use SAP products to run their businesses.
SAP applications provide the capability to manage financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. The latest technology SAP offers to business organizations is called the R/3 system.
R/3 is a comprehensive set of integrated business applications that uses the client/server model and provides the ability to store, retrieve, analyze, and process in many ways corporate data for financial analysis, production operation, human resource management, and most other business processes.

Kodak is one of the customers of SAP. Kodak uses SAP Business Information Warehouse (SAP BW) to improve its business. Eric Hunt, the ERP global data warehouse project manager at the worldwide leader in imaging, says that “We’re using a single instance of an R/3® global design to run all of our business processes worldwide. Then we use SAP® BW to merge crucial data from R/3 and non-SAP systems to provide us with easy access, through a user-friendly graphical interface, into the critical issues that drive our business.”

ERP Development Model
According to Ahituv, Neumann, and Zviran (Spring 2002), the following is the ERP life cycle model based on case studies identified during their literature research and system implementation methodologies developed by system vendors.

ERP Life Cycle Model
1. Selection Phase
The objective of this phase is to identify the ERP package most appropriate for the organization and the technological infrastructure needed for it. In this phase, the standard activities and those unique to the organization are reviewed in order to determine the project boundaries.
2. Definition Phase
This phase includes all the preparatory activities for the implementation phase that follows. The system components that will be included in the implementation are defined and the implementation plan is prepared.
3. Implementation Phase
As the main phase of the ERP life cycle, its objective is to link the ERP system to the organizational processes so that when the system moves to the operation phase, its contribution to the organization would be at the maximum. During this phase, the organizational processes are redesigned to work with the ERP system, the system is implemented, user training and acceptance testing is performed. This phase is iterative and the iteration begins at the conclusion of the acceptance tests of the previous iteration.
4. Operation Phase
In this phase, the ERP system is in operation, is maintained, and is upgraded, if needed. This is the longest phase of the ERP life cycle and can last for several years.

Comparison to SDLC
The major phases of SDLC include Definition, Development and Implementation, and Operation. On the other hand, ERP has Selection, Parallel Definition Development and Implementation, and Operation.
The selection phase is not part of the SDLC model because the systems are developed internally. In ERP, selection phase takes place at the start.
In SDLC, the definition phase is performed before the development and implementation phase. Unlike in ERP, the definition phase takes place in parallel to the process of development and implementation since the essence of ERP model is the mutual fit of the system and organization.

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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Fri Feb 24, 2012 1:02 am

Name: Patrick Duane Valle
Course/Year : BSCS III
Assignment 12
From a news article or internet information, find an example of an organization that is installing an ERP package. If possible get a copy of the over-all project plans and analyze the various activities and compare them with a standard SDLC
Enterprise Resource Planning (ERP) is an integrated business planning which also handles long range development plan. Nowadays, ERP is being use as a business strategy to manage the business and to have an effective plan. The typical flow of ERP is first you have the input then it will be in the work flow which handles money, people, facilities and materials. After this process, it will result to be your goal. The hierarchy of the ERP is business strategy, business model, business process, organization, MIS, and database.
Ideal ERP System

This handles manufacturing process and resources work flow and others. It organizes the main flow of the system.
This is for the management of payments and other transaction that involve with the cash.
Human Resource
Human resource will manage the benefits of the employee and employers. This will also handles the primary function of the entire employee like attendance, labor and rules.
Supply chain management
This will be in charge with the inventory management and other material and product needed. It will also handle transportation and distribution together with the procurement planning.
Customer Relationship Management
The main function of this is for the marketing strategy of the system. This will manage the service towards the customer.

Example of enterprise that implement ERP
“The team and the system has earned the respect and confidence of the users. The Lynx system is providing capabilities to the business beyond what one thought was possible.”

Cargill provide a centralize ERP application that specifies for the Agricultural business and they improve the functionality and efficiency of the system at the same time, they maintain the cost. Base on the their source, the key benefits can reduce the annual IT operating cost of 13 to 42 dollars and you will have a centralize project. You will also benefit about the solid and scalable platform for the additional function that you want. The system will also handles risk management and this company is one of the top international food provider which only prove that the system is working and useful.
Barnes and nobles
Barnes and Nobles is a book store that made it to the top with the use of ERP. One of their strategies is to give 40 percent discount to the specific book to acquire customers. They also use the television to indorse their product which is a big success because until now, people in America still remember the advertisement if they saw it during that time. They also offer CD’s and DVD’s which helps to their popularity and they also make partner with different corporation. They also buy companies to expand their network like sparknote.com which is a leading web aid Webster.

Mercedes Benz
Mercedes Benz is a well know industry in the whole world because of its product. One key reason for the success of the Mercedes Benz is using Baan’s enterprise resource planning software. It’s an automated data collection and because of the Baan’s ERP, it enables the system to have just-in-time and just-in-sequence parts delivery.

Sun Microsystem
Sun microsystem is a corporation that sells computer and computer parts. They also sell hardware and software component. This is the first unix work station and they also develop platform like java platform, MySQL and NFS. One of their strategy is to make an open source software and they will use it to indorse their product. By implementing the ERP, they minimize the cost in their facility, improve the accessibility, achieve flexibility like changing its component from present to future which means that its capabilities involves the future specification.

SDLC vs planning with ERD
Base on what I have learned in the previous assignment about System Development Life Cycle (SDLC), it is only effective for the simple operation and it is not effective if you will use this method for the complex and wide structures. As what I have observed about the ERD planning strategy of the company listed above, ERD help it by preparing the system to the future. It is flexible enough to adopt specific changes in the system. It is more strategically base planning for the long range planning and it is very effective compare to SDLC. In my opinion, SDLC is for rapid and short range development only and for that, it is not applicable and adoptable for changes in the near future. The structure of SDLC is constant compare to ERD. In managing the system, ERD help a lot because it is adoptable for the need of the user.

Not all company will success by the help of ERD but it will make a big difference. Not all the time ERD is applicable and it also has its own advantage and disadvantage like in a practical manner when using ERD which the system involves is temporary or not a candidate for the long range development. Sometimes, SDLC will do the work and vice versa.

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PostSubject: Enterprise Resource Planning (ERP)   Fri Feb 24, 2012 1:19 am

From news article or internet information, find an example of an organization that is installing an ERP package. If possible get a copy of the over-all project plans and analyze the various activities and compare them with a standard SDLC.

This the article that discussed the implementation of ERD to Matsushita Communication Industrial Corporation of the Philippines (MCP), now Panasonic Mobile Communications Corporation of the Philippines.

Matsushita Communication Industrial Corporation of the Philippines

Industries: Manufacturing
Offering Groups: Solutions
Solution Areas: Enterprise Resource Planning
Regions: Philippines

The Matsushita Communication had a direction to standardize the operations of all its overseas companies through the implementation of an Enterprise Resource Planning (ERP) solution.

The company decided to use Glovia, an ERP solution that addresses the needs of the discrete manufacturing market, developed by Glovia International. Glovia defined their global standards in production planning, production, and inventory control systems. The project was successfully completed in 4.5 months and with the outstanding performance of the Fujitsu Philippines team in this activity, MCI decided to partner with the company in all other Matsushita implementations around the globe.

The article does not discuss the overall project plans it only discusses the phase of the implementation was focused on the cellular phone business of the Overseas Mobile Telephone Division (OMTD). This also led to the development of specific add-on functions, which were done by Fujitsu Japan.

Enterprise Resource Planning (ERP)

In this assignment we would know all about ERP-its advantages and disadvantages that can be made to the organization and companies that installing this package.


ERP is Enterprise Resource Planning. It is the present evolution of manufacturing resources planning systems. ERP provides the foundation for integrating enterprise-wide information systems. These systems will link all aspects of a company's operations including human resources, financial planning, manufacturing, and distribution, as well as connect the organization to its customers and suppliers. Examples of ERP packages are HRMS, Financials, Manufacturing, Distribution, and Sales. Each ERP Package may offer different functionality for different industries. ERP (Enterprise Resource Planning) systems typically include the following characteristics: (1) An integrated system that operates in real time (or next to real time), without relying on periodic updates. (2) A common database, which supports all applications. (3) A consistent look and feel throughout each module. (4) Installation of the system without elaborate application/data integration by the Information Technology (IT) department. Advantages of an ERP system:

- Information entered once into system .
- Forces use of the best practices.
- Allows customization.
- Based on reliable file structure.
- Provides functionality to interact with other elements in the process.
- Provides tools for ad hoc queries.

And also according to ERP Software Solutions there are five major benefits of ERP:

On-line/real time information throughout all the functional areas of an organization.
Data standardization and accuracy across the enterprise.
Best-practices or optimized solutions are included in the applications.
Creates efficiencies that organizations would not otherwise have.
The analysis and reporting that can be used for long-term planning.

In implementation, ERP systems include several basic features. They are installed on a Database Management System. Database platforms to choose from are: DB2/400, DB2/MVS, DB2/Unix, Informix, MS SQL Server, Oracle, SQLBase, and Sybase. They require initial setup according to the organization's process. They may be customized according to the organization's process through the ERP's tool set. Work flow can be setup to automate approval processes through chains of command. Once installed, the user only enters data at one point, and the information is transferred through processes to other modules. Finally, the ERP system includes reporting tools for main reports.


There are many differences of Enterprise Resource Planning and System Development Life Cycle such as the in the ERP’s features. The ERD system is the foundation of the company-wide Integrated Information System, performing foundations corporate activities and increases customer service, belief that it is the only solution for better Project Management compared to the other planning tools, addressing not only the current requirements of the company but also providing the opportunity of continually improving and refining business processes and above all, providing business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS),Reporting and many more that can help the company in the decision making to improve its business process.




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kenneth jan malubay

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PostSubject: ERP compare SDLC   Fri Feb 24, 2012 3:28 am

National Aeronautics and Space Administration (NASA)

NASA is an agency in United States of America government that is responsible for the nation's civilian program and for aeronautics and aerospace research. The implementation of Enterprise Resource Plan was led by Donna L. Smith. The project was done 5 years from 2000 – 2005. The project that they were implemented was the Integrated Enterprise Management Program (IEMP) this system will re-engineer NASA’s business processes in the context of industry “best practices” and implement enabling technology to provide necessary management information to support the Agency’s Mission According to Smith. I had found a slide telling the timeline and the modules that they have made for the system and the upgrades done to it. But I can’t find the planning phase of the system but basically the ERP has five phases. These are the Following:

1. Determine Goals and Objectives
In the first phase of the ERP the management must know the goals and objectives in the new build system. So that they have guide what will the system will be achieve in the end and what are the services it will cater for. Knowing the goals of the project will direct you to a clearer output of the project.

2. Outline Requirement
The second phase of the ERP is to know the functions that the new system will cater. It is essential to know the functions that the new system will operate on. The software engineers and technical specialist will tell the PM about the function and how the new system will operate and the policies and procedure that the new system will do when it is finish. Then, the PM will add the requirements in the Project Chart.

3. Test ERP Implementation System
The ERP Project management team must join in the Conference Room Pilot (CRP) to run the testing in the new system. The trial run of pre-defined business processes designed to try to the new system in the test environment. A successful trial run will cover the way for smooth transition to the next phase.

4. Cutover Phase
After finishing the testing and analyzing this phase will be conducted. In this phase the data from the old system will be moved to the new system and the parameters are set, the end user training is completed and the interface options are configured. It is preparing the system before going to the actual environment.

5. Go-Live Phase
The new system in this phase will be running the business and the ERP team will be disbanded. But the objectives and goals that are set in the first phase are not yet achieved it will run for how many months or days of using the system before achieving the evaluation. After getting it most probably the end user will ask for improvements and new expectations for the system. A set of procedures for extra training and testing should be designed after the new system has been implemented.

These ERP activities are based on Daniel Linman article. Comparing it to the Standard SDLC it is shorter but straight to the point method. The SDLC phases are the following:

• Initiation
This phase will be gathering ideas on how to approach the problem. And the needs of the project, also the scope of the project is stated here and the how much budget the project will be use.

• Feasibility
This phase will gather the need of the system, the procedure and the department that will affected in the project. This phase also is the time to gather the team and to do a system flow.

• Analysis
This is the phase when analyzing of the data that the team gathered and the information gathered will be prepare for the next phase.

• Design
This phase is the time to design all the flows, all the needs of the system. If there is information that was missed it will go to the reserve. The design will be the guide for the development phase.

• Development
This is the time that the development of the system will be start. The coding stuff is under in this phase. In development the flow of the system must be followed so that the output will be the same as the expected output.

• Testing
Checking of bugs and errors is done in this phase this is the phase when the system is get verification if it has a little bugs or more bugs to be fix on. Finishing this phase will be a go signal to the system that it will be implemented.

• Implementation
In this phase the team will hand over the system to the end user and run the system to real environment. But the cycle is not over in this phase yet because there is a last phase that the SDLC has.

• Post-Implementation
This is the last phase in SDLC this phase will be the maintenance of the system and the feedback of the end user about the system. If the end user want some improvement it will go back again to the first phase.

The phases of SDLC are based on the post blog of Bill Gladwin. Comparing ERP and SDLC, ERP has fewer phases against the SDLC but to think of the ERP is come from to the SDLC because SDLC is the first method to be used by the system developer. ERP is an enhancement of the SDLC method.

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PostSubject: Assignment # 12   Fri Feb 24, 2012 5:21 am

From news article or internet information, find an example of an organization that is installing an ERP package. If possible get a copy of the over-all project plans and analyze the various activities and compare them with a standard SDLC.

About SAP
Headquartered in Walldorf, Germany, SAP is the market leader in enterprise application software. Founded in 1972, SAP (which stands for "Systems, Applications, and Products in Data Processing") has a rich history of innovation and growth as a true industry leader. SAP applications and services enable more than 183,000 customers worldwide to operate profitably, adapt continuously, and grow sustainably. With revenue (IFRS) of €12.5 billion for the year 2010, SAP has more than 54,000 employees and sales and development locations in more than 50 countries worldwide [1].

SAP runs SAP

Before SAP releases its solutions to its clients, it is first use in the company to help its employees effectively and efficiently address its own operational needs [2].

There are no available project plans of SAP that are available online which may due to the confidentiality of the information contained on SAP project plans. But to understand what the various activities in ERP are, Marianne Bradford (2010) discusses the ERP Life Cycle which composed of:
  • Planning

  • Implementation
    Implementation is the methods a company uses to achieve their goals by transforming the way they carry out operations and softwares are tools used to meet that objective (Marianne,
    • Installation
      Installation is the mechanics of changing from one software package to another while keeping problems at a minimum (Marianne, 2010). The software should meet the operational and strategic goals to which the reason it is installed. But it does not mean that the software will achieve those goals over a sustained period of time. There are instances that Marianne (2010) mentioned in which the success of the installation of the software does not matter if the employees don’t know how to use it.

    • Configuration
      Configuration is a major implementation task in which business and functional settings in the ERP system are changed to make the “out of the box” software support the customer’s business needs. Configuration does not make any changes to the core software code, but instead updates tables with settings and entries specific to the customer’s business. Called configuration tables, these tables enable a company to tailor a particular aspect of the system to the way it chooses to do business. Project team members can use configuration tools to select alternatives through an easy to use GUI. These selections then behave like switches that tell the software to perform differently based on the values selected (Marianne, 2010).2010).

  • Customization
    There are reasons why ERP software undergoes customizations according to Marianne (2010), it is either the company has a business process that is unique to other companies or it will provide the company an edge over it competitors. Customization requires programming, which must be performed by a programmer/developer, whether in-house (if expertise exists within the company), or external by a consultant. The project team should also consider approaching the software vendor for consultation and support. Often the vendor may assist by internalizing efforts to provide unique solutions that would otherwise require customization and instead make them configurable options. This approach may be advantageous to both parties. The company gets what they want more easily, and the vendor may expand their target customer base to attract more companies that may also need this option (Marianne, 2010).
    • Enhancement
      An enhancement occurs on the ERP software when the customers ask for additional functionalities or wants to change the look and feel of the screen. In an SAP environment, this type of change would not create a core software change but makes use of user exits, which are pre-defined breaks in the core ERP code where custom programming can be inserted or “called” without fundamentally altering the way the ERP transaction works (Marianne, 2010).

    • Modification
      Modification is made when the customer decides to make changes on the ERP software that will affect the core code. It is because the software does not have the capability to address the requirement and the software has to be changed in the way it works. And as mentioned by Marianne (2010), modifications needs to be registered with the software vendor and is not supported by future upgrades of the software because the modification is outside of the scope of the software creation.

  • Testing
    Testing is important prior to the deployment of the software. This checks if the software works as to what is required and should meet the customers’ expectations. Also during testing, the project team confirms the software can meet the previously specified requirements and identify gaps that are not found during the package selection phase. Marianne (2010) mentioned that companies can use conference room pilot (CRP) sessions where conference rooms are designated as temporary locations to support development and testing, and employees can execute transactions with the proposed system configurations. As transactions are executed, expected results can be compared to actual results. Differences between the two will identify areas where the system or the expectations might need to be tweaked. Marianne (2010) also mentioned specific types of testing which includes:
    • Unit Testing – small increments of functionality as discrete steps in a business process or testing a single development object to the requirements in a functional specification.

    • Integration Testing – Testing end-to-end business processes including any customizations, enhancements, or interfaces to external systems.

    • Customer acceptance Testing – Usually a final round of integration testing in which key users develop realistic business scenarios that represent how the system will need to work after go-live. The users are tasked with testing the system to their approval or acceptance. This milestone is critical to proceeding with go-live cut-over activities.

    • Security Testing – Testing all of the user roles and authorizations that are being set up in the system. These tests include both positive and negative tests to demonstrate that allowed functionality can be accessed or that unauthorized access is appropriately denied.

  • Change Management
    The implementation process of ERP would change the way employees do their jobs. This could be advantageous to the company because of best practices implemented but according to Marianne (2010), people are naturally hesitant to change. Marianne (2010) states that, “This hesitancy must be anticipated and managed. Employees should be encouraged to provide input into the implementation process and to have their input considered. They should also be educated in the system’s objectives and the business case that supports its selection”. Change management is the body of knowledge that has evolved to address change within the context of an organization. Some additional definitions of change management include as mentioned by Marianne (2010):
    • A systematic approach to dealing with change, both from the perspective of an organization and on the individual level.

    • A structured approach to managing change in individuals, teams, organizations and societies that enables the transition from a current state to a desired future state.

    • Getting employees from Point A, prior to change, to Point B, where all employees are fully trained and new processes are in operation.

    • Unfreezing, transitioning, and refreezing. The unfreeze step gets employees from “unready to change” to “being ready to take the first step towards change”. The transition step keeps the change moving through incremental steps, employee/management involvement, and open door policies by management. The refreeze step establishes roots so that the new point stays permanent and employees do not resort back to old methods or systems.

    As said by Marianne (2010), “Without change, performance would never improve”. Marianne (2010) also said that, “successful companies have a culture that keeps moving and changing proactively” but these changes in the company should be manage properly with formal processes that:
    • Defines the objectives of the change

    • States the business case supporting the change

    • Identifies the actors or agents responsible for the change

    • Defines the schedule of the events that will result in the change

    • Lists specific steps involved in implementing the change

    • Defines the results confirming each step’s success or failure

    • Identifies risks and potential points of failure in the change

    • Incorporates mechanisms for feedback and plans for continuous improvement

  • Interfacing with other Systems
    ERP system should be able to exchange data with other client server systems as well as legacy systems. Marianne (2010) also mentions that, “ERP systems may interface with external business partners through electronic data interchange and electronic funds transfer protocols”. Interfacing ERP with other System or external entities to extend is functionalities increases time and cost to the development of the ERP system but it will be essential to integration of data that the ERP processes.

  • Training
    As said by Marianne (2010), “training expenses are high because employees almost invariably have to learn a new set of processes, not just a new software interface. Professional training companies may not always be the best resource to help because they are focused on teaching users how to use the software versus educating users about the particular ways the company does business”. It important for the employees to know changes on the business processes which is caused by the implementation of ERP and not just the software functionalities and interfaces.

  • Operation and Maintenance
    After go-live, according to Marianne (2010), the company implementing ERP system proceeds to the operation and maintenance phase which starts with the period of stabilization and while the memories about the ERP system is still fresh, the project team should conduct “postmortem session” to determine what went right, what went wrong and what are the lessoned learned during the ERP system development and deployment. Maintenance activities are then started shortly after the ERP system goes live. Marianne (2010) also mentions some typical ERP maintenance activities namely:
    • Preventive Maintenance - These are regularly scheduled tasks that must be performed to keep the system functioning properly.

    • Emergency Maintenance - These are tasks that must be performed immediately. For example, if a software bug is discovered that has potentially damaging effects to the business, then that bug needs to be fixed as soon as possible, even if it may affect regularly scheduled operations.

    • Software Updates - ERP vendors constantly fix bugs, implement new best practices and incorporate the feedback of customers in their software.

  • Upgrading
    Upgrading ERP system is a complicated task because of ERP systems that has undergone modification or customization. It is an extensive job for the vendor when it comes in testing every combination of bug fix in every module against every possible combination of operating system, database and application server. In this matter, Marianne (2010) mentioned that the responsibility on what upgrades on the ERP system to apply falls on company. And even though it is a bit risky, companies choose to upgrade their ERP system for the following reasons:
    • Competitive Advantage - New features and capabilities give the company an edge over its competitors.

    • Globalization - Features and updates designed to increase the flow of information to customers and business partners can increase the ability to operate globally.

    • Integration - Enhancing the flow of information between the ERP system and other systems within the company increases operational efficiency and improves communication.

    • Best Practices - Incorporating new best practices allows the firm to operate more efficiently.

    • Cost Reduction - Lowering administrative overhead and improving the support offered by the ERP vendor results in lower operating costs.

ERP Compared to SDLC
ERP provides the basic or core functionalities of the software and can be modified or customized to meet the costumer’s requirements and functionality satisfaction. The development of the ERP software are done repetitively even though the planning phase of it is finish and on the implementation phase. Any change can be address as late as the development cycle reaches to the implementation phase whereas on SDLC, it is expensive in terms of time to go back to the planning phase if there are modifications that are inserted in the middle of the design phase. SDLC simply means that the project team should start from nothing then provides a system at the end of the development phase while on ERP, a skeleton of the system is provided and then it is on the project team to add and make modifications and customizations.

1. http://www1.sap.com/corporate-en/our-company/index.epx
2. http://www1.sap.com/corporate-en/our-company/sap-global-it.epx
3. http://modernerp.com/uploads/Sample_Chapter_-_Ch._6.pdf
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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Fri Feb 24, 2012 5:36 am

Intel IT has successfully implemented an enterprise resource planning or ERP environment that is based on industry-standard servers and supports more than 10,000 active users. In this way, Four-socket servers play an important role in implementing this strategy. There are many large organizations having a centralized enterprise resource planning or ERP environment based on proprietary mainframes or RISC-based systems. On the other hand, INTEL IT has successfully implemented a decentralized ERP environment that is based on industry-standard servers. They have found that this approach offers several advantages, including lower server acquisition costs and increased flexibility and agility.

Decentralized ERP on industry-standard servers offers some important advantages to Intel, compared with a centralized approach based on large proprietary mainframes or RISC-based systems.

• Lower server acquisition cost
• Forecasting and flexible scalability
• Faster development of new ERP capabilities
• High availability through clustering
• Reduced support costs through standardization
• Budgeting

According to Sudip Chahal and Karl Mailman, for each Intel business group ERP implementation, there is a pipeline of ERP application instances. Each instance supports a specific function in the lifecycle of ERP releases along the path from development to production. Each instance may be implemented on one or more dedicated servers.

The primary instances are:

• Development - Creating the initial pipeline configuration, populating master data, and creating and unit-testing ERP application modifications.
• Quality assurance - Integrated testing of project changes and system testing to assess the impact across the environment.
• Benchmarking - Performance and scalability testing prior to production.
• Production - Executing production transactions.
• Production support - Rapid testing and validation of fixes to the production environment.
• Disaster recovery - A remote copy of the production instance for executing production transactions in the event of a disaster.

There are many Enterprise Resource Planning or ERP and System Development Life Cycle. In comparing the two of them, there some companies now are using the ERP because of its automation and integrated software application. We all know that the SDLC is the first method used by the system developers but nowadays, because of technology, automation is the best solution for the company.


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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Fri Feb 24, 2012 7:26 am

Company Name:
ABS-CBN Global Limited, subsidiary of Philippine TV broadcaster and content provider ABS-CBN Corporation

Media, broadcasting and entertainment

Quezon City, Philippines, and Redwood City, California

Applications Replaced:
Custom-built customer management and enterprise accounting

ABS-CBN, a leading global media company, struggled to patch together numerous software applications across multiple operating regions. Utilizing NetSuite ERP and CRM they're able to integrate subsidiary management and reporting into their parent companies SAP instance, streamlining financial consolidation across all of subsidiaries. The leading global Filipino company has utilized the following NetSuite modules: accounting / ERP, inventory and order management, customer support and customer relationship management (CRM), partner and reseller management, and sales and marketing report generation and analysis. As a result, the company has gained greater flexibility to expand to new regions and modify its product and marketing mix. The NetSuite OneWorld solution also makes it easy for ABS-CBN Global to report results to its parent company which makes use of SAP as its enterprise-wide financial application.

• Patchwork of software applications across multiple operating regions hindered efficiency and growth, requiring constant and costly IT maintenance
• ABS-CBN lacked worldwide visibility into sales effectiveness and inventory levels, and needed more structure and order in sales, marketing and fulfillment processes
• Adding new customer bundles, products, promotions, and locations were major tasks, requiring IT intervention and weeks of delay.

Project plans and analysis of various Activities
The SDLC activities:

1. Planning: The most important parts of software development, requirement gathering or requirement analysis are usually done by the most skilled and experienced software engineers in the organization. After the requirements are gathered from the client, a scope document is created in which the scope of the project is determined and documented.
2. Implementation: The software engineers start writing the code according to the client's requirements.
3. Testing: This is the process of finding defects or bugs in the created software.
4. Documentation: Every step in the project is documented for future reference and for the improvement of the software in the development process. The design documentation may include writing the application programming interface (API).
5. Deployment and Maintenance: The software is deployed after it has been approved for release.

Enterprise Resource Planning (ERP)

The ERP stages:
1. Understand/document the current, or As-Is business processes
2. Select an ERP package which best supports the As-Is or To-Be processes
3. Do a gap analysis, i.e. the gap between what the package supports and
what the To-Be (or desired processes)
4. Customize the package to bridge the gaps
5. Test the customized package
6. Create/migrate the data to the new ERP package, stress test it
7. Cut over from legacy systems to new system

The essence in an ERP is that it has built-in supported business processes,
which should be accepted by the Users (business people), so unlike a custom
sw project, a lot of the business analysis and requirements analysis is
decided upon the package selection.

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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Fri Feb 24, 2012 8:19 am

Enterprise Resource Planning (ERP) System

Enterprise Resource Planning or ERP is an information system that integrates all data and processes of an organization into a single and centralized system. It is a broad set of activities that helps integrate all functions running in an organization such as marketing, manufacturing, supply chain management, human resources and costumer relations management.

Taro Pharmaceuticals (Israel)
About Taro

Taro was established in Haifa in 1950. Since then, Taro has produced many products sold in Israel and abroad and thus serves as a source of pride for the pharmaceutical industry in Israel. (http://www.taro.co.il/)

The Challenge – Efficiency and Innovation
Chief Information Officers in the pharmaceutical industries are planning to deploy business model straining to operate at scale. By doing so, pharma companies are asking their IT experts to do two things at once, these are: Dramatically improve the efficiency of IT and Use It to drive business innovation.

The Solution – Enterprise Resource Planning

The implementation of an ERP solution by the pharmaceutical firm potentially increases the effectiveness and improves the efficiency of the processes and streamlines internal operation.

Business Case for ERP Implementation

Implementing an ERP may have pros and cons. Many companies find ERP systems to extremely useful and help them in thorough decision making. Others discover that the company having an ERP system just multiplies the cost and schedule delays of their business transactions.
Implementation Phases

The implementation of ERP in a pharmaceutical industry follows a generic approach. In this approach there are 6 phases, which are:
 Planning
 Requirements analysis
 Design
 Detailed design
 Implementation
 Maintenance


The planning phase includes the need assessment and business justification. The business justification for ERP includes both tangible and intangible benefits, including inventory reduction, operating cost reduction etc.

Requirement analysis:

Requirement analysis includes
 Analyzing business process
 Specifying the processes to be supported by the ERP.


The fundamental decision in ERP systems design is re-engineering versus customization. In the re-engineering approach, the team selects a commercial off the shelf ERP and re-engineers business processes to fit the package. In the customization approach, the team selects a commercial ERP and customizes the ERP to meet unique requirements.

Detailed Design:

Best practices” methodology provides models supporting the business processes of each functional area. The process for using the best practices involves the following steps:
 Select applicable business processes
 Discard inapplicable processes
 Those processes that do not match the system will serve as foundation for re-engineering
 Identify any areas not covered by the best practices as candidates for customization
 It also involves interactive prototyping and extensive user involvement in determining systems design elements.


ERP implementation could include issues like Configuration, Migration of Data, Building Interfaces, Implementing Reports, Pilot testing, Going Live, Training. Many companies contract with a technical support specialist from the software supplier to assist in implementation. Also following issues in Configuration should be taken care off. These issues range from Data Ownership, Distribution of procedures and transactions to Data Management. Some of the implementation strategies followed are Big Bang Approach, Phased Approach and a mixed approach.

Business Scenario Groups

  • Time to Market:

Research and Development in the Life Sciences industry includes all processes of medicine discovery, scientific development, and preclinical and clinical evaluation. SAP's solutions enable customers to optimize investments, by assessing budget, costs and risks as well as forecasting and planning resource capacity. Customers can realize increased efficiency and accelerated development times by capturing critical information across development (e.g. analytical testing, product & packaging specifications), optimizing the Scale-up process and reducing the clinical trial supply cycle time and regulatory submission compilation time. Productivity can be enhanced by efficient collaboration within the company and with business partners.

  • Product Quality

As regulatory agencies continue their close global vigilance on the manufacturing practices in the Life Sciences industry to improve drug quality and safety, companies are also under increasing cost pressures that forces them to manufacture their products more efficiently. A key differentiator is the ability to enforce compliance throughout the manufacturing process. Achieving this goal requires the ability to improve product quality by decreasing the manufacturing variability therefore reducing the risk of non-compliance. An increase in production efficiency can be realized by integrating key information across the organization including capturing quality and equipment information into one system of record that can be easily maintained. This single view of the manufacturing data and processes will lead to a consistent and compliant batch record.

  • Time to Value

Pharmaceutical companies require the ability to decrease the time from drug launch to peak sales to maximize product revenues, not only by increasing their sales effectiveness but also optimizing their supply chain planning. Successful companies adopt a customer centric approach in order to integrate new multi-channel marketing capabilities with the classic detailing approach. This allows for better segmentation of physicians through analytical insights and ensures compliance for drug sampling. Flexible and responsive supply chain planning is critical to sustain revenues in an increasingly competitive market. Additional revenue generation can be gained by effectively managing chargeback and rebate volumes through tight control of contract and pricing guidelines helping to reduce overpayment thus improves profitability.

  • Product Safety

Regulatory agencies in the Life Sciences industry are vigilant in assuring the safety of medical products at all stages in the product lifecycle - manufacturing, distribution and consumption or usage. Those companies that excel at proactively managing product safety continuously improve their product quality. The solutions help customers maintain one global system with consistent information regarding all complaints; gain visibility on the progress of investigations and increase speed of communication and issue resolution. Reporting and trend analysis on a global level allows companies to anticipate potential product safety issues by utilizing early warning signals to support corrective actions. The goal of drug tracking and tracing is to prevent unsafe product from entering the supply chain by establishing a secure electronic pedigree so that every unit of medication is authenticated.

ERP Implementation compared to Standard SDLC

The ERP in the company based its implementation follows the generic approach in implementation phase, similar to SDLC. It has a Planning phase, Requirement Analysis phase, Design phase, Implementation phase and Maintenance phase. Additional phase is present in the company’s implementation phase and that is Detailed Design phase.

http://knol.google.com/k/erp-in-pharmaceutical industry#6(2E)0_Product_profiling_(28)mysap_suite(29)
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PostSubject: Assignment 12   Fri Feb 24, 2012 10:02 am

What is ERP?

It describes how different and advanced business software can be developed to create a shared database across multiple business units. The idea was to maximize synchronization throughout the organization, thereby improving processes, performance metrics, and ultimately business performance.

Sample Organization that Implements ERP

Philips Medical Systems

Is a leading global manufacturer of a wide range of diagnostic imaging, monitoring, and other equipment to customers in more than 100 countries around the globe.

In the 1990s, the company set an ambitious goal to transform its information systems so that they could support agile new business models and maintain a strong focus on customer satisfaction. At the time, Philips Medical Systems had a highly distributed business – factories on different continents, dozens of sales offices, support and spare parts centers in 30 countries – that used more than 50 different systems. The initial business integration strategy was based on an internally developed, point-to-point integration that transferred data each night. When immediate information was required, personnel had to know which system to log on to, access that system directly, and then enter the data manually – sometimes even multiple times – to be able to retrieve the information. According to Reinier Lodewijks, manager of global application integration at Philips Medical Systems, this mishmash of architectures was “a classic spaghetti problem” that demanded a radical new approach to integration. If Philips had used the original point-to-point integration approach, it would have required more than 3,000 separate interfaces to obtain a fully integrated business model, which would be highly costly and complex.

ERP System Used (SAP R3)

According to Wikipedia, SAP R3 is the former name of the main enterprise resource planning software produced by SAP AG. It is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing.

Applying ERP Management

Enables Real-time Information Flow

Business integration solution empowers business processes with real-time information flow and verification of the accuracy of all data entering the network. These capabilities are vital to the company’s relationships with healthcare providers. For example, when a hospital urgently needs a replacement part for a piece of medical equipment, requests and confirmations immediately zip across the network to place, fulfill, and settle the order. No more silos of information and slow communication. In fact, this improved data exchange was accompanied by an overall reduction in network traffic.

Accomplishes Massive Integration with Ease

It enables the rapid integration of new applications during implementation and will make the process equally simple in the future. , Philips could more quickly unify its own business processes with those of the newly acquired companies so as not to miss a beat in delivering to its customers.
New Integration Strategy
This approach will make it possible to roll out new application integration projects in mere days. As a result, Philips further reduces its development costs while maximizing the flexibility of its IT architecture

Comparison to SDLC

ERP and SDLC differ in many ways, for example, some of the ERP features like it facilitate company-wide Integrated Information System. ERP performs corporate activities and increases customer service. According to some of the study that ERP is the best solution for better Project Management compared to other planning tools, addressing not only the current requirements of the company but also providing the opportunity of continually improving and refining business processes and above all, and provides business intelligence tools.

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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Fri Feb 24, 2012 12:12 pm

From a news article or internet information, find an example of an organization that us installing an ERP package. If possible get a copy of the over-all project plans and analyze the various activities and compare them with a standard SDLC.

Before getting into the topic, in this paper I would like first to define what ERP is all about for us to have a fundamental idea about the topic before proceeding what stated above.

What is ERP?

ERP or Enterprise Resource Planning is a software application that fully integrates information systems that span most or all of the basic, core business functions (including transaction processing and management information for those business functions).

Furthermore, ERP solution is built around common databases in which it is shared by common business functions.
-System Analysis and Design Methods 7thEdition pp. 26-27 by Whitten Bentley

Company Profile

TTT Corporation has built up reputation through maintaining a great reputation of more than 2000 regular clients during the last 18 years. They are very creative, prestigious, gifted to endure high pressure and always motivated in which they have given rise to the richness of culture and tradition of TTT Family Members.

Moreover, in 2010 TTT declared that they will focus on building quality policy and efficient measurement system in order to greatly improve they customer service as well as better support they customer’s community. Due to this declaration, the company applied the ERP to be able to materialize their plans.

TTT Corporation is the only company in Vietnam that has applied ERP. At the end of 1999 TTT Corporation expand their business by buying ERP Applications.

In 2001, they officially applied ERP though in the later years they silently experimenting their business process for transition.
The result of applying ERP in their business process is very highly appreciable since managing became a lot easier. Saving lots of time due to all information constantly available in orderly fashion.

In addition, Mr. Tran Minh Tam letting us know morel “Year 2006, TTT has about 300 projects. This is an impressive number and sweetness from ERP”.

Over-all Projects Plan
1.) Define the Challenge or the Problem
2.) Generate a Solution
3.) Design Freely
4.) Deliver Efficiently
5.) Coordination and Quality between team members
6.) Decision Making
7.) Enhance Client Communication
8.) Over-all Result

Comparison to SDLC
1.) Initiation / Planning
- determine the goals of the projects
2.) Design
- Functions and operations necessary to be able to give solution to the problem
3.) Build or coding
- developing the system by integrating the requirements necessary for the system
4.) Testing
-deploying at various levels in software testing
5.) Operations and Maintenance
- Changes might applicable or even enhancement

System Analysis and Design Methods 7th Edition pp. 26-27 by Whitten Bentley

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PostSubject: Assigment 12   Fri Feb 24, 2012 12:54 pm

Cisco ERP Implementation


Pete Slovick, CIO comes to Cisco from Apple in Jan 1993
Cisco is growing like crazy
January 1994 Legacy Systems Fail leaving company shut down for 2 days
ERP Project: June 1994-Feb 1995
Action and Role Played by Senior Management
CEO-Morgridge, Made it clear to CISCO that the ERP project was a priority (one of seven goals for the year
Board of Directors, Approved project and showed by actions (including final party) their support
Redfield, SVP of Manufacturing, initial business sponsor, recognized importance of project being
a priority
Executive Steering Committee—see role and membership
CEO of Hardware vendor post implementation during performance problems—Exec Sponsor

Project Approach

Tight schedule/definite project end date
“Big Bang” implementation, not phased approach
Limit customization
Put the “best and the brightest” on the implementation team, people that the business units did not want to give up
Use of outside experts—KPMG
Rapid Prototyping method used
CRP—Conference Room Pilots (4 of these phases, each more sophisticated and detailed)
Testing process (good and bad—used sequential, not parallel processes and limited database)
Use of weekly executive meetings to review project status post implementation (performance problems)
Use of SWAT team approach to improve performance and stabilize the system post implementation

Project Management

Vendor selection process
Contracts with key vendors—promises from Oracle and performance from hardware mfg., not just equipment
Project organization—functional tracks, see Fig. 4
Team training and use of “Tiger” team
Two day offsite team meeting for requirements determination (1% effort gave 80% of requirements)—joint
Use of Business Process Scripts and Business Process Prototype Tracking Sheets
Use of Project Change Process—Issue Resolution Meetings by Project Management Office (red, yellow, green)

Use of Incentives
Cash rewards to ERP implementation team
Career rewards to team members

Data Warehouse approach/data definition (BofM, customer and product numbering)
Oracle and Client Server
Handling Performance Issues—Relationship to the Triple Crown/Vasa case

Business/IT partnership/Vendor
“Could not be an IT-only initiative”
See Project Team composition and management
Critical for reputation of the vendors (KPMG, Oracle, Sun??) to make the system work

Project go/no-go criteria—Issues, not financial analysis
“Hey, we are going to do business this way,” Redfield, SVP Mfg.

Comparing to SDLC

This activity is far different from SDLC or the system development life cycle, as what I have observed
and analyze in this activity, this is more flexible than what I have learned in SDLC which SDLC follows
a step by step process which may cause delays of plan since it does not usually proceed when a they
find a problem on a particular phase.
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PostSubject: Assignment 12   Fri Feb 24, 2012 1:03 pm

What is ERP?

ERP stands for Enterprise Resource Planning; is the latest high end solution, information technology has lent to business application and it was developed to integrate several sources of data and processes that were created by any organization to unify their system. The various components of computer software and hardware are used in order to accomplish the combination of ERP softwares. ERP software packages are cost-effective in all organizations that are using it and it was provided by Silicon Valley.

Features of ERP
Some of the major features of ERP and what ERP can do for the business system are as below:
o ERP facilitates company-wide Integrated Information System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc.,
o ERP performs core corporate activities and increases customer service and thereby augmenting the Corporate Image.
o ERP bridges the information gap across the organization.
o ERP provides for complete integration of Systems not only across the departments in a company but also across the companies under the same management.
o ERP is the only solution for better Project Management.
o ERP allows automatic introduction of latest technologies like Electronic Fund Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video conferencing, E-Commerce etc.
o ERP eliminates the most of the business problems like Material shortages, Productivity enhancements, Customer service, Cash Management, Inventory problems, Quality problems, Prompt delivery etc.,
o ERP not only addresses the current requirements of the company but also provides the opportunity of continually improving and refining business processes.
o ERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) for enabling people to make better decisions and thus improve their business processes.

Companies that use ERP Package

Baan ERP software was originally created by The Baan Corporation in The Netherlands. It was purchased by Infor Global Solutions in 2003. Baan ERP software is designed for manufacturing industries working on complex products with complex supply chains that work on different methodologies. Baan is especially suited for large made-to-order and engineering-to-order companies. Baan is used by companies like The Boeing Company, Ferrari, Solectron, Fiat, Flextronics, Evenflo, Navistar and British Aerospace & Engineering Systems. Baan is highly customizable and supports flow chart based process and procedure documentation.

Relationship of SDLC in ERP

SDLC stands for Software Development Life Cycle has its very important part in ERP. It is well known that in order to implement the ERP system, you must first gather the organizational requirements of their needs then the vendors try to create and develop the different packages. Vendors give their best effort in order to make a cost effective highly productive ERP package that enhances the capability of the organizations. As you know different phases of SDLC are:
• Gathering organizational requirements
• Make plan to implement ERP
• Design ERP system
• Testing of System
• Rendering of ERP system to Org
• Provide Maintenance of System
• Provide training to user of that system including employees and end users

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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Fri Feb 24, 2012 5:28 pm

PepsiCo is to standardise its global consumer goods empire on the mySAP Business Suite. [4]
PepsiCo has not previously had a company-wide ERP system. Units the company built by acquisition, such as Frito-Lay, Tropicana and Gatorade, are still running the business applications they selected as independent companies.
PepsiCo decided to move to one ERP system for better integration and began evaluating suppliers several months ago. SAP won the contract because of its track record and extensive history in the consumer goods market, according to spokesman Mark Dollins.
Dollins said the scope and sequence of the roll-out is still being determined.
"All we can say at this point is that we expect it to be a multiyear project," he said. Heading the initiative is PepsiCo's vice-president of enterprise systems, George Legge.
SAP will displace some of its competitors in PepsiCo's IT infrastructure - most notably, Oracle, which counts Pepsi-Cola North America, Frito-Lay and Tropicana as customers of its ERP applications.
PeopleSoft's software runs PepsiAmericas' CRM system, while Siebel Systems powers Quaker Oats' system. Also in the mix are a number of applications from smaller suppliers and a profusion of custom systems.
PepsiCo totaled $27.6bn in sales last year, from hundreds of brands within four operating divisions.
In 1999, it created the PepsiCo Business Solutions Group as a central IT organization. Five years later, PepsiCo still has a fragmented technology infrastructure.
ERP stands for “enterprise resource planning”. The definition of enterprise resource planning is an integrated software solution used to manage a company’s resources. ERP systems integrate all business management functions, including planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, and more.
ERP is designed with a view to integrate all the critical core processes in an organization. With the help of cutting-edge technologies, it introduces flexible business information management systems. In the process, it links the various functional wings of an organization. Thus, instant sharing of accurate and inexpensive information becomes feasible.

ERP project consists of the following steps: [1]
• ERP readiness assessment
• Preparing the organization for ERP
• ERP Feasibility Study
• Process modeling and documenting the "AS IS" processes & "TO BE" processes (along with BPR)
• Detailed plan for ERP implementation (includes ERP software selection, selection of implementation partners, implementation methodology - "Big Bang" or Modular Implementation - and the final and precise extent of implementation)
• Detailed implementation including development, quality assurance and production system
• Preparing to "go live" including data migration
• Going live
• Performance assessment, documentation, training (continues in early stages also) and future plans.
That categorized into four phases of ERP life cycle: [2]
1. Selection Phase
2. Implementation Phase
3. Training Phase
4. Expanding (Post-Implementation) Phase

ERP software integrates all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. ERP combines finance, HR, manufacturing and distribution all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other. This integrated approach can have a tremendous payback provided the software is installed and used correctly.

Comparing to SDLC it has different phases as follows[3]
1. Planning
2. Design
3. Implementation
4. Testing
5. Acceptance
6. Maintenance
7. Disposal

These seven steps could be even bigger or expanded depending on the SDLC model that has been followed by different developers. These strategies were created by the same programmers and they sure know that something is needed to be done to create better software.
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Alvin Mark Cabeliño

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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    Sun Feb 26, 2012 10:53 pm

Enterprise resource planning (ERP)

The critical success factors driving technological were identified and reasons for the failure of information systems, within the fast food industry, were given. The managerial, organizational and technology factors that caused these problems were explained. The role and impact of alternative information systems development projects were evaluated in terms of the future strategic directions to be taken by McDonald’s and Burger King. The undertaking of risk evaluations are recommended with each project.

Value chain analysis model
The business model within the fast food Industry can also be analyzed using Michael Porter's value chain analysis model, described by Kotler (2003:p.70), as a tool for identifying ways to create more customer value. The primary activities in the generic value chain are in bound logistics, operations, outbound logistics, marketing, sales and service. The support activities are firm infrastructure, human resource management, technology development and procurement.
Using McDonald's as an example of a fast food business, the primary activities of logistics and operations are decentralized whereas sales, marketing and service are centralized, according to Lorentzen (2000). Each region of restaurants manages its own supply of materials and operational efficiency to create customer value, but sales, marketing and service are
Centralized. The fast food business support activities are usually centralized, with the exception of procurement. McDonald's implements a centralized Supplier Social Accountability Program and Supplier Product Quality Program, reports Beurskens (2002), as a condition of doing business with the company. However, whilst a supplier is in compliance with these procurement programs, buying from these suppliers is controlled regionally.

An ERP as a good solution to McDonald's challenges

McDonald's has 10 challenges:

Customer satisfaction - McDonald's has been ranked the worst company for customer satisfaction in America for a decade.
Franchisee monitoring standards - The company has no system for monitoring standards, so as to avoid trouble with the franchisees.
Investor relations - McD's share price has underperformed the S&P500 for several years. Investors want a tighter, more centralized McDonald's. Instead of aggressive expansion, investors want the company to concentrate on the profitability of existing stores, The Economist (2001).
Threat of substitutes - The future of fast food may be congee, tofu and roast duck as Chinese will displace the burger and pizza, says The Economist (2002a). The Economist (2002b) reports that sales at McDonald's and Burger King are declining and 'fast casual' gourmet sandwich, salad and soup chains are taking market share. McDonald's offering looks increasingly outdated.
Changing customer eating habits - “The world has changed. Our customers have changed. We have to change too", says McDonald's CEO, Jim Cantalupo, in The Economist (2003). There are too many confusing meal choices and variety will be reduced and salads, yoghurts and sliced fruit introduced.
Growth - The company no longer aims to be bigger than everybody else in the fast food industry, just better. A decade of stagnant US store sales was followed by declining sales in 2002. like Coca-Cola or Disney, McDonald's is in the maturity stage of it's life cycle and, as a cash cow, needs milking.
Capital investment - The company massively misallocated capital for decades, according to The Economist (2003), and slashed capital spending by a third, to USD1.2 billion, for 2003.
Out-of-date strategies - The Economist (2003) quotes an analyst as saying that McDonald's top management, shaped by previous out-of-date strategies, lacks the vision or stomach to make the necessary changes."
Decentralization - The company decentralized operations in 1998 to rebuild tattered relationships with franchisees. However, this caused reduced service, quality and cleanliness standards. McDonald's new CEO promises improvements in franchisee restaurant management.
Franchisee alienation - The poorly executed and imposed 'Made For You' kitchen initiative had an adverse effect upon franchisee revenue growth and profits.

Compared to Standard SDLC

it is the phase where there is a gathering of information about the current system and identifying the view of the intended project and determine the goals of the project
Requirements gathering and analysis
It is identifying the goal for the system. It is also to determine where the problem is and finding ways to fix the system

Functions and operations are described in detail, including screen layouts, business rules, process diagrams and other documentation

Build or coding
Coding for the system will be done

The code will be tested at various levels of software testing

Operations and maintenance
Changes and enhancements before the decommissioning or sunset of the system


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PostSubject: Re: Assignment 12 (Due: February 24, 2012, before 01:00pm)    

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Assignment 12 (Due: February 24, 2012, before 01:00pm)
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