architectures of erp systems

Architectures of ERP Systems

Introduction

The design of enterprise network architectures (ENA) requires comprehensive

research and planning. Components of software, hardware, applications, and the network have

to be selected for the best match to the business objectives and future expansion. The team

working on this task can be comprised of both technical and non-technical individuals who

possess knowledge of the project’s objectives, desired results, and how to construct an

enterprise resource planning (ERP) system that will achieve the desired results. This

presentation will provide information of how organizations implement ERP systems, by providing

system comparisons, implementation solutions, and ERP limitations to provide viewers with an

insight on how components and team members in an ERP system project work together.

Deborah Adams - Northcentral University Enterprise Network Architecture 2

Implementing ERP Systems

Strengths• Various modules are offered (i.e.

HR, Finance, Marketing/Sales, Project Management, etc.)

• Provides centralized storage/back-up of all enterprise data

• Secure and allows tracking of all transactions

• Visibility of processes across departments

• Unified with a single reporting system

(Rajesh, 2011)

Weaknesses• High costs• Extended time-frame for

projects• ERP systems are difficult to use

and learn• Difficult or impossible to migrate

existing data to new system• Limited customization for

integration, too much customization slows the projects, and it is difficult to upgrade


Implementing ERP Systems

• ERP software is typically standard

• Two main technical options– Standard package

provided by supplier– Bespoke adaptation to

suit specific requirements• Critical Success Factors (CSF)

provide strategic and tactical framework to guide the implementation process

(Holland, & Light, 1999)

• Strategic, organization and technical dimensions are problems from management perspectives

• Current business structure and processes must be properly aligned with ERP systems

• ERP strategies need to be evaluated against systems and objectives to ensure proper selection



Business Process Change

What is BPC?

ERP Systems Comparison

Remember this…• Get executive management

support• Focus on specific business

process and systems requirement when shopping for vendors

• Look for accessibility from smartphones, tablets, as well as desktops

• Gauge the system by evaluating all the options

(Lonoff Schiff, 2014)

Don’t forget…• Request three verifiable

references from vendors (ask what went right/wrong)

• Consider the amount of customization required and its impact on costs

• Consider control and communicate change management

• Appoint your ‘best’ people to the ERP project team


Allocate appropriate

time/resources for ERP training

Solutions for ERP Systems

• Reverse engineering covers areas from control restructuring to design and specification recovery (Bennett, 1995).

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• Learn more about off-shoring reengineering and consider outsourcing (Bennett, 1995).


Limitations to ERP Systems

• Implementing ERP systems requires executive managers’ commitment/participation and organizational change from the acquisition phase to the end

• To successfully implement an ERP system and avoid failure, the firm should conduct preliminary analysis & develop a plan for ERP acquisition and implementation

• Common reasons for failure: – inadequate technology planning, – user involvement and training, – budget and schedule overruns, and – availability of adequate skills

(Beheshti, 2006).


Components Work Together

• Replacing an IT system with one robust company-wide system that handles financials, planning, distribution, tracking functions, real-time updates, and delivers data to decision makers is an elegant concept that is difficult to achieve.

(Stapleton, & Rezak, 2004).

• ERP implementations tracked since 1994 have resulted in a small fraction completed on time, within budget, that met original specifications with over half exceeding the budget, and/or sacrificing functionality.


Aligning ERP with Expansion

• Identifying and managing risks is part of the software project-planning process

• Some issues to be considered are system memory limitations, human knowledge management, training, reengineering, and compatible system functions

(Adolph, 1996)


Enemy of all projects is risk: the

probability of project failure.

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Conclusion

In comparing ERP systems and planning to expand existing systems the necessary requirements for success are executive management support, knowledgeable team members, detailed attention to CSFs, and foresight to future upgrades/expansion.

Shopping for an ERP system may be one of the biggest purchases a company will make in a fiscal period with long lasting results, so ensuring the project’s proper planning is a priority before its start. Planning is the first essential step in this long complex process.


Reference

Adolph, W. S. (1996). Cash cow in the tar pit: Reengineering a legacy system. IEEE Software, 13(3), 41-47.

doi:http://dx.doi.org/10.1109/52.493019

Beheshti, H. (2006). What managers should know about ERP/ERP II. Management Resources News. Retrieved from:

file:///C:/Users/ddtadams/Documents/NCU/HIGHEREDUCATION/NCU%20Doctorate/COURSES/3Year%202016-

2017/MIS7005/WK%203/What%20managers%20should%20know%20about%20ERP.pdf

Bennett, K. (1995). Legacy systems: Coping with success. IEEE Software, 12(1), 19-23.

doi:http://dx.doi.org/10.1109/52.363157

Henderson, P. (2000). Systems engineering for business process change. London: Springer

Holland, C.P., & Light, B. (1999). A critical success factors model for enterprise resource planning implementation. Retrieved

from:

https://www.researchgate.net/publication/221407270_A_Critical_Success_Factors_Model_for_Enterprise_Resourc

e_Planning_Implementation

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Reference

Lonoff Schiff, J. (2014). 9 Tips for selecting and implementing an ERP system. Retrieved from:

http://www.cio.com/article/2458889/enterprise-resource-planning/9-tips-for-selecting-and-implementing-an-erp-

system.html

Rajesh, K. (2011). Advantages & Disadvantages of ERP Systems. Retrieved from: http://www.excitingip.com/2010/advantages-

disadvantages-of-erp-enterprise-resource-planning-systems/

Shatat, A. S. (2015). Critical success factors in enterprise resource planning (ERP) system implementation: An exploratory study

in Oman. Electronic Journal of Information Systems Evaluation, 18(1), 36-45.

Stapleton, G., & Rezak, C. J. (2004). Change management underpins a successful ERP implementation at marathon oil. Journal of

Organizational Excellence, 23(4), 15-22. Retrieved from

http://search.proquest.com.proxy1.ncu.edu/docview/215050315?accountid=28180

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architectures of erp systems

Technology

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