ERP Modules - University of Nebraska–Lincoln.pptVIP

Hour 2: ERP Modules Historical development Historical Initial Computer support to business Easiest to automate – payroll accounting Precise rules for every case Early 1970s centralized mainframe computer systems MIS systematic reports of financial performance Variance analysis between budget and actual MRP Material requirements planning Inventory reordering tool Evolved to support planning MRPII extended to shop floor control SAP Modules Comparative Modules Industry-Specific Focus Each vendor has turned to customized ERP products to serve industry-specific needs Examples given from BAAN, PeopleSoft Microsoft also has entered the fray BAAN Industry-Specific Variants PeopleSoft Industry Solutions Microsoft Great Plains Business Solutions Relative ERP Module Use(Mabert et al. 2000; Olhager Selldin, 2003) Relative Module Use Mabert et al. (2000) surveyed Midwestern US manufacturers Some modules had low reported use (below 50% in red) Financial Accounting most popular Universal need Most structured, thus easiest to implement Sales Marketing more problematic Why Module Use? Cost: Cheaper to implement part of system Conflicts with concept of integration Best-of-Breed concept: Mabert et al. found only 40% installed system as vendor designed 50% used single ERP package; 4% used best-of-breed Different vendors do some things better Conflicts with concept of integration Middleware Third-party software Integrate software applications from several vendors Could be used for best-of-breed Usually used to implement “add-ons” (specialty software such as customer relationship management, supply chain integration, etc.) Customization Davenport (2000) choices: Rewrite code internally Use existing system with interfaces Both add time cost to implementation The more customization, the less ability to seamlessly communication across systems Federalization Davenport (2000) Roll out different ERP versions by region Each tailored to local needs Core modules shared some specialty modu