The role of ERP systems in modern business and corporate management Boris A. Staykov, Tatiana V. Atanasova, Vladimir V. Monov, Lyubka A.

Transcription

1 INSTITUTE OF INFORMATION AND COMMUNICATION TECHNOLOGIES BULGARIAN ACADEMY OF SCIENCE The role of ERP systems in modern business and corporate management Boris A. Staykov, Tatiana V. Atanasova, Vladimir V. Monov, Lyubka A. Doukovska Institute of Information and Communication Technologies Bulgarian Academy of Sciences Acad. G. Bonchev str., bl. 2, 1113 Sofia, Bulgaria AComIn: Advanced Computing for Innovation 1 /acomin

2 ERP (Enterprise Recourse Planning) Complex multi-modules based software Allows the managing of all business processes in certain enterprise Sharp, in time and clear view on the important information o Specific reports o Data analyzing tools AComIn: Advanced Computing for for Innovation 2

3 From the beginning 1960 s Early software development languages ALGOL, COBOL, FORTRAN Simple inventory control and warehouse management software Main focus finding the most efficient way to manage large volumes of inventory 3

4 1970 s Maintaining large quantities of inventory is inefficient and expensive Software answer Material Requirements Planning systems (MRP) Calculation of gross material requirements, based on master production schedule 4

5 1970 s Closed loop MRP Enhancing the MRP with tools for: Inventory planning Production level planning Sales planning Making business promises to customers Forecasting Analysis 5

6 1980 s power and affordability MRP II More integration Manufacture process optimization Synchronizing materials with production requirements Financial accounting system Financial management system 6

7 1990 s from MRP II to ERP Technology evolution allows MRP II to be expanded to incorporate all resource planning for the whole enterprise Product design Information warehousing Materials planning Capacity planning Finances HR 7

8 Goal of the ERP software Building of interconnected modules, supporting the activity of all departments within the enterprise (planning, manufacturing, distribution, service, inventory management, HR, accounting, sales ) Integrated in a way that allows clear, consistent view of the information flow between all business processes AComIn: Advanced Computing for for Innovation 8

9 ERP Structure 9

10 Successful ERP Flexibility Quick response on the constantly changing needs of the enterprise Modular logical separation of different functionalities Safe, isolated module -> detachment -> modification -> attachment Connectivity and information exchange (API Interfaces) 10

11 Constant dialog ERP: design process Deep studying and well understanding of all business process in the enterprise Building logical model of the business processes and relationships Block schemes and diagrams Database design Relational database model for data representation 11

12 ERP: design process Adapting the business model to the ERP framework capabilities Actual software development Report and analysis Building variety of data analyzing and reporting tools Forecasting tools Business progress and evaluation tools 12

13 System integration ERP: design process Hardware and system software infrastructure (servers, desktops, OS, LAN/VPN Networks) Personal training Intercommunication support Exports and imports of information data to (from) different file formats API gateways for communication with 3th party software systems within or outside the enterprise 13

14 Enhanced Technology ERP: benefits for the client speeds up all operations Efficiency in Processes Better and more efficient data collection Integrated and consistent information Replacing multiple, disconnected databases with a single, integrated system Easier Reporting improved and more customizable reporting 14

15 ERP: benefits for the client User Friendliness of the System easier access to information and overall improvements in its use Access to Data Increased self-service for data needs real time data Better access to information and decision making Better Customer Service 15

16 ERP: benefits for the client Increased Functionality Better functionality for users Better Communications more collaboration with business partners Increased Security of Data 16

17 ERP: Success or failure Dialog failure Reasons for ERP project failures Software engineers and economists communicate very difficult Pure understanding of the business processes and their relationships Wrong or incomplete logical model Slow and too long software development Failed system integration 17

18 Gratitudes The research work reported in the paper is supported by the project AComIn "Advanced Computing for Innovation", grant , funded by the FP7 Capacity Programme (Research Potential of Convergence Regions). 18