4
Enterprise Resource Plannng
Presented by Sai Kishan & Dona Ann
THANK YOU!
INTRODUCTION
ABOUT
ERP is an acronym for Enterprise Resource Planning
The term ERP was coined in 1990 by Gartner
BENEFITS OF ERP
BENEFITS OF ERP
- Competition
- Efficiency
- Forecasting
- Collaboration
- Scalability
- Integrated Information
- Cost Savings
- Streamlined Processes
- Mobility
- Reporting
- Productivity
- Regulatory Compliance
- Flexibility
- Customer Service
- Security
SYSTEM APPLICATIONS & PRODUCTS (SAP)
SAP is a German multinational software company known for making enterprise resource planning (ERP) software.
ERP software allows organizations to manage business operations, and usually refers to suite of
modular applications that collect and integrate data from different aspects of the business.
SAP is just one provider of ERP software.
Others include: Oracle, Microsoft, Infor Orbis, and Epicor
SAP
History
HISTORY OF SAP
01.
SAP started in 1972 as a small
software company in Germany with just one customer.
02.
Its founders had a vision of
producing software that could process data when a user wanted it, rather
than in overnight batches as earlier software did.
03.
Their first product was a
modification of IBM's punch-card data storage, which stored data
mechanically and required overnight processing
ERP Modules
ERP Modules
Finance (FI)
Controlling (CO)
Sales & Distribution (SD)
Material Management (MM)
Supply Chain Management (SCM)
Human resources (HR)
Production Planning (PP)
Asset Accounting (AA)
ERM & HR
ENTERPRISE RESOURCE MANAGEMENT
&
HUMAN RESOURCES
The management which involve the activities framed to recruit best candidates suitable for the respective nature of the job and improve their
skills and abilities by providing them good and proper support is called
Human Resource Management (HRM).
The five gears of HRM system are:
- recruitment and selection
- training and development
- performance feedback
- payments and benefits
- labour relations
ERP HR systems are set basically to
get information of the company's valuable asset
Contd.
According to the research carried out by Hunter Group in 2008 illustrates the beginning of ERP's Human Resource module which shows that greater than 60% of all companies had not implemented HR applications before the year 2000.
Slowly, the implementation of HR module became logistically essential because of Y2K issues and also to focus on the business operations which took concern over HR needs. The practice of this module is as follows:
• In the beginning, concentration was given to the fundamentals of HR
i.e. Payroll and benefits.
• Next implementation was on Training administration, Recruiting and
Performance Appraisal.
• The next set of functions was focused on succession planning and
compensation management.
Business Trip Arrangement
Human Resource Planning
Recruitment Management
Compensation Management
Implementation
Training Management
Performance Management
Time Management
Case study on Coca-Cola Enterprises Inc. by
Skip (2003)
CASE STUDY
Coca-Cola is responsible for corporate strategy, innovation and brand development, Coca-Cola Enterprises (CCE) is in charge of the production and distribution of products.
CCE in Europe makes $8 billion revenue a year, has 12,000 employees and 17 manufacturing facilities. And of this workforce, 60% are blue collar, 25% work in sales, with the rest working as part of global functions.
In 2002, CCE discovered the value and balanced approach for HR efficiency. Like the other companies, CCE didn't realise how much they were spending for the benefits of the company.
Secondly, the company was concerned about the health and welfare benefits issues, also
to reduce their perceived value and increase their costs.
The HR employees were stuck with their everyday benefit issues and had
less time to concentrate on the important strategic concerns like the talent
recruitment, employee benefits.
Contd.
Case Study Contd.
Before 2009 they did have HR processes, but they were not consistent across countries, they were done on pieces of paper, separate Excel spreadsheets, were difficult to track, difficult to keep consistent. So in 2009 they started working with SuccessFactors
It started in 2010 with performance, goals and succession, which helped it to standardise the company’s performance data.
In 2012 it then added learning, which is part of the CCE Academy, and employees have now taken over 140,000 courses using these tools. In 2013 it then added compensation, with 1,750 managers now processing this.
CCE’s roadmap intends to get all of its HR functions into the cloud, which will be based out of a SuccessFactors’ data centre in Amsterdam
Approaches
Solution Approaches
"
- Integration of existing systems by ERP
- Retiree benefits
When ERP was implemented company wide, the solution approaches by CCE in order to utilize the HR module of ERP are as follows:
- Employee relationship
- Functionality
"
By these solutions the HR executives could achieve and fulfilled HR goals. However, the planned technology investment, ERP delivered and supported the company's objectives and also provided a significant ROI (Return on Investment).
- Employee database
Applications & Implementation
Recruitment, Retention
With the growth of the company, technology and competitiveness, HR practices cannot use its old traditional way of approach.
Training Management
Thus implementing ERP technology helps in effective use of human capital.
Payroll
Applicatons
Time and Attendance
This increases the need of common HR data source with the financial data which helps the organization in cost decision making.
Performance
Cross-functional integration within the Human resource department
Succession planning
Compensation management
Cross-functional integration outside the Human resource department
Conclusion
CONCLUSION
Human Resource is a vital part of every successful organization.
Competitive edge develops from the company's ability by renovating its
operating technology systems to its latest kind with following business
changes and reflects and improves the structure and employee relationship.
It is also developed by building intellectual capital which can create a strong
knowledge base for the company's welfare.
Therefore organizations using
ERP as mean for competitiveness must reorient their Human resource
activities because these activities are essential in competitive platform.