COST – BENEFIT OF ENTERPRISE SYSTEMS

JONAS F. LOSANTASBSA 3 – 3

BUSINESS PROCESSES & ENTERPRISE SYSTEMS

KEY POINTS TO REMEMBER:

(1) Planning

(2) High-level review of current process

(3) Support from top management

(4) Continuous involvement of affected employees

(5) Seek expert’s opinion

RISKS AND COSTS OF ERP SYSTEMS

(1) Risks from failed implementation

(2) Potential costs:

• Implementation costs on hardware/software

• Training costs

• Data conversion

• Professional services

• Reassigned employees

• Software maintenance

• Software upgrade

Maintenance

Upgrade

QUANTIFYING BENEFITS OF ENTERPRISE SYSTEMS

1. Better ability to make enterprise-wide decisions

2. Identify trends

3. Understand interrelationships between business units

4. Eliminate redundant data

5. Increase in efficiency of financial reporting

6. Monitor business processes in new and different ways

METHODS OF QUANTIFYING BENEFITS

1. Spend management

2. Use of dashboards

3. Use of mashups

SPEND MANAGEMENT

•  is a business function in which businesses gain visibility, establish controls - consisting of system controls and organisation policies, in order to manage their business spend.

• The objective of this business function is to ultimately reduce operating and other costs associated with doing business.

DASHBOARD

•  is "an easy to read, often single page, real-time user interface, showing a graphical presentation of the current status (snapshot) and historical trends of an organization’s key performance indicators to enable instantaneous and informed decisions to be made at a glance.“

Digital dashboards allow managers to monitor the contribution of the various departments in their organization. To gauge exactly how well an organization is performing overall, digital dashboards allow you to capture and report specific data points from each department within the organization, thus providing a "snapshot" of performance.

BENEFITS OF USING DIGITAL DASHBOARDS:

• Visual presentation of performance measures

• Ability to identify and correct negative trends

• Measure efficiencies/inefficiencies

• Ability to generate detailed reports showing new trends

• Ability to make more informed decisions based on collected business intelligence

• Align strategies and organizational goals

• Saves time compared to running multiple reports

• Gain total visibility of all systems instantly

• Quick identification of data outliers and correlations

MASHUPS

• An enterprise mashup is the integration of heterogeneous digital data and applications from multiple sources for business purposes. An enterprise mashup is also sometimes known as a business mashup or, less precisely, as a data mashup.

GUIDELINE FOR MEASURING THE VALUE OF AN ERP1. Determine how you will measure success.

2. Set up specific metrics based on your industry.

3. Perform regular post-implementation audit.

4. Analyze your performance.

5. Set up universal processes.

6. Create a continuous learning loop.

7. Prepare for inevitable security failures.

- Trish Saunders, co-author of Customer Insights

SELECTING A SOFTWARE PACKAGE

Cost

Benefit

END OF PRESENTATION