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Lecture 8

The document discusses Enterprise Resource Management (ERM) and an ERM checklist. ERM more accurately describes all planning, control, and management functions required to effectively operate an enterprise beyond just ERP. The ERM checklist provides criteria for enterprises to assess their readiness for ERM on a scale of 0-4. Scoring above 90 points indicates readiness for ERM implementation while scoring below 90 points identifies areas for improvement. The checklist helps determine an organization's ability to integrate ERP tools by examining characteristics like cross-functional integration and common training.

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Rahaf Alhomrani
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17 views16 pages

Lecture 8

The document discusses Enterprise Resource Management (ERM) and an ERM checklist. ERM more accurately describes all planning, control, and management functions required to effectively operate an enterprise beyond just ERP. The ERM checklist provides criteria for enterprises to assess their readiness for ERM on a scale of 0-4. Scoring above 90 points indicates readiness for ERM implementation while scoring below 90 points identifies areas for improvement. The checklist helps determine an organization's ability to integrate ERP tools by examining characteristics like cross-functional integration and common training.

Uploaded by

Rahaf Alhomrani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 16

Lecture 9

Enterprise Resource
Management(ERM) & ERM Checklist

1
Learning Objectives
• Preview
• What is an Enterprise resource Management?
• What is an ERM checklist?
• How do this list helps an organization to manage
their resources.

2
Preview

• One of the toughest challenge facing any company considering an


Enterprise Resource Planning (ERP) implementation is managing
expectation of software modifications vs. business process
reengineering.
• An excellent way for an ERP system implementation to fail is to
expect the software to be drastically changed to reflect the current
business processes.
• The best advice to a company that expects the new ERP system to
look exactly like its old business system is to stop, save its money,
and stay with the old system.
• Add the cost to purchase the new system plus the cost of modifying it
to the cost and frustration of attempting to implement this mess.
• It is essential during the selection phase that the key business
processes for your company are reflected in the system selected.

3
Preview

• commercial off-the-shelf software has been


programmed to reflect identified industry best
practices and these best practices can be used
as a catalyst for changing the internal business
processes.
• If every company purchasing the system
changes its processes to match the software,
then how will the enterprise distinguish itself for
competitive advantage?

4
Preview

• There must be room in the implementation for the


examination of the current business processes and
the recommendation of improved business
processes. This must be done in the context of the
overall company’s strategy. This provides the
context for the needed changes in both business
rules and technology.
• the main ERP focus is on planning but reality is that
planning is only one piece of effectively managing
the business.

5
Preview

• Many companies have embarked on major


projects to implement ERP systems with very
little to show in the way of actual results.
• The reason many of these companies have
failed to realize the full benefits of Enterprise
Resource Planning is because most
organizations are not organized correctly to
benefit from the new information tools
provided by ERP.

6
Preview

• Many of the companies attempting


implementation of enterprise-wide systems
have run into difficulty because the organization
is not positioned for integration.
• Departments work to their own sets of
objectives. Measurements are functional not
global. People are specialists not generalists.
Information is spread on many systems and
platforms. Systems are often fragmented and
there are very few people who have an
enterprise-wide view or understanding of the
organization 7
Preview
• It is not good enough to just plan the resources
required to run the enterprise. These resources
need to be managed as well.
• ERP is only part of the challenge facing most
organizations today.

8
What is an Enterprise Resource Management
• Enterprise Resource Management (ERM) more
accurately describes all planning, control, and
management functions required to effectively operate the
enterprise.
• Is your company really ready for an integrated ERM
system?

9
What is an ERM Checklist?
• The organizational ERM assessment checklist
provides a simple and practical reference to
determine if a company is ready for the competitive
business environment of today and its positioning
for tomorrow.
• To score your organization on these criteria, review
the question and mark your organization’s status on
a scale of 0 (not at all) to 4 (completely).
•

10
ERM Checklist

11
ERM Checklist

12
ERM Score

13
ERM Checklist Observation
• This organizational assessment checklist has been developed to
aid enterprises in determining if their organization is ready for
ERM.
• For each of these criteria score an enterprise on a scale of 0 to 4.
A score of 0 is where there is no evidence of the characteristic and
a score of 4 is where the enterprise is fully compliant.
• By critically examining and developing a current score for
enterprise, help to determine the readiness of organization to be
effective in the implementation of ERM.
• If an organization scores 90 points or higher then that organization
is well on its way to successfully integrating these sophisticated
ERP tools into its business.
• If an organization scores less than 90 points this survey will help
to pinpoint the areas to target for improvement to get an
organization positioned for full utilization of ERP to achieve
improved business results.
14
ERM Checklist Observation

• In many of the characteristics described in this chapter the first


step is adequate education and training.
• This is not to say that the educational background of current
employees is deficient or lacking. Having a common educational
experience that focuses on cross-functional integrated enterprise
concepts provides a common framework from which the enterprise
can build
• The education provides the insight for the affected personnel
about the vision of the desired business process and why the
company desires to move from where it is today to that vision of
the future, while providing insights about consequences in other
functional areas.

15
Review Questions
1. What is an Enterprise resource Management?

2. How does an ERM checklist helps an enterprise?

3. What could be the consequences of ERM checklist score


on ERM implementation?

16

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