ENTERPRISE RESOURCE PLANNING AND MANAGEMENT

Module 7

1. Introduction to Operations and Post-Implementation

Introduction to Operations and Post-Implementation

•What is ERP?

• ERP stands for Enterprise Resource Planning. It's a type of software that helps businesses
manage different tasks like accounting, inventory, human resources, and more, all in one place.

•Why are operations important after implementing ERP?

•Once the ERP system is live, it's like turning on a new machine. Operations ensure the system
works properly, helps the business run smoothly, and improves over time.

Overview of the ERP Life Cycle

• The ERP Life Cycle shows the steps a company takes from planning to running an ERP system.

• Key Phases of the ERP Life Cycle:

1. Pre-Implementation - This is the planning phase. The business figures out why they need
ERP, chooses the software, and prepares for changes.

2. Go-Live - This is the big day! The system is switched on, and everyone starts using it for their
daily work.

3. Post-Implementation (Operations) - After Go-Live, the system needs to be managed and

monitored. This is where operations come in.

Definition of Key Phases

1. Pre-Implementation: Before the ERP system is used, the business sets everything up. This
includes choosing the right software, training employees, and preparing data.

2. Go-Live: Imagine starting a new video game; Go-Live is when the game starts. The ERP
system is now fully operational, and employees begin using it in real-time.
3. Post-Implementation (Operations): Once the ERP system is running, the company focuses
on making sure it works properly, solving any issues, and helping employees get comfortable
using it.

Importance of Effective Operations Post-Go-Live

•Why does Post-Implementation matter? •After Go-Live, the company must make sure the
ERP system stays efficient. If operations aren’t managed well, the system could fail or cause
problems.

Importance of Effective Operations Post-Go-Live

•Key Focus Areas in Post-Implementation: 1. System Maintenance: Regular checks and

updates ensure the system stays up to date and runs smoothly.

2. Support and Training: Helping employees learn how to use the system better keeps the
business running efficiently.

3. Continuous Improvement: Over time, the system can be improved to match business
growth or new needs.

2. Go-Live Readiness: Preparing for a Successful Launch

Go-Live Readiness: Preparing for a Successful Launch

• Go-Live is the moment when the ERP system is officially switched on and used in real business
operations. It’s an exciting but challenging time.

Final Preparations for Go-Live

• Before Go-Live, it's important to make sure everything is ready. Think of it like preparing for a
big event—everything needs to be checked and double-checked.

1. Testing the System - Before launching, the system needs to be thoroughly tested to ensure it
works as expected. 2. Training Employees - People need to be comfortable using the new
system, so training sessions are key.

3. Backup Plans - Always have a backup plan in case something goes wrong. This will help
avoid major issues during Go-Live.

Key Components of Go-Live Readiness

•There are three important things to focus on before Go Live:

1. User Acceptance Testing (UAT) - UAT is when actual users test the system to make sure it
works for them. Think of it as a final practice run before the big event. If users aren’t happy with
how the system works, changes need to be made before Go-Live.

Key Components of Go-Live Readiness

2. Data Migration - Data migration means moving all the old information (like customer
records or financial data) into the new ERP system. It's like moving your things into a new house
—everything needs to be in place and organized.

3. System Configuration - System configuration is about setting up the system correctly. This
involves customizing the software to fit the company's needs, like setting rules for how inventory
or accounting data is processed.

Creating a Go-Live Checklist

•A Go-Live checklist is like a to-do list. It ensures that nothing is missed before launching the
ERP system. Key items to include:

1. System Testing Completed: All tests must be finished, and any problems fixed.

2. Data Ready: All the company’s data has been successfully moved into the new system.

3. Employee Training Done: All users are trained and ready to use the system.

4. Backup Plan in Place: There’s a backup plan for any system failures or technical problems.

Essential Items to Ensure a Smooth Transition

•To make sure the transition goes smoothly, focus on: 1. Communication: Everyone in the
company needs to know what’s happening and when Go-Live will take place.

2. Support Team on Standby: A team should be ready to assist with any issues that arise immediately
after Go Live. 3. Monitoring the System: Keep a close eye on the system for any issues that may
pop up in the first few days.

Essential Items to Ensure a Smooth Transition

•To make sure the transition goes smoothly, focus on: 1. Communication: Everyone in the
company needs to know what’s happening and when Go-Live will take place.

2. Support Team on Standby: A team should be ready to assist with any issues that arise immediately
after Go Live. 3. Monitoring the System: Keep a close eye on the system for any issues that may
pop up in the first few days.

3. Effective ERP Training for End Users

Effective ERP Training for End Users

•Training is a crucial part of making sure employees know how to use the new ERP system
properly. Without good training, even the best system can fail.

Types of Training Methods

1. On-Site Training - This happens in person, at the workplace. Employees gather in a training
room, and an instructor guides them through the system step by step.

•Advantages: Hands-on learning, immediate support from the instructor.

•Disadvantages: Can be time-consuming and expensive.

Types of Training Methods

2. Online Training - Training is done through virtual platforms like Zoom or video tutorials.
Employees can access the training materials from anywhere.

•Advantages: Flexible, can be done at any time.

•Disadvantages: Less personal, technical issues can occur.

Types of Training Methods

3. Hybrid Training

A mix of on-site and online methods. Some sessions are in person, while others are done
remotely.

•Advantages: Combines the strengths of both methods.

•Disadvantages: Requires careful coordination and planning.

Tailoring Training for Different Roles

1. Technical Users - These are the IT staff and system administrators. They need to understand
the deeper, technical aspects of the ERP system, such as troubleshooting, system maintenance,
and custom configurations.

• Training Focus: Advanced system features, back-end operations, and problem solving. 2. Functional Users
- These are the everyday employees like accountants, salespeople, and HR staff who will use the system
fortheir daily tasks. They don’t need deep technical knowledge but must be comfortable with the
parts of the system they interact with.
• Training Focus: Simple, easy-to-follow instructions for their specific job functions.

Best Practices for Creating Engaging Training Materials

1. Make It Interactive - People learn best when they can actively participate. Create hands-on
exercises, quizzes, and real-world scenarios for users to practice with the system.

2. Use Clear, Simple Language - Avoid jargon or overly technical terms, especially for
functional users. The easier the training is to understand, the more effective it will be.

3. Provide Visuals - People remember images better than text alone. Use screenshots, videos,
and flowcharts to show how the system works.

Best Practices for Creating Engaging Training Materials

4. Offer Multiple Learning Resources - Everyone learns differently. Provide a variety of

materials like video tutorials, step-by-step guides, and Q&A sessions to cater to different
learning styles. 5. Continuous Support - Training doesn’t stop after Go-Live. Make sure users
can easily access support materials or ask questions after the initial training sessions are done.

4. Stabilization After Go-Live: Monitoring and Issue Resolution

Stabilization After Go-Live: Monitoring and Issue Resolution

Once an ERP system goes live, the work doesn’t stop. Stabilizing the system is like making sure
everything runs smoothly after a big launch.

Understanding Post-Go-Live Challenges

• After Go-Live, some common problems can occur. It’s important to be aware of these so you
can solve them quickly:

1. Data Discrepancies - Sometimes, data doesn’t transfer properly. For example, old customer
records might not show up correctly in the new system.

2. Performance Issues - The system might slow down or take too long to process information,
which can frustrate users.

3. User Adoption Challenges - Some employees might struggle to get used to the new system
or resist using it. This can lead to mistakes or delays.

Establishing a Monitoring Framework

•To make sure the system works well after Go-Live, it’s important to set up a way to monitor
everything. This is like keeping an eye on the system to catch any problems early.
1.Real-Time Monitoring - This means checking how the system is performing at any given
moment. If something goes wrong, you can catch it quickly.

2. Feedback Loops - Getting feedback from users is essential. Employees using the system can
report any issues, and this information helps in fixing problems.

Example Issues and Their Management

•Let’s look at a few simple examples of problems that might happen and how to solve them:
•Example 1: Missing Customer Data

•Issue: Some customer records are missing in the new system.

•Solution: Use your issue tracker (Google Sheets or Excel) to log the problem, investigate why
the data didn’t transfer, and work with the technical team to fix it.

Example Issues and Their Management

•Example 2: Slow System Response

•Issue: The system is taking too long to load pages. • Solution: Log the issue in the tracker,
identify if it’s a technical problem, and ask the IT team to optimize the system.

•Example 3: Employee Confusion

•Issue: Employees don’t know how to use certain features of the ERP system.

• Solution: Log the issue, schedule a quick training session, and update training materials to
cover any confusing areas.

5. Setting Up Post-Production Support

Setting Up Post-Production Support

• After an ERP system goes live, employees will need help when things don’t work as expected.
Setting up a support system is essential to make sure issues get resolved quickly and users feel
confident using the system.

Building an Effective Support Structure

• To provide help to users, businesses need a clear support system. Here’s what that support
structure usually looks like:

1. Helpdesks - A helpdesk is the first point of contact for users who have problems. They can
call or email the helpdesk to report an issue. 2. Ticketing Systems - When someone reports a
problem, it’s logged in a system called a “ticketing system.” This system keeps track of all issues
so that nothing is forgotten or lost.

3. Escalation Procedures - Not all problems are equal. Small issues can be handled by the
helpdesk, but bigger problems might need to be passed on to specialists. This process is called
“escalation,” and it makes sure the right people handle the bigger issues.

Creating an Issue Resolution Process

• Once a problem is reported, it needs to be fixed. A clear issue resolution process ensures that
problems are solved efficiently. Here’s how it works: 1. Logging Issues - When a user reports a
problem, the first step is to log it in the ticketing system. This helps track what the issue is, who
reported it, and when.

2. Prioritizing Issues - Some problems are more urgent than others. For example, if the whole
system goes down, it’s more important than a single user having a small issue. Prioritizing helps
decide what to fix first.

3. Assigning Issues - Once the issue is logged and prioritized, it’s assigned to the right person
or team to solve it. This ensures that problems are handled by the people with the right skills.

Discussion: The Impact of Effective Support on User Satisfaction and System Performance

•Why is good support important? Let’s discuss: 1.Better User Satisfaction - When users know
they can get help quickly, they are happier and more confident using the system. This leads to
fewer mistakes and better use of the ERP system.

2.Improved System Performance - Effective support helps identify and fix problems early. If
small issues are fixed quickly, it prevents bigger problems from happening. This keeps the
system running smoothly.

6. Knowledge Transfer: Ensuring Long-Term Success

Knowledge Transfer: Ensuring Long-Term Success

•After an ERP system is up and running, it’s important to ensure that everyone knows how to use
it effectively. This process is called knowledge transfer.

Importance of Knowledge Transfer

• Knowledge transfer is all about sharing important information and skills so that everyone can
use the system properly. Here’s why it matters:

1. Sustainability - When employees understand how to use the ERP system, it helps keep the
system running smoothly over time. This means fewer problems and less frustration.
2. Proper Documentation and Training - Having clear documents and training programs helps
employees learn what they need to know. This reduces confusion and makes it easier for
everyone to get their work done.

Creating Documentation for Operational Procedures

1. Be Clear and Simple - Use simple language and avoid technical jargon. Think about what
someone new to the system would understand.

2. Use Visuals - Include pictures, diagrams, or screenshots to help explain steps. Visuals can
make complex tasks easier to understand.

3. Step-by-Step Instructions - Break down tasks into small, easy-to follow steps. This helps users know
exactly what to do without getting lost.

4. Regular Updates - Keep documentation up to date. If the system changes or new features
are added, make sure the guides reflect these updates.

Role of Mentorship and Continuous Learning

1. Mentorship Programs - Pair new employees with experienced ones. Mentors can provide
guidance, answer questions, and share their expertise, helping newcomers feel more
comfortable.

2. Regular Training Sessions - Schedule regular training to refresh everyone’s skills. This can be
done through workshops, online courses, or team meetings.

3. Encourage Questions - Create an environment where employees feel comfortable asking

questions. This encourages learning and helps everyone improve their skills.

4. Share Success Stories - Share examples of how effective use of the ERP system has helped
the organization. This motivates employees to learn and use the system to its full potential.

Role of Mentorship and Continuous Learning

1. Mentorship Programs - Pair new employees with experienced ones. Mentors can provide
guidance, answer questions, and share their expertise, helping newcomers feel more
comfortable.

2. Regular Training Sessions - Schedule regular training to refresh everyone’s skills. This can be
done through workshops, online courses, or team meetings.

3. Encourage Questions - Create an environment where employees feel comfortable asking

questions. This encourages learning and helps everyone improve their skills.
4. Share Success Stories - Share examples of how effective use of the ERP system has helped
the organization. This motivates employees to learn and use the system to its full potential.

7. Management Implications Post-ERP Implementation

Management Implications Post-ERP Implementation

•Once an ERP system is up and running, it’s important for managers to think about how it
impacts the organization.

Strategic Considerations for Management

1. Impact on Organizational Goals - After the ERP system is implemented, it can change how
the organization works. Managers need to consider how the system supports the company’s
goals. For example:

• Efficiency: The ERP system can help streamline processes, making the company more efficient.

• Better Decision-Making: With all data in one place, managers can make informed decisions
faster.

2. Adapting to Change - Managers should be open to adjusting their strategies based on what
the ERP system reveals. They might need to:

• Review performance metrics.

• Change processes to align with new capabilities provided by the ERP.

Aligning ERP Support with Business Objectives

1. Collaboration Between IT and Management - For the ERP system to succeed, it’s essential
for the IT team and management to work together. Here’s why:

• Understanding Needs: Management knows the business goals, while IT understands how the
system works. Working together helps ensure the system meets the organization’s needs.

• Effective Problem-Solving: When issues arise, a collaborative approach allows for quicker
solutions, as both teams can contribute their expertise.

2. Ongoing Support and Training - Management should ensure that the ERP system continues
to receive the support it needs:

• Regular Training: Ongoing training helps staff adapt to the system and make the best use of its
features.
• Feedback Mechanisms: Creating ways for users to provide feedback helps identify areas for
improvement.

Module 8

1. Project Team

Roles and Responsibilities of Team Members

•Project Manager: The main leader of the project, responsible for ensuring that the project is
completed on time, within budget, and according to plan. They coordinate between different
teams, solve problems, and keep the project moving forward.

•End Users: Employees who will use the ERP system daily, such as accountants, HR staff, and
others. While they aren't directly part of the project team, their feedback is crucial to ensure the
system works well for everyone.

Roles and Responsibilities of Team Members

•Business Analysts: These team members act as the bridge between the business (like Finance or
HR departments) and the technical team. They gather information about business needs and
ensure the system is built to meet those needs.

•System Analysts: These individuals analyze and design the information systems that meet the
specific needs of the business. They work closely with both the technical team and end users to
identify requirements and recommend solutions.

Roles and Responsibilities of Team Members

•Technical Leads: These are the technology experts who lead the technical side of the project.
They oversee tasks such as software development, system installation, and technical problem-
solving.

•Developers/Programmers: These team members write and modify code to customize the ERP
system. They create or adjust features to ensure that the system meets the specific requirements
of the business.

Roles and Responsibilities of Team Members

•Quality Assurance (QA) Testers: QA testers ensure everything in the system works properly. They
test the system for bugs or problems and ensure it runs smoothly before it goes live.

•Change Management Team: This team helps the company and its employees adjust to the new
system. They plan training sessions, provide support, and ensure that users understand how to
use the ERP sstem effectivel.
Importance of Cross-Functional Teams

•Cross-functional means having people from different departments (like IT, Finance, HR) work
together. Why is this important? Because each department has different needs, and we need
everyone’s input to build a system that works for the whole company, not just one department.

2. Module Experts and Subject Matter Experts (SMEs)

Responsibilities of SMEs in the Implementation Process

• A Subject Matter Expert (SME) is a person with deep knowledge and expertise in a specific
field, process, or area relevant to a project. In the context of ERP (Enterprise Resource Planning)
implementation, SMEs are typically employees who thoroughly understand the business
processes, workflows, and operational needs of their department or function. They play a crucial
role in ensuring that the ERP system is aligned with the organization's business requirements.

• SMEs focus on ensuring the ERP system aligns with business needs.

Module Experts' Role in Configuration, Testing, and Validation

•A Module Expert is a specialist who has deep knowledge of a specific ERP module, such as
finance, human resources, or supply chain management. These individuals focus on the technical
configuration, testing, and optimization of specific modules within the ERP system to ensure
they meet both the functional and technical requirements of the business.

•Module Experts ensure that specific modules are properly configured, tested, and validated.

Bridging the Gap Between Technical Teams and Business Users

•Sometimes, tech people and business people don’t speak the same language (metaphorically).
Module Experts and SMEs act as translators. They help the technical team understand what the
business needs and make sure the business team understands the technical parts.

Ensuring Business Processes Are Adequately Represented in ERP Modules

•Every company has its own way of doing things, called business processes. The ERP system
needs to match these processes. SMEs ensure that the system reflects how the company works,
so it can help improve things, not disrupt them.

3. Project Leadership

Leadership Skills Needed in ERP Projects

• Communication: Effective leaders must clearly convey information, expectations, and feedback.
For example, a Project Manager should regularly update team members on project progress and
changes to ensure everyone is aligned.
• Problem-Solving: Leaders should be able to identify issues quickly and develop solutions. If a
system glitch arises, a good leader can coordinate a team meeting to brainstorm solutions.

• Decision-Making: Leaders must make informed choices swiftly. For instance, if a department
requests a change in the ERP configuration, the Project Manager must evaluate the request's
impact on the overall project and make a timely decision.

Role of the Project Manager in Ensuring Alignment with Business Objectives

•The Project Manager ensures that the ERP project aligns with the company’s goals.

•Example:

•If a company aims to improve customer service, the Project Manager should prioritize
implementing features in the ERP system that enhance customer relationship management.

Risk Management and Issue Resolution

•Leaders must anticipate potential risks and create plans to address them.

•Example:

•If there's a risk of delayed software delivery, the Project Manager can develop a backup plan or
communicate with vendors early to mitigate this risk.

•When issues arise, such as team conflicts or technical problems, effective leaders facilitate
discussions to resolve them quickly and keep the project on track.

Stakeholder Engagement and Reporting

•Engaging stakeholders (like department heads and executives) is crucial. Regular updates,
meetings, and reports keep everyone informed and involved. •Example:

•The Project Manager might schedule weekly meetings with key stakeholders to discuss
progress and gather feedback, ensuring their input is considered throughout the project.

4. Critical Success Factors

Importance of Executive Sponsorship and Buy-In

•Executive Sponsorship refers to the active involvement and support of senior-level executives
or top management in a project or initiative, such as an ERP implementation.

•Buy-in refers to the acceptance, commitment, and support from key stakeholders and team
members for a project, strategy, or initiative.
•Example:

• If there’s a need for extra funding, an executive sponsor can advocate for it.

Clear and Well-Defined Project Scope

•A well-defined project scope outlines what will and will not be included in the ERP project. This
helps prevent scope creep, which is when additional features or changes are added without
proper evaluation.

•Example:

•Having a clear scope prevents the Finance department from requesting last-minute changes
that could delay the project.

Effective Change Management and User Adoption Strategies

•Change management is essential for helping employees adapt to the new system. This includes
providing training and resources. For instance, the project team might conduct training sessions
to familiarize users with the new ERP system, ensuring they feel comfortable and confident using
it.

Data Accuracy and System Integration

• Accurate data is vital for the success of the ERP system. If the data entered into the system is
incorrect, it can lead to poor decision making.

• Example:

• A Finance department must ensure that all financial records are accurate before they are
migrated into the new ERP system.

• System integration means ensuring that the ERP system works well with other existing systems.

• Example:

• If the ERP is connected to the company's CRM system, data should flow seamlessly between
them.

Continuous Monitoring and Feedback

•Regularly monitoring the project’s progress helps identify issues early. This can involve tracking
key performance indicators (KPIs) to measure success.

•Gathering feedback from users throughout the project helps refine the system and make
necessary adjustments.
•Example

•After a training session, collecting feedback can highlight areas where additional support is
needed.

5. Managing Scope Creep

Causes of Scope Creep in ERP Projects

• Unclear Requirements: When project goals and requirements are not clearly defined from the
start, team members and stakeholders may have different interpretations.

• Example:

• If the Finance team wants a feature to track expenses, but it isn’t well explained, it could lead to
additional requests that weren't initially planned. • Stakeholder Demands: As the project
progresses, stakeholders may request new features or changes that weren't part of the original
plan. Example:

• If the Sales department realizes they need a new report for customer analysis, this can add to
the project's workload without prior agreement.

Techniques for Managing Scope Creep

• Change Control Processes: Implementing a formal process for evaluating and approving
changes helps manage scope creep. This involves assessing the impact of any new requests on
time and budget before approval.

• Example:

• if someone requests an additional module, the team should analyze how it affects the project
timeline and resources.

• Communication Plans: Establishing clear communication with all stakeholders ensures that
everyone understands the project scope and any changes. Regular meetings and updates can
help keep everyone aligned and reduce misunderstandings.

Tools and Methodologies to Track and Control Scope

•Project Management Software: Tools like Trello, Asana, or Microsoft Project help track tasks,
deadlines, and project scope. These platforms allow team members to see what’s included in the
project and any changes that occur.

•Gantt Charts: A Gantt chart visually represents the project timeline, showing tasks, durations,
and dependencies. It helps identify how new changes might affect existing tasks and deadlines,
making it easier to manage the project scope.
6. Implications for Management

Role of Management in Providing Support and Resources

•Management plays a crucial role in ensuring that the project has the necessary resources, such
as funding, personnel, and tools.

•Example:

•If the project needs additional staff for data migration, management must approve hiring or
reallocating employees.

Alignment of ERP Projects with Organizational Goals

•It is vital that ERP projects align with the company's overall goals and objectives. For instance, if
the organization aims to improve customer satisfaction, the ERP system should include features
that enhance customer service capabilities.

Impact on Decision-Making and Business Processes

• The implementation of an ERP system can change how decisions are made within the
organization.

• Example:

• With real-time data from the ERP system, managers can make informed decisions quickly
rather than relying on outdated reports.

• Additionally, ERP systems streamline business processes, reducing delays and improving
efficiency.

• Example:

• Automating order processing can speed up sales and enhance customer satisfaction.

Post-Implementation Management Responsibilities

• After the ERP system is live, management must ensure ongoing training for employees to
maximize the system's use.

• Example

• Regular training sessions can help users stay updated on new features and best practices.

• Management also needs to oversee system maintenance and updates. This includes
monitoring the system’s performance, addressing user issues, and making necessary
adjustments to ensure it continues to meet business needs.
ENTERPRISE RESOURCE PLANNING AND MANAGEMENT

Module 9

1. Reason for Change

Organizational Change and Business Process Reengineering

Organizational Change

•This is when a company or organization makes changes to how it works. It could be small changes,
like rearranging the office, or big changes, like changing the entire way they do business. The main
goal of organizational change is to improve how things are done, so the company can be more
successful or meet new challenges.

• Example: Imagine your school decided to move all the classes online instead of in a classroom. That's
an organizational change! The school is changing how it works to adapt to new situations.

Business Process Reengineering (BPR)

•This is a fancy way of saying "completely rethinking and redesigning how a business does its work."
Instead of just making small improvements, business process reengineering involves starting from
scratch to figure out the best way to get things done. The goal is to make the company work better,
faster, and more efficiently.

• Example: Think of a pizza shop that makes pizzas one at a time, which takes a lot of time. With
business process reengineering, they might change everything—like using a conveyor belt to cook
pizzas faster. The way they make pizzas would be completely redesigned for speed and quality.

Reason for Change

•Change happens when a company realizes that the way they are doing things isn't working as well as
it could. There are different reasons why companies need to change, and they come from both inside
and outside the company.

Internal and External Drivers of Change

•Internal Drivers are things inside the company that make them want to change.

•Example: Imagine if a pizza shop noticed that their workers were always tired because they had too
many deliveries. The boss might decide to hire more people or buy a delivery car to make the work
easier.
Internal and External Drivers of Change

•External Drivers come from outside the company. Things like new rules from the government,
changes in the economy, or competition from other companies might force a business to change.

• Example: Think of it like a new pizza place opening next door that delivers faster. The first pizza shop
might have to change their delivery system to keep their customers happy.

Globalization and Market Dynamics

•Globalization is when companies and people from all over the world can work together and sell
products everywhere. This means a company in the Philippines could be competing with companies
from the USA or Japan. So, to keep up, companies need to change how they work.

• Example: It’s like if your favorite local ice cream shop starts selling ice cream flavors from other
countries because customers want to try something new. They have to change to keep up with
worldwide trends.

Globalization and Market Dynamics

•Market Dynamics are changes in the market, like how many people are buying something or how
much it costs to make. If people want different products or prices change, companies need to adjust
to survive.

• Example: Imagine if suddenly everyone wants chocolate ice cream and vanilla doesn’t sell anymore.
The ice cream shop will change and make more chocolate!

Technological Disruption

•Technological Disruption happens when new technology completely changes how things are done.
Businesses that don’t adopt new tech may get left behind.

• Example: Imagine if a pizza shop keeps using a paper menu, but now all their customers want to
order through an app. If the pizza shop doesn’t change and make an app, people might stop ordering
from them.

Customer Expectations and Behavior

•Customer Expectations are what customers want from a business. If customers start wanting faster
service, better quality, or new products, companies need to change to meet those expectations.

• Example: Imagine you want to order pizza, but it takes two hours to get delivered. You would be
upset, right? If customers start expecting faster delivery, the pizza shop has to change how they work
to keep their customers happy.

Customer Expectations and Behavior

•Customer Behavior is how people shop, which can also change over time. For example, more people
now shop online instead of going to stores, so businesses need to change how they sell things.

•Example: Think about how you used to go to the store to buy things, but now you can order almost
everything online. Businesses need to adjust to this behavior to stay successful.

2. Organizational Commitment

Organizational Change and Business Process Reengineering

Organizational Commitment

•This means how much a company, especially its leaders and employees, are dedicated to making
changes work. When a company is committed, everyone from the boss to the workers works together
to make sure that changes are successful.

Leadership’s Role in Change Management

•Leadership refers to the people in charge, like the boss or managers. In a company, leaders are the
ones who help guide everyone through changes. They make important decisions, set the direction for
the company, and help people feel confident about the changes.

•Example: Imagine your school principal decides to change the class schedule. The principal would be
in charge of explaining why the change is happening and making sure teachers and students
understand how the new schedule will work.

Employee Engagement and Buy-In

•Employee Engagement means how much workers are involved in and care about the changes
happening in the company. If employees feel like they are part of the change, they are more likely to
support it and work hard to make it successful.

•Buy-In means that employees believe in the change and agree that it’s a good idea. For change to
work, everyone needs to be on board, not just the leaders. If workers don't understand or like the
change, they might not try as hard to make it work.

Building a Change-Ready Culture

•A Change-Ready Culture means creating an environment where everyone is open to new ideas and
ready to adapt. In a change-ready culture, people expect that things might not stay the same forever,
and they’re willing to go along with changes when they happen.

•Example: If your school encourages students and teachers to try new things, like using computers for
homework or having online classes, it becomes easier for everyone to accept bigger changes, like
changing the class schedule. They’re already used to the idea of change!

Training and Development

•Training is when the company helps employees learn new skills to handle changes. For example, if a
company starts using new technology, employees will need to be trained on how to use it.

•Development means helping employees grow and improve their skills for the future. It’s like long-
term training that makes sure employees are always ready for new challenges and changes.

3. Business Process Change

Organizational Change and Business Process Reengineering

Business Process Change

•This is when a company looks at how it works and makes changes to improve the way things get
done. The goal is to make processes faster, easier, or more efficient, like finding ways to save time,
reduce mistakes, or cut costs.

Identifying Inefficiencies and Bottlenecks

•Inefficiencies are when things aren’t working as well as they could. This might be because a process is
too slow, too expensive, or requires too much effort.

•Bottlenecks are like roadblocks. They are parts of a process where work gets stuck or slows down.
When there's a bottleneck, nothing can move forward until the problem is fixed, just like traffic piling
up on a road because one lane is closed.

Process Mapping and Workflow Optimization

•Process Mapping is when a company draws out the steps of a process, like creating a map of how
things get done. It shows the path from start to finish and all the steps in between. This helps people
see exactly where things might be going wrong or taking too long.

•Example: Think of making a pizza. You could map the process like this: First, you mix the dough, then
you add toppings, then bake it in the oven, and finally deliver it. Drawing this out helps the pizza shop
see every step and figure out which part takes the longest or where mistakes happen.

Process Mapping and Workflow Optimization

•Workflow Optimization means improving how work flows or moves through a process. After mapping
out the process, a company can figure out how to make it faster, easier, or more efficient by changing
or removing steps.

• Example: If the pizza shop notices that mixing the dough takes too long, they might buy pre-made
dough or hire an extra person to help, so they can make pizzas faster. This is optimizing the workflow.

Automating Processes with Technology

•Automation means using technology or machines to do tasks that people used to do by hand. This
helps save time, reduce mistakes, and make things run more smoothly. Instead of having employees
do repetitive tasks, businesses can use machines or software to do them automatically.

•Example: In the pizza shop, instead of having someone manually check orders and call customers for
delivery, they could use an app that automatically takes orders and sends them directly to the kitchen.
This speeds up the process and reduces human error.

4. Business Process Management (BPM)

Organizational Change and Business Process Reengineering

Business Process Management (BPM)

•BPM is a way for companies to improve and manage their business processes. It helps businesses
make sure everything runs smoothly and efficiently. Think of BPM as a toolbox that helps companies
build better ways of doing things.

Business Process Management (BPM)

•BPM is all about understanding, managing, and improving the processes a company uses to get work
done. It helps organizations look closely at how they do things, find areas for improvement, and
implement changes.

• Example: Imagine a school that wants to improve how it handles student registrations. BPM would
help the school analyze their current process, identify problems, and create a better way to register
students.

BPM Lifecycle

•The BPM Lifecycle is a series of steps that companies follow when they want to manage and improve
their processes. It usually includes the following stages:

• Design: Figuring out how the process should work and creating a plan for it. • Model: Making a
visual representation or map of the process to see how it will flow. • Execute: Putting the plan into
action and starting to use the process. • Monitor: Checking how well the process is working and if
there are any problems. • Optimize: Making changes to improve the process based on what was
learned during monitoring.

Tools and Technologies for BPM

•Companies use various tools and technologies to help with BPM. These can include software
programs that help map processes, track progress, and analyze data. These tools make it easier for
organizations to manage their processes effectively.

• Example: A school might use software that helps track student registrations, sends reminders to
students, and analyzes how many students complete their registration on time.
BPM and Continuous Improvement

•Continuous Improvement means always looking for ways to make processes better, even after
changes have been made. BPM encourages companies to keep monitoring their processes and
making adjustments to ensure they are as efficient as possible.

• Example: After the school has implemented the new registration process, they continue to gather
feedback from students and teachers. If they notice that some students are still having trouble, they
might hold training sessions or adjust the process further to make it even easier.
ENTERPRISE RESOURCE PLANNING AND MANAGEMENT

Module 10

1. Supply Chain Management Supply Chain Management

Supply Chain Management

•A supply chain is like a big team of businesses working together to make and deliver a product. For
example, to make a smartphone, you need a lot of parts like a screen, a battery, and a camera. These
parts come from different places, and they all need to be put together and shipped to stores.

• Supply Chain Management (SCM) is how businesses organize this process to make sure products
are made on time, at the right cost, and get to customers when needed. Without good supply chain
management, it would be hard for companies to stay organized and make sure customers are happy
with their products.

Key Components of a Supply Chain

•1. Suppliers: These are the people or companies who provide the raw materials or parts needed to
make a product.

• Example: A company that makes plastic for toys is a supplier.

•2. Manufacturers: These are the businesses that take the raw materials from suppliers and make the
product. • Example: A toy company that assembles the plastic into action figures.

Key Components of a Supply Chain

•3. Distributors: These companies move the products from the manufacturers to the retailers. They
help make sure the toys get to the right places.

•4. Retailers: These are the stores where customers can buy the products. Think of big stores like toy
shops or online stores.

•5. Customers: Finally, these are the people who buy and use the products, like kids who buy the toys.

Supply Chain Flows

•In the supply chain, three main things move from one part to another:

• 1. Information Flow: This is the sharing of data between the different parts of the supply chain, like
placing orders or checking if enough products are available.
• 2. Product Flow: This is the movement of the actual goods, from suppliers to manufacturers, then to
distributors, retailers, and finally to customers.

• 3. Financial Flow: This is the money that moves between all the parts, from customers paying for
products, and businesses paying suppliers for materials.

Supply Chain Strategies

•There are two main ways companies can manage their supply chains:

• 1. Lean Supply Chain: This is about making things as fast and cheap as possible, without wasting
time or materials. It’s like being very careful not to make more products than you need or keep too
much in stock.

• 2. Agile Supply Chain: This is more flexible. Companies using an agile strategy can quickly change
what they do if the market changes. For example, if there is suddenly a lot of demand for a new kind
of toy, they can start making it quickly.

Challenges in Managing Global Supply Chains

•Managing a supply chain that stretches across the world can be difficult. Here are a few reasons why:
• 1. Geographical Challenges: Products and materials may have to travel long distances, which can
cause delays, especially if transportation is slow or blocked.

• 2. Cultural Challenges: Different countries do business in different ways, and it can be hard to make
sure everyone is on the same page.

• 3. Regulatory Challenges: Different countries have different rules about things like taxes, product
safety, and shipping. Managing all these rules can be tricky.

2. E-Business and Supply Chain Management

Supply Chain Management

The Role of E-Business in Supply Chain Operations

•E-business means doing business online. Instead of using papers and phone calls to buy or sell
products, companies use the internet to connect. This helps businesses make their supply chains faster
and easier to manage. For example, companies can order supplies or sell products with just a few
clicks. It saves time and helps businesses work together more smoothly.

E-Procurement and Its Impact on Supply Chains

•E-procurement is the online way of buying things that a company needs, like materials or
equipment. When companies use e-procurement, they can find the best deals faster and compare
prices easily. This helps them save money and get the products they need more quickly, which makes
the whole supply chain run better.
Digital Supply Chains

•A digital supply chain uses modern technology to manage all the parts of a supply chain online. Here
are some examples: • 1. Cloud Computing: This is like storing all your important information on the
internet instead of in one place, so businesses can share data easily and make faster decisions. • 2.
Artificial Intelligence (AI): AI helps businesses predict what products customers want and when they
want them. This helps the company keep the right amount of stock.

• 3. Internet of Things (IoT): IoT means smart devices, like sensors, that can track products as they
move through the supply chain. This helps companies know where their products are at all times.

Business-to-Business (B2B) and Business-to-Customer (B2C) Models

•There are two main ways that businesses can sell products:

•1. Business-to-Business (B2B): This is when one business sells products to another business. For
example, a company that makes computer parts sells them to a company that builds laptops.

•2. Business-to-Customer (B2C): This is when a business sells products directly to customers. For
example, an online store sells clothes to people like you and me.

E-Commerce Platforms and Supply Chain Efficiency

•E-commerce platforms are websites where companies can sell their products online. Examples
include Amazon, Lazada, or Shopee. These platforms make it easy for customers to buy things without
leaving their homes. They also help companies manage their supply chains better because everything
is tracked online. This means companies can see when they need more products, ship things faster,
and keep customers happy.

3. Integration Supply Chain Management

ERP and Supply Chain Integration

•An ERP (Enterprise Resource Planning) system is like a super-smart computer program that helps
different parts of a business work together smoothly. When a company uses an ERP system, it can
connect everything, including the supply chain, so that everyone knows what’s happening at all times.
For example, if the inventory (the stock of products) is running low, the ERP system can automatically
order more supplies, helping the supply chain run faster and without mistakes.

Vertical and Horizontal Integration

• There are two types of integration in supply chains: • 1. Vertical Integration: This is when a
company controls different stages of making a product. For example, a car company might own the
factory that makes car parts and also the stores that sell the cars. This makes it easier to manage
everything because it’s all in one company.

• 2. Horizontal Integration: This is when a company works closely with other companies that are at
the same stage of making a product. For example, if two car companies team up to buy car parts
together, they can get better prices and save money.

• Both types of integration make supply chains stronger and more efficient because companies can
share information and resources better.

Integration of Supply Chain Processes with Other Business Functions

• In a company, different teams need to work together to make sure the supply chain runs smoothly.
Here are some key areas that must be integrated:

• 1. Manufacturing: The part of the business that makes the products must be linked to the supply
chain to know when and how much to produce.

• 2. Inventory: This is the stock of products a company has. It must be connected to the supply chain
to ensure there is enough to meet customer demand.

• 3. Logistics: This involves the transportation and delivery of products. It needs to be integrated with
the supply chain so that products get to customers on time.

• When all these parts work together, it’s like a well-oiled machine, and the company can meet
customer needs better.

Supply Chain Visibility and Transparency

•Supply chain visibility means that everyone involved in the supply chain can see what’s happening
in real-time. For example, a store can check online to see when their next shipment of toys will arrive.
This helps companies make better decisions and avoid running out of stock. It also makes the supply
chain transparent, which means there are no secrets, and everyone knows where products are and
what’s happening.

Challenges in Achieving Seamless Integration

• Even though integration sounds great, it’s not always easy. Here are a few challenges:

• 1. Data Silos: This happens when different parts of a company don’t share information with each
other. For example, the manufacturing team might not know what the sales team is doing. This can
cause mistakes and delays.

• 2. Incompatibility of Systems: Sometimes, different systems used by companies don’t work well
together. For example, one part of the company might use a different software system than another
part, making it hard to share information.

• Fixing these challenges is important to make sure the supply chain runs smoothly and efficiently

4. RFID

Supply Chain Management

Introduction to RFID Technology

•RFID stands for Radio Frequency Identification. It is a technology that uses small electronic tags to
store information about items. These tags can be scanned from a distance using special devices called
RFID readers.

•Example: A box of toys in a warehouse might have an RFID tag, and when the reader scans it, it can
tell what’s inside without opening the box. RFID helps companies keep track of products in their
supply chains.

Benefits of RFID in Supply Chain Management

•RFID can make supply chains run better in several ways: • 1. Improved Inventory Accuracy: With
RFID, companies know exactly what they have in stock. They can scan hundreds of items quickly, so it’s
easier to avoid mistakes and ensure that there’s enough product to meet customer demand.

• 2. Enhanced Security: RFID tags can help track items as they move through the supply chain,
making it harder for products to get lost or stolen.

• 3. Tracking: Companies can see where their products are at all times, from the warehouse to the
store, which helps them plan better and avoid delays.

RFID in Warehousing and Distribution

•In warehouses, RFID helps keep track of items in real-time. This means companies can instantly see
how many products they have and where they are stored. It also helps with asset tracking, which is like
knowing where all the equipment and tools are, so nothing gets lost. In distribution (when products
are sent to stores or customers), RFID makes it easier to scan products and ensure they reach the right
place.

RFID and Automation

•Automation means using machines and technology to do tasks instead of humans. RFID plays a big
role in automating the supply chain. For example, instead of having workers manually count products
in a warehouse, RFID tags can be scanned by machines that do the job faster and more accurately.
This helps the supply chain run more efficiently because tasks are done quicker, and there are fewer
mistakes.

Challenges and Limitations of RFID Implementation

•Although RFID is helpful, there are some challenges:

•1. Cost: RFID tags and readers can be expensive to buy and set up, especially for smaller companies.
•2. Data Privacy: Because RFID can track products in real-time, there’s a concern that it might collect
too much information, which can raise privacy issues. •3. Technology Limitations: Sometimes, RFID
systems might not work perfectly if the signals get blocked or if the tags get damaged.

5. Implications for Management Supply Chain Management

Role of Management in Supply Chain Strategy Development

•Managers are like the leaders of a company. In supply chain management, their job is to make sure
the company’s supply chain runs smoothly. They create strategies (plans) to ensure products are
made, moved, and delivered efficiently.

•Example: They decide how to find the best suppliers or how to save money on shipping products to
customers. Good planning helps the company work faster and meet customer needs.

Decision-Making Based on Supply Chain Analytics

•Managers use supply chain analytics to help them make smart decisions. Analytics is like looking at
important numbers and data to figure out what’s going on in the supply chain. There are two
important types:

• 1. Predictive Analytics: This is when managers look at past data to guess what might happen in the
future. For example, if a product sold a lot last year, managers can predict that they’ll need more of
that product next year.

• 2. Demand Forecasting: This means managers try to figure out how much of a product customers
will want. By predicting customer demand, they can avoid making too much or too little of something.

Managing Risks in the Supply Chain

•Managing a supply chain has its risks, which are things that could go wrong. Managers need to find
ways to identify, avoid, and fix these problems. Here are some steps they take:

• 1. Risk Identification: This is when managers try to figure out what could go wrong, like bad
weather stopping a shipment or a supplier running out of materials.

• 2. Risk Mitigation: Once they know the risks, managers make plans to reduce them. For example,
they might have backup suppliers in case one supplier can’t deliver products.

• 3. Risk Management: This means always keeping an eye on the supply chain to make sure it’s
running smoothly and fixing problems quickly when they happen.

The Impact of Supply Chain Performance on Organizational Success

•A company’s success depends on how well the supply chain works. If the supply chain runs smoothly,
products are delivered on time, customers are happy, and the company makes money. But if there are
delays or mistakes, it can hurt the company’s reputation and sales. This is why managing the supply
chain well is so important for the company to do well.

Sustainability and Ethical Considerations in Supply Chain Management

• These days, many companies care about the environment and doing the right thing. This is where
sustainability and ethics come in:
• 1. Green Supply Chains: A green supply chain is when companies try to reduce pollution and waste.
For example, they might use trucks that run on clean energy or recycle materials instead of throwing
them away.

• 2. Corporate Social Responsibility (CSR): This means companies take responsibility for how their
actions affect people and the planet. They might treat their workers fairly, pay them well, and make
sure their suppliers do the same. This helps create a positive image for the company and shows they
care about more than just making money.