Author: wsun

Business leverages Big Data and Business Intelligence with ERP system. This not only accelerates decision-making process but also enacts effective business strategy.

But today, data resides everywhere in manufacturing—in Enterprise Resource Planning (ERP) systems, Product Lifecycle Management (PLM) systems, Manufacturing Execution Systems (MES) and Supplier Relationship Management (SRM) systems, in machine tools and in thousands of spreadsheets, files and folders across the company. Data also resides outside the enterprise, across the value chain with partners on both the supply and the sales sides. The goal is to break down organizational process, data and system silo and automate the collection of data across operations.

For example, collecting data across ERP system and Supplier Management system, cleaning and integrating those data enable business get the real-time insight and make better prediction. Moreover, access to real-time supply chain information helps identify issues before they happen, reduces inventory and potentially reduces capital requirements. Moreover, connecting to suppliers’ information enables location tracking, remote monitoring of inventory and reporting of parts and products as they move through the supply chain. All these information help manager to make decision and conduct business transformation.

Kaiser Permanente is an integrated managed care consortium and the US’s largest not-for-profit health plan. As of December 31, 2015, Kaiser Permanente had 10.2 million health plan members, 186,497 employees, 18,652 physicians, 51,010 nurses, 38 medical centers, and 622 medical offices. 

Kaiser faced several issues in 2014. First, Affordable Care Act (Obamacare), increasing impact of consumerism, and decreasing reimbursements made it change its cost structure. Second, inventory is a problem within Kaiser. Inventory was driven by nursing at different locations. Nurse not only served patients but also search the needs of products. Moreover, recalled and expired products were discovered manually. Sourcing, distribution, and point of care acted independently. All these reasons drove it high inventory level but no one knew the exact number.

Transformation:

• It made a maintaining procedure cards. The list by doctor of all materials that doctor uses for particular procedures. This information will allow them to see variation of product usage across procedures and surgeons.
• Implement Oracle’s PeopleSoft Applications as ERP system: one item master and scanning process. These help them understand actual cost procedure, accurate inventory, replenishment, and recall management processes.
• Implement a consensus demand management process (Oracle’s Demantra): use science to set inventory level and forecast inputs (shipment history, operation room schedules, and external factors like seasonality and changes to insurance plans).

Radio-Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object. RFID is used by many industries such as commerce, transportation, animal identification and so on. Moreover, the integration of RFID Inventory Tracking and Warehouse Management Solution enable the retail and manufacturing industry to identify and track inventory real-time and automatically.

Manufacturing companies using SAP can use RFID to track their products along the supply chain. During the inbound delivery process, the goods receipt will identify incorrect items and quantities sent by the vendor. During the outbound delivery process, the items can be tagged, loaded onto cases, and automatic goods receipt. When the item is stored in the plant, the item also can be tracked.

The technology of integration of SAP ERP and RFID is called SAP Auto-ID. It receives the data from the RFID reader and converts those data into ERP system. SAP Auto-ID also automatics the delivery process. It includes the flexible definitions and rule set environment. For example, if the data from a tag is captured for a goods receipt, then SAP Auto-ID would automatically generate a goods receipt based on the rules defined.

 

 

 

According to a survey, although only 2% enterprises move their ERP system to the cloud, almost 50% enterprises plan to adopt cloud ERP system within 10 years. Because of the rapid development of cloud computing, it seems like it is a trend to move ERP system to the cloud.

What are the reasons drive this trend?

1. Achieving faster time-to-market: traditional ERP takes to reach the market; however, cloud ERP system saves the time of building server.
2. Legacy ERP systems lack scalability to support 21rst century compliance: traditional ERP system’s data model cannot support the current global entire operation.
3. Mobility: in today’s warehouse, mobile platforms are most often used for material handling, warehouse management, traceability, quality management, logistics and service tracking. Mobility offers real-time information.
4. Increasing number of small business: traditional ERP is costly for them.

The disadvantages of traditional ERP system and need of current business lead to the development of cloud ERP

What are the pros and cons of cloud-based ERP system?

Advantages: Access to more latest features, decrease the cost of server and hardware, faster implementation.

Disadvantage: Limited customization, security issue (data are in the vendor’s hand)

 

It is hard for me to relate Education industry with an ERP system. In my opinion, in education industry ERP system does not play a lot of roles. However, I saw a news said that ERP education market is increasing.

The education ERP market is estimated to grow from USD 6.77 Billion in 2016 to USD 14.19 Billion by 2021, at a CAGR of 15.9% between 2016 and 2021.  Especially higher education segment is the lead in the ERP education because the learning and teaching processes are changing in that section. Therefore, ERP solution is one of the efficient and effective ways to address these alterations.

The primary audiences of education ERP system are schools and university bodies. ERP solutions in academic institutions have enabled administrators to manage various business processes, such as student billing, registration, and enrolments. ERP solutions enable schools to manage their resource more efficiently, break the silo, and collect and analyze data. For example, by enrollment rate, student’s performance and cost of certain program, schools can design a program fitting for themselves and students. Moreover, there are a lot of online publication, tutorial, and programs. ERP solution helps schools to manage those products.

 

This week we discussed selling process in ERP system. When it mentioned selling process, the first IT system that came to mind is customer relationship management system. What the difference between ERP and CRM in selling process?

The first difference is that ERP focuses on improving business process and efficiency but CRM focuses on increasing sales revenue. Second, CRM mainly manages company’s sales, marketing, and customer support. It helps the company to simplify and standardize the interactions with current and potential customers. Moreover, it offers marketing and sales person information. For example, it calculates the time of closing deal, the revenue from different marketing tools, and historical sales data. All information can help marketing and sales department know the priority and make decisions. However, ERP system integrates the information passing through different departments and facilitates the business process.

Recently, one of biggest CRM providers, Microsoft completes its acquisition of LinkedIn. This news triggers the disturbance among CRM system providers. The reason is that today salespeople rely heavily on LinkedIn to help them find prospects and make cold call emails. CRM with LinkedIn’s users data is a powerful tool for the company to look for prospects and manage customer relationship.

This week I learned purchasing function in ERP system and discussed the purchasing process of Safeway. This discussion inspires me to look into Whole Foods’ purchasing process and its ERP system. Whole Foods, one of my favorite grocery stores, is famous for offering local organic products and its high price. It leaves many decisions in the hands of regional and store-level workers. Compared with other retail stores, it’s more difficult for Whole Foods to reach economies of scale when purchasing and to centralize management.

In recent year Whole Foods centralizes meat buying process and partners with enterprise software firm Infor Inc. to create a new retail management system, to centralize 12 disparate IT systems, home-grown ERP system running across 431 stores. This ERP system integrates its business process in single system and boosts its revenue. This new ERP system enables Whole Foods automate the process of the process of tracking the items on store shelves and submitting restocking orders. By real-time analytics, system also helps Whole Foods know which stores would benefit from a greater variety of locally produced goods and how its shelves present the products. Moreover, it reduces spoilage and expired products. Whole Foods improves IT and business process.

Benefits of implementing ERP and accounting application

1. Integration of the systems: ERP and accounting application combines company all the functional departments together. They would act as a single company.
2. Enhancement of communication capability of different department: ERP and accounting application would reduce the effort of communication between the departments. They do not need frequent interface information exchange.
3. Efficiency: It streamlines different business processes and workflows and improves accuracy of information. It saves the time for accountant to ask for information from different departments and makes the information more accurate. It helps company work more efficiently.
4. Tracking and forecasting: ERP and accounting application offers manager realtime financial and operational condition. It provides managers realtime report and helps them make critical decision.
5. Globalization: ERP and accounting application supports multidimensional financial accounting and reporting standards. This helps a multinational corporation to comply with local regulation. Moreover, it integrates all the information from different countries. Manager can get the complete perspective.

In this week, I combined what I had learned in Accounting class and in ERP class. It’s exciting and challenging. It helps me think from business process perspective and use the knowledge I gained in accounting class.

 

The first week I learned how business process runs in a company and this lets me think that different functional department works independently in a certain company. The jobs they need to do are doing their own job and update their work situation. In my opinion, business process outsourcing probably a great solution for some companies to lower human resource cost and let the works be done more efficient.

The articleIs Business Process Outsourcing Relevant For Your Small Business? discusses whether small business is suitable to adopt business process outsourcing. In spite of several disadvantages such as communication issues and underestimating costs, freedom and flexibility to choose the relevant services for company operation, quick and accurate, and Save on resources related to staffing and training are all attractive to business to adopt business process outsourcing. Moreover, cloud and ERP solutions enables business process outsourcing run more smoothly. Business process outsourcing provider and its customer can work more closely.

reference:

 

http://www.business2community.com/small-business/business-process-outsourcing-relevant-small-business-01658998#Kt2v86TkvqvZr24x.97