ERP Framework
In this blog post I will be discussing an Enterprise Resource Planning (ERP) system and how this system is designed to simplify the modern complex organization. I will be presenting a case study of the City of Tucson's current ERP implementation and will be discussing opportunities within the system on how to maximize system functionality.
Typically, the complex organization is composed of several department's with each department having their own "legacy", a.k.a. outdated, system. In this case study, the City of Tucson has 23 departments. As one can imagine, an organization that would have to maintain 23+ different and equally complex systems would be left in the stone-age with a lot of headaches. These legacy systems are high maintenance, hard to manage, and lacking in efficiency.
Fast forward to the modern-day ERP system. An Enterprise Resource Planning system is an integrative software solution that aims to combine, streamline, and centralize all of these once separate systems, into one fully comprehensive solution for the modern organization. Here's a quick video on the explanation of what an ERP solution looks like:
Fast-Forward to the case study of the City of Tucson. The City of Tucson currently deploys a CGI Advantage ERP solution for all of their organizational needs. Although system functionality is under-utilized, discussed later, the City of Tucson currently houses their Financial, Human Resource Management, Employee Self-Service, InfoAdvantage (reporting), Administration, and soon-to-be Procurement modules all on the ERP. Also, important to mention is that the City of Tucson houses their ERP on the cloud through their ERP vendor PSMAG as opposed to in-house. Below is a visual representation of the City of Tucson's current ERP framework:
As mentioned before some best practice ERP guidelines feature one integrative system solution, transfer all/most legacy processes to ERP, and maximize system functionality. Upon review of the City of Tucson's ERP framework, there were three areas in the system that screamed utilization opportunity. These three areas included time-keeping functionality, accounts payable - check printing, and best practices job process scheduling.
The issue of time-keeping can be handled by the ERP but instead an outside system is currently being used to track, record, and maintain time for all city employees. This not only foresees an additional cost to the City of Tucson, but also foresees additional maintenance of a separate system outside the ERP. The second area of concern is in the area of Accounts Payable. The check printing functionality for accounts payable is currently maintained on a system separate the ERP, even though the ERP is more than capable of handling this type of functionality. Lastly, job processing can be improved in the area of a series of jobs called "Finance Charges". Finance Charges are interest-bearing accounts outstanding from customer of the City that owe the City of Tucson for their services provided. Currently the City of Tucson only runs the job once a month instead of accruing the charges daily.
Each of these areas mentioned above would increase system utilization. Presented below are three suggestions to utilize the system functionality.
First off, I would recommend training the users within the system. Following the people, processes, technology framework, people play an important role in maximizing the functionality of a system, especially during an upgrade of an ERP system. The people are responsible for customizing the ERP system and determining which processes are necessary to utilize in the system. Next, is education and knowing the environment that the system operates under. Every organization has its own context in which it operates under and a good understanding of organizational processes will help better the maximization of system functionality. Lastly, I would implement an analytical approach to determining how to continuously improve the ERP system. With each of these in mind, your ERP system is well underway to becoming fully utilized.
Have you had any experience with ERP solutions? Also, what recommendations would you have for maximizing the utility of an ERP system?
Typically, the complex organization is composed of several department's with each department having their own "legacy", a.k.a. outdated, system. In this case study, the City of Tucson has 23 departments. As one can imagine, an organization that would have to maintain 23+ different and equally complex systems would be left in the stone-age with a lot of headaches. These legacy systems are high maintenance, hard to manage, and lacking in efficiency.
Fast forward to the modern-day ERP system. An Enterprise Resource Planning system is an integrative software solution that aims to combine, streamline, and centralize all of these once separate systems, into one fully comprehensive solution for the modern organization. Here's a quick video on the explanation of what an ERP solution looks like:
Fast-Forward to the case study of the City of Tucson. The City of Tucson currently deploys a CGI Advantage ERP solution for all of their organizational needs. Although system functionality is under-utilized, discussed later, the City of Tucson currently houses their Financial, Human Resource Management, Employee Self-Service, InfoAdvantage (reporting), Administration, and soon-to-be Procurement modules all on the ERP. Also, important to mention is that the City of Tucson houses their ERP on the cloud through their ERP vendor PSMAG as opposed to in-house. Below is a visual representation of the City of Tucson's current ERP framework:
As mentioned before some best practice ERP guidelines feature one integrative system solution, transfer all/most legacy processes to ERP, and maximize system functionality. Upon review of the City of Tucson's ERP framework, there were three areas in the system that screamed utilization opportunity. These three areas included time-keeping functionality, accounts payable - check printing, and best practices job process scheduling.
The issue of time-keeping can be handled by the ERP but instead an outside system is currently being used to track, record, and maintain time for all city employees. This not only foresees an additional cost to the City of Tucson, but also foresees additional maintenance of a separate system outside the ERP. The second area of concern is in the area of Accounts Payable. The check printing functionality for accounts payable is currently maintained on a system separate the ERP, even though the ERP is more than capable of handling this type of functionality. Lastly, job processing can be improved in the area of a series of jobs called "Finance Charges". Finance Charges are interest-bearing accounts outstanding from customer of the City that owe the City of Tucson for their services provided. Currently the City of Tucson only runs the job once a month instead of accruing the charges daily.
Each of these areas mentioned above would increase system utilization. Presented below are three suggestions to utilize the system functionality.
First off, I would recommend training the users within the system. Following the people, processes, technology framework, people play an important role in maximizing the functionality of a system, especially during an upgrade of an ERP system. The people are responsible for customizing the ERP system and determining which processes are necessary to utilize in the system. Next, is education and knowing the environment that the system operates under. Every organization has its own context in which it operates under and a good understanding of organizational processes will help better the maximization of system functionality. Lastly, I would implement an analytical approach to determining how to continuously improve the ERP system. With each of these in mind, your ERP system is well underway to becoming fully utilized.
Have you had any experience with ERP solutions? Also, what recommendations would you have for maximizing the utility of an ERP system?
