Republic of the Philippines

NUEVA VIZCAYA STATE UNIVERSITY

Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.: IM No.: ITPC3-2S-2021-2022

College: College of Industrial Technology

Campus :Bambang Campus

DEGREE PROGRAM BSINTE COURSE NO. ITPC3

SPECIALIZATION COURSE TITLE System Integration and Architecture 1
YEAR LEVEL Second Year TIME FRAME WK NO. 1-2 IM NO. 1

I. UNIT TITLE/CHAPTER TITLE

Overview of System Integration: Challenges and Drivers

II. LESSON TITLE

1. Introduction to Enterprise System Management
2. Enterprise Systems in Organization
3. Enterprise Resource Planning Systems
4. ERP Implementation
5. People and organization

III. LESSON OVERVIEW

This chapter introduces to students

IV. DESIRED LEARNING OUTCOMES

At the end of the lesson, the students will be able to:
1. define the important terminologies in Systems Integration;
2. discuss the history, applications, components of Enterprise Resource Planning Systems;
3. articulate the role and responsibilities of the different stakeholders in an organization

V. LESSON CONTENT
INTRODUCTION TO ENTERPRISE SYSTEM MANAGEMENT
What is Enterprise System (ERP)?
Earlier, in large organizations, different information systems were used to serve different business
functions like sales, marketing, production, manufacturing, etc., separately.

An enterprise resource planning (ERP) system corporate with organizations to enhance business
management and operations within a centralized database. Agencies incorporate ERP software to
assimilate business processes, accumulate operational data, improve supply-chain effectiveness,
stimulate data-driven strategies, and improve collaboration between compartments.

The business processes in each business function were disparate and not capable of sharing
information with each other. It was difficult for the managers to assemble the data fragmented into
separate systems in order to present an overall picture of the organization’s operations and take firm-
wide decisions.

At the time a customer places an order, for example, the salesperson might not be able to tell him
whether the desired items are in inventory or are to be produced.

To overcome such difficulties, in recent years, many organizations have opted to replace several
distinct information systems with a single integrated system that can support business activities for
different business functions. Such systems are called enterprise systems.

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* Property of the NVSU College of Industrial Technology. Not to be reproduced or shared without written permission from the Dean.
 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.: IM No.: ITPC3-2S-2021-2022

Enterprise System Overview

An enterprise system, also known as an enterprise resource planning (ERP) system, is a cross-
functional information system that provides organization-wide coordination and integration of the key
business processes and helps in planning the resources of an organization.

With the help of enterprise resource planning systems, information can flow seamlessly across the firm.
Also, different business processes from sales, production, manufacturing, logistics, and human
resources can be integrated into organization-wide business processes.

An ERP system is driven by the ERP software suite-a set of integrated software modules–and a
common centralized database. The software modules support the basic business processes under
different functional areas and the database stores data from and feed the data to various applications
supporting the internal business activities.

Some examples of business processes supported by ERP software include accounts payable, general
ledger, cash management, and forecasting, personnel administration, payroll, time management,
inventory management, product pricing, billing, etc. Initially, ERP software was designed for automating
a firm’s internal ‘back-office business processes, but now, it can also communicate with customers,
suppliers, and other business partners.

For implementing ERP systems, organizations need to identify the business processes to be automated
and then map those processes to the processes provided by ERP systems.

All this requires a great amount of effort. Moreover, organizations may find that the business processes
of these systems are not able to support the way that the organization’s business processes work.

In such cases, the software may need to be customized to satisfy the requirements of the
organizations. This may not only deteriorate the system’s performance but also need compromising the
information and process integration.

Thus, to obtain the maximum benefit from enterprise resource planning software, the organizations
should change their way of working according to the business processes of software instead of
customizing the software.

Enterprise resource planning, supply chain management, and customer relationship management
systems are examples of enterprise systems.

These systems are used as a central command hub to help automate the business and make reporting
and decision-making easier.

Nowadays, a variety of ERP software offered by different software vendors is available in the market.

Some major enterprise resource planning software along with their vendors are:

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* Property of the NVSU College of Industrial Technology. Not to be reproduced or shared without written permission from the Dean.
 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.: IM No.: ITPC3-2S-2021-2022

4 Benefits of Enterprise Resource Planning (ERP) Systems

 Communicate the critical firm-wide information on the business performance to managers all
across the organization quickly, so as to enable them to make better decisions and at the right
time.
 Reduce the cost involved in transaction processing, hardware, software, and IT support staff in
a significant manner.
 Improve the quality and efficiency of customer service, production, and distribution by
integrating the company’s internal business processes in sales, finance, production, custom
logistics, etc.
 Help to create a more uniform organizational culture where everyone uses a similar type of
processes and information to do business.

What Are ERP System Modules?

According to Oracle NetSuite “, Each ERP module is designed for specific business functions, providing
the data, and supporting the processes that will help those employees do their jobs. Every module
plugs into the ERP system, so the system provides a single source of accurate data, even as the
business adds new modules. If the ERP system is the toolbox, the modules are the screwdriver,
wrench, hammer, and other tools in the box that each has specific uses.

7 ERP Modules and Their Features

1. Accounting and Finance
The accounting and finance module keeps track of the organization’s finances, including
allocations, planning, accounting, revenue control, and tax management.

2. Customer Relationship Management (CRM)

The CRM module makes it possible for businesses to manage client operations, such as marketing,
sales, and customer service. Employees can monitor sales probabilities and customer channels.
Users can also employ CRM in marketing operation management, including advertisements and
lead generation campaigns.

3. Supply Chain
Similarly, the supply chain module monitors products from the point of manufacturing to distribution.
Notable features include inventory, purchasing, shipping, tracking, refunds, claim processing, and
supplier scheduling.

4. Inventory Management
The inventory management module makes it easy for businesses to track resources and supplies
through purchase orders, automatic ordering, inventory control, and scanning.

5. Manufacturing
Manufacturers and other production-oriented amenities can execute the manufacturing module to
control their shops, including features such as quality control, work orders, planning, manufacturing
operations, bill of resources, engineering, and the overall production cycle.

6. Human Resources
The human resources module facilitates the hiring process – from recruitment all through
succession. Agencies utilize the following HR module elements: payroll, time management, learning
management, performance management, and applicant tracking.

7. Business Intelligence
A business intelligence module accumulates and inspects data from various sources and helps
users define a better organization’s solution. Some notable features include scheduled reporting,
visualization tools, customizable dashboards, and real-time data access.

6 Key Phases of an ERP Implementation Plan

Implementing an enterprise resource planning (ERP) system can be a complex undertaking that affects
many parts of the business. As with any major initiative, a carefully designed implementation plan is

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* Property of the NVSU College of Industrial Technology. Not to be reproduced or shared without written permission from the Dean.
 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.: IM No.: ITPC3-2S-2021-2022

critical. Dividing your implementation into phases, each with clear objectives, can maximize your
success.

In contrast, diving into an ERP implementation without first establishing clear project direction, scope
and structure increases the likelihood of encountering significant problems later.

What Is an ERP Implementation?

An ERP system integrates many functions across the business, such as financial management, human
resources, sales and manufacturing, to deliver benefits such as increased productivity and efficiency.
ERP implementation describes the process of planning, configuring, and deploying an ERP. The
process typically continues for a few months—and it’s complex because an ERP system supports and
automates many different functions.

To ensure a successful implementation, the organization needs to carefully define its requirements,
determine how to redesign processes to take advantage of the system, configure the ERP system to
support those processes and rigorously test it before deploying it to users. Successfully navigating all
those steps on schedule requires careful planning and a structured, phased implementation approach.

What Are the Phases of an ERP Implementation Plan?

A flowchart of the six phases of an ERP implementation

A typical ERP implementation plan can be divided into six phases, each with specific objectives. Every
business is unique, so the phases may vary somewhat depending on the company, and they also may
overlap. The six-part ERP implementation phase lifecycle includes discovery and planning, design,
development, testing, deployment and support.

1. Discovery & Planning

What is the first phase of ERP implementation? This includes researching and selecting a system,
setting up a project team and defining detailed system requirements.

The project team will handle a broad range of roles related to the implementation, including laying out
the project plan and target dates, ensuring adequate resources are allocated, making product and
design decisions, and day-to-day project management.

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* Property of the NVSU College of Industrial Technology. Not to be reproduced or shared without written permission from the Dean.
 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.: IM No.: ITPC3-2S-2021-2022

The ERP project team typically includes an executive sponsor, a project manager and representatives
from the departments that will use the system. Involving senior management is critical to ensure the
project gets the resources it needs and to provide the backing needed to implement change across the
organization. The team also may hire an external consultant or ERP implementation partner to provide
expertise in designing and configuring the system. It should also include any internal specialists
involved in implementing the system, such as a representative from IT and a report writer who will
develop customized reports for users across the organization.

One of the team’s early goals will be to develop a detailed understanding of current issues, including
process inefficiencies and requirements for the ERP system. If the organization has previously
developed an ERP business case, it may have already defined broad business issues and goals for the
implementation, which may include a faster financial close, improved insight into operations or
preparing for an IPO. These can be used to direct more detailed analysis, including documentation of
existing workflows, and to focus development of the system.

The team may select and acquire an ERP system during this phase, as the organization develops a
clear idea of its requirements. One major decision is whether to use an ERP system that runs on-
premises or in the cloud. For an on-premises system, you buy and install hardware and software in
your organization’s data center. In contrast, cloud-based ERP is generally provided as a subscription
service accessed via the internet, so it can be faster to implement and requires fewer in-house IT skills.

2. Design
The design phase works from detailed requirements and an understanding of current workflows to
develop a detailed design for the new ERP system. This includes designing new, more efficient
workflows and other business processes that take advantage of the system. It’s important to involve
users in the design phase, since they have the most intimate understanding of current business
processes. Involving them in the design also helps to ensure that they’ll welcome the new system and
take full advantage of it.

Gap analysis can be used to identify process intricacies and unique quirks that may require
customization of the ERP software or changes to workflow or processes to more closely align with the
ERP system itself. The team can present the gaps to its implementation partner or supplier and ask
them to identify potential solutions.

3. Development
Armed with clear design requirements, the development phase can begin. This involves configuring
and, where necessary, customizing the software to support the redesigned processes. It may also
include developing integration with any of the organization’s other existing business applications that
won’t be replaced by the ERP system. If you’re using an on-premises ERP system, the organization will
need to install the necessary hardware and software.

In parallel with software development, the team should develop training materials to help users adjust
to the new system. It also needs to begin planning data migration, which can be complex since it often
involves extracting, transforming and loading data from multiple systems, each of which may use
different formats and may hold duplicate or inconsistent information. The project team should determine
which data to migrate in this phase, avoiding the blanket migration of all historical data, lots of which is
likely irrelevant. (See more on data migration below.)

4. Testing
Testing and development may occur concurrently. For example, the project team may test specific
modules and features, develop fixes or adjustments based on the results, and retest. Or, it may test
one ERP module while another is still in development. Initial testing of the basic functions of the
software should be followed by rigorous testing of the full capabilities of the system, including allowing
some employees to test the system for all their day-to-day activities. This phase should also
encompass testing of the migrated data and include introductory end-user training.

Most vendors can supply pre- and post-deployment tools to begin user training. But in addition to
vendor support, the organization should make good use of the training materials created in the
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* Property of the NVSU College of Industrial Technology. Not to be reproduced or shared without written permission from the Dean.
 Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.: IM No.: ITPC3-2S-2021-2022

development phase. There is real value in resources that specifically cater to your end-users’ day-to-
day responsibilities.

5. Deployment
This is what you’ve been striving toward: the day the system goes live. Be prepared for potential issues,
since there may be a lot of moving parts and possibly some befuddled employees, despite your best
efforts to prepare them for the change. The project team should be readily available to answer
questions, help users understand the system and attempt to fix any issues. Your implementation
partner should be able to help with troubleshooting if necessary. It may take time for users to adapt to
the system and achieve the anticipated productivity gains.

Some data can be migrated ahead of deployment, while other information—such as current
transactions—should be migrated immediately before going live.

Some organizations aim to deploy all the modules of the ERP system concurrently, while others focus
first on specific high-priority modules or processes and add others later in stages. To minimize risk,
some organizations also continue to run older systems in parallel with the new ERP implementation for
a time, although this can add to the overall project cost and reduce user productivity.

6. Support & Updates

Nurturing your ERP implementation after deployment helps to keep users happy and ensure the
business achieves the desired benefits. The project team may still be responsible for the ERP system
during this phase, but its focus will shift to listening for user feedback and adjusting the system
accordingly. Some additional development and configuration may be needed as new features are
added to the system. New staff will also need to be trained on the system.

If you have an on-premises ERP system, you’ll need to install periodic software updates and may even
need to upgrade hardware over time. If you’re using a cloud-based ERP system, your vendor may
update the software automatically.

VI. LEARNING ACTIVITIES

1. Why is it important to follow a specific step in implementing an ERP System?
2. List down at least 5 importance of ERP System in an organization.
Submit your activity in PDF Format on our MS Teams.
VII. EVALUATION
Evaluation will be posted in the MS Teams

VIII. ASSIGNMENT
1. Research on the history of ERP System.
2. Research on some ERP Vendors (minimum of 3) including the overview of their ERP
System.
Submit your activity in PDF Format on our MS Teams.
IX. REFERENCES
Kukreja, S. (n.d.) Enterprise System. Retrieved from https://www.managementstudyhq.com/enterprise-
systems.html

Schwarz, L. (n.d.). 6 Key Phases of an ERP Implementation Plan. Retrieved from

https://www.netsuite.com/portal/resource/articles/erp/erp-implementation-
phases.shtml#:~:text=What%20Is%20an%20ERP%20Implementation,configuring%20and
%20deploying%20an%20ERP.

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* Property of the NVSU College of Industrial Technology. Not to be reproduced or shared without written permission from the Dean.