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UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING COURSES: ENTERPRISE RESOURCE PLANNING TOPIC: METHOD OF IMPLEMENTATION OF ERP SYSTEM IN YEARS (NPV) FOR WALMART LECTURERS: TRẦN KIM TOẠI STUDENTS STUDENT ID PHẠM THỊ NGỌC GIÀU : 19124067 LÊ TĂNG TÀI : 19124070 TRẦN NGỌC BẢO YẾN : 19124042 HO CHI MINH 2022 UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING -JOB BOOKING SCHEDULE Major: Industrial Management Course: 2019 School year 2021 – 2022 Group: Class: 19124CLA NO NAME STUDENT’S COMPLETION ID RATE PHẠM THỊ NGỌC GIÀU 19124067 100% LÊ TĂNG TÀI 19124070 100% TRẦN NGỌC BẢO YẾN 19124042 100% UNIVERSITY OF TECHNOLOGY AND EDUCATION_ ECONOMICS -SCORE TABLE OF PROJECT REPORT COURSES: ENTERPRISE RESOURCE PLANNING Major: Industrial Management Course: 2019 School year 2021 – 2022 Group: Class: 19124CLA Criteria Attitude Medium Pretty Good - 0,4 0,5 - 1,0 1,1 - 1,6 1,7 - 2,0 Very little group Occasional coordination Form of Teacher's Bad – 0,2 group Regular collaboration group Very coordination 0,3 -0,5 often Score in group collaboration 0,6 – 0,8 0,9 – 1,0 presentatio Not n the instructions instructions of the subject, course guide, there are course's instructions (no following According to the According to the According to the of the subject but there are errors in the some spelling and style spelling errors in the of presentation of the text, the errors (structure text, clear pictures and tables and graphs have not chapters, tables, clear style, no of been numbered numbering headings, obscure sentences ) font, font size, line spacing…) Main content – 1,5 1,6 -3,0 3,1 – 4,5 Only explain the Complete all assignments The description 4,6 – 5,5 is Describe basics of ERP but not complete required honest and complete, situation and (ERP description, ERP vendor name, choice of implementation goals and meaning of ERP but system to manage all incomplete and not up-to- the resources of the enterprise date information solution) actual (human, financial, means and Explain to choose the right The enterprises detailed project implementation and Explain well the ERP management, research, and details that are not application of ERP in Describe the current status, process of current but there are some implementation digital content transformation the material ERP for each specific case production ) situation of the of to solve business problems and make management business decisions honestly, fully, logically, and in detail State the strengths weaknesses and of research problem target problem, the the scenarios, and the Process simulation and Presenting the ability to execution of processes deploy, manage and application of on software less than operate an ERP system technology in processes solving the problem of application Simulate more than techniques governance and technique making business decisions have not been of ideas in questions analysis consistent and research objectives the that The success of the ERP project not and with the current situation require the topic has solve business arguments, connection problems Logical no or to complex described is an enterprise corporate There in been analyzed and evaluated (deployment time, break- even, implementation method, technology selection, project budget, and project implementation team) Part conclude 0,1 – 0,2 0,3 - 0,4 conclusion Summarize the salient is Conclusions not not related to the generalize the research outlines the highlights points of the report, state content of the problem of the report but is not what you have learned Conclusion The 0,5 detailed report and learned during the project, and indicate the direction of future research Tổng điểm: Date … month year LECTURER MARKS TABLE OF CONTENTS CHAPTER 1: STEPS IMPLEMENTATION OF ERP PROJECTS 11 1.1 ERP project implementation methods 11 1.1.1 The Big Bang (Total force deployment method) .11 1.1.2 Phased Rollout: .11 1.1.3 Parallel Implementation: 12 1.2 Steps to evaluate and choose an ERP software supplier: .13 1.3 Restructuring the corporate governance model when implementing ERP with change management (OCM) .14 1.3.1 Restructuring the corporate governance model when implementing ERP .14 1.3.2 Change Management (OCM) 17 CHAPTER 2: DIGITAL TRANSFORMATION PROCESS AT THE COMPANY .18 2.1 Brief about the company: 18 2.2 The evolution of Walmart's ERP system: 19 2.2 ERP application in Walmart's supply chain management 19 2.3 Success of ERP application at Walmart: 21 CHAPTER 3: SUCCESSFUL FACTORS IN ERP IMPLEMENTATION .22 3.1 Plan 22 3.2.Suppliers: 22 3.3.Human factor 23 3.3.1 Impact during implementation 23 CHAPTER 4: ASSESSMENT AND SELECTION OF ERP IMPLEMENTATION METHOD FOR WALMART 25 4.1 Advantages and disadvantages of evaluating ERP software selection according to ERP SaaS and ERP On-premise methods 25 4.1.1 ERP SaaS method 25 4.1.1.1 What is SaaS? 25 4.1.1.2 Advantages of SaaS model: 25 4.1.1.3 Disadvantages of SaaS model 27 4.1.1.3 Disadvantages of SaaS model 28 4.2 Evaluation of effectiveness and future scalability 29 4.2.1 Comparison of SaaS and On-premise: 29 4.2.2 Choosing the right ERP method for Walmart 31 CHAPTER 5: BUILDING WALMART's MINI-ERP SYSTEM 34 5.1 Overview of the ERP system: .34 5.2 Sales process on Odoo system: .35 CONCLUDE 41 REFERENCES 42 TABLE OF FIGURE Figure Product sales process flowchart .35 Figure Go to sales 36 Figure create customer 36 Figure Create Email Order 37 Figure confirmation .37 Figure Ask customers to pay .38 Figure Accountants receive payment and issue invoices .39 Figure Create unfinished products to add more products………………………… 40 10 committed to strict confidentiality in their Service Level Commitments (SLAs) Therefore, before choosing which SaaS software to use, you should double-check for security - Use only when online The second limitation of the SaaS service model is that it requires users to have an internet connection In case the network connection is not possible, the use will be interrupted This is sometimes a bit inconvenient, especially when you come to an area with no internet signal Therefore, now service providers are trying to overcome this drawback By developing offline support for the software - Make it difficult for users with the newly updated version Although the free automatic version update feature brings many benefits to users, this is also a "double-edged sword" Because sometimes some people are used to the old interface and features, until the update of the new version makes them feel surprised and it takes a while to get used to 4.2 Evaluation of effectiveness and future scalability 4.2.1 Comparison of SaaS and On-premise: Characteristic Software cost Payment method SaaS On - premise Pay as a monthly or yearly subscription Invest right from the start with large payout costs, often 10-20 times the cost of a SaaS subscription Only one time for the whole system to Annual or monthly use Maintenance No maintenance costs, the There will usually be a 1-year warranty and warranty SaaS provider is responsible 30 and maintenance contract in the next year (cost 25%-50% depending on negotiation with supplier) On-premise systems require separate Zero, the thing hosting/server investment and system only Hosting/Server businesses have to is visit administration software with at least the supplier's website on a system engineer for administration The cost investment and maintenance costs of the browser and use system will often be large Deployment costs Data saving Cost of software installation, training, Low deployment cost, or no and deployment Usually will account for 5%-10% of the total software cost Data stored in the service provider's cloud All backup requires the investment of the business and the accompanying team Management Usually included costs software service pack in the Invest in team, software, and hardware Service providers serve a large number of customers Security and will, of course, have more professional experience than you when it comes to Enterprises are solely responsible for system security, data, access management, and data backup, system security Usually will be upgraded Software/system under a service subscription, upgrade and system continuity is guaranteed during the upgrade 31 Enterprises have to pay an additional fee when they need to upgrade their software 4.2.2 Choosing the right ERP method for Walmart Cost is the first thing companies take into account when deciding to undertake a particular project People often calculate performance costs in terms of NPV With a discount of 20%, considering the two ERP implementation options, we have the following estimates: Option 1: Option 1- Buying computers and software outright Items 2022 2023 2024 2025 2026 Database server 600000 Application server 50000 10 PCS 180000 Sofware 200000 consultants - initial (6 months) 856000 Training weeks 23000 consultants - maintenance (1 day per month) 8000 8000 8000 8000 PC maintenance 12000 12000 12000 12000 Network administrator 40000 32 40000 40000 40000 40000 Total 1949000 NPV $2,131,241 Hurdle rate 12% 60000 60000 60000 60000 Option 2: Option 2- Using saas PCs 250000 PC maintenance 63000 63000 63000 63000 ASP cost 500000 500000 500000 500000 500000 Total 750000 563000 563000 563000 563000 NPV $2,460,028 Hurdle rate 12% After the NPV spreadsheet of the two ERP methods above, we find that the ERP SaaS method is extremely suitable for the current status of Walmart as follows: The initial cost of the On-Premise project includes too many large fees with a high cost, in addition, the NPV also has a high value compared to the SaaS ERP method, the 33 cost of On-Premise is higher, one child The number is quite high, so we cannot choose the On-Premise method The SaaS method is a perfect choice when it has the advantages of quick installation and easy use of the system anywhere without having to go to the workplace As well as being able to save costs, save labor and easily upgrade Besides, while OnPremise cannot be used on the go, SaaS only needs a network to be accessed and used at any time and place, plus it is integrated and easy to open Expand the use of the software 34 CHAPTER 5: BUILDING WALMART's MINI-ERP SYSTEM 5.1 Overview of the ERP system: Enterprise Resource Planning (ERP) is enterprise resource planning software.This system allows access to shared internal data to manage the entire operation of the company More specifically, ERP can be understood as follows: R-Resource: Applying ERP to the business is to make full use of the company's resources, especially human resources P-Planning: The ERP system supports the company in planning and operations in production and business The planning part will outline the direction for the business, the calculation, and the forecast of the possibilities that may arise in the future, which will affect subsequent activities E-Enterprise: And the last thing is the business - what ERP wants to target The main purpose of this system is to connect and synchronize work between departments, update all necessary information in real-time, add automation to company operations and reduce errors in the processing process major ERP software can be understood as an all-in-one technology model, ie including all business activities in just one software Specifically, ERP will link many applications or modules with different functions serving each part of the business From there, it will automate activities related to business resources to reduce processing time as well as optimize business management 35 5.2 Sales process on Odoo system: Figure Product sales process flowchart Step 1: Go to sales => create customer => Create Email Order => confirmation 36 Figure Go to sales Figure create customer 37 Figure Create Email Order Figure confirmation 38 Step 2: The sales department notifies the warehouse department to see the product quantity of the order: Enough products: Dispatch products => Ask customers to pay => Accountants receive payment and issue invoices=> Finish Figure Ask customers to pay 39 Figure Accountants receive payment and issue invoices Missing products: go to Step Step 3: The warehouse department will ask to Create unfinished products to add more products => Then “Run the planned plan” to Provide the missing quantity Go back to step 40 Figure Create unfinished products to add more products 41 CONCLUDE Today, the development of ERP systems is growing and becoming an indispensable part of every business Walmart can be said to be the leading and most successful enterprise in applying the ERP system to help improve operational efficiency as well as increase competitiveness in the world market Because of that importance, ERP systems are increasingly becoming enterprise solutions that provide a full range of high-performance experiences Ensure businesses receive benefits and reasonable investment solutions in implemented projects But each business's business model is different, so managers need to be wise in choosing an effective and reasonable ERP solution when implementing investment projects In addition, businesses need to carefully prepare measures and actual market needs before implementing the ERP plan to be able to implement the project accurately and effectively 42 REFERENCES B28 TECHNOLOGY (n.d.) SOME ERP IMPLEMENTATION STRATEGIES Retrieved from B28 TECHNOLOGY: https://phanmemketoanerp.com/tinerp/mot-so-chien-luoc-trien-khai-erp/#:~:text=Big%20Bang %20%E2%80%93%20%C4%91%C3%A2y%20l%C3%A0%20chi%E1%BA %BFn,m%E1%BB%99t%20trong%20doanh%20nghi%E1%BB%87p%20b %E1%BA%A1n Base Resources - Knowledge, experience, corporate governance documents for the digital era (n.d.) What is SaaS? How has Vietnam developed the SaaS model? Retrieved from Base Resources - Knowledge, experience, corporate governance documents for the digital era: https://resources.base.vn/productivity/saas-la-giviet-nam-da-phat-trien-mo-hinh-saas-nhu-the-nao-304 EssayBizLab (n.d.) Walmart Stores: Implementing ERP System Retrieved from EssayBizLab: https://essaybizlab.com/walmart-stores-implementing-erp-system/ GOLBAL ENTERPRIRE SOLUTION (n.d.) Criteria for EVALUATION AND SELECTION OF GOOD ERP SUPPLIERS Retrieved from GOLBAL ENTERPRIRE SOLUTION: https://geso.us/6-tieu-chi-de-danh-gia-va-lua-chonnha-cung-cap-erp-tot Port Cities - the biggest Odoo partner in the world (n.d.) How does the ERP system work? Retrieved from Port Cities - the biggest Odoo partner in the world.: https://portcities.net/vi/erp-la-gi Techopedia (n.d.) On-Premise Enterprise Resource Planning (On-Premise ERP) Retrieved from Techopedia : https://www.techopedia.com/definition/29370/onpremise-enterprise-resource-planning-on-premise-erp Walmart (n.d.) Walmart Retrieved from Walmart: https://www.walmart.com/ 43 44 ... is integrated and easy to open Expand the use of the software 34 CHAPTER 5: BUILDING WALMART'' s MINI -ERP SYSTEM 5. 1 Overview of the ERP system: Enterprise Resource Planning (ERP) is enterprise resource. .. SELECTION OF ERP IMPLEMENTATION METHOD FOR WALMART 25 4.1 Advantages and disadvantages of evaluating ERP software selection according to ERP SaaS and ERP On-premise methods 25 4.1.1... an integral part of the business 25 CHAPTER 4: ASSESSMENT AND SELECTION OF ERP IMPLEMENTATION METHOD FOR WALMART 4.1 Advantages and disadvantages of evaluating ERP software selection according
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