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The Abstract of master's thesis on a theme:

"Optimization of enterprise's structure by ERP implementation"

Author: Kurinnaya A.

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     The styles of modern world are the movement, speed and changes. Nowadays the most successful isn’t the one who most clever and rich, but someone who at least one step ahead of others.

     The efficiency of different kind of enterprises depends from their information system. Today one of the most powerful instruments of modern leaders has become automate systems of ERP class (Enterprise Resource Planning). Systems of ERP class — that is full-scale set of applications integrated between each other. There are many different ERP-systems now and it’s a problem to choose the best system for every company.

     ERP-systems it is a set of application which allows to create an unite environment for the automation of planning, accounting, control, analysis and management of enterprises business process in the field of financial, inventory, manufactory and logistic flows, business book-accounting, personnel control, regulations of relations with counteragents, accounting and so on. It is obviously that ERP-system is very convenient and sensitive instrument for making the decision, which can be adjust to the peculiarities of individual enterprise, to its accounting and management specific. But it is very important to understand that the implemented ERP-system can not be the single “magic red button” of leader: decisions are always made by concrete manager and the quality of the decisions made depends heavily on his ability to use the opportunities of this universal instrument.

     The relevance of my work in developing and descriptions recommendations for the ERP implementation. This recommendations ensure not only automate existing enterprise order, but also help to improve and optimize order. Scientific novelty of my work is to use different models for optimization project for the ERP implementation.

     The objectives of my work are:

    1. Studying the experience of implementing similar systems.
    2. Perfection stages of implementation.
    3. Creating recommendations which allow the company to implement ERP-system the best way.
    4. Construction of models to optimize information flows within the corporation and eventually the entire enterprise management system.

     Specific aims of management system implementation are:

  • Provide management with an information for analysis of organization current state and making reasonable management decisions.
  • Built effective interrelations with counteragents and clients.
  • Provide transparency and control of enterprise activities at all levels.
  • Reduce process labour-intensiveness and introduce expenses budget control.
  • Decrease the volume of manual and routine work of employees, reduce administrative costs.

     Key tasks at the ERP strategy stage include the development and evaluation of a business case for the proposed change, choice of a technical solution, creation of an implementation strategy and appointment of a systems integrator.

     It is also important to prevent any erosion of the ERP project's benefits. Gaps can open up between the expected and actual benefits, typically because of design decisions that take the project away from its original objectives. The primary reason to implement an ERP is significantly influenced by an organization’s strategic goals.

     The ERP application lifecycle is the continuum of activities required to support an ERP application from the initial strategy through system optimization. The ERP application lifecycle consist of two major phases Implementation and Optimization.

     Phase I consists of activities that result in the implementation of an ERP application. These activities include: defining the strategic direction; analyzing business and technology requirements; obtaining project funding; acquiring hardware, software and integration services; and implementing the enabling solution.

     During Phase II, organizations achieve results by continued planning and project initiatives aimed at streamlining business processes, providing decision makers with better information and integrating applications across the enterprise. Informational systems allow to make business more effective, faster and to win in the competitive struggle.

     Planning of ERP implementation is a reform of enterprise management system. Therefore, competently prepared a plan would avoid many problems in the implementation of the system and its exploitation. The changes in management system connect to the application of new methods of working with information. Reforming regard to the business process management, planning, monitoring. ERP Application changing role of financial functional units, increasing the role of responsibility of their leaders. Managers are able to direct control over any performance of each unit.

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