a journey of erp

8/13/2019 A Journey of ERP

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UNDERSTANDING ERP


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OBJECTIVE OF THE COURSE

To provide a brief Introduction about ERP

To give a Snapshot of the Current

Happenings in the ERP world

Develop a new perspective of ERP as a

Career Option


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TABLE OF CONTENT

1. Introduction1. IT Industry in India

2. ERP Growth in India

2. ERP Basics

1. Understanding ERP

2. Evolution of ERP

3. Central Concepts

4. Industry Verticals5. Major Modules and Best Practices

3. ERP Implementation

1. ERP Implementation Life Cycle

2. Common Myths and Pit falls

4. Pros and Cons

1. Benefits of ERP2. The Flip Side

5. ERP Market Condition

1. Current Market Scenario

2. Comparing top 5 ERP Players

6. Food for Thought

1. Challenges / Future Trends

2. ERP and Japanese Management3. Case Study and Presentation


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IT INDUSTRY IN INDIA

IT Industry emerging as Knowledge Industry Sectoral contribution to GDP increased from

1.2 % in 1998 to 7.1 % in 2011

Share of IT in total Indian exports increased

fto about 25% in FY2012 Direct and Indirect Job Opportunities were

estimated to approx. 10.8 million in 2010-11

TCS, Infosys, Cognizant, Wipro and HCL aretop 5 Indian IT Players

Do YouKnow ?

First IT Park was set up atSEEPZ in 1973 and

contributed to about 80 %of Indias S/W exports in

80s


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ERP GROWTH IN INDIA

What Statistics and Research say : ERP market to grow at 25 % CAGR reaching INR

983.4 Bn by 2015

India - third fastest growing enterprise software

market by 2016 IT Spend by Indian companies estimated to touch

Rs.1,910 billion in 2012, 16.4 % increase from2011

Strong Ecosystem : Rich presence of allinternational software and hardware providers,backed by system integrators, service providers,business partners and IT professionals

Do You

Know ?

1 out of every 10 software

dollars is spent on ERP


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What is ERP?


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UNDERSTANDING ENTERPRISE RESOURCE

PLANNING (ERP)

APICS (American Production and Inventory ControlSociety): ERP(Enterprise Resources Planning) as anaccounting-oriented computer information system thatassists enterprises to define and plan on the resourcesrequired during the operation process of purchase,

production, distribution, and strategic planning to satisfycustomers orders. It also effectively integrates andmanages these resources so as to enhance overallperformance and reduce costs.

ERP is a way to integrate the data and processes of anorganization into one single system for improving theBusiness Objectives


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Central Features:

Business process reengineering :

Database integration

Enhanced user interfacesData transport between companies

Extended and distributed applications

ERPs integrates the Applications,Databases, Interfaces and Tools.

Good to

Know

For any software system to be consideredERP, it must provide an organization with

functionality for two or more systems

CENTRAL CONCEPTS


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Corporate

Reporting

InventoryManagement

ManufacturingApplications

Financial

Applications

Service

Applications

Sales andDistribution

Human ResourceManagement

Central

Database

Front Office Back Office

C

US

T

O

M

E

R

S

S

U

PP

L

I

E

RS

(

T

i

er

I

&

2)

ERP BUSINESS FLOW


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EVOLUTION OF ERP

Emerged as a strategic tool because of

continuous improvement in the available

techniques to manage business and the fast

growth of information technology.


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EVOLUTION OF ERP

2000 Extended ERP / ERP II / ERP on Cloud

1990s

ERP

1980s

MRP II (Manufacturing Resource Planning)

1970s MRP (Material Requirement Planning)

1960s

Inventory Control Packages


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INDUSTRY VERTICALS


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ERP MAJOR MODULES :

HRM


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ERP MAJOR MODULES :

Supply Chain Management


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ERP MAJOR MODULES :

CRM


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ERP MAJOR MODULES :

Manufacturing


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ERP MAJOR MODULES :

Project management :


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IMPLEMENTING ERP, A GROUND REALITY

30% of those surveyed did not realize any sortof staff reductions after go-live

18% did not measure benefits after go-live

Atleast 1 in 4 companies have operationalproblems and/or stoppages because of thedisruptions caused by ERP.

So what does this mean ????

ERP benefits are by no means guaranteed

Risk of ERP disrupting an organization's coreoperations is a significant business risk


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ERP IMPLEMENTATION LIFE CYCLE

Short List Assessing Prepare Gap Analysis

Businessprocess

reengineeringDesigning

In-houseGuidance

Scrutiny

Training Support


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BENEFITS OF ERP

Improved customer service

Reduced operating expenses

Increased accuracy of costing

Increased market shares Reduced inventories

Shortened product lifecycles

Streamlined communication

Faster decision making

Increased competitive advantage


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FLIP SIDE

Good toKnow ?

Studies have indicated that only6% out of 500 companies felt thatthere ERP systems were effective

Limitation of ERP includes: Loss of Competitive Advantage due to

Business Process Re-engineering.

Problems associated with CustomisationsOver-engineered system relative to the

actual needs.

Huge Implementation CostsDirect as wellas Indirect


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MYTHS AND PITFALLS

One size fits all

Current system defines your needs

All functionality is created equal

You will have a no modification policy

ERP Implementation is an is an IT project

ERP is just for Manufacturing Organizations


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HOW TO MAKE ERP IMPLEMENTATION A

SUCCESS STORY

Make ERP to Complement The Business

Have a strongly determined organizational

structure

Cultural Readiness

Involve all StakeholdersUse ERP


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ERP IN INDIA

Scope in India

Service Sector, an area to be watched out

Matured Indian Economy demands Advanced

Technology

Indian railways, UID

Homecare Business Logic for Japan

GoodtoKnow

India to be third fastest growingenterprise software market by

2016


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ERP MARKET

SmallBusiness

ERP Leaders(Microsoft)

Medium Market

Leaders

(Epicor, Infor)

Fortune 2000

EnterpriseERP Leaders(SAP, Oracle)


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SAP

SAP is the largest and most recognized Fortune 1000, Global 5000 and

enterprise market share leader. The company has achieved its success

due to its extremely deep accounting and distribution software suites

along with tightly integrated financials, manufacturing, human resource,

payroll and customer relationship management software systems. While

the company claims that its retains significant middle market share, itsdefinition of 'middle market' is more in lines with other definition of the

enterprise market Over 37,000 application customers

More than 35,000 customers, 120 countries

Claim #1 CRM market share leader

Definite #1 ERP market share leader

Very impressive distribution/SCM

Several industry solutions

Netweaver, SQL and a chasm of technologies


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ORACLE

Oracle is the world's second largest business applications maker - and is

clearly out to take the lead role from SAP. Bolstered by its acquisitions of

PeopleSoft (with JD Edwards) and Siebel Systems, Oracle has collected

an impressive customer list and portfolio of intellectual property. Now the

real work to keep those customers and integrate those products (project

Fusion) is underway with results expected very soon. Expect severalmore acquisition and integration project announcements from Oracle

over the coming months.

Over 37,000 application customers

Claim #1 CRM market share leader

#2 ERP market share leader

30 year proven credibility

Outrageous flexibility

Technology is the Oracle stack

Priced at the high end


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FUTURE TRENDS / CHALLENGES

Combine ERP with CRM

Cloud deployment models change

application economics

Mobile technology accelerates business

processes


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ERP AND JAPANESE MANAGEMENT ERPan enemy of Streamlined Production ?

Years of Streamlining efforts can be washed by ERP Business ProcessRe-engineering,

Streamline Business through Lean and then standardise it with ERP

ERP

Based on Sales Forecast

Aims to track every activity andmaterial

Emphasis is on Planning

Data Dependent

LEAN

Based on Actual Demand

Aims to eliminate all kinds ofWaste

Emphasis is on settingProcesses right and thenContinual Improvement

Action Oriented


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CASE STUDY

China telecom

a journey of erp

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