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ERP ADOPTION INSMES:

ISSUES & CHALLENGES

Submitted By:

Mohit Shekhawat(28)Ritesh Mittal

(43)Sanjeev Singh

(47)Vineet Kharbanda

(59)Vipin Bansal

(61)

Vivek Kamra (66)

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DEFINITION OF SME

Description ManufacturingEnterprises Investment in Plant &Machinery

ServiceEnterprises Investment in

Equipment

Micro Enterprises upto Rs. 25Lakhs upto Rs. 10Lakhs

Small Enterprises above Rs. 25 Lakhs &upto Rs. 5 Crores

above Rs. 10 Lakhs& upto Rs. 2 Crores

MediumEnterprises

above Rs. 5 Crores &upto Rs. 10 Crores

above Rs. 2 Crores &upto Rs. 5 Crores

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INTRODUCTION TO SME IN INDIA

SMEs are the backbone of the economy contributing 45% of industrial output

40% of exports

Employs 60 million people Creates 1.3 million jobs every year

Produces more than 8000 quality products

17% Contribution towards GDP in 2011 which

is expected to touch 22% in 2012 30 million MSME Units in India

12 million persons are expected to join theworkforce in the next 3 years

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ISSUES IN ERP FOR SMES

Awareness: There is a low level of awarenessamongst SMEs for ERP vendors, applicationsetc.

Perception: SMEs have the perception thatERP is meant only for large firms

Earlier Implementations: SMEs have heard ofthe much-publicized failures in ERP

Approach to implementation: ERP vendorsadvice SMEs to mould the business to ERPsway of working, considering that ERP systemsbring with it best business practices.

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ISSUES IN ERP FOR SMES

Cost: SMEs have less of capital than theirlarger counterparts.

Change management: Majority of failures aredue to the implementation being consideredas an automation project instead of one thatinvolves change management.

Limited resources: Most SMEs do not have anin-house IT team.

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CHALLENGES BEFORE ERPIMPLEMENTATION

Infrastructure resource planning Cloud Computing Solutions

Open Source Solutions

Financial Planning Education about ERP

Human resource planning

Top management commitment

Training facilities Commitment to release the right people for

the implementation

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HOW ERP CAN HELP SMES

Enterprise wide integration Faster access to accurate information Continuous monitoring of the health of the

organization Reduced Planning and manufacturing cycle time Reduced inventory Reduced error in ordering and processing Enables faster response to changing market

situations Better utilization of resources Increased customer satisfaction Enables global outreach

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MODEL: ERP IMPLEMENTATION INSMES

Is ERPNeeded?

To what

extentBusinessProcess

Reengineering

required?

Who will be inthe

ERP team?

Who will besuitable

ERP Vendor?

WhetherConsultantrequired?

Review: Postimplementati

on

ERPimplementation

?

What training isessential?

ChangeManagement

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ERP VENDORS FOR SMES

Sage ACCPAC ERP 6.0 Cloud based ERP

Easy to install and customize based on yourcompany's business needs

Customizable user interface tailored for user roleand preference

Multi-site and remote access to real-time data

Affordable monthly fees and low risk deployment

Version upgrades included in your subscription Easy to expand as your company grows

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ERP VENDORS FOR SMES

Openbravo 3Open Source Agile ERP

Cloud based ERP

Web-based UI is intuitive and discoverable, withrole-based Workspace

Fully integrated data model with efficient processflows

Annual subscription: From 500 to 400 / per

concurrent user* (based on volume), 3 userminimum

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ERP VENDORS FOR SMES

vtiger CRM On DemandOpen Source, Cloud based CRM

Only $12 per user per month

No User Limitations

Other vendors:Oracle Accelerate (Cloud based ERP)

Microsoft Dynamics

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CASE: PACE INSTITUTE OFTECHNOLOGY AND SCIENCES

Industry: Education

Number of Employees: 100 to 120

Implementation Effort: 90 days

Implementation Strategy: Cloud based BigBang

Launch Date: August 2010

Replaced the manual process with ERP

Modules Implemented: Admissions,Enrollment, Curriculum Management, CampusFinancials, Library Management, LogisticsManagement, Asset Management, Campus HR

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CONCLUSION

SMEs should move towards Open Source and Cloudbased ERP systems as they provide better flexibility

Requirement for proactive approach and consider itas a business solution.

SMEs need to be made ERP aware

Vendors need to customize ERP solution to bettermeet requirements of SMEs

Financial resources of SMEs are limited thus cost ofERP system needs to be further reduced

SMEs need to carefully evaluate their current ITsystems and document its shortcomings

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REFERENCES

http://www.smechamberofindia.com

http://www.erp-for-sme.com/

http://smeerp.blogspot.com/

http://www.sageaccpac.com http://www.openbravo.com

http://www.smechamberofindia.com/http://www.erp-for-sme.com/http://smeerp.blogspot.com/http://www.sageaccpac.com/http://www.openbravo.com/http://www.openbravo.com/http://www.sageaccpac.com/http://smeerp.blogspot.com/http://www.erp-for-sme.com/http://www.smechamberofindia.com/

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THANKS

http://www.openbravo.com/

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APPROXIMATE COST DIVISION

http://www.openbravo.com/