ENTERPRISE RESOURSE PLANNING(E.R.P)

What is ERP How ERP works Solutions of ERP Business scenario W/O and

With ERP Current Scenario Why ERP ERP Packages in Market Cost Components in ERP

Packages ERP Advantages Risk Factors

Agenda

ERP - Definition“Software solution that addresses theEnterprise needs, taking a process view ofthe overall organization to meet the goals,by tightly integrating all functions andunder a common software platform”En

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What is Enterprise Resource Planning (ERP)?

ERP is an enterprise-wide information system designed to coordinate all the resources, information, activities needed to complete business processes such as;order fulfillmentbilling.

A typical ERP system would use multiple component of computer software and hardware to achieve integration

ERP delivers a single database that contains all data for the software module

How ERP Systems Works?

ERP Functionality

Finance

-General Ledger-Accounts Receivable-Accounts Payable-Procurement-Fixed Assets-Treasury Mgmt-Cost Control-Grant Management

Human Resources

-HR/Benefits Administration-Payroll-Self-service HR

e-Business-eProcurement- Employee Self Service- e-Recruiting/e-Hiring- e-Filing- Citizen Access- Web-enabled transactions- e-Commerce

Transaction EngineCore software that manages transaction flow among applications and handles tasks like security and data integrity

Customer Relationship Mgt

-Consistent user experience- Personalization of services- Realtime access- enterprise info

Supply Chain Mgmt

Planning, scheduling and fulfillmentapplications that address all procurement requirements across the enterprise

Data AnalysisDecision support software that lets senior executives and other users analyze transaction data to track business performance

Financial Management

Inventory Management

Purchasing Sales

Management Production

Planning Advanced

Visual Planning

Manufacturing Management

Solutions of ERP

Secretary’s New printer application

Transfer to Finance

Departmen

Transfer to Accounting Office

Transfer to Manager

Transfer to Accounting Office

Example: Before ERP Systems

Companies after ERP Systems

In this real case there the benefits of the ERP

systems Online Data Flow decreases the

process time Fast & Online Confirmation Less Paperwork No need for folder storage Database Security Less Employee needed Easy Financial Management Better Inventory Management

Typical ERP Integration

Typical ERP Technology

Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software

platforms & practices Poor connectivity between different

organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop

integrated software

The Current ScenarioEn

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Why ERP? For Management – to know

what is happening in the company

One solution for better Management

For cycle time reduction To achieve cost control & low

working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with

high expectations To be Competitive & for survival

Technology

Support

Costs

5 StrategicRequirementLevels

FunctionalityGoal:To select theMost Suitable Software Package Solution

Vendor

ERP Product selection Criteria

The Steps

BPR - StepsStep 1 Step 2 Step 3

Understand

Simplify/Improve

Automate

Understand the existing systems associated with all the functionalities

Draft & frame the possibilities & ways to simplify or Improve or eliminate the processes

Implement with the help of ERP

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Key Process Integration

via ERPProduct Lifecycle

Management

Supply Chain Management

CustomerManagement

Supplier Collaboration

Design Partners

Consumers and Channels

Beyond ERP

ERP Software Packages

(Ready Made) SAP Baan Peoplesoft Oracle Application JD Edwards

ERP Software Companies& Marketshares

SAP; 15,6

Peoplesoft; 4,9

Oracle ; 4,8

Baan; 3

CA; 3

JDE; 2,2

SSA; 2,1

GEAC; 2

IBM; 1,8

JBA; 1,7

Others ; 59

Software Market Share

SAP 15.6

Peoplesoft 4.9

Oracle 4.8

Baan 3.0

CA 3.0

JDE 2.2

SSA 2.1

GEAC 2.0

IBM 1.8

JBA 1.7

Others 59.0

ERP System- Cost Components

Hidden Cost of ERP Training Integration and Testing Data Conversion Data Analysis Consultants ad infinitum Replacing your best and

brightest Implementation team never

stops

Mail

Fax

Telex

Teletext

Printer

EDI

OUTPUTS of ERP Systems

DOCUMENTS

ProposalOrders approvalDelivery plansShipping papersWarehouse check listMaterial documentAccounting documentDelivery/shipping

documentInvoice Dept & credit doc.

Advantages of ERP

Business IntegrationFlexibilityBetter Analysis and Planning Capabilities

Use of Latest Technologies

Business Integration

It Promotes integrationAutomatic Data Updating and exchange

Data is available in Real Time

Managerial Decisions can be carried effectively

FlexibilityConversion from one system to another

Functions exist that can manage comprehensive data across multiple locations

Better Management Functionality

Use of Latest Technology

Utilization of the latest developments in Information technology.

ERP has many functions and will be necessary for future systems

Critical Success Factors The firm & optimistic approach

of the Management- on adapting the ERP product driven methodologies

- on customization- on monetary commitments

The dedicated Team Good Training Strict adherence to the Project schedule Right technical infra-structure Change Management

Why do ERP Implementations Fail?

Requirement of good people who know the business

Vendor should be good and his package best suited to company’s needs

The ERP Consultants should be good

The implementation should be planned well and executed perfectly.

Wrong product Incorrect Implementation

Thanks for yourParticipation &Co-operation