prasanna final
TRANSCRIPT
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CHAPTER 1: INTRODUCTION
CHAPTER 1.1: ABOUT THE STUDY
There is a general trend of most big league ERP vendor focusing on SMEs are their new
clientele. The SME segment is large and offers substantial potential to the ERP vendor.
However, this segment is also extremely price-sensitive and is generally intolerant of high
gestations on realizations from investment. SMEs now seriously considering ERP as panacea for
all their present day ills and as an imperative to retain their competitive edge. Some of the factors
that have catalyzed this process are globalization, competition, need for faster response to the
market place and the pressure to contain costs and improve efficiencies. SMEs are looking to
mature in terms of processes and move to global market channels. However, the third trend is
highly worrisome in the market today. Most ERP implementations are failing. Most SMEs are
unhappy with ERP solution they have adopted in their organization. The bottom line of the
Vendors is coming down as the margin per SME is much smaller and the effort in most cases is
the same. In addition, there are limited guidelines for the three stake holders involved in an
implementation of an ERP system. This is the reason why this topic is chosen as a subject for
research. The objective of this research work is to study the effectiveness of ERP implementation
from two perspectives, from the vendor perspective and from customer perspective. Through the
analysis and interpretation a set of guidelines is formulated for the stake holders in an ERP
implementation which will overcome the difficulties from manual system and make the business
process more effective than before. The guidelines will be based on customer perspective and
vendor perspective on how to have a favorable business conditions which will lead to a WIN-
WIN situation.
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CHAPTER 1.2: INDUSTRY STUDY:
Enterprise resource planning (ERP) is an integrated computer-based system used to manage
internal and external resources including tangible assets, financial resources, materials, and
human resources. It is a software architecture whose purpose is to facilitate the flow of
information between all business functions inside the boundaries of the organization and manage
the connections to outside stakeholders. Built on a centralized database and normally utilizing a
common computing platform, ERP systems consolidate all business operations into a uniform
and enterprise wide system environment.
An ERP system can either reside on a centralized server or be distributed across modular
hardware and software units that provide "services" and communicate on a local area network.
The distributed design allows a business to assemble modules from different vendors without the
need for the placement of multiple copies of complex, expensive computer systems in areas
which will not use their full capacity.
Origin of the term
The initialism ERP was first employed by research and analysis firm Gartner Group in 1990 as
an extension of MRP (Material Requirements Planning; later manufacturing resource planning)
and CIM (Computer Integrated Manufacturing), and while not supplanting these terms, it has
come to represent a larger whole. It came into use as makers of MRP software started to develop
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software applications beyond the manufacturing arena. ERP systems now attempt to cover all
core functions of an enterprise, regardless of the organization's business or charter. These
systems can now be found in non-manufacturing businesses, non-profit organizations and
governments.
To be considered an ERP system, a software package should have the following traits: It should
be integrated and operate in real-time with no periodic batch updates. All applications should
access one database to prevent redundant data and multiple data definitions. All modules should
have the same look and feel. Users should be able to access any information in the system
without needed integration work on the part of the IS department.
ERP Components
Transactional Backbone
Financials
Distribution
Human Resources
Product lifecycle management
Advanced Applications
Customer Relationship Management (CRM)
Supply chain management
Purchasing
Manufacturing
Distribution
Warehouse Management System
Management Portal/Dashboard
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Decision Support System
These modules can exist in a complete system or utilized in an ad-hoc fashion.
HISTORY OF ERP:
Here is a brief time line of the history of ERP:
1960s Enterprise Resource Planning (ERP) is born in the early 1960s from a joint effort between
J.I. Case, the manufacturer of tractors and other construction machinery, and partner IBM.
Material Requirements Planning or MRP is the initial effort. This application software serves as
the method for planning and scheduling materials for complex manufactured products.
1970s Initial MRP solutions are big, clumsy and expensive. They require a large technical staff
to support the mainframe computers on which they run.
1972 Five engineers in Mannheim, Germany begin the company, SAP (System analyse und
Programment wicklung). The purpose in creating SAP is to produce and market standard
software for integrated business solutions.1975 Richard Lawson, Bill Lawson, and business
partner, John Cerullo begin Lawson Software. The founders see the need for pre-packaged
enterprise technology solutions as an alternative to customized business software
applications.1976 In the manufacturing industry, MRP (Material Requirements Planning)
becomes the fundamental concept used in production management and control.
1977 Jack Thompson, Dan Gregory, and Ed McVaney form JD Edwards. Each founder takes
part of their name to create the company moniker. Larry Ellison begins Oracle Corporation.
1978 Jan Baan begins The Baan Corporation to provide financial and administrative consulting
services.
1979 Oracle offers the first commercial SQL relational database management system.
1980 JD Edwards begins focusing on the IBM System/38 in the early 1980s. MRP
(Manufacturing Resources Planning) evolves into MRP-II as a more accessible extension to shop
floor and distribution management activities.
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1981 Baan begins to use Unix as their main operating system.
1982 Baan delivers its first software product. JD Edwards focuses on the IBM System/38.
1983 Oracle offers both a VAX mode database as well as a database written entirely in C (for
portability).
1984 Baan shifts the focus of their development to manufacturing.
1985 JD Edwards is recognized as an industry-leading supplier of applications software for the
highly successful IBM AS/400 computer, a direct descendant of the System/38.
1987 PeopleSoft is founded by Dave Duffield and Ken Morris in 1987.
1988 PeopleSoft’s Human Resource Management System (HRMS) is developed.
1990 Baan software is rolled out to 35 countries through indirect sales channels. The term ERP
(Enterprise Resource Planning) is coined in the early 1990’s when MRP-II is extended to cover
areas like Engineering, Finance, Human Resources, and Project Management.
1991 PeopleSoft sets up offices in Canada. This leads the way to their presence in Europe, Asia,
Africa, Central and South America, and the Pacific Rim.
1995 Baan grows to more than 1,800 customers worldwide and over 1,000 employees.
1999 JD Edwards has more than 4,700 customers with sites in over 100 countries. Oracle has
41,000 customers worldwide (16,000 U.S.). PeopleSoft software is used by more than 50 percent
of the human resources market. SAP is the world’s largest inter-enterprise software company and
the world’s fourth largest independent software supplier overall. SAP employs over 20,500
people in more than 50 countries. To date, more than 2,800 of Baan’s enterprise systems have
been implemented at approximately 4,800 sites around the world.
2001 – 9/11 occurs creating a drop in demand for new ERP systems
2002 Most ERP systems are enhancing their products to become “Internet Enabled” so that
customers worldwide can have direct access to the supplier’s ERP system.
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2004 – Services Oriented Architecture (SOA) becomes a standard that ERP vendors work
towards. This software architecture allows different systems to communicate between one
another.
RECENT TRENDS IN ERP:
Need based applications
Organizations had to implement ERP through their systems irrespective of the fact whether they
help in all the functions or in one particular function. This was proving to be a big hurdle to the
firms. In addition this remained as the main disadvantage or setback of ERP. They had to
purchase the whole applications even if it meant that most of them would be idle.
The latest ERP software programs have overcome this menace. They offer need based
applications. The firms need not be worried even if these Software Programs were not available.
They were given the liberty to purchase and install Software Programs pertaining to that
particular function. This advantage has helped to increase the scope of ERP not only among large
firms but also small and medium business as well.
Expenditures
ERP was a very costly affair. Thanks to the intrusion of internet and open source applications.
This has helped S.M.E.'S to enter the market of prospective buyers. This has not only widened
the horizon of S.M.E.'s but also increased the usage among large firms.These large firms were
not able to invest huge money in spite of adequate funds. Now that the spending on ERP gets
reduced there are no hesitations to show the green signal for fear of heavy monetary outlay. It is
encouraging to notice the improving IT ERP trends.
Reduction in implementation time
ERP was discouraged by companies because they took such a long time to get installed and set
the whole process into action. Since this resource was spent excessively there were chances for
reduction in potential business and losing man-hours. The current day ERP applications are less
complex to install and train. This has reduced the amount of time spent on ERP. Companies are
thereby assured of spending lesser time for ERP.
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ADVANTAGES OF ERP:
1. Lead time reduction
2. Reduction in cycle time
3. Punctuality in shipment
4. Improved supplier performance
5. Improved resource utility
6. Flexibility and reduction in quality cost
LIST OF ERP VENDORS:
Sl.No Vendor Revenue
(million $)
Market share
(%)
1 SAP 1949 30.33
2 Oracle Applications 1374 21.38
3 The Sage Group 1121 17.44
4 Microsoft Dynamics 916 14.25
5 SSA Global Technologies [2] 464 7.22
Vendors of popular ERP software include (sorted roughly according to worldwide ERP related revenue):
Vendor Revenue
(Native currency)
Revenue
(million $)
Year
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SAP 9.4 billion EUR 12401.4 2006
Oracle Applications 14.38 billion USD 14380.0 2006
Infor Global Solutions 2.1 billion USD 2100.0 2006
The Sage Group 935.6 million GBP 1832.0 2006
Microsoft 44.2 billion USD 44200.0 2006
Unit 4 Agresso 352.6 million EUR 465.2 2005
CDC Software 409.1 million USD 409.1 2008
Lawson Software 390.776 million USD 390.8 2006
Epicor 384.1 million USD 384.1 2006
Visma 1,907 million NOK 305.5 2005
Industrial and Financial Systems (IFS) 288 million USD 288.0 2005
Comarch 730 million PLN 253.2 2009
QAD 225 million USD 225.0 2006
Consona Corporation 130 million USD 130 2007
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COA Solutions Ltd 50.5 million GBP 98.47 2007
NetSuite 67.2 million USD 67.2 2006
ABAS Software 45 million EUR 62.6 2006
Ramco Systems 2,648 million INR 60.1 2006
SIV.AG 14.2 million EUR 18.7 unknown
Technology One 108.8 million AUD 101 2008
Pronto Software 51.1 million AUD 54.9 2008
Plex Systems 22 million USD 22 2006
Syspro N/A (Private) USD N/A
(Private)
2006
GROWTH IN ERP SECTOR:
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ERP USAGE IN WORLD LEVEL:
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Six predictions for the ERP industry in 2010:
Based on current economic conditions, continuing industry trajectories, and newly emerging
trends, Panorama has compiled its six top predictions for 2010:
1. Continuing growth of the SME segment: Because of both the soft economy and the
continuing growth of small- to mid-size businesses, ERP will continue its widespread adoption
of ERP. Due to ERP's ability to automate business processes and allow small businesses to do
more with less, it will continue to become more widespread in this segment. However, expect
SMBs to proceed with caution and in a cost-effective manner.
2. Rationalized costs: The days of implementing ERP at any cost may be over, at least
temporarily, hopefully for good. Because capital and IT budgets are under pressure, CIOs can no
longer afford to implement ERP without reigning in total cost of ownership.
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3. More benefits realization, less new implementations: A pattern we are seeing with our
client base is more of an interest in stabilizing and optimizing current ERP software
systems rather than engaging in a replacement of the systems. Because companies are becoming
more cautious in their capital spending and in some cases simply don't have the funds to invest in
an entirely new system, many CIOs are looking for ways to leverage their current ERP systems
to generate more measurable business benefits that they can take to their executive team.
4. Continued adoption of software as a service (SaaS): Numbers 1 and 2 above are driving
more companies to look at SaaS offerings such as Net Suite and Sales force. Generally speaking,
SaaS offerings require less up front investment than traditional ERP implementations.
5. Emergence of open source: Budgetary pressures will also tempt companies to give open
source ERP a closer look. Open source allows companies to own and customize the software's
source code, providing a great deal of flexibility at a lower initial cost. However, as with SaaS,
there are tradeoffs: such flexibility can introduce costly complexities and ongoing software
maintenance is generally less robust than with an off-the-shelf ERP solution.
6. Higher adoption in specific industry verticals: Evolving government priorities and a new
US administration in January will likely increase ERP adoption in certain industry verticals. The
US federal government is expected to grow significantly in the foreseeable future, which wills
likely increase ERP spending in the government sector.
LIFE CYCLE OF AN ERP PROJECT:
The normal lifecycle of an ERP Implementation Project shall consist of the following
milestones:
1. Business Process Study: Regular interactions with the client grow in order to understand the
various business processes and the way they are presently carried out.
Setting the objectives of ERP implementation; setting the expectation of the client
2. Pre-Implementation Training: A pre-implementation training, detailing the concepts and
features, shall be given to all the end-users at the client site. This shall improve the lead time in
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collecting the inputs for the preparation of specifications. I don't think this activity will take place
in normal ERP implementation life cycle stages.
3. Requirement Analysis: The requirements of the client are collected, using the SRS (Software
Requirements Specification) form, to further the process study.
4. GAP Analysis: In relation to Information Technology, this analysis points out the differences
or gaps that exist between the standard capabilities of the desired system & the expectations of
the client. The deliverable is a GAP Report. In order to get maximum benefit out of the ERP
processes must be re-engineered and then mapped with the redesigned processes
5. BMR (Business Mapping Report): This follow-up of the GAP Analysis should address the
identified solution(s) for the gap areas.
5a. Master Data preparation and management: This is perhaps most illtreated activitiy which
ultimately leads to delays if not addressed at early stages of the project planning. A team must
look after these before and after the project to ensure accuracy in master data as this may lead to
erroneous results causing panics after Go Live.
6. Project Plan: This milestone shall set the actual plan for execution and roll out for the roles
and task allocations.
7. Installation of Software: The Vanilla installation of the complete software should now be
carried out to ascertain the infrastructure preparedness at the client site.
8. Customization of Forms & Reports: The Client's requirement as to the customization of
forms (user interfaces) and reports (existing as well as new requirements) are addressed here.
9. Migration of Historical Data: Beyond the opening balance incorporation, if the client desires
to bring the historical data, this step will be required to plan the conversion and clean up -
prepare the data for the new environment.
10. Design of Routines & Workarounds: Though this is not a milestone, the additional routine
and workaround requirements (as identified in the GAP & BMR) shall be addressed through this
step.
11. Setup & Configuration: The new environment shall be setup based on the SRS and the
software shall be configured (on different deployment methods) fully.
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12. Testing Environment: A testing environment (a simulation of the live environment) shall be
created in the new software to enable the end-users to acquaint and equip themselves for
beginning in the live environment.
13. End-User Training: The next milestone shall be giving training to the end-users on the
setup, configuration, transaction processing and report generation. This shall be the post-
implementation training phase.
14. System Walk-Through: This milestone requires entry of sample transactions by the end-
users in the testing environment.
15. Go Live: This is the Sign-Off phase where the project gets implemented. Checklist:
16. Post Implementation Support: An immediate support commitment, subsequent to the
implementation, and the detailed modes of support, etc., are given to the client.
PEST ANALYSIS OF INFORMATION TECHNOLOGY:
Political:
• Political stability: Indian political structure is considered Stable enough expect the fact that
there is a fear of hung Parliament (no clear majority).
• U.S. government has declared that U.S companies that political outsource IT work to other
locations other than
• U.S. will not get tax benefit.
• Government owned companies and PSUs have decided to give more IT projects to Indian IT
companies.
• Terrorist attack or war.
Economical:
• Global IT spending (demand).
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• Domestic IT Spending (Demand): Domestic Market grow by 20% & reach approx USD 20
billion in 2008-09 Nasscom .
• Currency Fluctuation
• Real Estate Prices: Decline in real estate prices has resulted reducing the rental expenditure
• Attrition: Due to recession, the layoffs and job-cuts have resulted in low attrition rate
• Economic attractiveness: Due to cost advantage and other factors
Social:
• Language Spoken: English is widely spoken language in India. English medium is the most
accepted medium of education.
• Education: Large number of technical institutes and universities over the countries provide IT
education.
• Working age population.
Technological:
• Telephony
o India has the world lowest call rates
o Expected to have total subscribers base of about 500 million by 2010.
o India has the second largest telephone network after china.
o Enterprise telephone services, 3G, Wi-max, VPN, poised to grow.
• Internet Backbone: Due to IT revolution in 90’s India is well connected with undersea optical
cables.
New IT Technologies: Technologies like SOA, web 2.0, High definition content, grid
computing, and innovation in low cost technologies is presenting new challenges & opportunities
for Indian IT industry.
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CHAPTER 1.3: COMPANY STUDY
INTRODUCTION ABOUT THE COMPANY:
Right Fields is a Gold Certified Partner of Microsoft that provide value adding software solutions
and services. They are based out of Chennai and have been operational since 2007. Their mission
is to enable customer businesses secure effective ROI on their IT investments through our
Solutions and Services.
CORE VALUES OF RIGHT FIELDS:
Right fields is following 5ps concept which they consider as the power of five and these
constitute to the core values of right fields, they are as follows:
1. Pride
2. Passion
3. Promise
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4. Performance
5. Profitability.
1. PASSION: In Rightfields, they are passionate about what we do. Passion influences
the vigor and rigor with which they work and how far they are willing to go for the
customer. They determine the quality and character of our interactions with all the
stakeholders – colleagues, customers, vendors and partners.
“We control the controllable and let our passion manage the uncontrollable”
2. PROMISE: Their focused vision gives us the clarity on our promise. “A Promise from
Rightfields shall be kept, no matter.” Promise conveys clarity in commitment that
translates in to results for the customer to benefit. A fulfilled promise brings the
customer back again and we in Rightfields “promise only what we can deliver and
deliver whatever we promise”
3. PROFITABILTY: Everyone in Rightfields believes that profitability is essential. It
drives the company’s growth and is directly linked to sharing and job security. Equally
important, employees of Rightfields know that profitability is the key to shareholder
returns which would create and sustain credibility in the industry. “No customer will
grudge his vendor’s profitability if it is backed by performance”.
4. PERFORMANCE: Every act in Rightfields will resonate with performance –
activities aimed at meeting promises and creating customer satisfaction. Promise and
profitability will be myths if not backed by performance. Everyone on Rightfields will
strive for performance as it is the last act in life – it always turns out to be the start of
several happy consequences.
5. PRIDE: Pride is the essence of whatever we do in life. Any act on which one can feel
proud is an act of excellence. In Rightfields, we feel proud of our abilities and engage
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only in those activities where we can derive pride. “We may not be the best but we will
be proud of what we are”.
Right Fields team strengths:
The team @ Rightfields is a team of seasoned professionals that have excellent qualifications
and varied industry & IT experience. Success experience of this team includes
Business Track : Putting a pure-play domestic IT organization on the international map. Created
a solutions portfolio that delivered value to the SME segment & created a sustainable revenue-
model
Customer Relationships : Established a network of alliance partners which enabled the team to
service more customers in newer geographies. In the process we had been instrumental in
winning and retaining a large customer base in Microsoft Dynamics AX in the last 3 years in
India, Middle East, Australia through excellent relationships with its customers.
Project Delivery : Instrumental in executing over 30 implementations on Microsoft Dynamics
successfully with project implementations ranging from Rapid Implementations to handling
Complex and large projects (100+ concurrent users).
Resource Building : Built and retained a world class team of in Dynamics AX. 90% of them had
become Dynamics AX certified. Established Academy of Excellence – for creating a talent bank.
EVENTS AND NEWS:
21 Oct 2009: They are glad to inform that their prestigious client, Megatech Controls, the
Process control solutions company, has gone live in their Chennai and Dubai locations
simultaneously, thanks to the wonderful support from the top management and the user group,
who did not let go of their enthusiasm and hard work, throughout the implementation duration.
01 Oct 2009: Right Fields is proud to announce the formation of a joint venture in the Sultanate
of Oman, to offer consulting and implementation services in Microsoft Dynamics suite of ERP
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and CRM solutions.
Global Innovations (Right Fields Arabia), is fully geared with its team of seasoned
professionals, to provide consulting and support to clients in the Gulf region.
02 Aug 2009: Service & Trade, the leading designer manufacturing and interior consulting
company has gone live with Ax 2009. The extremely committed team of users, capably led by
the Project Coordinator, Mr. Prem Chand and fully guided by the top management, spent late
hours to complete the tasks and achieved the target Go Live date.
01 Apr 2009: Private sector telecom service provider in Oman has placed confidence on Right
Fields for implementation of Microsoft Dynamics.
03 Oct 2008: Right Fields is a reseller of Galeforce for providing Microsoft CRM to Financial
Services industry.
01 Oct 2008: Right Fields is now a Gold Certified Partner of Microsoft with competency in
Microsoft Dynamics and Business Intelligence solutions.
PRODUCTS OF RIGHT FIELDS:
The Microsoft dynamics ERP products dealt by Right Fields are as follows:
1. Microsoft Dynamics Axapta
2. Microsoft Dynamics CRM
3. Microsoft Dynamics BI
4. Microsoft Dynamics NAV
5. Microsoft Dynamics Qlik View
MICROSOFT DYNAMICS AXAPTA:
Microsoft Dynamics AX 2009 is a comprehensive business management solution, also called
ERP-solution, for midsize and larger organizations that works like and with familiar Microsoft
software. Microsoft Dynamics AX is built to make it easy to do business across locations and
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countries, by consolidating and standardizing processes, helping to improve productivity,
providing visibility across your organization, and helping to simplify compliance. With
Microsoft Dynamics AX, you can be confident your business management solution is—and will
continue to be—relevant to the needs of your people and the demands of your industry and
business.
MICROSOFT DYNAMICS NAV:
Since 1984, Microsoft Dynamics NAV has established itself as a choice for mid-sized
organizations looking for a complete enterprise resource planning (ERP) solution that is fast to
implement, easy to configure, and simple to use. Today, simplicity continues to beat at the heart
of Microsoft Dynamics NAV. And its state-of-the-art functionality covers everything you need
to run and grow a successful business. More than one million users have used Microsoft
Dynamics NAV to simplify and streamline their highly specialized business processes—and
today it is available in more than 42 country versions.
Microsoft Dynamics NAV provides companies and their people with industry specific
functionality that’s relevant to the local needs of their regions of operation, even for the most
highly specialized industries and organizations. Microsoft Dynamics NAV is easy to use and
offers rapid adaptability and simplified customization enabling companies to easily add
functionality, custom applications and online business capabilities. With Microsoft Dynamics
NAV, employees can become more effective and the company more competitive.
MICROSOFT DYNAMICS CRM:
When it comes to customer relationship management (CRM), communication is key. The ideal
CRM solution should streamline the way your people communicate with clients and collaborate
with each other. The more comfortable they are with the tools, the more effective they will be at
their jobs. And what’s more comfortable than a look and feel you already know? And with
Microsoft Dynamics CRM's powerful capabilities, like workflow automation and analytics, the
company can let their sales, marketing, and service staff easily share information and route tasks
to provide a seamless customer experience. Empower every employee to boost sales,
satisfaction, and service with automated CRM software solutions that their people can actually
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use. Microsoft Dynamics CRM works like and with familiar Microsoft products which means
less of a learning curve for the company’s people, so they can get up and running quickly and
focus on what’s most important- customers.
MICROSOFT DYNAMICS BI:
Business analytics are not just for Fortune 500 companies anymore. In today’s fiercely
competitive economy, small and midsize companies are turning to business intelligence solutions
to spot trends, so they can act quickly and capitalize on opportunities.
Microsoft Dynamics offers effective business intelligence and reporting solutions that a company
can put to work immediately. They can let the company look deeper into key performance
factors to help pinpoint your most profitable customers, most efficient vendors, and potential
issues within their organization that require swift action. Companies won’t need to wait for
month end to request reports or overburden their IT staff. Because the tools are based on the
familiar Microsoft Office environment, so that the people can develop reports when they need
them, using real-time information, and deliver them quickly across your organization.
MICROSOFT DYNAMICS QLIK VIEW:
QlikView Business Intelligence provides fast, powerful and visual in-memory business analysis.
It empowers users and radically improves decision making. QlikView can be deployed in just
days, removing the normal limitations, costs and complexity of traditional BI tools. Clients can
download QlikView now and begin showing their colleagues things they didn't know in minutes
from any data source. With QlikView, you can take the spin out of business and create trust and
transparency across your organisation. A single company view speeds up knowledge sharing;
helps manage costs and identify inefficiencies which the company may not have known about.
QlikView is disruptively easy. Compared to complex traditional BI tools which require risky,
detailed and lengthy services engagements to deploy, QlikView enables faster, simpler and more
flexible access to your data and then empowers users to ask the questions they need answers to.
QlikView's innovative approach results in significant benefits for our customers:
Fast Implementation: Customers are live in less than 30 days, and most in a week.
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Easy to Use: End users require no training and enjoy "qliking" through the
application.
Powerful: Near instant response time on data volumes as high as a billion records
across thousands of users.
Flexible: Allows unlimited dimensions and measures and can be modified in
seconds.
Integrated: Dashboards, analysis and reporting in a single solution and on a single
architecture.
Low Cost: Less costly, shorter implementations result in fast return on investment
Risk-Free: Fully-functional free trial download, and a seeing-is-believing
experience.
RIGHT FILEDS SOLUTIONS FOR INDUSTRIES:
Right Fields provides Microsoft Dynamics ERP products for various industries. They are
as follows:
1. Discrete Manufacturing
2. Process Manufacturing
3. Service Management
4. Professional Services
5. Financial Services
6. Real estate and Construction.
DISCRETE MANUFACTURING:
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Discrete manufacturing is making items that usually involve fabrication and/or
assembly of components into a finished good, including such industries as electronics, furniture,
automotive suppliers, industrial products, medical devices, metal fabrication, and plastics.
The greatest revenue and profit improvement opportunities for discrete manufacturers today are
being driven either by performance improvement initiatives, such as Six Sigma or Lean
Manufacturing, or focusing on supply chain improvements. Many companies are seeking to
leverage all of these concepts at the same time to improve their competitiveness. Information
technology can be a powerful, often essential enabler for these types of transformation projects.
For example, Internet-based technologies such as a supplier extranet can dramatically cut down
on lead times by improving vendor visibility into your supply chain.
Microsoft Dynamics AX for Production helps you plan your resources to get the greatest
efficiency out of your production process. You can track production progress and easily make
changes to increase efficiency and reduce costs. Real-time updating of resource data helps to
manage capacity and optimize your resource use, to drive down production costs and get more
accurate delivery dates. Apart from this, the in-depth functionalities in financial management,
supply chain management and human resources management & CRM help a discrete
manufacturing enterprise build a competitive edge.
PROCESS MANUFACTURING:
Right Fields provides an end-to-end automation solution for process industries in Microsoft
Dynamics AX through Fullscope’s process industry add-on solution on Microsoft Dynamics
AX.
Process Industries for Microsoft Dynamics AX supports a range of manufacturing processes,
including make to order, make to stock, and mixed mode, or a hybrid environment incorporating
both process and discrete operations. Your company can build a flexible solution that fits your
needs by integrating production processes and implementing best practices that standardize
operations and increase efficiency. For example, this solution provides an easy to-use, easy-to-
understand way to create and manage recipes and formulas. With a single screen, users can
review and maintain important information about the formula, as well as the individual
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ingredients. With this solution, you could improve operational efficiency by integrating sales,
production, inventory, quality control, distribution, and customer service capabilities throughout
the entire process manufacturing life cycle. It can also better manage all the variables required to
engineer and build products to custom specifications, optimize capacity, comply with regulatory
demands, and drive continuous process improvement.
SERVICE MANAGEMENT:
The Service Management* for Microsoft Dynamics™ AX supports your service organization
featuring: complaints and warranty, repairs and periodic maintenance. At the same time you have
direct access to all the data you need about the objects, resources, agreements and logistics.
Service Management is fully integrated with the Microsoft Dynamics™ AX modules CRM,
Trade, logistics, projects and resources modules. Some of the benefits are as follows:
Helps the cients in tracking and tracing service requests.
Supports them with hierarchical object (e.g. site, system, component) maintenance.
Manage their contracts, including service levels, periodic invoicing and depreciation.
Provides clients with full financial forecasting and cost evaluation.
Offers them support with logistics, financials and work orders for the service crew.
Real time statistics on costs and revenues regarding a service contract/object.
Daily data entry will become easy via extensive setup features.
PROFESSIONAL SERVICES:
Increase your profitability and offer unmatched client service that sets you apart from the
competition by managing the financial, human, and intellectual capital aspects of project-based
organizations. The Professional Services for Microsoft Dynamics AX from CGA PSA Solutions,
can help your company better manage project teams, increase employee productivity, improve
service capabilities, and accelerate billings while controlling costs through tighter integration of
client.This solution specializes in providing professional service firms with ERP, CRM, and
collaboration solutions to meet their specific needs. CGS has developed and deployed PSA
solutions,
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Architecture and Engineering
Advertising, Marketing, and Public Relation
Government Contractors
Media and Entertainment
Management and IT Consulting Services
FINANCIAL SERVICES:
Right Fields provides CRM solutions for Financial Services Industry through GaleForce CRM
solutions on Microsoft Dynamics CRM. Right Fields can provide you the CRM solutions for the
following industries:
Banking
GaleForce CRM for Banking is an out-of-the-box CRM solution designed specifically to meet
the needs of client-facing staff of commercial banks, retail banks and credit unions.
Wealth Management
GaleForce CRM for Wealth Management is an out-of-the-box CRM solution designed
specifically to meet the needs of financial advisors, account and portfolio managers at wealth
management firms.
Investment Banking
GaleForce CRM for Investment Banking is an out-of-the-box CRM solution designed
specifically to meet the needs of investment bankers and support staff.
Capital Markets
GaleForce CRM for Capital Markets is an out-of-the-box CRM solution designed specifically to
meet the needs of securities broker dealers, bond and mutual fund brokers and dealers, and
research and investment professionals.
REAL ESTATE AND CONSTRUCTION:
Most Owners, Construction Management firms, and Contractors grapple with tight project
schedules, paper-based data collection processes and inadequate team coordination.
The construction solution*, which Right Fields offers, caters to these problems by automating
26
these daily processes bringing order to chaos. The solution helps different stakeholders of
construction projects, manage and automate the critical processes of estimation, contract
management and field inspection using web, mobile and GPS technologies.
The Project Estimator module helps automate project planning, automate bids (Tenders),
archive historical project cost information, automate job costing processes and automates the
review and reporting phase.
The Contract Manager module helps an organization manage the entire contract phase of
large construction projects. It allows organizations to track and manage critical assets, change
orders, work progress, contractor payments and generate pay estimates.
The Mobile Inspector module helps capture field data in a digital manner using a variety
of mobile devices and ensures that daily information collected in the field is consistent, digitally
uploaded.
The GIS & Mapping Module helps users plot inspection data and asset locations on a
map or CAD drawing.
PARTNERING WITH RIGHT FIELDS:
Right fields have developed a network of technology and customer support partners to ensure
that they reach out and provide some of the best of the breed solutions and services to their
customers.
Technology/solution partners:
27
Channel Partners:
We have also developed a network of channel partners, with who we can reach out and provide
you localized services. Some of the channel partners of ours are located in (1) Qatar (2) Oman
(3) Sri Lanka (4) India.
CHAPTER 1.4: REVIEW OF LITERATURE:
1. Author name: Fredrick Moytor (2005): Implementing ERP in SMEs: Towards an
Ontology Supporting Managerial Decisions:
Fredrick Moytor explains how ERPs are helping SME in terms of knowing and making
its managerial decisions very simple and accurate to support the business. This article is
helpful in the way that after the implementation of ERP it will very well improve the
business process by making the company to have a clear view of their managerial
decisions. The purpose of this research project is to consolidate and formalize as
ontology, on the basis of an extensive literature review, the key processes and skills
required for successful implementation of ERP in an SME. Using the Prot?g? software
program, the research identified and formalized 395 terms, each of which has its own
definition. Exploitation of this ontology could take multiple and varied forms, including
creation of a learning system, an on-line cooperation platform, or a project management
process mapping tool contributing to successful use of ERP in SMEs.
28
2. Author name: Philip Morrison(2003) Key rationales for implementing ERP in
SMEs:
Philip Morrison explains that if a company is going to implement ERP in its workplace it
can enjoy all the benefits that is shown in the above paragraph.
This article is helpful for the project in the way that if the company which is going for
ERP will definitely enjoy the above benefits and ultimately it will improve the business
process.
• Technology – more powerful, integrated computer systems,
(i) Greater flexibility.
(ii) Lower IT cost.
• Business practices – better ways of accomplishing tasks.
(i) Better operational quality.
(ii) Greater productivity.
• Strategic – cost advantages gained through more efficient systems.
(i) Improve decision making.
(ii) Support business growth.
(iii) Build external linkages.
• Competitive – Keep up with competitors adopting ERP. Greater cost efficiencies.
(i) Better customer service.
3. Author Name: Ravi Shankar (2004): A Study of Open Source ERP Systems:
This article explains whether open source ERP softwares can satisfy the needs of large
organizations as well as Small to Medium Enterprises (SMEs).The article is applicable
for the project in the way whether open source ERP can improve the performance of the
business and how far it can make the business grow.
The main objectives of this research work are to investigate whether Open Source ERP
systems can satisfy the needs of large organizations as well as Small to Medium
Enterprises (SMEs). The thesis tries also to answer the question of whether Open Source
ERP vendors offer adequate level of support to their clients. First, the background of the
research work and the motivations behind it are laid out. Then, the aforementioned
research hypotheses are presented. The concept of Open Source, its history and the
29
advantages of Open Source ERP systems are presented. In order to verify the research
hypotheses, a comprehensive review of the literature discussing the ERPs selection
criteria of large organizations and SMEs is carried out. This review resulted in a set of
dimensions that served to build the evaluation model.
4. Author: George Anderson (2000): Identifying usability issues with an ERP
implementation:
George Anderson explains whether SMEs finds any issue in terms of usage of ERP and
what are the difficulties faced by them while using ERP.
The article is applicable for the project in the way that most SMEs are finding it difficult
in using ERP and therefore necessary product knowledge must be incorporated in their
minds before the selling approach.
Enterprise Resource Planning (ERP) systems hold great promise for integrating business
processes and have proven their worth in a variety of organizations. Yet the gains that
they have enabled in terms of increased productivity and cost savings are often achieved
in the face of daunting usability problems. While one frequently hears anecdotes about
the difficulties involved in using ERP systems, there is little documentation of the types
of problems typically faced by users. The purpose of this study is to begin addressing this
gap by categorizing and describing the usability issues encountered by one division of a
Fortune 500 company in the first years of its large-scale ERP implementation. This study
also demonstrates the promise of using collaboration theory to evaluate usability
characteristics of existing systems and to design new systems. Given the impressive
results already achieved by some corporations with these systems, imagine how much
more would be possible if understanding how to use them weren’t such an overwhelming
task.
5. Author name: Sunil Saagal (2007):Factors affecting ERP system adoption:
The article explains what the factors that affects the adoption of are ERP systems.
The article is applicable in the way that if the factors mentioned in the article are avoided
by the companies which are ready to implement ERP can have a smooth functioning and
30
ultimately will have its business process at the edge. The analysis of the empirical data
shows that business complexity, as a composed factor, is a weak predictor of ERP
adoption, whereas just company size turns out to be a very good one. In other words,
companies seem to be disregarding ERP systems as an answer to their business
complexity. Unexpectedly, SMEs disregard financial constraints as the main cause for
ERP system non-adoption, suggesting structural and organizational reasons as major
ones. This pattern is partially different from what was observed in large organizations
where the first reason for not adopting an ERP system is organizational. Moreover, the
decision process regarding the adoption of ERP systems within SMEs is still more
affected by exogenous reasons or “opportunity of the moment” than business-related
factors, contrary to large companies that are more interested in managing process
integration and data redundancy/inconsistency through ERP implementation.
6. Author name: Choudri Menon(2008): Analyzing SMEs size as a moderator of
ERP impact in SMEs productivity.(Enterprise Resource Planning and Small and
Medium Enterprises):
Choudri Menon explains how ERP can impact the productivity of SME after its
implementation and how it reduces the cost of the company.
The article is applicable for the project in the way that ERP impacts the productivity of
the business after implementation of it. This will definitely have an improvement in the
business process.
Enterprise Resource Planning (ERP) vendors have emphasized a positive impact of their
ERP projects in enterprise performance and in costs reduction. Recently, some
researchers have started to analyze the impact on business performance of the
organizational changes that complement IT investments. However, there is a lack of
research studies on ERP impact in Small and Medium Enterprises (SME). Based on
Cobb-Douglas production function, this paper attempts to analyze the impact of ERP
implementations in SMEs' productivity. We have collected data from 168 Spanish SMEs
during the period 1997-2005, concerning the type of purchased ERP, implementation
31
period, number of employees and some financial indicators. We use a cross-sectional and
time-series model to compare and analyze the SMEs' productivity evolution, before and
after ERP implementations considering SMEs size as a critical variable to determine the
level of productivity reached. Our preliminary findings suggest that SMEs size moderates
ERP impact in their productivity. Therefore, researchers and practitioners should not
consider all SMEs in the same package and they should have different strategies and
approaches to obtain the best results in each ERP implementation.
7. Author name: Stephen birlbin (2008) : ERP integration-Enabling the effective
sharing of data across the enterprise:
Stephen birlbin explains how a ERP will be effective in sharing data about the company
across the enterprise.The article is applicable for the project in the way that companies
can share data across the enterprise in each and every department which gradually
increases the integration of all departments and enhances the business process.
The ERP software may already provide all the required business logic, but it may be
available only to someone manipulating a full-screen display via multikey commands. Some
clients may want you to implement business processes that are completely lacking in their
ERP systems, while others need to translate the overall business direction of the ERP
package into a series of "what to do next" directions. ERP has assisted companies in
integrating various functions, enhancing business performance. It's critical that companies'
ERP applications don't operate in a vacuum but communicate with all applications that feed
data into a particular business process. The success of ERP implementation is due to the
success of ERP integration. Initial PLM and ERP integrations occur in larger corporations
because they had the resources needed to support such endeavors. Redefining ERP through
integration allows clients to maximize the effectiveness of functional groups while enabling
data to be confidently shared across the entire enterprise.
32
8. Author name: Narayana moorthy.K.H (2005): A benefit realisation road-map
framework for ERP usage in small and medium-sized enterprises:
Narayana moorthy explains how a SME can realize the benefits of ERP after its
implementation. The article is applicable for the project in the way that how a SME can
realize the benefits of ERP after its implementation and this will further leads the
business process to reach its milestones.
The ERP benefits road-map suggests that a long-term vision is required in order to
obtain a successful realisation of the potential benefits that ERP could bring. Thus, this
analysis suggests that ERP benefits realisation dimensions are interconnected, and that
managers should perceive ERP benefits realisation as a continuum cycle along the ERP
post-implementation. Furthermore, new ERP updates and maintenance projects must take
into account the results of ERP benefits realisation auditing to review ERP configuration,
correct possible mistakes, and improve the efficiency of some expected ERP benefits.
9. Author name: Reagon Taylor (2009): Competitive advantage of highly effective
ERP system:
Reagon Taylor explains how a ERP can gain a competitive advantage for an
organization over its rivals. The article is applicable for the project in the way that if a
company is having ERP at its place, it will be an competitive advantage for the company
and always it will be a reason for its growth.
In many organizations it is the accounts and finance departments which are the biggest
supporters of the ERP implementation. This is because by using sales and operations
planning process, they will be able to tie financial implications to the forecasts and
determine where the organization should be headed financially for the period, year or
even longer. This information can be used to insure that you meet bank forecasts, growth
forecasts and increase the value of the organization. Finance and accounting people have
an important role to play in the ERP implementation projects. In addition to
33
implementing their own new processes, they have role to play on the ERP executive
committee, the project team and spin-off task forces.
They will need to devote some time to getting educated on ERP system. It is necessary
for them to understand the logical structure of ERP, the benefits to be achieved from
running the business with only one set of numbers and the competitive advantage that
highly effective ERP can provide.
10. Author name: Robert Mannyson (2008): Streamline your business processes
with ERP:
Robert Mannyson explains how a company can easily respond to the changes in the
market scenario and customer demands by streamlining the business process.
The article is applicable for the project in the way that how improvement can be made in
the business process even in the changing market scenario nad customer demands with
the help of ERP.
ERP manufacturing solution offers small and mid-sized manufacturing organizations a
means to reduce costs. It also helps respond to changing market scenario and customer
demands by streamlining the business processes . ERP for Manufacturing provides
organizations with more flexible and extensible system that enables them to easily adapt,
change and add operational functionality to the system in order to meet customer
demands and easily adjust to changes in the marketplace.ERP streamlines operations and
processes thereby providing transparency to manufacturers on their production &
delivery schedules, order processes and warehousing management.ERP will automate the
manual processes practiced by the manufacturing companies. Automation will enable
them to increase efficiency and take advantage of new revenue opportunities.ERP helps
organizations to provide better service and be more responsive to the demands of
customers and business partners through multi dimensional tracking features and
advanced order-promising capabilities.
34
CHAPTER 2: MAIN THEME OF THE PROJECT
CHAPTER 2.1: NEED FOR THE STUDY
NEED FOR THE STUDY:
The need for the study is based on two important aspects. They are 1. In order to create prospects
for the company, 2. In order to find out the constraints in the manual system and the ways to
make it clear with the help of ERP packages. For this purpose a questionnaire is developed and
with the help of it the need for the study is carried out effectively to make the study more concise
and useful for the further study.
CHAPTER 2.2: SCOPE OF THE STUDY
SCOPE OF THE STUDY:
35
A study was carried out on the “EFFECTIVENESS OF BUSINESS PROCESS BEFORE AND
AFTER IMPLENTING ERP IN SMEs. A sample of 100 respondents was taken on the basis of
Simple Random Sampling. The study has been conducted in Chennai City to identity exactly the
factors that the company need to improve to have a competitive advantage in terms of
information handling through the market survey. Some of the important scopes for the study are
as follows:
The study is aimed to find out the SME’s attitude and perception towards ERP products.
The study will be helpful in identifying and creating prospects to the company
The study will help the company to gain business advantage of untapped SMEs.
The study will be helpful in identifying the difficulties faced by SMEs in data mining.
CHAPTER 2.3: OBJECTIVES OF THE STUDY:
OBJECTIVES:
To identify problems faced by SMEs in terms of information handling without ERP.
To identify prospects and presenting to the company.
To study the effectiveness of business process pre and post ERP implementation.
CHAPTER 2.4: LIMITATIONS OF THE STUDY:
LIMITATIONS:
In attempt to make the project more authentic and reliable, every possible aspect of the topic was
kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this
project. The main limitations are as follows:
The study is applicable for Chennai City only.
The study is limited to time and cost constraints.
The study relies heavily on the responses given by the respondents to the questionnaire.
In order to make the project successful all the considerations and assumptions are kept in
mind.
36
CHAPTER 2.5: RESEARCH METHODOLOGY
Research problems: The problem focused in this study is effectiveness of business process
before and after implementing ERP in SME’s. For this purpose various tools have been used in
this research study. The outcome aimed in this project is to know whether ERP can be a antidote
in order to avoid data mining problems.
Research methodology: Exploratory method
Areas covered for review: Ambattur real estate, SIDCO
Sampling Method: Simple Random Sampling
Sample size : 100
Primary data : Questionnaire
37
: Interview
SAMPLE:
While deciding about the sample of research, it is required from the researcher’s point to
pay attention to these under mentioned points:
a) Sample Units: A decision has to be taken concerning a sampling unit before selecting
a sample, sampling unit may be a geographical one such as state, district, village Etc.
so in this research sampling unit is Chennai area.
b) Source of data: Data required for the study was collected through primary sources i.e.
Market Survey. and the market area is: CHENNAI
c) Sampling size: This refers to the no. of items to be selected from the universe to
constitute a sample. This is a major problem before the researcher. The size of sample
should neither be excessively large not too small, it should be optimum. This size of
population must be kept in view for this also limits the sample size .Sample size in this
research is 100.
INSTRUMENTS USED:
Questionnaire was used through sample survey from the selected elements in SMEs. So
for this purpose I have used the most popular tool of primary data collection through direct
communication with respondents.
METHOD OF DATA COLLECTION:
Actually data is of two kinds which are following
a) Primary Data: Primary data are those, which are collected afresh and for the first time and
this happen to be original in character.
b) Secondary Data: Secondary data are those data which have already been collected by
someone else and which have already been used as per required.
There are basically two sources to collect secondary data
38
a) Internally: Provided by the company/organization
b) Externally: Various publication of central, state and local Government.
Books, magazines, newspapers
Internet
After only keeping in mind one can think about what type of data has to be collected during
research as our research is concerned I have to gather primary data for Customer preference.
QUESTIONNAIRE DESIGN:
As the questionnaire is self administrated one, the survey is kept simple and user friendly.
Words used in questionnaire are readily understandable to all respondent. I have made the
questionnaire in which questions are according to the research and these are convenience for the
respondent.
STRUCTURE OF QUESTIONNAIRE:
Types of Questions:
1. CLOSED ENDED QUESTIONS: Respondent’s answers are limited to a set of responses. Most scales are closed ended. Other types of closed ended questions include:
Yes/no questions: The respondent answers with a “yes” or “no”
Multiple choice questions: The respondent has a several option from which to choose.
2. OPEN ENDED QUESTIONS: No options or predefined categories are suggested. The
respondent supplies their own answer without being constrained by a fixed set of possible
responses.
LIMITATIONS OF THE STUDY
While surveying some of the problems that are encountered are as follows:
A survey should involve a larger sample size otherwise the findings of the survey cannot
be generalized.
39
But a larger sample size may increase the time and cost of collecting the primary data
with the help of Questionnaire.
In some of the companies it is not allowed to get the questionnaire filled.
Many of the respondents were not willing to fill the questionnaire.
Some people were not willing to respond and few of them who responded were in hurry
hence the active participation was lacking. Due to which I faced difficulties in collecting
information’s regarding our questionnaire.
Another problem which I face was that people were hesitating to give information about
their views freely.
STATISTICAL TOOLS USED:
The following are the statistical tools used in the project:
1. Percentage Analysis
2. Correlation
3. Chi Square Test
CHAPTER 2.6: DATA ANALYSIS AND INTERPRETATION:
1.“WHICH ERP DO SME’S PREFER”
TABLE: NO:1: TABLE SHOWS THE NO.OF BRANDS AND THE PREFERENCE
BRAND PERCECENTAGE (%) FREQUENCYTALLY 34 34RAMCO 28 28SYSPRO 9 9FACT 26 26Others 3 3TOTAL 100 100 INFERENCE:
From the above table it is inferred that the results are the following:
34% of the respondents preferred TALLY, 28% of the respondents preferred RAMCO,26% of the respondents preferred FACT,9% of the respondents preferred
40
SYSPRO and 3% of the respondents preferred OTHERS. The graphical representation of the above table is given below CHART NO: 1
X- AXIS REPRESENT: VARIOUS BRANDS OF ERP
Y-AXIS REPRESENT: PERCENTAGE OF PREFERENCE
2. “ARE YOU SATISFIED WITH THE PRICE”
TABLE: NO: 2: TABLE SHOWS THE PRICE AND SATISFACTION LEVEL
OPTION PERCENTAGE FREQUENCYYES 64 64NO 19 19
NO COMMENTS 17 17TOTAL 100 100
INFERENCE:
From the above table it is inferred that the results are the following:
64% of the respondents are satisfied with the price range of ERP products, 19% of the respondents are satisfied with the price range of ERP products and 17% of the respondents
34
28
9
26
3
0
5
10
15
20
25
30
35
40
TALLY RAMCO SYSPRO FACT Others
TALLY RAMCO SYSPRO FACT Others
41
are satisfied with the price range of ERP products. The graphical representation of the above table is given below
CHART: NO: 2
PERCENTAGE(%)
64%19%
17%
Yes
No
NO COMMENT
3.“HOW DO YOU CONSIDER THE IMPORTANCE OF ENTERPRISE RESOURCE PLANNING ”
TABLE NO: 3: TABLE SHOWS THE ERP IMPORTANCE AND ITS PERCENTAGE
IMPORTANCE PERCENTAGE FREQUENCYRELIABILITY 68 68EASY TO USE 16 16ACCURACY 12 12OTHERS 08 08PRICE 04 04TOTAL 100 100
INFERENCE:
From the above table it is inferred that the results are the following:68% of the respondents consider RELIABILITY as an essential criteria importance,16% of the respondents consider EASY USE as an essential criteria importance,10% of the respondents consider ACCURACY as an essential criteria importance, 04% of the respondents consider PRICE as an essential
42
criteria importance and 02% of the respondents consider OTHER ELEMENTS as an essential criteria importance. The graphical representation of the above table is given below
CHART NO: 3
X- AXIS REPRESENT: CRITERIA IMPORTANCE
Y-AXIS REPRESENT: PERCENTAGE
4.“WHAT FACTORS INFLUENCE YOU TO GO FOR A PARTICULAR BRAND”
TABLE NO: 4: TABLE SHOWS THE INFLUENCING FACTORS AND ITS PERCENTAGE
INFLUENCING FACTORS
PERCENTAGE FREQUENCY
CUSTOMISATION 74 74USER FRIENDLY 13 13SERVICE SUPPORT 8 8CONSULTING ABILITY 5 5PRICE 0 0TOTAL 100 100
INFERENCE:
68
4
1610
20
10
20
30
40
50
60
70
80
RELIABILITY PRICE EASY USE ACCURACY OTHERS
R”bility Price Easy use Accuracy Others
43
From the above table it is inferred that the results are the following:
74% of the respondents are influenced by the term CUSTOMISATION to go for a
specific brand of ERP, 13% of the respondents are influenced by the term SERVICE
SUPPORT to go for a specific brand of ERP, 8% of the respondents are influenced by the
term CONSULTING ABILITY of the vendor to go for a specific brand of ERP, 5% of
the respondents are influenced by the term USER FRIENDLY to go for a specific brand
of ERP and None of the respondents are influenced by the term PRICE to go for a specific
brand of ERP. The graphical representation of the above table is given below
CHART NO: 4
X-AXIS REPRSENT: INFLUENCING FACTORS
Y-AXIS REPRESENT: PERCENTAGE
44
5. “DO YOU READY TO SWITCH FROM MANUAL SYSTEM TO COMPUTERISED SYSTEM”. TABLE: NO:5
OPTION PERCENTAGE FREQUENCYYES 44 44NO 56 56
TOTAL 100 100
74
513
80
0
10
20
30
40
50
60
70
80
Customisation User friendly Service Consulting Price
Cus UF Service Cons Price
45
INFERENCE:
From the above table it is inferred that the results are the following:
56% of the respondents are not ready to switch from their existing manual system to computerized ERP system and 44% of the respondents are ready to switch from their existing manual system to computerized ERP system. The graphical representation of the above table is given below
CHART: NO: 5
6. WHETHER YOUR COMPANY WILL GO FOR OPEN SOURCE AND CUSTOMISED ERP PACKAGES?
TABLE NO: 6: TABLE SHOWS PREFERENCES FOR ERP PACKAGES AND ITS PERCENTAGE
OPTION PERCENTAGE FREQUENCYYES 77 77NO 23 23TOTAL 100 100
INFERENCE:
44%
56%
Yes
No
46
From the above table it is inferred that the results are the following:
77% of the respondents are willing to go for open source and customised ERP packages and 23% of the respondents are not willing to go for open source and customized ERP packages. The graphical representation of the above table is given below
CHART NO: 6
7. DO YOU FACE ANY DIFFICULTY IN THE EXISTING DATA MAINTENANCE?
TABLE:NO: 7: TABLE SHOWS THE DIFFICULTLY FACED IN EXISTING DATA MAINTENANCE AND ITS PERCENTAGE
OPTION PERCENTAGE FREQUENCYYES 31 31NO 69 69TOTAL 100 100
23%
77%
NO YES
47
INFERENCE:
From the above table it is inferred that the results are the following:69% of the respondents are not having any difficulty in data maintenance in the existing system and 31% of the respondents are admitting that they have some difficulty in data maintenance in the existing system. The graphical representation of the above table is given below
CHART:NO:7
8. WHETHER YOUR COMPANY IS WELL KNOWN ABOUT ERP PACKAGES?
TABLE NO:8 TABLE SHOWS THE AWARENESS OF ERP PACKAGES AND ITS PERCENTAGE
OPTION PERCENTAGE FREQUENCYYES 70 70NO 30 30
PERCENTAGE(%)
69%
31%
NO
YES
48
TOTAL 100 100
INFERENCE:
From the above table it is inferred that the results are the following:
70% of the respondents are aware of ERP packages and 30% of the respondents are not aware of ERP packages. The graphical representation of the above table is given below
CHART: NO:8
CORELLATION:
a) Relationship between Companies and their ERP status:
Inference: Relationship between companies and the ERP status are positively correlated since correlation value is 0.814
70%
30%
Yes No
49
Correlations
Companies ERP status
Companies Pearson Correlation
1 .814**
N 100 100
ERP status Pearson Correlation
.814 1
N 100 100
b) Relationship between ERP and Expectations from the point of view of companies
Inference: Relationship between ERP and Expectations from the point of view of companies are
positively correlated since correlation value is 0.915.
Correlations
CompaniesExpectations
from ERP
Companies Pearson Correlation
1 .915**
N 100 100
Expectations from ERP
Pearson Correlation
.915** 1
N 100 100
c) Relationship between Employee and the training required from the point of company:
Inference: Relationship between Employee and the training required from the point of company is positively correlated since the correlation value is 0.783
50
Correlations
Employees ERP training
Employees Pearson Correlation
1 .783
N 100 100
ERP training Pearson Correlation
.783 1
N 100 100
CHI SQUARE TEST:1. Chi square test for Firm and ERP Status
51
Case processing summary
Cases
Valid Missing Total
N Percent N Percent N Percent
companies *
ERP status100 100.0% 0 .0% 100 100.0%
Firms * ERP status Cross tabulation
ERP Status
Totalyes No
Firms Dies 13 0 13
Moulds 33 0 33
Engi 22 6 28
Spares 0 26 26
Total 68 32 100
Construction of Hypothesis:
H0: There is no association between Firms and ERP status.
H1: There is an association between Firms and ERP status.
Factors Chi-square Vale Degrees Of Freedom
Significance
Firms & ERP status 78.335 3 H1 is accepted.
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 78.335a 3 .000
Likelihood Ratio 96.277 3 .000
Linear-by-Linear Association 60.745 1 .000
N of Valid Cases 100
INFERENCE:
52
It is inferred from the above table that chi- square value is 78.335 which is greater than
table value so reject H0 . Therefore there is an association between the firm and ERP
status.
2. Chi square test for ERP and Importance.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
ERP*Importance 100 100.0% 0 .0% 100 100.0%
ERP * Importance Cross tabulation
Importance
TotalAccuracy Reliable Easy use Timely
ERP yes 31 28 9 0 68
no 0 0 5 27 32
Total 31 28 14 27 100
Construction of Hypothesis:
H0: There is no association between ERP and Importance.
H1: There is an association between ERP and Importance.
Factors Chi-square Vale Degrees Of Freedom
Significance
ERP and Importance
85.228 3 H1 is accepted.
Value df
Asymp. Sig. (2-
sided)
53
Pearson Chi-Square 85.228a 3 .000
Likelihood Ratio 107.125 3 .000
Linear-by-Linear Association 72.634 1 .000
N of Valid Cases 100
INFERENCE:
It is inferred from the above table that chi- square value is 85.228 which is greater than
table value so reject H0 . Therefore there is an association between ERP and
Importance.
3. Chi square test for Existing System and its Status:
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
System*Status 100 100.0% 0 .0% 100 100.0%
Existing System * Status Cross tabulation
Status
TotalExcellent Good Fair Poor
System Yes 33 26 9 0 68
No 0 0 5 27 32
Total 33 26 14 27 100
Construction Of Hypothesis:
H0: There is no association between Existing system and Status
54
H1: There is an association between Existing system and Status
Factors Chi-square Vale Degrees Of Freedom
Significance
Existing system and Status
87.228 3 H1 is accepted.
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 87.228a 3 .000
Likelihood Ratio 108.125 3 .000
Linear-by-Linear Association 73.634 1 .000
N of Valid Cases 100
INFERENCE:
It is inferred from the above table that chi- square value is 87.228 which is greater than
table value so reject H0 . Therefore there is an association between existing system and
status.
4. Chi square for Manual System and Constraints:
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Manual system*Constraint 100 100.0% 0 .0% 100 100.0%
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Manual System
TotalExcel Paper work Softwares others
Constraint Not timely 31 0 0 0 31
Not accurate 28 0 0 0 28
Less reliable 2 9 3 0 14
Nil 0 0 16 11 27
Total 61 9 19 11 100
Construction of Hypothesis:
H0: There is no association between manual system and constraints.
H1: There is an association between manual system and constraints.
Factors Chi-square Vale Degrees Of Freedom
Significance
Disease and Type Of Food
155.50 9 H1 is accepted.
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 1.555E2a 9 .000
Likelihood Ratio 153.837 9 .000
Linear-by-Linear Association 78.865 1 .000
N of Valid Cases 100
INFERENCE:
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It is inferred from the above table that chi- square value is 1.555which is greater than
table value so reject H0 . Therefore there is an association between manual system and
constraints.
CHAPTER 2.7: FINDINGS
PERCENTAGE ANALYSIS
1. 34% of the respondents preferred TALLY.
2. 64% of the respondents are satisfied with the price range of ERP products.
3. 68% of the respondents consider RELIABILITY as an essential criteria importance.
4. 74% of the respondents are influenced by the term CUSTOMISATION to go for a
specific brand.
5. 56% of the respondents are not ready to switch from their existing manual system to
computerized ERP system.
6. 77% of the respondents are willing to go for open source and customized ERP packages.
7. 69% of the respondents are not having any difficulty in data maintenance in the existing
system.
8. 70% of the respondents are aware of ERP packages.
CORRELATION:
1. Inference: Relationship between companies and the ERP status are positively correlated
since correlation value is 0.814
2. Inference: Relationship between ERP and Expectations from the point of view of
companies are positively correlated since correlation value is 0.915.
3. Inference: Relationship between Employee and the training required from the point of
company is positively correlated since the correlation value is 0.783
CHI SQUARE TEST:
1. There is an association between Firms and ERP status.
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2. There is an association between ERP and Importance.
3. There is an association between Existing system and Status.
4. There is an association between Manual system and Constraints
CHAPTER 3: RECOMMENDATIONS AND CONCLUSION
CHAPTER 3.1: RECOMMENDATIONS
GUIDELINES FOR VENDORS:
Understanding the market conditions : India has become a highly competitive playing
field for ERP vendors especially in the SME market. Most of the organizations here by
virtue of their size would be classified under the SME market; the potential in this market
is huge. All the major vendors have set their foot print in this region from Microsoft,
SAP, Oracle, SAGE, Epicor etc. In addition there are a number of local home grown
products that cater to niche requirements or verticals. A new ERP vendor needs to
position itself right when deciding to enter such a competitive landscape. It is better for
the global players to work with a channel partner as they have better customer reach and
market awareness. The local players need to capitalize on their specializations or vertical
expertise in order to capture a share of the market
Deep cash reserves : The ERP business is one that has longer realization times than most
software packages. Even without a single deal in hand, an ERP vendor/ channel partner
would require a sales team, an implementation and development team. The first cash
realization would come about 8-9 months after you have done your first implementation.
So vendors entering the market need to have deep cash reserves or financial backing to
sustain themselves at least for a year or two before setting their footprint in this market.
Sourcing the right Human Capital : The biggest challenge in the Indian market is
sourcing the right people for your business and when it comes to highly specialized ERP
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resources with domain expertise, the task becomes that much harder. An ERP vendor
would require a strong sales team, Implementation and development team which again
consist of pre- sales, domain consultants, functional consultants, project manager,
developers, testers etc. Sufficient time and effort has to be put into sourcing the right
talent.
Enabling Channel partners : Channel partners are a vendor’s brand ambassadors in a
region. They have to be adequately trained in not only the product offerings but also the
processes involved in sales, implementation and post implementation scenarios. This
would require multiple training sessions and constant interactions to enable them to cater
to your product. Vendors also have to put processes in place to ensure that partners do not
cannibalize into each other’s opportunities and managing such conflicts is key to
sustaining your business in the region.
Need for Specialized/ Verticalized Solutions: Indian market has certain key verticals
that are growing at a phenomenal rate. One of the entry strategies that a new vendor
entering the market can adopt is to develop products around these verticals incorporating
the processes and best practices in them. This would enable them to capture a share of the
ERP market without directly competing head on with the bigger players with generalized
ERP.
Explore all possible revenue avenues: Vendors have more than one option to earn
additional revenues and increasing their share of the pie. These include license revenue,
Up-selling and Cross-selling opportunities, Services revenue, AMC revenue, IP revenue:
Selling your IP
SELLING/ PRE IMPLEMENTATION PHASE:
Analyze the customer business:
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The first step before approaching any SME customer is to analyze its operations for suitability
and solution fitment. If the vendor has an idea about the complexity and the nuances of the
customer business, he can pitch in with the unique functionalities that is solution can offer.
Factors considered can include:
Company Size
Financial Parameters
Buying Culture – Brand conscious versus price sensitivity
Appropriateness of the product viz – a viz the complexity of the process
Scalability of the product viz a viz the company’s future strategies
More importantly, if your product cannot cater to the specific needs, then this is the right time to
back out rather than forcefully customize and sell your solution which could backfire post
implementation.
Consultative selling - Understanding the SME customers : The challenge in SME
selling is that the process from day one takes on a consultative mode. Customers may a
times will not have processes or systematic ways of working but their businesses will be
highly successful in nature. The key to selling to an SMe customer is be sensitive to the
fact that an SME entrepreneur would probably not appreciate any direct imposition of so
called “best practices” that many ERP packages have as a prerequisite. It requires tactful
dealing and often informal methods to convince them of the benefits of ‘slightly’
restructuring their processes and introducing a whole new system of working. SME look
for two main characteristics in an ERP package – Faster implementation and how soon
they can reap the benefits i.e. the ROI. So the trick is in having template solutions or
“verticalized” solutions which would require minimum customizations and hence lesser
implementation time.
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Playing on your strengths :ERP vendors of all genre have a possibility of expanding
their market in India– be it the bigger players like Microsoft/ SAP / Oracle or the smaller
players like EBiz or ETA Infotech which are doing well in their own way. This is
because there are segments of the market that have different considerations when going
for an ERP package. Some are brand conscious and would go only for the big names
while others are more price conscious and are more attuned to catering to their business
needs and would be looking for specialized products.
Gaining Larger Pie of the SME ERP market : Vendors have a chance to provide end
to end solutions for an ERP solution. There are minimum hardware and network
requirements that are prerequisite when implementing ERP. Vendors can have strategic
tie – ups with hardware and network providers. This not only helps the vendor to position
themselves as one stop shop for ERP but also increase the switching costs for the
customers
Setting Expectations Right from Day Zero!! : ERP is often pitched as this magic tool
that can automate all the business processes operations and provide all the customer
requirements at just a button click away. This kind of hyping can lead to over
expectations and a perceived notion that the implementation was a failure even if the ERP
system is working as per business requirements. Vendors have the onus of setting
expectations right from selling phase to avoid such scenarios later on.
Getting Terms and Conditions clear cut when deal is closed : Most of the ERP
implementations fail as a result of not getting the customer requirements clearly or the
inability to define the same. In addition, customers add on to the requirements once the
implementation is under way and they get a feel of the system capabilities. While being
open to certain amount of modifications and add ons, too much of the same can lead to
huge schedule and cost creeps and the vendor might have to go back to the negotiating
table to re-evaluate the terms. It is always advisable to document the terms and conditions
as agreed upon by both the parties when the deal is closed.
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GUIDELINES FOR CUSTOMERS:
Pre Implementation Guidelines Identify the need to Implement ERP: In many
instances, ERP will not solve the company’s business problems. Before making a
decision as large as implementing a system that will cost millions and affect the entire
company, it's important to have a clear understanding of what the compelling reason is to
accomplish this project. There may be more cost-effective and lower-risk options such as
improving processes, redesigning the organizational structure, consolidating entire global
supply chain, or implementing a performance management system. In these cases, maybe
choosing not to implement ERP is the best solution. On the other hand, ERP may be the
business tool that enables these improvements.
Clarify the Business Requirements: Once the decision to implement an ERP has been
made, it is important to begin by looking at the desired operational model and using that
as a starting point in determining which software to implement. Executives should define
and document key business requirements for any package they may select. This includes
not only nice-to-haves, but also requirements that are "deal-breakers" if the software is
unable to accommodate. In addition, executives should use ERP business requirements
definition as an opportunity to improve current operations, efficiency, and effectiveness.
The company should be focused on achieving a measurable business value for the
organization, and should thus choose the software that enables it to do this.
Identify the Business Case and estimate the ROI: It is important to understand and
document what the total costs will be for each ERP vendor under consideration, as well
as anticipated business benefits. This helps in ensuring that the company realizes the
potential benefits of implementing ERP. All costs, including hidden project costs such as
internal project resources, data conversion, and lost productivity immediately following
go-live, should be included in the business case and ROI calculation for each ERP vendor
under evaluation. If the resulting ROI for a particular ERP vendor does not make sense or
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meet minimum investment criteria of the company, then it's probably not a good idea to
undertake the project.
Finalizing the Implementation Partner: Typically ERP implementations are taken up
either by the software vendors themselves or by the third-part vendors and the
consultants. Companies have to choose either of the above options by keeping cost and
expertise as the prerogative. It is also important to look at consulting firms that are
capable of helping you manage the non-technical aspects of the project, such as
organizational change management, training, and ERP benefits realization. There are
many consulting firms, which are technology neutral and specialize in providing project
planning and business consulting for all types of ERP implementations. Companies have
to work with consulting firms in preparing a Request for Proposal (RFP) which generally
covers almost every aspect of ERP selection criteria from functionalities, technology,
hardware, support, implementation and costing methodologies.
Post Implementation Guidelines
In-house Technical Expertise Experience indicates that the lack of internal or always
available onsite specialist decreases the chances of success dramatically. And the
explanation should be simple to this fact. Nowadays ERP system requires minor or major
customization, integration and reporting and all these steps in turn require patient coding
and testing in the test environment or on the sample dataset/database
Dedicated ERP Administrator: This is true that users could be trained and would know
how to use the system. However typical ERP has its own life and somebody should
assign new users, setup security roles for them, modify reports and makes custom reports
available for the users, setup printers, try first to resolve the issue by looking at the
techknowledge database, and so on. ERP Administrator doesn’t have to be IT guru –
she/he needs to be trained on how to administer the program and how to deal with
technical support. Imagine for a moment that if you take out manager from the company
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– even if all the employees have excellent training and used to work for the company
numerous years – you will still expect performance degradation. The same should be said
about ERP system.
Expect Certain Number of Issues : IT industry is not yet mature and it is probably sad,
but the reality that even very experienced consultant, developer makes errors – or your
software environment has something that make the custom piece malfunction. When you
see the consultant being persistent in resolving your issues – please be patient and try to
help him.
Trust Your Consultant When you decide on somebody to implement the system, you
need from this moment on to trust him and let him have high security access to the ERP
hosting server. Complex security makes consultant suffer from getting connected,
installing the patches or custom pieces. So many times we were spinning our wheels in
trying to test new custom business logic, when, say Windows or MS SQL Server security
was restricting us to do the actions we needed.
Do not over negotiate. This is from the sales cycle. When you purchase the system – you
should purchase the software and implementation from the same company – otherwise
your partner will place you on the second priority list. We saw numerous examples, when
client purchases Microsoft CRM licenses from nation-wide distributor, and then is trying
to find somebody to implement the system. Also if you are cutting software prices – you
may see your consulting company rescheduling the work for you in favor of somebody
else.
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CHAPTER 3.2: CONCLUSION
The conclusion for this study can be summarized with the benefits of ERP in SME. It is
in the sense that business process of any organization will be effective only when ERP is
in place. ERP will be a competitive advantage for the business concern. Some of the
benefits that a company can carry out with the help of ERP are as follows:
Tangible Benefits after ERP Implementation:
Inventory Reduction
Personal reduction
Productivity improvement
Order management improvement
Technology cost reduction
Procurement cost reduction
Cash management improvement
Revenue/profit improvement
Transportation/ logistics cost reduction
Maintenance reduction
On time delivery improvement
Intangible benefits after ERP implementation:
New/improved business processes
Customer responsiveness
Cost reduction
Integration
Standardization
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Flexibility
Business performance
Monitoring cost
Less Information processing cost
CHAPTER 4: SCOPE FOR FUTURE STUDY
The study was conducted in the effectiveness of business process before and after
implementing ERP. The analysis and interpretation part will be mainly focusing on how a ERP
package can transform the business effectiveness to the edge of its success by eliminating the
difficulties of manual system followed previously by the companies. The study completely
supports to make companies aware of ERP packages, implement it in their companies to have a
competitive edge in the business process as well as to lead the business in a right way.
The scope for future study can be more emphasized on how to convince the companies to
implement ERP at their place and also how the after sale services such as Demo, product
knowledge, queries managing from the point of view of the client can focused more. To be very
concise more study can be made on the difficulties and major negative blocks faced in the ERP
implementation phase to make ERP very accessible and acceptable by every industry.
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BIBLIOGRAPHY
1. BOOKS AND JOURNALS
David Allen, Thomas Kern, Mark Havenhand, 2002, ERP Critical Success Factors: an
exploration of the contextual factors in public sector institutions.
C.R.Kothari, 2004, Research Methodology methods and techniques(2nd Edition; New Delhi: New
Age International (P) Limited).
T.R Bhatti, 2005, Critical Success factors for the implantation of ERP: Empirical Validation.
Guy G. Gable and Michael R. Vitale, 2005, The Future of Enterprise Resource Planning Systems
(4th Edition; U.S Press Ltd).
Jose Esteves, Journal of Enterprise Information System, 2009 Volume: 22 Issue: 1/2 Page: 25 to
35, 2009 Volume: 22 Issue: 1/2 Page: 25 to 35.
2. ARTICLES AND MAGAZINES
Fredrick Moytor, 2005, Towards an Ontology Supporting Managerial Decisions, Articles
factory, Issue no: 47, Page no: 31.
Philip Anderson, 2003, Key rationales for implementing ERP in SMEs, Articles factory, Issue
no: 38, Page no: 27.
George Anderson, 2000, Identifying usability issues with an ERP implementation, Articles
factory, Issue no: 30, Page no: 23.
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Stephen birlbin, 2008, ERP integration-Enabling the effective sharing of data across the
enterprise, Articles factory, Issue no: 58, Page no: 18.
Sunil Saagal, 2007, Factors affecting ERP system adoption, Business India, Volume no: 3, Issue
no: 58, Page no: 32.
ANNEXURE:
QUESTIONNAIRE FOR EFFECTIVE BUSINESS PROCESS WITH ERP IN SMEs
NOTE: The data that you are providing will be confidential and will not be published
anywhere .
ABOUT THE COMPANY:
NAME OF THE COMPANY:
BUSINESS ACTIVITY UNDERTAKEN:
NAME AND POSITION:
EMAIL ID:
URL OF THE COMPANY:
PHONE NUMBER/MOBILE NUMBER:
QUESTIONS:
1. How many employees are there in the company?
a) 1-30 b) 31-50 c) 51-100 d) 101-150 e) Above 151
2. Whether the company is using any ERP system at present?
a) Yes b) No c) Under Consideration
3. If the company has purchased any ERP please answer the following questions:
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What is the name of the ERP product? ______________________
How long has it been in use? ___________________________
What is the cost of the ERP, including implementation? _______________
What are the modules present in the ERP? ______________________
Are you satisfied with the performance / usage of this ERP?
_______________________________________________
MODULE WISE QUESTIONS:
PRODUCTION
4a.Does the shop floor gets a proper internal work order for manufacturing?
a) Yes b) No
4b. Whether information in terms of availability of equipments, raw material & labour are
available for planning a work order?
a) Yes b) No
4c. Are you able to plan execution of orders as per committed dates?
a) Yes b) No
If the answer is no to any of these questions, what are the problem areas? Please explain.
INVENTORY
5a. How is the stock level being monitored?
a) Excel b) on paper work c) Any other software
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5b. Do you often face stock out or over stock situations?
a) Yes b) No
5c. Do you have any mechanism to find out which items are fast / slow / non moving?
a) Yes b) No
FINANCE
6a. Do you have any mechanism to find out the value of inventory in hand at any given time?
a) Yes b) No
6b. Are you able to find out the profitability of individual orders?
a) Yes b) No
6c. Are you able to analyse profitability for every department and cost centre?
a) Yes b) No
6d. Is your ledger automatically updated for all material transactions (Purchase, GRN, issue,
production completion, despatch etc.)
a) Yes b) No
6e. Do you have a system to give information on aged payables and receivables to help in cash
management?
a) Yes b) No
SALES
7a. Does your sales people have information on the status of the sales order?
a) Yes b) No
7b. Do you know your most profitable customers
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a) Yes b) No
PURCHASE
8a. Do you have a mechanism to monitor vendor performance on delivery schedules, quality
etc?
a) Yes b) No
8b. Are you able to get updated status of every Purchase Order?
a) Yes b) No
PLEASE TICK ON THE RESPECTIVE COLUMNS:
CRITERIA STRONGLY
AGREE
PARTIALLY
AGREE
NOT
AGREE
Existing system is poor
Needs automation
Needs ERP knowledge
ERP modules demo
Functional consultant guidance
ERP support services
GENERAL QUESTIONS:
9. If you need to implement ERP what are the expectations from it?
_____________________________________________________________
_____________________________________________________________
10. What is the budget that your company has decided for ERP implementation?
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_____________________________________________________________
11. When do plan to go in for ERP implementation?
______________________________________