Enterprise Resource Planning

Index/Flow
What is an Enterprise.
Why an Enterprise.
What is an ERP.
Benefits of ERP.
Advantage of ERP.
Importance of ERP.
Common Myths.
Disadvantage of ERP.
Conclusion.
Enterprise
What is an Enterprise?
A corporate entity, anything from ”chai ki kitli” to
Reliance or TELCO or Hindustan Lever.
Def: An enterprise is group of people with
common goal, which has certain resources at its
disposal to achieve this goal.
Enterprise act as a single entity.
Why an Enterprise?
In traditional approach, organization is divided
into different department based on the function
they perform like R&D, Sales, Accounts,
Marketing, Production etc.
No communication between departments
Each department work in isolation.
Each department may have their own data.
Results into, instead of taking organization
toward on goal, they pull each other.
Why an Enterprise?
All functional departments should share a central
database to know what the others are doing.
In the enterprise way, the entire organization is
considered as a system and all the departments are
its sub-systems.
Information about all aspects of organization is
stored centrally and is available to all departments.
What is ERP?
ERP is an abbreviation for Enterprise Resource Planning.
ERP means techniques and concepts for integrated
management of business as a whole from the viewpoint of
effective use of management resources to improve the
efficiency of enterprise management.
ERP is a set of tools and processes that integrates
departments and functions across a company into a one
computer system.
ERP software is designed to model and automate many of
basic processes of a company, from finance to shop floor.
Benefits of ERP
Various benefits of ERP are
Improve business performance
Cycle time reduction
Increased business agility (Quickness)

Inventory reduction

Order fulfillment improvement

Provide flexible, integrated, real-time decision

support
Improve responsiveness across the organization
Benefits of ERP
Eliminate limitation in legacy systems
Century dating issues
Fragmentation of data and processing

 Inflexibility of change

Unsupported technologies

Take advantages of the untapped mid-market

Increased functionality at a reasonable cost

Client-server / open systems technology

Vertical market solutions

Advantage of ERP
Implementing ERP has many advantages – Direct
& Indirect
Direct
Improved efficiency.
Better analysis and planning capabilities.

Use of latest technology.

Information integration for better decision

making.
Faster response time to customer queries.
Advantage of ERP
Indirect
Better corporate
image.
Improved customer goodwill.

Improved customer satisfaction.

Importance of ERP
To be competitive, organizations must deliver
products of highest quality on time, as quickly as
possible and at the best possible price.
ERP has proved to be an effective tool in
achieving these objectives.
ERP unifies a company and transform the way
organization do business.
ERP can identify what is required, when it is
needed and how much is needed, thus making
operation of organization effective.
Importance of ERP
ERP does the following :

ERP affects almost all organizations irrespective

of their size and nature.
 ERP has changed the way organizations do

business by automating many business

processes, streamlined many day-to-day
operations and helps organization in serving
customers better.
Importance of ERP
ERP forces the competition to change their
strategies and process
 A properly implemented ERP system is a

strategic weapon and can help in beating the

competition and getting ahead.
When one organization implements ERP the

competitor have no option other than to follow

suit.
ERP has changed the nature of jobs in all functional
business area.
Importance of ERP
ERP influences business partners to become more
competitive
ERP systems automate the business processes and make
organization more responsive. The decision makers can
make better decisions and may operate on real-time.
ERP enforces “Best Practice Business Process” in
organizations
ERP systems are based on so-called best practice
business processes – the best ways of doing processes.
SAP’s mySap business suite incorporates 10000+ best
practices.
Common Myths
 ERP will Make many Employees redundant and Jobless
 A properly implemented ERP system will automate
many tasks in organization. This does not mean that
many will lose their job. However there will be
change in job descriptions and in the activities
people do.
 ERP is just to impress customers
 ERP system can help in serving customer better.
 With ERP system you can get more satisfied
customers.
Common Myths
 ERP Package will take care of everything.
 ERP system will not cure all. However, properly
implemented, operated and maintained system
can dramatically improve productivity, automate
tasks, reduce wastage and improve productivity.
 ERP is very expensive.
 ERP packages come in all shapes and sizes. The
sophisticated and high end tools are very
expensive. But these expenses should be weighed
against the benefits of the ERP system.
Common Myths
 ERP is just for Managers/Decision makers.
 People who get most benefit from a properly
implemented ERP are managers and decision makers.
 ERP provides information on fingertips for making
decision.
 ERP is just for Manufacturing Organizations.
 Originally, ERP packages were targeted at the
manufacturing industry.
 However ERP is not limited to any particular segment
of industry.
Disadvantage of ERP
Disadvantage of ERP
ERP also got some disadvantages of its own

System is too complex, no one can understand

everything.
Regular investment for training the user.
Expensive to install often ranging from 30,000 to
500,000,000 for multinational companies.
Centralized database system.
Too rigid in some companies.
Conclusion
ERP is recommended in an organization not only
because the advantages outnumber the disadvantages
but also by keeping in mind the ways to overcome the
disadvantages. An organization has to correctly weigh
the advantages and disadvantages of ERP before going
for them.
Thank You.

Presented by:
Group B
Alis Sinojiya
Amit Dodwani
Saunil Arora
Sarvesh Pandey