Enterprise Resource Planning

The Power of Integration

JIM Dharmendra Arora 1

 Enterprise Resource Planning
What is an ERP?
• It is an industry term for the broad
set of activities supported by multi-
module application software that
helps an organization manage the
important parts of its business,
including Product Planning,
Purchasing, Inventory Management,
Supplier Profile, Customer Service,
HR, Marketing, Production, Finance
etc.

JIM Dharmendra Arora 2

JIM
Dharmendra Arora
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Enterprise Resource Planning

 Enterprise Resource Planning
Marketing
HR

Finance/
InventoryProduction

ERP

JIM Dharmendra Arora 4

 Enterprise Resource Planning
Understanding Technically
Each department typically has its own
computer system optimized for the
particular ways that the department
does its work.
ERP combines them all together into a
single, integrated software program
that runs off a single database so that
the various departments can more
easily share information and
communicate with each other.
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JIM
Dharmendra Arora
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Enterprise Resource Planning

JIM
Db
ERP

Dharmendra Arora
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Enterprise Resource Planning

 Enterprise Resource Planning
What is an ERP?
• It is an industry term for the broad set
of activities supported by multi-module
application software that helps an
organization manage the important
parts of its business, including Product
Planning, Purchasing, Inventory
Management, Supplier Profile, Customer
Service, HR, Marketing, Production,
Finance etc.
• SAP, BAAn, JD Edwards

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 Enterprise Resource Planning
Benefits
• Seamless integration across the geography
• People in these different departments all see the same
information and can update it.
• When one department finishes with the order it is
automatically routed via the ERP system to the next
department.
• To find out where the order is at any point, you need
only log in to the ERP system and track it down.
• Customers get their orders faster and with fewer
errors than before.
• ERP can apply that same magic to the other major
business processes, such as employee benefits or
financial reporting.

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 Enterprise Resource Planning
Benefits Described
• Integrate financial-ERP creates a single
version of the truth that cannot be
questioned because everyone is using the
same system.
• Integrate customer order information
-ERP systems can become the place where
the customer order lives from the time a
customer service representative receives it
until the loading dock ships the merchandise
and finance sends an invoice.

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 Enterprise Resource Planning
Benefits Described
• Standardize and speed up
manufacturing process-ERP
systems come with standard methods
for automating some of the steps of a
manufacturing process. Standardizing
those processes and using a single,
integrated computer system can save
time, increase productivity and reduce
head count.
• Reduce inventory
• Standardize HR information
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 Enterprise Resource Planning
Selecting An ERP
• Figure out the core needs
• Research the market
• Choose best fit
• Ask referrals
• Consider ROI
• Consider Implementation & after sale
support
• Customization needs
• Integration Issues

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 Enterprise Resource Planning
Implementation- Most Imp
• Generally done by implementation
partners
• Choose the best fit as per business
requirement
• Affects Business Process
• People – Training
• Transformation Phase
• Time Taken
• Expenses
• Backup Plan
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Enterprise Resource Planning