y What is an Enterprise. y Why an Enterprise. y What is an ERP. y Benefits of ERP. y Advantage of ERP. y Importance of ERP. y Common Myths. y Disadvantage of ERP. y Conclusion.
y Enterprise act as a single entity.
.What is an Enterprise?
y A corporate entity. anything from chai ki kitli to
Reliance or TELCO or Hindustan Lever. which has certain resources at its disposal to achieve this goal. y Def: An enterprise is group of people with common goal.
instead of taking organization toward on goal. y No communication between departments y Each department work in isolation.
. Production etc. they pull each other. y Results into. y Each department may have their own data. Accounts.Why an Enterprise?
y In traditional approach. Sales. organization is divided
into different department based on the function they perform like R&D. Marketing.
. the entire organization is considered as a system and all the departments are its sub-systems. y Information about all aspects of organization is stored centrally and is available to all departments. y In the enterprise way.Why an Enterprise?
y All functional departments should share a central
database to know what the others are doing.
from finance to shop floor.
. y ERP software is designed to model and automate many of basic processes of a company.What is ERP?
y ERP is an abbreviation for Enterprise Resource
Planning. y ERP is a set of tools and processes that integrates departments and functions across a company into a one computer system. y 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.
Benefits of ERP
y Various benefits of ERP are
y Improve business performance
Cycle time reduction y Increased business agility (Quickness) y Inventory reduction y Order fulfillment improvement y Provide flexible. real-time decision support y Improve responsiveness across the organization
Benefits of ERP
y Eliminate limitation in legacy systems
Century dating issues y Fragmentation of data and processing y Inflexibility of change y Unsupported technologies y Take advantages of the untapped mid-market y Increased functionality at a reasonable cost y Client-server / open systems technology y Vertical market solutions
y Better analysis and planning capabilities.
. y Information integration for better decision making. y Faster response time to customer queries.Advantage of ERP
y Implementing ERP has many advantages
& Indirect y Direct y Improved efficiency. y Use of latest technology.
.Advantage of ERP
y y y
Better corporate image. Improved customer satisfaction. Improved customer goodwill.
thus making operation of organization effective. organizations must deliver
products of highest quality on time. y ERP has proved to be an effective tool in achieving these objectives. y ERP can identify what is required. y ERP unifies a company and transform the way organization do business.
.Importance of ERP
y To be competitive. as quickly as possible and at the best possible price. when it is needed and how much is needed.
.Importance of ERP
y ERP does the following :
y ERP affects almost all organizations irrespective
of their size and nature. streamlined many day-to-day operations and helps organization in serving customers better. y ERP has changed the way organizations do business by automating many business processes.
. y ERP has changed the nature of jobs in all functional business area. y When one organization implements ERP the competitor have no option other than to follow suit.Importance of ERP
y ERP forces the competition to change their
strategies and process y A properly implemented ERP system is a strategic weapon and can help in beating the competition and getting ahead.
y SAP s mySap business suite incorporates 10000+ best practices. The decision makers can make better decisions and may operate on real-time.Importance of ERP
y ERP influences business partners to become more
competitive y ERP systems automate the business processes and make organization more responsive. y ERP enforces Best Practice Business Process in organizations y ERP systems are based on so-called best practice business processes the best ways of doing processes.
y With ERP system you can get more satisfied customers.Common Myths
y ERP will Make many Employees redundant and
Jobless y A properly implemented ERP system will automate many tasks in organization. However there will be change in job descriptions and in the activities people do. y ERP is just to impress customers y ERP system can help in serving customer better.
. This does not mean that many will lose their job.
operated and maintained system can dramatically improve productivity. But these expenses should be weighed against the benefits of the ERP system. y ERP packages come in all shapes and sizes.Common Myths
y ERP Package will take care of everything. y ERP is very expensive. However. reduce wastage and improve productivity.
ERP system will not cure all.
. properly implemented. The sophisticated and high end tools are very expensive. automate tasks.
y ERP is just for Manufacturing Organizations.
implemented ERP are managers and decision makers. y However ERP is not limited to any particular segment of industry. y ERP provides information on fingertips for making decision. y Originally.
y People who get most benefit from a properly
. ERP packages were targeted at the manufacturing industry.Common Myths
y ERP is just for Managers/Decision makers.
Disadvantage of ERP
no one can understand y y y y
everything. Expensive to install often ranging from 30. Centralized database system.Disadvantage of ERP
ERP also got some disadvantages of its own
y System is too complex. Regular investment for training the user.000 to 500.000.000 for multinational companies.
. Too rigid in some companies.
. An organization has to correctly weigh the advantages and disadvantages of ERP before going for them.Conclusion
y 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.
Presented by: Group B Alis Sinojiya Amit Dodwani Saunil Arora Sarvesh Pandey