Already

Novembei ŷŴ

2010



COMPANY: A.R. ScientiIic & 4363 Surgical
Enterprises

NAME : RAHUL CHAUHAN

ROLL : 09

DEPARTMENT : INFORMATION MANAGEMENT
( 5
TH
TRIMESTER)


CONTENTS :


1. ABOUT COMPANY.
2. ERP SELECTION.
3. ERP IMPLEMENTATION.
4. ADVANTAGES OF E.R.P
5. DIS ADVANTAGES OF E.R.P
6.OPPORTUNITIES IN E.R.P
7.CHALLENGES IN E.R.P IMPLEMENTATION


OUT COMPNY

Founded in 2005 and headquartered in Ahmadabad is a
electronic company specializing in the enterprise resource planning
{ERP_ market for mid-sized companies . ¡ndependent of affiliation, it is
a new company but its growth rate is more than 32% its net worth is
more than 400 crore Rs.¡t is helpul to firms evaluate and select ERP
software, manages the implementation of the software, and facilitates
all related organizational changes to assure that each of its clients
realize the full business benefits of their ERP implementation. We
minimize ERP risk, accelerate implementation progress, and increase
the success and value of your ERP initiatives.

Three Key Steps to Effective ERP Software Implementations
O ERP 8oftware 8election
O ERP ¡mplementations
O ERP Organizational Chain Management




O We are independent and technology-agnostic
O eep and broad expertise with over 100 different ERP systems
O est practice and proprietary tools and methods
O ¡nternational group of consultants prepared to work on-site with
your team
O %eam with strong business, operational, and technology
backgrounds
O Focus on bringing measurable results and a positive RO¡ to your
ERP engagement
O We guarantee our work


ERP 8ELEC%¡ON

Using a proprietary ERP selection process, Panorama Consulting
Group helps clients find the ERP software that best fits their budget,
time-frame, industry, technological infrastructure and operational
needs.
Our clients benefit from the following advantages:
O ecause Our company is independent and technologically
agnostic, we don't push one software package or ERP vendor
over another to benefit our own bottom line.
O We take the time to get to know your business, understand your
operational model, get to know your people, and find the right fit
for your organization.
O We leverage a number of proprietary and proven tools designed
to help you minimize time, cost, and risk
O We guarantee our work and operate on a fixed pricing model.
We provide full ERP lifecycle consulting services, so our software
selection clients benefit from our hands-on


'NTES OF E.R.P

In the absence oI an ERP system, a large manuIacturer may Iind itselI with many soItware
applications that cannot communicate or interIace eIIectively with one another. Tasks that need
to interIace with one another may involve:
O Integration among diIIerent Iunctional areas to ensure proper communication,
productivity and eIIiciency
O Design engineering (how to best make the product)
O Order tracking, Irom acceptance through IulIillment
O The revenue cycle, Irom invoice through cash receipt
O Managing inter-dependencies oI complex processes bill oI materials
O Tracking the three-way match between purchase orders (what was ordered), inventory
receipts (what arrived), and costing (what the vendor invoiced)
O The accounting Ior all oI these tasks: tracking the revenue, cost and proIit at a granular
level.








IS'NTES OF E.R.P

Problems with ERP systems are mainly due to inadequate investment in ongoing training Ior the
involved IT personnel - including those implementing and testing changes - as well as a lack oI
corporate policy protecting the integrity oI the data in the ERP systems and the ways in which it
is used.
O Once a system is established, switching costs are very high Ior any one oI the partners
(reducing Ilexibility and strategic control at the corporate level).
O The blurring oI company boundaries can cause problems in accountability, lines oI
responsibility, and employee morale.
O Resistance in sharing sensitive internal inIormation between departments can reduce the
eIIectiveness oI the soItware.
O Some large organizations may have multiple departments with separate, independent
resources, missions, chains-oI-command, etc, and consolidation into a single enterprise
may yield limited beneIits.
O The system may be too complex measured against the actual needs oI the customers.
O ERP Systems centralize the data in one place. This can increase the risk oI loss oI
sensitive inIormation in the event oI a security breach.
O Customization oI the ERP soItware is limited.
O Re-engineering oI business processes to Iit the "industry standard" prescribed by the ERP
system may lead to a loss oI competitive advantage.
O ERP systems can be very expensive (This has led to a new category oI "ERP light"
solutions)
O ERPs are oIten seen as too rigid and too diIIicult to adapt to the speciIic workIlow and
business process.


ow uiu ERP penetiate on a vast scale in Inuia.
The Y2K problem and other diminishing opportunities of ÌT professionals
were seen as a big challenge to the ÌT market. This was not only the case
in Ìndia but else elsewhere in the globe. This proved to be a biggest
challenge to the nation who were banking (and are still) on ÌT skills for
development aspects (individual, economical and overall). The slump of the
ÌT sector would add drudgery and smash the hopes of so many individuals
and companies.
This problem in itself helped to get another important solution. Firstly this
paved way for more prospects in ERP market. The demand and supply
gradually transformed from general to enterprise resource market. Once
this got stabilized there was no looking back. Ìt was well evident that ERP
market could boom and give the necessary impetus to stakeholders.
However this did not mean that mediocre could survive in the market.
There was demand only for top notch services and professionals. This
naturally led to improvement in the quality of services offered. Such an
improvement increased the competition among various players. The end
user was getting assured that he would be receiving the best services for
the money invested. Case ERP in Ìndia got more and more competitive. The ERP implementation in Ìndia demanded
more than the custom erp Ìndia module. Suuuen change
Firstly they are bound to increase the scope of ERP in enterprise
operations. As discussed earlier ERP was initially restricted to back office
functions and later spread its wings to all the operations in the enterprise.
This naturally meant that the ERP manufacturers and vendors had to
increase the functionalities and scope of the application. There are practical
difficulties when it comes to this issue. The ERP experts will definitely be
able to restructure the ERP systems with the help of resources and
expertise available with them. However doing it all on sudden is a difficult
task. They must have been working with different requirements till then.
Compelling them to suddenly change will land things in a mess because
there will be lot of confusions for the vendors, manufacturers and end-
users. The unrealistic deadlines and time pressures further add agony to
this menace.










echnical factois
Secondly ERP in the nation calls for a restructuring in the technical
aspects. This is definitely appreciable. The fate of the businesses that have
already implemented and deployed ERP remains a big question mark. No
doubt change is inevitable and an element for growth. However it would be
next only to impossible to change even before the current change has
stabilized in the market. This is advantageous for the companies that go for
ERP at the first instance .But when it comes to companies that already run
successful ERP systems they have to stick on to the technical changes or
ship out from the market. They can decide to stick on to change but it will
cost them heavily. They can work on to find some replacement technology
rather than going for an all round change. The effectiveness of the
replacement is an important issue.
ZSZUW
This is another important determinant of ERP market in Ìndia. Some bigger
companies still hesitate to invest in ERP due to the exorbitant costs. Ìt is
indeed encouraging to find that a vast majority of them have realized its
benefits and have determined to go for it. However some of them are
keeping quiet due to the risks involved besides the unforeseen expenses
and losses.
[ZUa_[Z
The ERP market in Ìndia is definitely promising. However Ìndia has got a
long way to go when it comes to Ìmproving ERP in terms of technology,
scope and applicability in terms of opportunities and venues, penetration in
terms of sectors like education, employment and the state run offices.






ERP impIementation is always a tough job for the organizations. To get
successful implementation organizations need to be very careful. When
SMEs think about ERP implementation, they identify the need of an ERP
system. They prepare pre-implementation strategy for enterprise software.
This strategy involves identification of business needs, budgeting for the
procurement of ERP software and services, evaluation of various ERP
software to suite its business process. After finalizing the enterprise
software they start the implementation and finally adopt the ERP system as
an organization wide solution. The major challenges of an ERP
implementation for an organization are:

SeIection of ERP software:

This is a very critical decision that an organization needs to take. However
it is vital to consider the size of the business operations, the projected
growth in the years to come, geographical spread, nature of business and
investment figure
Ìt shall have aggressive schedule and proven path for implementation.

Taking a time more than a year takes its seriousness and positive feeling of
getting changed for for better business away and leads no where.

Temporary Change in the business shall not effect the implementation of
erp and its software.

During implementation of erp time,resources and work shall be taken into
consideration and plan
shall be laid down for it.

So erp implementation can be divided into parts like different departments
and they can be integrated at the later stage .This gives the advantage of
seeing the results in one department and hence resources can be
effectively utilized by the next departments.



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