ENTERPRISE RESOURSE PLANNING(E.R.

P)

Agenda

What is ERP How ERP works Solutions of ERP Business scenario W/O and With ERP Current Scenario Why ERP ERP Packages in Market Cost Components in ERP Packages ERP Advantages Risk Factors

ERP - Definition
Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform

What is Enterprise Resource Planning (ERP)?

ERP is an enterprise-wide information system designed to

coordinate all the resources, information, activities needed to complete business processes such as; order fulfillment billing.

How ERP Systems Works?

A typical ERP system would use multiple

component of computer software and hardware to achieve integration

ERP delivers a single database that contains all

data for the software module

ERP Functionality
Finance
-General Ledger -Accounts Receivable -Accounts Payable -Procurement -Fixed Assets -Treasury Mgmt -Cost Control -Grant Management

Human Resources
-HR/Benefits Administration -Payroll -Self-service HR

e-Business
-eProcurement - Employee Self Service - e-Recruiting/e-Hiring - e-Filing - Citizen Access - Web-enabled transactions - e-Commerce

Transaction Engine
Core software that manages transaction flow among applications and handles tasks like security and data integrity

Customer Relationship Mgt

Data Analysis
Decision support software that lets senior executives and other users analyze transaction data to track business performance

Supply Chain Mgmt

Planning, scheduling and fulfillment applications that address all procurement requirements across the enterprise

-Consistent user experience - Personalization of services - Realtime access- enterprise info

Solutions of ERP
Financial Management Inventory Management Purchasing Sales Management Production Planning Advanced Visual Planning Manufacturing Management

Example: Before ERP Systems

Transfer to Accounting Office

Secretarys New printer application

Companies after ERP Systems

In this real case there the benefits of the ERP systems

Online Data Flow decreases the process time Fast & Online Confirmation Less Paperwork No need for folder storage Database Security Less Employee needed Easy Financial Management Better Inventory Management

Typical ERP Integration

Typical ERP Technology

The Current Scenario

Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software platforms & practices Poor connectivity between different organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop integrated software

Why ERP?
For Management to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival

ERP Product selection Criteria

Goal: To select the Most Suitable Software Package Solution Functionality

5 Strategic Requirement Levels

Technology

Vendor

Support

Costs

The Steps

BPR - Steps
Step 1 Understand Understand the existing systems associated with all the functionalities Step 2 Simplify/Improve Draft & frame the possibilities & ways to simplify or Improve or eliminate the processes Step 3 Automate Implement with the help of ERP

Beyond ERP
Supplier Collaboration

Supply Chain Management

Key Process Integration via ERP

Product Lifecycle Management
Customer Management

Design Partners

Consumers and Channels

ERP Software Packages (Ready Made)

SAP Baan Peoplesoft Oracle Application JD Edwards

ERP Software Companies & Marketshares

Software SAP Market Share 15.6

Peoplesoft
SAP; 15,6 Peoplesoft; 4,9 Oracle ; 4,8 Baan; 3 Others ; 59 CA; 3 JDE; 2,2 SSA; 2,1 GEAC; 2 IBM; 1,8 JBA; 1,7

4.9
4.8 3.0 3.0 2.2 2.1 2.0

Oracle Baan CA JDE SSA GEAC

IBM
JBA Others

1.8
1.7 59.0

ERP System- Cost Components

Hidden Cost of ERP

Training Integration and Testing Data Conversion Data Analysis Consultants ad infinitum Replacing your best and brightest Implementation team never stops

OUTPUTS of ERP Systems

DOCUMENTS
Printer
Proposal Orders approval

Fax

Delivery plans
Shipping papers Warehouse check list Material document

Telex

Mail

Accounting document
Delivery/shipping document Invoice Dept & credit doc.

Teletext

EDI

Advantages of ERP

Business Integration Flexibility Better Analysis and Planning Capabilities Use of Latest Technologies

Business Integration
It Promotes integration Automatic Data Updating and exchange Data is available in Real Time Managerial Decisions can be carried

effectively

Flexibility
Conversion from one system to another Functions exist that can manage comprehensive

data across multiple locations Better Management Functionality

Use of Latest Technology

Utilization of the latest developments in

Information technology. ERP has many functions and will be necessary for future systems

Critical Success Factors

The firm & optimistic approach of the Management - on adapting the ERP product driven methodologies - on customization - on monetary commitments The dedicated Team Good Training Strict adherence to the Project schedule Right technical infra-structure Change Management

Why do ERP Implementations Fail?

Requirement of good people who know the business Vendor should be good and his package best suited to

companys needs The ERP Consultants should be good The implementation should be planned well and executed perfectly. Wrong product Incorrect Implementation

Thanks for your Participation & Co-operation