A Project Report On

“A STUDY ON ORGANISATIONAL BUYING BEHAVIOUR FOR

ERP SOFTWARES IN PUNE CITY” Submitted to University of Pune In Partial Fulfillment of the Requirements for Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION By MOHAMMAD FAROOQ

Under the Guidance of
Prof. MEENU S. PRIYA

SINHGAD INSTITUTE OF TECHNOLOGY, LONAVALA (2012-2014)

DECLARATION

I hereby declare that the project entitle ―Organizational Buying Behavior for ERP Softwares in Pune City‖ Submitted to Pune University in partial fulfillment of the requirements for award of the degree of MBA under the guidance of ―Prof. Meenu S. Priya‖ at Sinhgad Institute of Technology affiliated to Pune University, is an authentic and original work and the conclusion drawn therein are based on the material collected by myself and has not been submitted to any other University/Institute for award of any degree/diploma.

Place: Date: FAROOQ MOHAMMAD

CONTENTS

CONTENT ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES CHAPTER I: Introduction CHAPTER II: Company Profile CHAPTER III: Research methodology CHAPTER IV: Data Analysis and Interpretation CHAPTER V: Findings and Suggestions CHAPTER VI: Conclusion BIBLIOGRAPHY ANNEXURES

Page no.

ACKNOWLEDGEMENT

I take this opportunity and privilege to express my deep sense of gratitude to Professor M.N. Navale, Honorable Founder President, Dr. (Mrs.) S.M. Navale, Founder Secretary, The Sinhgad Technical Education Society, Pune and Dr. Parag Kalkar, Director SIBACA. They have been a source of inspiration to me and I am indebted to them for initiating me in the field of research. I am deeply indebted to Faculty Member, SIBACA, Prof. Meenu S. Priya, my research guide at Sinhgad Institute of Technology, Lonavala without whose help completion of the project was highly impossible. I take this opportunity and privilege to articulate my deep sense of gratefulness to the Managing Director, Mr. Mrutunjay Kumar and the staff of the Revenir Development System Pvt Ltd. for their timely help and positive encouragement. I wish to express a special thanks to all teaching and non-teaching staff members of Sinhgad Institute of Technology, Lonavala for their continuous support. I would like to acknowledge all my family members, relatives and friends for their help and encouragement.

Place: SIT, LONAVALA Date: FAROOQ MOHAMMAD

LIST OF TABLES Table No. Table No. Table No. Table No. Table No. Table No. Table No. Title of the Table Page No.

LIST OF FIGURES Figure No. Table No. Table No. Table No. Table No. Table No. Table No. Title of the Figure Page No.

EXECUTIVE SUMMERY

Summer training of management student plays an important role to develop one into a well groomed professional. It gives theoretical concepts and practical shape in a field of applications. It gives an idea of dynamic & versatile professional world as well as an exposure to the intricacies & complexities of corporate world. This research was carried out for 2 months for Revenir development system in Pune. This was a research which was mainly conducted to tap the potential market for ERP solutions in manufacturing and retail sector. As a part of this research a thorough study was done to first understand what is ERP solutions and how is it beneficial to the this sector so that the target market could be made aware of this. The use of ERP has been growing with a high speed. All the other sectors like IT, construction, telecommunication etc have been using this software. Retail sector is one of the few sectors which is not well acquainted with this concept. So this research included to know how many people are aware of this concept in this sector and for those who are not aware, to make them aware of this concept and tell them ERP’s advantages, also to find customers who want install or replace existing ERP as potential customer for company. REVENIR DEVELOPMENT SYSTEM is Punebased company. It wanted to know how potential does Pune market has. So this research was conducted in order to understand the understanding of manufacturing and retail sector towards ERP, to explain them the meaning and advantages of ERP and in knowing their needs. With all this Revenir development system Pvt Ltd could decide the potential market in Pune and also what are their needs so that they can provide an ERP as per the needs.

CHAPTER-I INTRODUCTION

What is Organizational Buying Behaviour:

Organization buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

Some of the characteristics of organizational buyers are:

1. Consumer market is a huge market in millions of consumers where organizational buyers are limited in number for most of the products. 2. The purchases are in large quantities. 3. Close relationships and service are required. 4. Demand is derived from the production and sales of buyers. 5. Demand fluctuations are high as purchases from business buyers magnify fluctuation in demand for their products. 6. The organizational buyers are trained professionals in purchasing. 7. Several persons in organization influence purchase. 8. Lot of buying occurs in direct dealing with manufacturers.

Participants in the Business Buying Process:

Buying Center Concept Webster and Wind in the model they proposed to describe organizational buying process, identified the organizational buying process as a team process and called the team or the buying decision-making unit of the organization as buying center. The buying center consists of all persons of the organizations who are involved in the buying process playing one or the other seven roles: Initiators, Users, Influencers, Deciders, Approvers, Buyers, and Gatekeepers.

Users The persons who use the item. Say for safety gloves the operators.

Initiators The persons who request the purchase. The safety officer may initiate the request for the purchase.

Influencers Persons who held define specifications. In this case of safety gloves, the safety officer may himself define specifications. If an industrial engineer is in the organization, he may also be consulted. There can a different gloves for different working situations and industrial engineer may be more aware of specific requirements due to his special nature of work - human effort engineering.

Buyers They are the person who actually do the buying transaction.

Gatekeepers They control access to personnel in a company. The receptionist, the secretaries etc.

Deciders People who decide on product requireements and suppliers. It is the final approval for product specfications and suppliers' list.

Approvers Persons who approve the purchase. In the case of safety gloves, the personal manager may have the power to approve.

Major Influences on Business Buyers:

Environmental factors Expected demand for the product that the buying organization is selling, expected shortages for the item, expected changes in technology related to the item etc. are the environmental factors that will have an effect.

Organizational factors Changes in purchasing department organization like centralized purchasing, decentralized purchasing and changes in purchasing practices like long-term contracts, relationship purchasing, zero-based pricing, vendor-performance evaluation are the organization factors of importance to marketers.

Interpersonal factors These factors are the relationship between buyers and sales representatives of various competitor companies.

Individual factors These factors related to the buyer. What sort of ways of interacting and service are appreciated by the buyers and what ways are considered as irritants? Marketers have to understand the reactions of buyers.

Organizational Buying Process:

     

Steps in the Process Problem recognition General need description Product specification Supplier search Proposal solicitation

LITERATURE REVIEW
The literature review takes a look at some useful publications relating to state-of-art in medical software and associated features of the systems. Evidently, management software is an innovation that is still emerging. As such, it has not yet been adequately covered in literature and empirical studies on it are hard to find. Presently, it appears existing paucity in publications embracing this innovative technology, will take a while to change. For the moment however, we will suffice with the few available literature associated with electronic ticketing. The pharmacy business is no longer just about prescriptions. Today you depend on front-of-store retail operations to maintain margins, fuel growth, and meet the growing expectations of your customers. Now day’s customers expect more. They shop where they find the products they want, when they want them, at competitive prices. Where they receive fast, knowledgeable service. And where they feel their patronage is valued and rewarded. Business Retail Software Helps Grow the Company Bottom Line By:

     

Optimizing front-end inventory management—for improved loyalty, greater sales, lower costs and a better return on assets Automating purchasing and helping you buy smarter Enabling a profitable and targeted loyalty program Improving financial control throughout your operation with integrated accounting and analytics Enhancing the customer experience—at the point of sale and throughout the business Extending business everywhere with powerful mobile tools and online solutions.

NEED FOR STUDY
In order to conduct any study it has to be seen whether it is going to solve any of the problems related to the product, service or the organisation as a whole. Similarly this study of Organisational Buying Behaviour for ERP Softwares in Manufacturing companies, Hospitals, is quite an important thing for REVENIR DEVELOPMENT SYSTEM LTD because it will help organisation to grow the business in manufacturing and retail sector. The study will also benefit the customers as the researcher is providing all the information about ERP to them. They will come to know how an ERP solution can integrate all their business activities and help them to easily coordinate all these activities.

STATEMEENT OF PROBLEM
A project report on ―Study of Organisational Buying Behaviour for ERP Softwares for REVENIR DEVELOPMENT SYSTEM PVT LTD PUNE. The main objective was to tap the potential market for ERP solutions in the manufactruing and retail industry. The need for study arose to know how many organizations are aware of standard ERPs and what are the various factors which affect the buying decision of ERP Software. Also To know what other software are being used in manufacturing and retail industries and to analyze what support competitors offerings in market.

OBJECTIVES OF THE STUDY
 To know the awareness regarding ERP Softwares.  To determine the factors which influence the buying of ERP Softwares by the Organizations.

SCOPE
Scope management is an essential part of any project. When scope management of a project is not properly done, the success of that project can easily be in jeopardy. In other words, ―managing scope is one of the most critical aspects of managing a project‖. More, ―scope management can be more important to project success than any of the other individual knowledge area‖ As this is generic software it can be used by a wide variety of outlets (Retailers and Wholesalers) to automate the process of manually maintaining the records related to the subject of maintaining the stock and cash flows. The study is intended to develop an understanding of trust toward adoption of medical software in market It focuses on the current demand and perception of chemist while using these software.

CHAPTER-II COMPANY PROFILE

COMPANY PROFILE

REVENIR DEVELOPMENT SYSTEM PVT LTD
Revenir means to return and that is exactly what we do. We help you return to doing what you should be doing ... growing your business. Whether you are the CFO or the CIO, telecommunications probably isn’t one of your core competencies. It is, however, ours! We can take telecom costs, among a company’s highest non personnel expenses, and find huge opportunities to increase efficiency, service and reduce expenses. We help you control the costs of mobile technologies, work with each of your carriers to ensure you are getting the very lowest rates and audit all your telecom expenses. Then we automate the whole process. Ultimately we save you time, confusion, effort and money We collborate with our customers from project conceptualization and throughout the life cycle, covering technical and administrative aspects. We select and mantain our development and testing tools, using industry best practices to achieve the best ROI. Designing interventions that reflect the best validated current research, so we are constantly aware of our own development needs.We runs IT smarter, faster and stronger. That’s why the most demanding IT organizations in the world rely on RDS Software across distributed, mainframe, virtual and cloud environments. Recognized as the leader in Business Service Management, RDS offers a comprehensive approach and unified platform that helps IT organizations cut cost, reduce risk and drive

business profit.We are a company of diverse, talented people with a passion for pursuing excellence in all that we do. To deliver the greatest results for our clients—and our stakeholders—we remain dedicated to staying at the forefront of business and technology trends. Our values are grounded in strong ethics, transparency and openness. Clients trust us, and we generally form long—lasting relationships that make us integral contributors to their organizations. In fact, 90+% of our clients return to us when they begin new initiatives. You’ll find a global, inclusive and a richly diverse workforce. Our employees represent almost every nationality on earth so you’re sure to fit in. Ours is a vibrant, energetic environment, achievement oriented and filled with opportunity. It is a community of the best and brightest professionals, working as close, collaborative teams, but also empowered individually to act in the best interests of clients. Under strong leadership, we expect continuing growth and global expansion. Flexibility and adaptability is built into our model. We have an advanced global delivery platform—with a full complement of technology and consulting services across most major industry segments, and a model that positions us well into the future. Our mandate is to introduce people to the new world of Information Technology. Our goal is to make a positive impact on all involved and to be effective role models as technologists. Our vision is to emerge as a dynamic, tech savvy, customer centric and progressive world of Information Technology. We hope to introduce new technology to the world. Our vision statement can be encapsulated in our corporate philosophy and motto of `building quality with economy’. To envision, design and construct the most magnificent landmarks and edifices; to contribute tangibly in regional and national development by way of key infrastructure projects, and to protect and preserve the environment we live in that too with economy. At the end of the day, our vision is about making the world a better place to live in; to transform and uplift quality of living and lifestyles of each and every individual that comes in contact with us.

Client’s Of Company

PRODUCTS PROVIDED BY COMPANY

APPLICATION MANAGEMENT

Out IT professionals responsible for controlling coast, delivery of products with the quality, Responding the ever continues changing need of the busi

ATTENDACE MANAGEMENT

Organizations of all sizes use time and attendance systems to record when employees start and stop work, and the department where the work is performe

BANKING SYSTEM

Banking

Software

is

rapidly

increasing

its

relevance

in

today's

global

society.

Typically Banking Software refers to Core Banking Software and inte

CRM SOFTWARE

Customer relationship management (CRM) is all about managing the relationships you have with your customers - We provide innovative, budge

E-LEARNING

E-learning includes all forms of electronically supported learning and teaching, including Edtech. The information and communication systems, whether

ONLINE HOTEL MANAGEMENT

Online hotel reservations are becoming a very popular method for booking hotel rooms. Travelers can book rooms from home by using online

PAYROLL SOFTWARE

Payroll Software , is an integrated accounting system which takes care of all business needs. It incorporates powerful features for maint

OFFICE MANAGEMENT

Office Management Software is described as software which can manage a Small Medium Business Office. Currently there aren't many solutions whic

INVENTRY MANAGEMENT

Inventrymanagment is primarily about specifing the size and placement of stocked goods. Inventrymanagment is required at different locations within

MATRIMONY PORTAL

Online Matrimony is an organized web based Matrimonial/Marriage service facilitating wishful young men and women to find their suitable l

MOBILE SECURITY

Mobile security or mobile phone security has become increasingly important in mobile computing. It is of particular concern as it relates to the secur

ONLINE EDUCATION

Online Education includes all forms of electronically supported learning and teaching, including Edtech. The information and communication syst

HOSTEL MANAGEMENT SYSTEM

LoremIpsum is simply dummy text of the printing and typesetting industry. LoremIpsum has been the industry's standard dummy text

INTERNET MARKETING & SEO

RDS has dedicated team of technical Internet Marketing & SEO experts for Internet Marketing and SEO Services Our experts provide effe

ERP SYSTEM

Enterprise resource planning (ERP)systems integrate internal and external management information across an entire organization, embracing fina

CONCEPT
ERP Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. Software solution that addresses enterprise needs taking the process view of an organization to meet the organizational goals by tightly integrating all functions of an enterprise. Facilitates company-wide integrated information systems covering all functional areas. Performs core corporate activities and increases customer service augmenting corporate image An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on

a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity

Components/ modules

Transactional Backbone
o o o o

Financials Distribution Human Resources Product lifecycle management

Advanced Applications
o o

Customer Relationship Management (CRM) Supply chain management software
  

Purchasing Manufacturing Distribution

o 

Warehouse Management System

Management Portal/Dashboard
o

Decision Support System

These modules can exist in a system or utilized in an ad-hoc fashion. Many organizations do not have sufficient internal skills to implement an ERP project. This results in many organizations offering consulting services for ERP implementation. Typically, a consulting team is responsible for the entire ERP implementation including. 1. selecting 2. planning 3. training 4. testing 5. implementation

6. delivery of any customized modules. Examples of customization includes creating processes and reports for compliance, additional product training; creation of process triggers and workflow; specialist advice to improve how the ERP is used in the business; system optimization; and assistance writing reports, complex data extracts or implementing Business Intelligence. For most mid-sized companies, the cost of the implementation will range from around the list price of the ERP user licenses to up to twice this amount (depending on the level of customization required). Large companies, and especially those with multiple sites or countries, will often spend considerably more on the implementation than the cost of the user licenses—three to five times more is not uncommon for a multi-site implementation. Unlike most single-purpose applications, ERP packages have historically included full source code and shipped with vendor-supported team IDEs for customizing and extending the delivered code. During the early years of ERP the guarantee of mature tools and support for extensive customization was an important sales argument when a potential customer was considering developing their own unique solution in-house, or assembling a cross-functional solution by integrating multiple "best of breed" applications ERP’s best hope for demonstrating value is as a sort of battering ram for improving the way your company takes a customer order and processes it into an invoice and revenue—otherwise known as the order fulfillment process. That is why ERP is often referred to as back-office software. It doesn’t handle the up-front selling process (although most ERP vendors have developed CRM software or acquired pure-play CRM providers that can do this); rather, ERP takes a customer order and provides a software road map for automating the different steps along the path to fulfilling it. When a customer service representative enters a customer order into an ERP system, he has all the information necessary to complete the order (the customer’s credit rating and order history from the finance module, the company’s inventory levels from the warehouse module and the shipping dock’s trucking schedule from the logistics module, for example).

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. With luck, the order process moves like a bolt of lightning through the organization, and 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 ERP with e-commerce ERP vendors were not prepared for the onslaught of e-commerce. ERP is complex and not intended for public consumption. It assumes that the only people handling order information will be your employees, who are highly trained and comfortable with the tech jargon embedded in the software. But now customers and suppliers are demanding access to the same information your employees get through the ERP system—things like order status, inventory levels and invoice reconciliation—except they want to get all this information simply, without all the ERP software jargon, through your website. E-commerce means IT departments need to build two new channels of access in to ERP systems—one for customers (otherwise known as business-to-consumer) and one for suppliers and partners (business-to-business). These two audiences want two different types of information from your ERP system. Consumers want order status and billing information, and suppliers and partners want just about everything else. Traditional ERP vendors are having a hard time building the links between the Web and their software, though they certainly all realize that they must do it and have been hard at work at it for years. The bottom line, however, is that companies with ecommerce ambitions face a lot of hard integration work to make their ERP systems available over the Web. For those companies that were smart—or lucky—enough to have bought their ERP systems from a vendor experienced in developing e-commerce wares, adding easily integrated applications from that same vendor can be a moneysaving option. For those companies whose ERP systems came from vendors that are less experienced with e-commerce development, the best—and possibly only—option

might be to have a combination of internal staff and consultants hack through a custom integration. But no matter what the details are, solving the difficult problem of integrating ERP and e-commerce requires careful planning, which is key to getting integration off on the right track. One of the most difficult aspects of ERP and e-commerce integration is that the Internet never stops. ERP applications are big and complex and require maintenance. The choice is stark if ERP is linked directly to the Web—take down your ERP system for maintenance and you take down your website. Most e-commerce veterans will build flexibility into the ERP and e-commerce links so that they can keep the new ecommerce applications running on the Web while they shut down ERP for upgrades and fixes Package Led Services Today, enterprises need to invest in technology to keep pace with the market changes and also to survive in an intensely competitive world. Some of the necessary investments include those impact operations and ultimately the business such as ERP, SCM, CRM, HRM and so on. Enterprises will have to start with evaluating packages based on their unique business challenges and develop a roadmap to implement these packages. This requires not only an understanding of your business context but also a deep knowledge of prevailing packaged application software in the market and industry best practices.

At RDS, we have an established service where we can help you evaluate the various packages available and arrive at a decision that is most likely to work for your requirements. In addition, we can implement, customize the packaged software and maintain it, ensuring your bandwidth is freed up to focus on your core competencies.

We have a proven track record in helping enterprises establish and maintain ERP implementation, MS Dynamics implementation and Oracle e-business implementation.

Collaboration & Content Management

Enterprises today recognize the significance of a rich, easy-to-use, collaborative and personalized user experience for collecting, managing, and exchanging information. With large volumes of content in various forms and formats, you realize the need for effective Enterprise Content Management solutions that help in improving customer service. RDS’s content management and collaboration solutions provide enterprises with services in design, development and implementation in combination with industry best practices across a multitude of sectors. We effectively capture, store, manage and distribute content using robust, modern and cost-effective solutions. Our solutions and services include:
     

Collaboration and Knowledge Management Enterprise Portal or Web Content Management solutions Records and Document Management Design and development of portals, intranet sites, knowledge management portals & websites Maintenance & Support Functional & Non-functional testing

We leverage our partnerships with leading content management solution providers such as Microsoft, Sitecore and Kentico to realize ROI for IT investment through better collaboration and higher business process efficiencies. Our in-house accelerators such as frameworks, integration bridges, web-parts and other reusable components reduce the total cost of ownership by 40%-60% while reducing postdeployment maintenance and support costs. RDS’s solutions help you improve efficiency in corporate operations by effective knowledge management and improved enterprise processes. Our customized solutions will:

Help users collaborate effectively and act as a knowledge repository

Provide an aggregated view of various projects and portfolios for improved decision making

Help knowledge architects build a visual enterprise model that captures the attributes of various entities

Proposal Management Solution Proposal Management Solution A well crafted sales proposal can reap multi-fold benefits for an organization. However, writing proposals is often time-consuming as well as error-prone. Proposals fail due to a number of reasons such as a mismatch between the offerings and requirements, poor substantiation for claims, lack of front-end planning or marketing intelligence, or the simple failure to give the buyer what he asked for. Most often this critical task does not get the attention it requires in corporate environments in terms of defining the governing process and providing the right infrastructure. It invariably results in loss of efficiency in addition to frustration amongst the people involved in this largely manual process. As the result, the ability to respond effectively to the client and win new business is significantly impaired.

The answer to this issue is a well laid proposal management system which addresses the following –
    

Managing the team working environment Managing reviews and versions Securely archiving past proposals for future search and referencing Allowing the implementation and enforcing approval processes Tracking and removing any non-compliance as well as be able to access other applications.

ERP for Engineering, Construction & Operations
Business Processes ERP for Engineering, Construction & Operations (ERP for EC&O) enables you to perform a wide range of critical activities, including: Business development – ERP solutions help you develop strategic new business – going beyond standard practices to use new strategies that deliver better results. With ERP for EC&O, you can conduct intensive market and risk analysis and plan the timelines and budgets for projects. You can also manage the bid process, taking into account competitive and customer information. Project management – ERP solutions support robust project planning and management. You can create accurate baseline budgets and schedules and manage downstream variations in definition, scope, costs, and other variables. ERP for EC&O addresses end-to-end project management, from planning, scheduling, and project execution to contract management and project controlling. Design and engineering – ERP solutions enable effective management of the entire design and engineering phase, including both basic design and detailed design and engineering. With ERP for EC&O, you can integrate CAD systems to enable ERP-supported computer-aided facility management (CAFM), develop and manage documents, and collaborate easily with subcontractors, vendors, and clients. Building – ERP solutions support key activities in the build phase, including site materials management, workforce management, equipment and tools management, prefabrication and assembly, and commissioning, start-up, and handover. You can interact with strategic partners, manage documents, and track the shipment and quality of materials. Procurement – ERP solutions help you evaluate potential business partners and relevant quotations, build valuable relationships with subcontractors and suppliers, and measure performance over time. You can give suppliers and

subcontractors secure access to internal functionality for processing orders, managing invoices, and updating specifications to maximize the efficiency of purchasing activities. And, during project execution, you can monitor and analyze available resources and ensure prompt delivery of good-quality materials and services. Facility and plant operations – With ERP solutions, you can manage the entire life cycle of operating buildings and plants. ERP for EC&O provides full support for marketing and sales, property structure management, facility and plant maintenance, real estate management, and service operations. NEED OF ERP To achieve clarity and transparency, best-run businesses are using SAP solutions to help close the gap between strategy and execution – optimizing the performance of the business as well as the business network. SAP solutions, along with services and a wealth of extended value from the SAP customer-focused ecosystem, help customers become clear enterprises by providing insight for improved performance, efficiency for optimized operations, and flexibility to quickly adapt to changing circumstances. With broader insight, improved efficiency, and greater flexibility, companies can become more:
  

Transparent and accountable Lean and agile Customer centric and collaborative

The clarity provided by the SAP portfolio and the ecosystem can help companies preserve profitability by addressing challenges such as cash management, risk mitigation, customer loyalty, streamlining of operations, sustainability, and talent management

Advantages
In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another. Tasks that need to interface with one another may involve. ERP systems connect the necessary software in order for accurate forecasting to be done. This allows inventory levels to be kept at maximum efficiency and the company to be more profitable.

Integration among different functional areas to ensure proper communication, productivity and efficiency

    

Design engineering (how to best make the product) Order tracking, from acceptance through fulfillment The revenue cycle, from invoice through cash receipt Managing inter-dependencies of complex processes bill of materials Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.

ERP Systems centralize the data in one place. Benefits of this include:

Eliminates the problem of synchronizing changes between multiple systems consolidation of finance, marketing and sales, human resource, and manufacturing applications

 

Permits control of business processes that cross functional boundaries Provides top-down view of the enterprise (no "islands of information"), real time information is available to management anywhere, anytime to make proper decisions.

Reduces the risk of loss of sensitive data by consolidating multiple permissions and security models into a single structure.

 

Shorten production leadtime and delivery time Facilitating business learning, empowering, and building common visions

Some security features are included within an ERP system to protect against both outsider crime, such as industrial espionage, and insider crime, such as

embezzlement. A data-tampering scenario, for example, might involve a disgruntled employee intentionally modifying prices to below-the-breakeven point in order to attempt to interfere with the company's profit or other sabotage. ERP systems typically provide functionality for implementing internal controls to prevent actions of this kind. ERP vendors are also moving toward better integration with other kinds of information security tools. ebuildis a Comprehensive, Integrated, Modularized and User-friendly Construction ERP System for the Real Estate and Construction industry. It is a ready to use system, which is useful in quick implementation and thus reducing the lead-time. The implementation is modularized type and the each module can be linked at any time as per customer's requirement. The system will run both at site as well as at head office independently. The head office is linked with the site office through web server/data transfer protocols and thus enables one to know the status of each site, which increases the effectiveness in monitoring and executing of site work.
    

Helps in plan layout and structural design of a project Budget control for each process in the project Tender management and bid analysis Project scheduling in stages, with costs and allocation of resources Remote project monitoring with generation of various timely reports from multiple work sites and head office

 

Total system control and data security Reports generated within all modules are viewable on screen as well as exportable to MS Word or Acrobat PDF Files

Critical factors for successful ERP implementation

Implementing an ERP system is not an inexpensive or risk-free venture. In fact, 65% of executives believe that ERP systems have at least a moderate chance of hurting their businesses because of the potential for implementation problems. It is therefore worthwhile to examine the factors that, to a great extent, determine whether the implementation will be successful. Numerous authors have identified a variety of factors that can be considered to be critical to the success of an ERP implementation. The most prominent of these are described below. a) Clear understanding of strategic goals. b) Commitment by top management. c) Excellent project management. d) Organizational change management. e) A great implementation team. f) Data accuracy g) Extensive education and training h) Focused performance measures. i) Multisite issues.

ERP system selection An estimated 50–75% of US firms experience some degree of failure in implementing advancedmanufacturing technology. Since an ERP system, by its very nature, will impose its own logic ona company’s strategy, organization, and culture, it is imperative that the ERP selection decisionbe conducted with great care. Based on the available sources and our own experiences, theauthors recommend the following thirteen-step selection process.

1)Create the vision. 2)Create a feature/function list.

3)Create a software candidate list. 4)Narrow the field to four to six serious candidates. 5)Create the request for proposal (RFP). 6)Review the proposals.

Benefits of ERP implementation: Deloitte Consulting (1998), and discussed in O’Leary (2000), that investigated the rationales and benefits for why firms choose to implement ERP. That study broke benefits into two broad categories: Tangible Benefits (Table 1) and Intangible Benefits (Table 2). Deloitte Consultant’s (1998) study was based on interviews with 62 client firms of the Fortune 500. As part of a large- scale project, client firms were asked which tangible and intangible benefits had been realized. The results in Tables 1 and 2 present the percentage of the firms that indicated which benefits would be realized, allowing for multiple responses for each firm.

CHAPTER-III RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems it may be understood as a science of studying how research is done scientifically. In it, the various steps that are generally adopted by a research in studying this research problem along with the logic behind them are studied. Marketing research is the systematic design, collection, analysis and reporting of data and finding to a specific marketing situation facing the company. Effective marketing study involves five steps:      Define the problem and study objectives Develop the study objectives Collect appropriate information Analyze the information Present the findings

Research definition:   Research is a systematic and scientific search of pertinent information on a specific topic ―The manipulation of things, concepts or symbols for purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art‖ by D.Sleinger and M.Stephnson. Definition of Research Methodology: Research methodology is a tool to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically.

Types of Research: The research involved both qualitative dimension of work and knowledge. The quantities approach involved generation of large chunk of data, which are analyzed on various parameters, while the qualitative approach was to analyze the data, take the information out and discard the unnecessary details. The target was to contact the respondents and analyze their requirements. The survey is concerned with the subjective assessment of attitude, opinion of the people about the service provider.

Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how... Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, Descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative research often has the aim of description and researchers may follow-up with examinations of why the observations exist and what the implications of the findings are. In short descriptive research deals with everything that can be counted and studied. But there are always restrictions to that. Your research must have an impact to the lives of the people around you. For example, finding the most frequent disease that affects the children of a town. The reader of the research will know what to do to prevent that disease thus, more people will live a healthy life. In this research, Descriptive and Exploratory Research methods have been used.

Research approach: The research approach consists of personal interview of the customers through the use of research instrument like structured questionnaire and interview method. While designing the questionnaire care had to be taken in formulating and sequencing the questions so that it allows logical thinking process for the respondent. Use of both close-ended and open-ended questions was made so that analysis becomes easy and respondents can freely answer the questions. . Definition of Research: Research is a process of systematic and in depth study for any particular topic subject to collection, compilation, presentation and interpretation of relevant details or data. Research refers to search of knowledge. It is a scientific and systematic search for pertinent information on a specific topic.     It is an art of scientific investigation. Movement from known to unknown. Voyage of discovery. Original contribution to the existing stock of knowledge making for its advantage.

Research Process: 1. Define research process 2. Review the literature 3. Design research(including sample design) 4. Collect data(executive) 5. Analysis of data

6. Interpret the report

Sampling Plan All the items under consideration in any field of enquiry constitute a universe or population. A complete enumeration of all the items in the population is known as census enquiry. But it was not possible at all to cover each and every potential customer on a pan India basis. The number of all potential customers inclusive of all big and small manufacturer or retailers was really high so it was pragmatically impossible to generate the complete data. Since the process of collecting data from the elements of large population may be expensive, time consuming and difficult. It will be cheaper and quicker to collect information from a sample plan of the population. A sample is a fraction of a subset of population through a valid statistical procedure so it can be regarded as representative of the entire population. The valid statistical procedure of drawing sample from the population is called sampling.

.SAMPLING

DESIGN

A sampling design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting for the samples. Sample design is determined before the data is collected. The Universe: The universe consists of the all themanufacturing and retail sectorin Pune: hence the universe can be geographical area of Pune. Sampling unit: Sampling unit is the customer who is already using ERP system andalso who would like to install ERP system in his company. Sampling Size:

The sample size consisted of 59 respondents. It included the manufacturing firm, hospitals and retailers in Pune city only. Sampling instrument: Questionnaire was used as an instrument for primary data collection. Sampling Method:
Before using the sample size calculator, there are two terms that one needs to know. These are: confidence interval and confidence level

Determine Sample Size

Confidence Level:
10

95%

99%

Confidence Interval:

Population:

150

Sample size needed:

59

The confidence interval (also called margin of error) is the plus-or-minus figure usually reported in newspaper or television opinion poll results. For example, if you use a confidence interval of 4 and 47% percent of your sample picks an answer you can be "sure" that if you had asked the question ofthe entire relevant population between 43% (47-4) and 51% (47+4) would have picked that answer.

The confidence level tells how sure one can be. It is expressed as a percentage and represents how often the true percentage of the population who would pick an answer lies within the confidence interval. The 95% confidence level means one can be 95% certain; the 99% confidence level means one can be 99% certain. Most researchers use the 95% confidence level.

When one put the confidence level and the confidence interval together, one can say that one is 95% sure that the true percentage of the population is between 43% and 51%. The wider the confidence interval you are willing to accept, the more certain one can be that the whole population answers would be within that range.

Reference: http://www.surveysystem.com/sscalc.htm

Sampling technique: Simple random sampling In a simple random sampling ('SRS') of a given size, all such subsets of the frame are given an equal probability. Each element of the frame thus has an equal probability of selection: the frame is not subdivided or partitioned. Furthermore, any given pair of elements has the same chance of selection as any other such pair (and similarly for triples, and so on). This minimises bias and simplifies analysis of results. In particular, the variance between individual results within the sample is a good indicator of variance in the overall population, which makes it relatively easy to estimate the accuracy of results.

SOURCES AND METHODS OF DATA COLLECTION
Sources of data collection The research for the study had been collected from field research. Thus the data mostly consists of primary data. Data obtained from the first hand researcher is called primary data. In this method trainee personally collect the data through questionnaire and interview. The primary data was collected through the various respondents I interviewed. The secondary data is readily available from internet and complies data from Statistical statements reports etc, the data can be obtained through published or non published sources To achieve the objective the researcher was required to identify the sources of data from where the data are to be collected. As researchers objective was to find the

potential customer for ERP solutions REVENIR DEVELOPMENT SYSTEM LTD PUNE, the research demanded primary data mostly, however to start with researcher needed the customer database out of which we can select the potential customers so secondary data were also utilised. Before dealing with the research methodology the researcher emphasises to discuss primary and secondary data.

Primary Data These are data obtained from first hand research. In this researcher personally collects the data through personal interviews, discussions, interaction or by questionnaire (a Performa containing a set of questions method). Primary data has been collected directly from the field. Primary data was gathered by the means of interviewing the respondents with the use of questionnaire that the researcher prepared. Survey is the research approach using this research project. Surveys are the best source of descriptive research. The research instrument chosen was a questionnaire for the collecting the primary data. Questionnaire was the most popular and useful method for surveying. It helps in collecting the information from the framed question, to get maximum necessary data required for the research. Questionnaire contained 11 no of questions, which included open and close ended questions. The questions are subjective and objective in nature. Thus, the questions helped in various ways. Secondary Data Secondary data was mainly collected from company records and website. The data was then categorized into various groups and then researcher deduced the pattern of relationship that existed among the data groups.

Websites:

Official website of Maharashtra state directory Websites of yellow pages. Google. Official site of http://www.revenirglobal.com

LIMITATIONS OF THE STUDY

• • •

The data gathered is valid for few months. All data is based on responses of respondents. In some of the organization responsible person to answer questions were not available.

• • •

There was a financial problem. Duration of research was limited to 2 months only. The research was done in the summer period, so temperature was hot while going outside to collect the data.

CHAPTER-IV DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION
Data analysis is a process of gathering, modelling and transforming data with the goal of highlighting useful information, suggesting conclusions and supporting decision making. Data analysis has multiple facets and approaches encompassing diverse techniques under a variety of names in different businesses science and social science domain. Marketing study and research focuses on understanding the behaviours, preferences, whims of consumers in the market place. Businesses cannot be successful if they cannot meet the demands of customers. To meet the needs, finding out what customers want from your products will be the most crucial marketing study and research activities. Analyzing survey data is an important and exciting step in the survey process. It is the time that you may reveal important facts about your customers, uncover trends that you might not otherwise have known existed, or provide irrefutable facts to support your plans. By doing in-depth data comparisons, you can begin to identify relationships between various data that will help you understand more about your respondents, and guide you towards better decisions.

1. Are you using ERP software?

Users Of ERP
9

Yes No

50

Table No :
SR NO PARTICULAR COUNT

1 2

YES NO

50 9

Interpretation:
50 organizations were using ERP Software. While 9 organizations were not using ERP Software.

2. Which ERP are you using?

ERP USERS
20 18 16 14 12 10 8 6 4 2 0 SAP NEWTON TALLY ERP TALLY MICROSOFT

20 12 4 1
ANY OTHER

ERP USERS 13

Table No
SR NO 1 2 3 4 5 PARTICULAR SAP Newton Tally ERP Tally Microsoft Other COUNT 12 4 20 13 1

Interpretation:
The maximum Organizations were using Tally ERP i.e. 20. While 13 were users of Tally Microsoft and 12 were users of SAP. 4 were using Newton and 1 organization was using other ERP.

3. Which factor do you consider most important while purchasing an ERP software? (more than one option is possible).

Factors Affecting Buying Decision
60 50 40 35 30 20 10 0 0 1 2 3 4 5 10 Support & Services User Friendly Price Speed 50 45

Table No
SR NO 1 2 3 4 PARTICULAR Support & Services User Friendly Price Speed COUNT 35 50 10 45

Interpretation:
70% of the respondents were of the opinion that Support & Services factor is important while purchasing ERP Software. 100% of the respondents said that User Friendly Factor is important while purchasing ERP Software. 20% organizations consider Price factor while 90% consider Speed factor while purchasing ERP Software.

4. Rate the factors starting from Most Affective to Not at all Affective, which affect your decision of selecting an ERP software for your organization. The CRM Factor Consideration

The CRM Factor Consideration
16 14 12 10 8 6 4 2 0 Most Affective Affective Some What Affective Least Affective Not at all Affective The CRM Factor Consideration

CRM Factor Consideration Ratings Most Affective Affective Some What Affective Least Affective Not at all Affective No. of Respondents 9 14 7 10 10

Interpretation:
The CRM factor is considered as Most Affective by 9 respondents while purchasing ERP Software and 14 considered as Affective. 7 customers considered it is as Somewhat Affective. While purchasing ERP System 10 customers suggested that CRM is Least Affective and 10 have suggested as Not at all Affective.

The Cost of Implementation Factor Consideration

The Cost of Implementation Factor Consideration
20 18 16 14 12 10 8 6 4 2 0 Most Affective Affective Some What Affective Least Affective Not at all Affective The Cost of Implementation Factor Consideration

Cost of Implementation Factor Consideration Ratings Most Affective Affective Some What Affective Least Affective Not at all Affective No. of Respondents 18 7 11 9 5

Interpretation:
The Cost of Implementation factor is considered as Most Affective by 18 customers while purchasing ERP Software and 7 consider as Affective. While purchasing ERP System 11 customers suggested that it is somewhat Affective while 9 suggested as Least Affective and 5 have suggested as Not at all Affective.

The Customization Factor Consideration

The Customization Factor Consideration
16 14 12 10 8 6 4 2 0 Most Affective Affective Some What Affective Least Affective Not at all Affective The Customization Factor Consideration

Customization Factor Consideration Ratings Most Affective Affective Some What Affective Least Affective Not at all Affective No. of Respondents 9 6 13 8 14

Interpretation:
The Cost of Implementation factor is considered as Most Affective by 9 customers while purchasing ERP Software and 6 consider as Affective. While purchasing ERP System 13 customers suggested that it is somewhat Affective while 8 suggested as Least Affective and 14 have suggested as Not at all Affective.

The E-Commerce Factor Consideration

The E-Commerce Factor Consideration
14 12 10 8 6 4 2 0 Most Affective Affective Some What Affective Least Affective Not at all Affective The E-Commerce Factor Consideration

E-Commerce Factor Consideration Ratings Most Affective Affective Some What Affective Least Affective Not at all Affective No. of Respondents 7 12 11 9 11

Interpretation:
The Cost of Implementation factor is considered as Most Affective by 7 customers while purchasing ERP Software and 12 consider as Affective. While purchasing ERP System 11 customers suggested that it is somewhat Affective while 9 suggested as Least Affective and 11 have suggested as Not at all Affective.

The Maintenance Factor Consideration

The Maintenance Factor Consideration
14 12 10 8 6 4 2 0 Most Affective Affective Some What Affective Least Affective Not at all Affective The Maintenance Factor Consideration

Maintenance Factor Consideration Ratings Most Affective Affective Some What Affective Least Affective Not at all Affective No. of Respondents 6 12 10 12 10

Interpretation:
The Cost of Implementation factor is considered as Most Affective by 6 customers while purchasing ERP Software and 12 consider as Affective. While purchasing ERP System 10 customers suggested that it is somewhat Affective while 12 suggested as Least Affective and 10 have suggested as Not at all Affective.

5. What is the satisfaction level of current ERP implemented in your firm?

Satisfaction Level

4

Not Satisfied 18 Satisfied 28 Highly Satisfied

Table No.
SATISFACTION LEVEL SR NO 1 2 3 PARTICULAR NOT SATISFIED SATISFIED HIGHLY SATISFIED COUNT 28 18 4

Interpretation:
28 companies were not satisfied with their existing ERP/Tally. And 18 companies were satisfied while 4 companies were highly satisfied.

6. Are you looking forward to install new ERP system?

Looking For New ERP
50 45 40 35 30 25 20 15 10 5 0 Yes No

Yes 46 13 No

Table No
SR NO 1 2 PARTICULAR YES NO COUNT 46 13

Interpretation:
46 companies were willing to install new ERP. 13 companies were not willing to install ERP System, because of their existing system and their negative opinion about installing ERP System.

7. If an ERP software has an additional feature of Enterprise Portal or Web Content Management solution, would you purchase the software?

Series 1

40 35 30 25 20 15 10 5 0 Yes No

40 19

Yes No

Table No
SR NO 1 2 PARTICULAR YES NO COUNT 40 19

Interpretation:
40 organizations were ready to buy the ERP Software if it has additional features of Enterprise Portal or Web Content Management. While 19 were not ready for this.

8. If an ERP software has an additional feature of Design and Development of Portals, Internet sites, would you purchase the software?

Sales

27

Yes

32

No

Table No
SR NO 1 2 PARTICULAR YES NO COUNT 32 27

Interpretation:
32 organizations were ready to buy the ERP Software if it has additional features

Design and Development of Portals. While 27 were not ready for this.

9. Are you aware of ERP Software offered by RDS?

Awareness about RDS Softwares

35 30 25 20 15 10 5 0 Yes NO

Yes 34 25 NO

Table No
SR NO 1 2 PARTICULAR YES NO COUNT 25 34

Interpretation:
54% organizations were not aware about the Softwares which are offered by Revenir Development Systems Pvt Ltd. While 46% were not aware about the

same.

CHAPTER-V FINDINGS AND SUGGESTIONS

FINDINGS

 While conducting the survey it was found that maximum companies whether residential or commercial are unaware of the concept of ERP, so everything from the basic had to be educated to them.  Majority of the clients were using either Tally/MS or locally developed software solution. And are also resistant about getting a new ERP installed.  Very few clients were using standard ERP.  Most of the companies are not satisfied with existing software. And some of them wanted to buy new ERP System.  It was find that ERP is supposed to be very costly.  Support and Services, User Friendly are the most affective factors which are taken into consideration by the organizations while purchasing a ERP Software.

SUGGESTIONS

 Even though many companies have opted not to install ERPs for there is a potential market for ERPs here in PUNE as it would be the next big thing that would be required by the companies.  Not many companies are of this concept so there should be more emphasis to commercialize the product. There should advertisements put on the related websites.  The unique selling proposition for ERP is that the configuration can be provided as per the requirements of the company. So the prospective companies should be made aware of this.  The ERP software providers should provide the additional features with ERP Software package, which will turned into more demand of the Software. 

CHAPTER-VI CONCLUSION

CONCLUSION
 From the samples surveyed it seems that, those Companies which are not using ERP Software in present, will probably use these softwares in future.  Software development system is a favorable system for both Company as well as Customers.  The organizations go through some requirements from the software which they are going to buy.  From the survey conducted, it can be concluded that use of software reduces the cost of company and time of customers. By having an effective ERP System, any organization can high profits by providing timely services to the customers.

BIBLIOGRAPHY

Books : Kotler Philip, Kevin Lane Keller, Marketing Management 12e, Pearson Hall G.C. Beri, Marketing Research, Tata McGraw hill. Company credentials. Websites:
http://www.revenirglobal.com

wwww.wikipedia.com www.samplesurvey.com

ANNEXURE

QUESTIONNAIRE

Name of the organization: ________________

Contact No. __________________

Address of the organization: ________________________________________________

Name of the Person: ________________

Email ID: ___________________

1. Are you using ERP software? a. YES b. NO

2. Which ERP are you using? a. SAP c. Tally ERP b. Newton d. Tally/Microsoft

e. Any other (specify)___________

3. Which factor do you consider most important while purchasing an ERP software ? (more than one option is possible). a. Support & Services b. Price c. User Friendly d.. Speed

4. Rate the factors starting from Most Affective to Not at all Affective, which affect your decision of selecting an ERP software for your organization. CRM COST OF IMPLEMENTATION CUSTAMIZATON E-COMMERCE MAINTAINENCE SUPPORT

5. What is the satisfaction level of current ERP implemented in your firm? a. Not satisfied b. Satisfied c. Highly satisfied

6. . Are you looking forward to install new ERP system?

a. YES

b. NO

7. if an ERP software has an additional feature of Enterprise Portal or Web Content Management solution, would you purchase the software?

a. YES

b. NO

8. if an ERP software has an additional feature of Design and Development of Portals, Internet sites, would you purchase the software ?

a. YES

b. NO

9. Are you aware of ERP Software offered by RDS?

a. YES

b. NO

10. After getting information about ERP Software from RDS, do you recommend any changes or additions to the product?

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