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Subject Enterprise Resource Planning
Prof. Rajeev Pandey
Rajesh Kumar MBA (EB) – 3rd sem Roll No – 35
Session : 2010 -11
Department of Business Administration University of Lucknow
With deep devotion I thank all mighty God for blessing me with desire, intention, inclination, will, ability, guidance hope and achievements of required goal. I acknowledge my indebtness to “Dr. Amarnath Sir” who showed me the right path, helped in increasing my horizon and clarifying my objective Throughout the project he had always been there to help me in overcoming the hurdles, thus helping me to meet my objective. I would also like to thank my friends and all those individuals who gave me the proper references and provided me with relevant information on this topic, gave me important web links for assistance & helped me a lot.
Microsoft Dynamics is a line of ERP (enterprise resource planning) and CRM (customer relationship management) applications developed by the Microsoft Business Solutions group within Microsoft. Microsoft Dynamics applications are delivered through a network of reselling partners who provide specialized services. There are 300,000 businesses that use Microsoft Dynamics applications and 10,000 Microsoft Dynamics reselling partners worldwide. The Microsoft Business Solutions group was formed in part from Microsoft’s acquisition of two software companies: Great Plains Software, acquired in April 2001, and Navision, acquired in July 2002. Microsoft Dynamics CRM entered the CRM market in 2003. The Microsoft Business Solutions group now includes the Microsoft Dynamics ERP product group and Microsoft Dynamics CRM product group. Microsoft Dynamics industry solutions include Microsoft Dynamics POS (Point of Sale), introduced in 2009, and Microsoft Dynamics Retail Management System (RMS). The Microsoft Business Solutions group is based in Bellevue, Washington Market Share & Presence According to a 2010 survey by vendor-neutral ERP consultants Panorama Consulting Group, the market share of Tier II ERP vendors grew from 23% to 30% last year while ERP leader SAP dropped from 35% to 31% and Oracle from 28% to 25%. Microsoft Dynamics held its own, growing slightly from 14% to 15% during the same period. Panorama's 2008 survey was based on 1,300 respondents worldwide from 2005 to 2008
while the 2010 survey was tallied from 1,600 participants last year. The 2010 survey also ranked Microsoft Dynamics No. 2 behind SAP on ERP vendor short lists by prospective buyers and seventh of the top 10 in selection. In its 2008 report, the Denver, Co.-based consulting firm pointed out that the cost savings for Microsoft Dynamics is great, with an SAP implementation averaging $16.8 million in total costs compared to $12.6 million for Oracle, $2.6 million for Microsoft Dynamics and $3.5 million for Tier II applications. In that detailed study, Panorama concluded that Dynamics was gaining in popularity because of its markedly lower pricetag; Dynamics was favored by users, who like the familiar Microsoft interface, but less popular with executives, who cited a somewhat higher business risk.
Business Intelligence One cause for higher risk worries in the earlier study was Dynamics' lack of business intelligence tools, Kimberling said. However, Microsoft may have alleviated that concern with Dynamics' addition of FRx financial reporting tool, he said. FRx is already slated to be replaced by Management Reporter and augmented with self-service reporting in Office 2010. Also contributing to a higher perceived risk factor with Dynamics is the small- to mid-sized market it serves rather than the software itself, he said. Smaller customers lack the sophistication of larger enterprises and often try to cut corners and/or implement the software without recognizing the need for specialized help, he said.
Project Duration and Cost Comparative marks for project implementation in the earlier study also were a mixed bag for Microsoft Dynamics, which
averaged two weeks to two months less than Oracle and SAP, respectively, but, on the downside, showed the largest variability in project completion. The major factors extending project duration for Dynamics ERP installs are large numbers of modules and/or users and complex business processes, Kimberling said. In the latter case, companies often are too quick to customize the software to existing business workflows rather than change their processes to accommodate the software, he said. While minimizing the ERP impact to the workforce, customizing software with alterations to the source code delays the project and complicates maintenance down the road, he said. In its 2010 report released early this month, Panorama concluded that more ERP implementations last year took longer than expected (57%) and cost more than expected (59%) but, on the plus side, they consumed 20% less as a percentage of annual revenue (6.9% in 2009 vs. 9% in 2008). However, the "savings" came with a price: 41% of responding companies failed to achieve at least half of the benefits they anticipated from their ERP installations. These results have not yet been broken down by vendor.
Managing Organizational Change In addition, the 2010 study concluded that most companies do not effectively manage the organizational changes that ERP sets in motion, with nearly half citing poor communication between management and employees as a contributing factor. Many companies also were adjusting to a new CEO during their ERP implementations while significant numbers were coping with layoffs or a merger or acquisition. The problem is that there is a management/employee "disconnect," Kimberling said. New ERP systems impose change and stress on the workforce when employees are already worried about their future, he said. But management wants to push ahead with ERP systems now to retain "head knowledge" and increase efficiency to do more with less, he said. In this environment, some companies are cutting
organizational change activities related to their ERP installs, which "doesn't bode well" for their projects, he said.
The Cloud Panorama's latest survey found that SaaS (Software-as-aService) and hosted ERP solutions are faster to implement and cost less than on-premise applications. The downside: they are far more likely to exceed budget estimates due to excessive vendor hype, the report said. In addition, SaaS and hosted solutions tend to be more appropriate for small- and mid-sized companies and narrow functions such as CRM or purchasing, the report said. Microsoft Dynamics does not currently have a SaaS or hosted ERP offering (although various partners and resellers do offer hosted solutions), but Kimberling predicted that Microsoft will develop one because so many mid-market companies perceive that SaaS/hosted is a way to tiptoe into ERP without a big, upfront cost, he said.
Products Microsoft Dynamics is a line of enterprise resource planning (ERP) and customer relationship management (CRM) applications. Microsoft Dynamics ERP is an enterprise resource planning application primarily geared toward midsize organizations as well as subsidiaries and divisions of larger organizations. Microsoft Dynamics ERP includes four primary products:
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Microsoft Dynamics AX (formerly Axapta) Microsoft Dynamics GP (formerly Great Plains Software) Microsoft Dynamics NAV (formerly Navision) Microsoft Dynamics SL (formerly Solomon IV)
Also included are retail solutions:
Microsoft Dynamics RMS Microsoft Dynamics POS 2009
Microsoft Dynamics CRM is a multi-lingual customer relationship management application from Microsoft that provides sales, service, and marketing capabilities, and includes Microsoft Dynamics CRM Online, the online version of Microsoft Dynamics CRM. Management Reporter for Microsoft Dynamics ERP is a financial reporting and analysis solution. Users can easily create income statements, balance sheet statements, cash flow statements and other financial reports without needing IT assistance. Reports can be stored in a centralized Report Library along with external supporting files. Security on reports and files may be controlled using Windows Authentication and SQL Server.
Industry solutions Microsoft Dynamics offers ERP and CRM solutions for a range of industries. Solution providers build on the standard functionality in Microsoft Dynamics ERP and Microsoft Dynamics CRM applications to deliver industry-specific solutions through a network of channel partners. Industry solutions for Microsoft Dynamics ERP address needs for the following industries:
• • • • • • • • • •
Construction Distribution Education Financial services Government Healthcare Manufacturing Not for profit Professional services Retail
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• • •
Microsoft Dynamics AX Microsoft Dynamics AX 2009 is a comprehensive business management solution for midsize and larger organizations that works like and with familiar Microsoft software. Microsoft Dynamics AX is built to make it easy to do business across locations and countries by consolidating and standardizing processes, helping to improve productivity, providing visibility across your organization, and helping to simplify compliance. Microsoft Dynamics GP Microsoft Dynamics GP is a comprehensive business management solution for midsize organizations that is designed to help you adapt to new opportunities and continued growth by requiring little customization, training, and administration. Whether your goals are to improve financial management or supply chain performance, or gain greater control over your human resources and payroll processes, Microsoft Dynamics GP is a proven, costeffective solution. Microsoft Dynamics NAV Microsoft Dynamics NAV is a complete ERP solution for midsize organizations that is fast to implement, easy to configure, and simple to use. Available in more than 42 country versions, the solution delivers specific industry functionality for highly specialized industries and organizations to help you meet the local needs of your regions of operation. Microsoft Dynamics SL Microsoft Dynamics SL is a business management solution that is specialized to help project-driven midsize organizations obtain reports and business analysis, while helping to increase efficiency, accuracy, and customer satisfaction. With the ability to automate and streamline projects and complex accounting jobs from a single interface, you can manage
people, projects, and profitability.
Capabilities in Microsoft Dynamics ERP solutions Financial management Gain greater visibility into finances and give people across your organization the tools they need to improve financial management, financial forecasting, and accounting throughout your organization.
Streamline financial processes and simplify analysis by automatically presenting formerly disparate sources of information in a single, RoleTailored view.
Share reports in a business portal on the company intranet, or publish data on your extranet with enhanced security to promote privacy for auditors.
Work with familiar software such as Microsoft Office Excel directly in your Microsoft Dynamics ERP solution and link to ERP data using Microsoft Office applications.
Monitor business performance and spot trends with key performance indicators (KPIs), export information into a spreadsheet for further analysis, and access flexible reporting capabilities to present business information in the best format for your audience.
Generate real-time reports, close books quickly, and share data with multiple ways to report, analyze, and share information.
Expand into other geographies, markets, and industries, and support multiple currencies and languages.
Planning and Budgeting Monitor, measure, and manage organizational performance with planning and budgeting applications that work with your enterprise resource planning (ERP) solution to measure business results and provide flexible reporting capabilities. Depending on your business needs, you can:
Deliver basic planning and budgeting with simplified, template-based planning and budgeting functionality using Microsoft Forecaster for Microsoft Dynamics ERP.
Take advantage of powerful analysis and reporting capabilities—including creating and publishing financial statements such as Profit and Loss (P&L) statements, balance sheets, and cash flow reports—with Management Reporter for Microsoft Dynamics ERP.
enhance security for
report distribution, compliance
Reporter for Microsoft Dynamics ERP.
Build custom reports based on GL data, and slice data into rows, columns, or hierarchies with Management Reporter for Microsoft Dynamics ERP.
Manage complex consolidations and multiple currencies with Enterprise Reporting for Microsoft Dynamics ERP.
Project Management With project management and accounting capabilities from Microsoft Dynamics ERP, your people have the tools they need to improve profitability and accomplish project goals on time and on budget.
Manage employees, contractors, partners, equipment, and materials to align with project goals and client expectations.
Create effective billing structures, track expenses, and reduce billing cycles to control project performance, costs, and revenues.
Accelerate project workflows with automation, and make important business information available to all stakeholders.
accounting jobs and work projects with your overall business processes.
Collaborate effectively—even from the field—with webbased access to project status and other information.
Combine Microsoft Dynamics ERP with Microsoft Project Professional and Microsoft Project Server to provide a robust solution for your project-driven organization that reduces duplicate data entry, shortens billing cycles, and analyzes project performance for better budgeting.
Supply Chain Management Streamline supply chain operations to get the right goods to the right place at the right time with custom solutions that can be tailored to specific business and industry needs.
Control and streamline inventory with real-time visibility into data and automatic notifications that help you align customer demand with inventory management, purchasing, manufacturing, and distribution.
Set realistic expectations with customers for delivery, and access current product specifications and up-to-date pricing to help customers make informed buying decisions.
Build profitable vendor and partner relationships by providing information performance. self-service using access portal to critical business technology—including
agreements and commitments—and monitoring partner
Combine your Microsoft Dynamics ERP solution with radio frequency identification (RFID) technology to costeffectively engage with customers and suppliers.
Lower the costs of supply chain integration by using Microsoft BizTalk Server to smoothly orchestrate business processes and exchange business documents with partners and suppliers.
Automate sales and purchasing to help streamline your operations and improve relationships with customers and suppliers.
Business Intelligence Foster better decision-making warehouse for people across to your
analysts—with self-service business intelligence (BI) that makes it easy to access, share, and use RoleTailored information without support from your IT department.
notifications, KPIs, and reports through your Role Center or a web-based dashboard.
Effectively manage and access both structured data and unstructured information such as email messages and documents.
Use sophisticated analytics based on dimension value hierarchies that reflect your reporting and accounting needs.
employees, customers, and information.
portals that make it easy to collaborate and share
Quickly create reports using predefined functions for simple reporting, or online analytical processing (OLAP)
cubes for deeper analysis with familiar tools such as Microsoft Office Excel. Generate reports within your Microsoft Dynamics ERP solution with SQL Server Reporting Services, build and analyze data warehouses, and organize and use data more efficiently through integration with powerful Microsoft SQL Server. Performance Management Keep a finger on the pulse of your organization with performance management tools that can help you monitor and measure business results, align performance to goals, and improve your bottom line.
Gain insight into your operations at-a-glance with executive dashboards indicators that (KPIs) deliver based flexible on key performance powerful
analytics that you define.
Monitor finances beyond profit and loss by selecting the financial or operational ratios that you need to watch, such as cost of goods sold, labor hours per project, or year-over-year sales.
Keep on top of the environmental impact of your business by monitoring gas energy and consumption carefully and greenhouse emissions; monitor
regulatory compliance with information and tools that facilitate transparency and accountability.
Manage organizational growth by tracking and comparing the performance of people, teams, and departments over time.
Consolidate reporting for multisite and other complex organizations for an enterprise-level perspective on your business.
Human Resource Management Meet your organization's human resources (HR) and payroll needs and realize the potential of your most valuable assets— your employees.
Give employees self-service access to information about performance, payroll, benefits, and career path from your company’s web portal.
Adjust HR processes to changing business needs, ensure compliance with government requirements, and simplify administrative tasks.
Save time with payroll direct deposit, access employee data at any time, and integrate with general ledger, project management, and bank reconciliation applications.
Minimize the cost and complexity of administering salaries, benefits, recruitment, and performance management.
opportunities for growth. Collaboration Work together more effectively and enhance communication with employees, partners, and customers.
Provide employees with intranet sites to create and approve purchase orders, track project progress and costs, access and manage personal data, and streamline time reporting, performance reviews, and interviewing processes.
Use team sites to help employees speed project progress, review documents, and view custom information relevant to their specific roles and tasks.
Make business information and processes available to suppliers so they can update inventory and shipping information; review orders, invoices, and sales projections; and easily share large files while reducing email exchanges.
Simplify communication with partners in different time zones and geographic regions by communicating through a business portal on your extranet.
Give customers self-service access to product and sales information, order status, or promotions and discounts, and enable them to order products and request appointments.
Share and view up-to-date customer information and access real-time inventory data to improve customer service.
IT Management Leverage existing IT systems and deploy familiar Microsoft technologies to support your organization and your people even as business needs change. You can work with a network of channel partners to implement a solution that meets your industry-specific needs.
Use service-oriented architecture (SOA) and web services to extend and connect business solutions.
Access your IT infrastructure from a central console using Microsoft Windows Essential Business Server.
Enable people to export data to Microsoft Office Excel and share information using SQL Server Reporting Services, SQL Server Analysis Services, and Excel Services—reducing IT time spent on reporting tasks.
Microsoft Office SharePoint Server.
Support industry standards with Microsoft Visual C++, C#, and the Microsoft .NET Framework.
Services web parts to extend Role Centers and share information with employees, customers, and partners.
Platform Technology used (Integration with other Microsoft technologies and Products)
Combining Microsoft Dynamics ERP solutions with applications such as Microsoft Office 2010 and Microsoft SharePoint Server 2010 enables you to deliver the best productivity experience across the PC, phone, and browser—in tools such as Microsoft Outlook and Microsoft Excel, where people spend most of their time. Add Windows 7, with advances in desktop management that redefine “ease-of-use,” and your employees can work fast and smart by quickly finding and using the business information they need. Simplify desktop environments with Windows 7 With Windows 7, you can enjoy greater ease of use with an enhanced task bar to pin any application, including a Microsoft Dynamics ERP solution, for easy access. Faster startup, shutdown, and general responsiveness—and improved control of your desktop environment—mean you can get to the windows and data you need quickly. Windows Get up to speed quickly with a consistent user interface First introduced in the 2007 Microsoft Office system, the Microsoft Office FluentTM user interface simplified the way people used their applications, replacing layered menus, toolbars, and task panes with a more intuitive design. The Fluent user interface is now consistent across Office 2010 and SharePoint Server 2010 and aligned with the user interface design being adopted by Microsoft Dynamics ERP solutions. Drive productivity with Microsoft Outlook 2010 Access Outlook e-mail messages, to-do lists, and appointments directly from a Microsoft Dynamics ERP Role Center and see the status of e-mail recipients. Outlook 2010 improves e-mail management with Mail Tips that provide
alerts about the status of the receiver in advance, giving people options for redirecting their communications. Visualize data for clarity and insight with Excel 2010 Excel is one of the most commonly used business intelligence tools for visualizing and analyzing data. With a single click, you can easily export your Microsoft Dynamics ERP data to Excel for further manipulation and use data cubes displayed as key performance indicators (KPIs) with drill-down capabilities in Role Centers. Excel 2010 includes features that significantly improve data visualization and help you see patterns and trends that might otherwise remain hidden. For example, with Sparklines, you can see concise visual representations of Microsoft Dynamics ERP data in the form of small charts—right in your worksheet. Create compelling documents and presentations with Word 2010 and PowerPoint 2010 Share vital business and sales information in formats familiar to your recipients by accessing, exporting, and sharing information from Microsoft Dynamics ERP solutions using programs such as Microsoft Word 2010 and Microsoft PowerPoint 2010. Office 2010 takes your communications to the next level with sophisticated audio and video editing tools in Word and PowerPoint that can help bring business documents and presentations to life. Extend accessibility with Office Web Applications Microsoft Office Web Applications (available for Word, Excel, PowerPoint, and Microsoft Office OneNote) enable you to access information from anywhere using a PC, phone, or browser. For example, you can access up-to-the minute data through the Excel Web Application by using a browser when you are away from your PC Monitor and analyze business performance
Microsoft PerformancePoint Services (formerly Microsoft Office PerformancePoint Server), is now included as a component of SharePoint Server 2010 and can monitor and analyze your business performance. PerformancePoint Services helps you gain insight by displaying Microsoft Dynamics ERP information as dashboards and key performance indicators with the option to drill down for more detail. Extend business data with Business Connectivity Services Microsoft Business Connectivity Services, a new feature in Office 2010 and SharePoint Server 2010, can provide bidirectional interoperability between these products and Microsoft Dynamics ERP solutions. IT departments can create composite applications that make it easy to access and then update Microsoft Dynamics ERP data from within Office 2010 applications or SharePoint Server 2010. This makes it easy for light or occasional ERP users to access Microsoft Dynamics ERP data.
Customer Success Story
Established in 1995, Career Launcher India Limited (CL) provides educational services in over 195 locations across India, Middle East, and United States. It offers guidance and test-preparation services for school and college students to gain admission to professional courses. It publishes magazines and academic material, offers career advisory services, tutoring and training services. CL is actively involved in mainstream education through its chain of play schools, secondary and K12 schools. It also operates formal vocational and skill education schools. It is based in New Delhi, India. With more than 400 academicians and professionals around the world, CL grooms over 100,000 students annually. By acquiring POWERMath in the United
States, CL has entered the math tutoring and SAT Test Prep market in the country. It generated the revenue of U.S.$ 20 million in financial year 2009-10. The IT infrastructure at CL consisted of Tally to manage accounting requirements. An in-house developed Oracle based application was installed at each of the 195 centers to manage student’s enrollment, receipts and outstanding information. Both being standalone applications, couldn’t be linked for data transfer. Lack of common financial management system posed issues in consolidating data and reports, and share information across 20 divisions. Hence on time availability of financial data was a major limitation in the existing system. CL database consists of approximately five million entries. The existing system could neither cope with the growing volumes of data, nor hold the detailed information about its students and customers. Thus there were multiple storage locations which often resulted in ambiguity. Each school and center managed its individual financials which barred information sharing and resulted in multiple versions of same information. It hindered standardized reporting and slowed processing times. As a result, there was ineffective decision-making, lack of flexibility and inefficient use of resources. With increasing number of schools and training centers, CL identified the need of a standardized enterprise resource planning (ERP) solution that could be simultaneously implemented at all the locations. The Oracle based application used at CL was developed over years to define the unique features and functionalities. Thus its seamless integration with the new ERP was one of the prime requirements of the organization. High cost incurred to implement and maintain standalone applications at multiple locations; disparate budgeting, analysis, and reporting that didn’t integrate prompted CL to adopt a globally accepted ERP solution. “We wanted one common integrated solution to serve the needs of all our divisions. It also had to be quick to deploy in various
geographical locations,” states Abhishek Sapra, Assistant Vice President (Finance), Career Launcher.
Solution “We chose Microsoft Dynamics NAV because of its versatility, scalability and flexibility,” says Abhishek Sapra, Assistant Vice President (Finance), Career Launcher. “We can tailor it to develop new features to meet the requirements of our educational institution and help streamline our accounting procedures.” CL used the expertise of Microsoft® Certified Partner Tectura for the implementation. After the successful deployment of NAV 4.0, NAV 5.0 was released and Tectura assisted CL in smooth migration to NAV 5.0. Implementation started in June, 2007 and the solution went live in October, 2007. CL purchased 15 user licenses. It was deployed in Delhi head office. Tectura implemented Finance, Purchase and Payables, Sales and Receivables modules. With all the essential features present in the solution, Tectura minimally customized the solution to include the integration with the Oracle-based application that manages student’s enrollment, receipts and outstanding information. The application is used at more than 195 centers of CL. 2.5 lakh (2,50,000) students’ data and transactions were migrated to Dynamics NAV. During this migration, it was business as usual for CL as the environment wasn’t affected. The solution is also tailored to enable online banking. It facilitates CL to use the Commodity Broking Services (CBS) account and electronically transfer funds through National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement Systems (RTGS). Once transactions are completed, system generated emails are sent to vendors to update the status via this new system. Hence lots of time, administrative cost and paper work is spared.
Benefits The new ERP solution enables users to share information and work collaboratively. In addition, managers now enjoy enhanced business insight, with quick access to up-to-date management information. Reduces Administrative Costs by INR 10,00,000 Microsoft Dynamics NAV supports the entire business at all the locations with a single, integrated solution. It reduces barriers between admin and finance departments. Transparent operating cost, automatic billing and reporting features have reduced the number of administrative tasks performed by staff. “We now operate with 30 percent fewer employees in finance, reducing the administrative cost by INR 10,00,000 (U.S.$ 20,000),” comments Abhishek Sapra, Assistant Vice President (Finance), CL. “Manual planning and reporting using spreadsheets is a thing of past.” The solution not only reduces the administrative cost but also supports and improves e-business requirements. Online banking transactions have made life easier for the accounts team. Quick online paperless transactions save 100 hours every month. Increases Operation Efficiency by 70 Percent Abhishek states, “With centralized information such Enrollment Details, Outstanding Balance, Fixed Assets available, processes are accelerated. This has enhanced our operational procedures and increased efficiency by 70 percent.” Allows Seamless Integration It is also seamlessly integrated with the organization’s Oracle based application that is accessed over web at multiple locations. Data flows freely between the two. “We had put lots of efforts into developing an application to meet our specific requirements and we want to continue using it,” says Abhishek. “Since NAV is smoothly integrated to it, we need not
spend time, energy and money in re-developing customizing the application to define our needs.” Consolidates, Analyzes Data for Decision Making
“Earlier each centre or school managed its own set of accounts which made it impossible to compare expenditures and derive profitability,” says Abhishek. “It used to take us 15 days to consolidate financial information from all the locations; we can now do it in 2 hours. Without Dynamics NAV, it would have been impossible to close the accounts in desired time frame.” Now file balance, individual accounts, consolidated data, budgets etc. are all updated and timely available in head office for review. “Enhanced efficiency with reduced expenditures allows us to focus our time, energy, efforts and money on providing the best options in education. We need not worry about administration and financials,” concludes Abhishek. “In addition, it presents us with the option to scale up with future growth, thus providing a better performing and reliable solution for the business applications.”
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