IBS GURGAON

Name: Abhisek Paul Enrollment No: 09BS0000056

Mobile No: 9716389370 E-mail ID: abhisekibsg2011@gmail.com

MANAGEMENT RESEARCH PROJECT

INTERIM REPORT
Introduction:
Overview of ERP Industry-
Bad Economy is a Good Selling Point for the ERP Industry

In the economic slowdown organizations are racing to carve out the fat from their IT spending
budgets and the ERP industry is jumping through hoops to meet the demands of special requests,
decreasing licensing and yearly maintenance fees and offering special financing arrangements
for new and existing consumers. More importantly, the ERP industry is publicizing more than
ever the cost saving benefits and ROI on their products.
In these get down to basics market environment, new product offerings are being developed with
the focus on features that are adding very visible, tangible benefits to a company's bottom line or
top line. This emphasis is also on restructuring the software pricing models for the ERP industry
around the globe. The ERP industry in general have always focused on offering applications that
deliver valuable solutions to organizations, however, in today 's market economy, organizations
need to see direct, quantifiable benefits immediately.
ERP vendors that do not show clear short term returns on capital expenditures, or positive
impacts to the P&L are feeling the strong pressure to lower pricing or offering creative financing
options face losing valuable market share and customers. Collaboration software is an example
of and enterprise solution that may make it easier for employees to communicate with each other
and in the long run positively impact the company's profitability. However, the difficultly in
detailing and articulating what the short term benefits to profitability are is making it difficult in
this business climate close the deal.
The marketing and sales campaigns the ERP industry is touting today are showing organizations
in clear detail how, where and when their ERP applications will into where to save money,
optimize resources to do more for less and bring in incremental revenues by focusing sales
resources on the highest return customers and products. Cool features that were hot only a year
ago are just nice extras this year such as a more user friendly email apps or ERP systems that
makes things go a little faster won't be enough to meet current business requirements.
This environment is driving the ERP industry, particularly the large ERP vendors, to offer
solutions that are more flexible, modular or pay as you go pricing models to ease the sticker
shock of an expensive full scale ERP enterprise application. Many of the large on-premise ERP
giants are offering the "pay as you go" model with many of their modular solutions and with web
based, SaaS or software as a service, applications that have been getting incredible demand over
the last five years.

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ERP industry experts believe that the business climate, although it is painful, will lead to
improved applications and technologies for businesses. The IT market and tech people are
resourceful, and as we saw in the last recession, the layoffs forced many IT entrepreneurs to
focus on their innovative ideas to build a better solution.

Table A:Most visited countries in 2007 and 2008 by the International

travelers:
Internationa Internationa
UNWTO l l
Ran
Country Regional tourist tourist
k
Market arrivals arrivals
(2008) (2007)

1 France Europe 81.9 million 79.1 million

2 Spain Europe 59.2 million 58.5 million

North
3 United States 56.0 million 51.1 million
America

4 China Asia 54.7 million 49.6 million

5 Italy Europe 43.7 million 41.1 million

6 United Kingdom Europe 30.7 million 30.7 million

7 Germany Europe 24.4 million 23.6 million

8 Ukraine Europe 23.1 million 18.9 million

9 Turkey Europe 22.2 million 18.9 million

North
10 Mexico 21.4 million 21.4 million
America

\ World Tourism Organization Rankings

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THE INDIAN ERP INDUSTRY –

In the last decade, ERP software has exploded into the global business landscape. With the
opening up of the Indian economy, there has been a turnaround growth in different industry
verticals thereby helping them reach a level of maturity that demands advanced technology to
efficiently manage and streamline their processes. This growth and along with the associated
competition and quest for enhancing market share has led the organizations to re-look at its
processes and procedures and put in place proper processes enablers and solutions to make its
business more efficient and effective. Many Indian industries already have realized the need
for ERP solutions, and the industry-related market growth should match the expansion of the
sector as a whole.
 
According to a research report, The Indian ERP market experienced compounded annual growth
rate of 25.2 per cent during the period 2004-2009. The market was $83 million in 2004, and is
projected to be around $160-180 million in 2010. Some of the potential target segments which
have shown high penetration are Automotive, Steel, Consumer Durables, Engineering, Retail,
Communications and Textiles thereby making it attractive for the ERP vendors
 
An ERP package can streamline and automate different important functions of an organization
such as accounts payable, accounts receivable, activity management, benefits administration, and
billing, invoicing and cost tracking (for project-based businesses), payroll, Sales and Marketing.
With ERP, companies can also improve cash management, while manufacturing firms can
practice more effective capacity planning and cost containment.
 
Major Benefits
 
●     A primary benefit of ERP is easier access to reliable, integrated information, elimination of
redundant data and the rationalization of processes, which results in substantial cost savings.
 
●     It enables decision-makers to have an enterprise-wide view of the information they need in a
timely, reliable and consistent fashion. The system provides consistency, visibility and
transparency across the entire enterprise.
 
●     The integration among business functions facilitates communication and information
sharing, leading to dramatic gains in productivity and speed.
 
Market Trends in the Indian ERP Market
 
●     SMBs as a potential market for ERP Vendors: Most of the mid sized organizations are
working with applications which are non-integrated and on disparate technology architectures,
built in-house. This has resulted redundant technology, loss of support, non availability of critical
information at the right time resulting in overall business loss. ERP vendors in India will have a

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great opportunity when they explore into the untapped areas of the SME segment with innovative
practices tuned to mid size organizations processes and business needs. Companies like Sage
Software has focused on this segment in a major way, which we can see their various product
offerings for SMBs on http://www.sagesoftware.co.in
 
●     Adoption of ERP as a Service (SaaS)-SaaS (Software-as-a-Service)-based Enterprise
Resource Planning (ERP) is an on-demand deployment of ERP software, where the user can
access the software through license as a Web-based service. It provides an alternative to
implementation or maintaining ERP software. SaaS - based ERP includes finance, order
management, inventory control, purchasing and manufacturing functionality. The increasing
popularity of the SaaS-based applications account for the growth of ERP, as the enterprise
resources are maintained by a service provider.
 
There needs to be no doubt in the promising opportunities and prospects of ERP in the future in
both software and non software sectors. Whether your growth plans include buying and selling in
the global marketplace, adding more talent to your team, or expanding your services, ERP has
the tools and the flexibility to successfully accelerate your business expansion and streamline
existing business and operational processes thereby improving efficiency and productivity.

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THE AWARDS AND RECOGNITIONS OF COX AND KINGS
"Most admired tour operator 2010" awarded by SATTE (2010)
"Best Domestic Tour Operator" awarded by the Abacus TAFI TravelBiz Monitor Awards
(2009).
"Best Inbound Tour Operator" awarded by the Abacus TAFI TravelBiz Monitor Awards
(2009).
"Most Innovative Product Launch" awarded by the Abacus TAFI TravelBiz Monitor Awards
(2009).
"India's Top Rated Tour Operator - Outbound 2009" awarded by The Economic Times,
India's largest business daily.
"Most Innovative Travel Company of 2009" awarded by Today's Traveller Platinum Award.
"The Number One Brand in India" based on a survey conducted by research agency, TNS
and co-funded by Media magazine, ranking it 152 amongst the top 1,000 brands in the Asia
Pacific region - Australia, China, India, Japan, Hong Kong, Korea, Malaysia, Singapore,
Taiwan and Thailand.
"Best Domestic Tour Operator" awarded by Galileo Express Travel World Awards (2008)
"Best Visual Advertising Campaign" awarded by Galileo Express Travel World Awards
(2008)
"WTM Global Award" to Mr. Peter Kerkar, Global CEO, Cox and Kings for his remarkable
contribution to the travel and tourism industry (2008)
"One of the top 15 travel companies in the world" by Conde Nast Traveller Awards (2008)
"One of the top 15 travel companies in the world" by Conde Nast Traveller Awards (2003)
"Best Self Drive Brochure" by Tourism New Zealand Asia Awards (2008)
"Most Preferred Tour Operator Award" by CNBC Travel Awards (2007)
TAFI-Abacus Award for the "Best Outbound Tour Operator" (2007)
TAFI-Abacus Award for the "Best Domestic Tour Operator" (2007)
3 Awards for being the "Best Domestic Tour Operator" awarded by Galileo Express Travel
World Awards (2005 - 2006, 2004 - 2005, 2003 - 2004)
"Best Technology" Award By Galileo Express Travel Awards (2005 - 2006)
"Best Outbound Tour Operator" by Galileo Express Travel (2003 - 2004)
3 National Tourism Awards for being the "Best Domestic Tour Operator" awarded by
Government of India, Department of Tourism (2005 - 2006, 2004 - 2005, 2003 - 2004)
7 National Tourism Awards for being the "Best Conference Agency" awarded by
Government of India, Department of Tourism (2004 - 2005, 2003 - 2004, 2002 - 2003, 2001
- 2002, 2000 - 2001) 1999 - 2000, 1998 - 1999, 1995 -

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PROJECT OVERVIEW
What is ERP

ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications to
improve the performance of organizations' resource planning, management control and
operational control. ERP software is multi-module application software that integrates activities
across functional departments, from product planning, parts purchasing, inventory control,
product distribution, to order tracking. ERP software may include application modules for the
finance, accounting and human resources aspects of a business.

ERP vs. CRM and SCM

CRM (Customer Relationship Management) and SCM (Supply Chain Management) are two
other categories of enterprise software that are widely implemented in corporations and non-
profit organizations. While the primary goal of ERP is to improve and streamline internal
business processes, CRM attempts to enhance the relationship with customers and SCM aims to
facilitate the collaboration between the organization, its suppliers, the manufacturers, the
distributors and the partners.

ERP Definition - A Systems Perspective

ERP, often like other IT and business concepts, are defined in many different ways. A sound
definition should several purposes:

It answers the question of "what is ... ?".

It provides a base for defining more detailed concepts in the field - ERP software, ERP systems,
ERP implementation etc.

It provides a common ground for comparison with related concepts - CRM, SCM etc.

It helps answer the basic questions in the field - benefits of ERP, the causes of ERP failure etc.

A definition of ERP based on Systems Theory can server those purposes.

ERP is a system which has its goal, components, and boundary.

The Goal of an ERP System - The goal of ERP is to improve and streamline internal business
processes, which typically requires reengineering of current business processes.

The Components of an ERP System - The components of an ERP system are the common
components of a Management Information System (MIS).

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ERP Software - Module based ERP software is the core of an ERP system. Each software
module automates business activities of a functional area within an organization. Common ERP
software modules include product planning, parts purchasing, inventory control, product
distribution, order tracking, finance, accounting and human resources aspects of an organization.
Business Processes - Business processes within an organization falls into three levels - strategic
planning, management control and operational control. ERP has been promoted as solutions for
supporting or streamlining business processes at all levels. Much of ERP success, however, has
been limited to the integration of various functional departments.

ERP Users - The users of ERP systems are employees of the organization at all levels, from
workers, supervisors, mid-level managers to executives.
Hardware and Operating Systems - Many large ERP systems are UNIX based. Windows NT and
Linux are other popular operating systems to run ERP software. Legacy ERP systems may use
other operating systems.

The Boundary of an ERP System - The boundary of an ERP system is usually small than the
boundary of the organization that implements the ERP system. In contrast, the boundary of
supply chain systems and ecommerce systems extends to the organization's suppliers,
distributors, partners and customers. In practice, however, many ERP implementations involve
the integration of ERP with external information systems.

We will define CRM using the same approach we define ERP. We look at CRM from  
a systems perspective to outline a holistic picture of CRM system.

What is CRM
CRM is the acronym of Customer Relationship Management. CRM is a business
system that consists of enterprise goals, business strategies, business processes and
enterprise information systems. CRM software systems automate many customer-
related business tasks.

CRM vs. ERP and SCM

ERP (Enterprise Relationship Management) and SCM (Supply Chain Management)

are two other categories of enterprise software that are widely implemented in
corporations and non-profit organizations. While CRM attempts to enhance the
relationship with customers, the primary goal of ERP is to improve and streamline
internal business processes, and SCM aims to facilitate the collaboration between the
organization, its suppliers, the manufacturers, the distributors and the partners.

CRM Definition - A Systems Perspective

Goals of CRM Systems - Goals of CRM is to learn more about customers' needs and
behaviors in order to develop stronger relationships with them, and to facilitate
acquiring, enhancing and retaining of customers. Components of CRM System

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 CRM Software - The core of an CRM system is module-based CRM software
application. Each software module automates business activities pertinent to one
functional area of customer relationship management. Common modules in CRM
software system includes customer contact management, direct marketing, sales
automation, call center applications and helpdesk module.

Business Processes - Business processes within an organization falls into three levels
- strategic planning, management control and operational control. While ERP has
been promoted as solutions for supporting or streamlining business processes at all
levels, CRM systems are clearly designed to enhance management control and
operational control in the chain of customer relationship management.

Users - The primary users of CRM systems are workers that perform management
control and operational control. In an extended enterprise environment, the CRM
users may include customers and business partners.

Hardware and Operating Systems - UNIX is the most common operating system
for running CRM software. Windows NT and Linux are other popular operating
systems to run CRM software. Most larger CRM systems are UNIX based. UNIX is a
computer operating system designed to be used by many people at the same time and
has TCP/IP built-in. There are many reasons to host your CRM software on UNIX.

Boundary of an CRM System

The boundary of an CRM system is the boundary of extended enterprise that

implements the CRM system. The boundary of supply chain systems and ecommerce
systems extends to the organization's suppliers, partners and customers.

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Introduction of the Project

What Is ERP?

An Enterprise Resource Planning (ERP) system is an integrated computer-based application 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

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.

The initialism ERP was first employed by research and analysis firm Gartner Group in 1990 as
an extension of MRP (Material Requirements Planning; later manufacturing resource planning
and CIM (Computer Integrated Manufacturing), and whilst not supplanting these terms, it has
come to represent a larger whole. It came into use, as the creators of MRP software started to
develop software applications beyond the manufacturing arena. However, this does not mean that
ERP packages have typically been developed from a manufacturing core. Many of the major
players started their development of an integrated package from other directions, such as
accounting, maintenance and human resources management. ERP systems now attempt to cover
all core functions of an enterprise, regardless of the organization's business or charter. These
systems can now be found in non-manufacturing businesses, non-profit organizations and
governments.
To be considered as an ERP system, a software package should have the following traits:
An integrated system that operates in (next to) real time, without relying on periodic batch
updates.
A common database, that is accessed by all applications, preventing redundant data and multiple
data definitions.
A consistent look and feel throughout each module (sales, manufacturing, accounting etc.).
The ability to access the system without specialist integration by the Information System (or IT)
department.

Components / Modules
Transactional Backbone
Financials

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Distribution
Human Resources
Product lifecycle management
Advanced Applications
Customer Relationship Management (CRM)
Supply chain management software
Purchasing
Manufacturing
Distribution
Warehouse Management System.
Management Portal/Dashboard
Decision Support System
These modules can exist in a system or can be utilized in an ad-hoc fashion.

Commercial applications:

Manufacturing 
Engineering, bills of material, work orders, scheduling, capacity, workflow management, quality
control, cost management, manufacturing process, manufacturing projects, manufacturing flow
Supply chain management 
Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning,
supplier scheduling, inspection of goods, claim processing, commission calculation
Financials 
General ledger, cash management, accounts payable, accounts receivable, fixed assets
Project management 
Costing, billing, time and expense, performance units, activity management
Human resources 
Human resources, payroll, training, time and attendance, rostering, benefits
Customer relationship management 
Sales and marketing, commissions, service, customer contact, call-center support
Data services 
Various "self-service" interfaces for customers, suppliers and/or employees
Access control 
Management of user privileges for various processes

History
The term "Enterprise resource planning" originally derived from manufacturing resource
planning (MRP II) that followed material requirements planning (MRP). MRP evolved into ERP
when "routings" became a major part of the software architecture and a company's capacity
planning activity also became a part of the standard software activity ERP systems typically
handle the manufacturing, logistics, distribution, inventory, shipping, invoicing,
and accounting for a company. ERP software can aid in the control of many business activities,
including sales, marketing, delivery, billing, production, inventory management, quality
management, and human resource management
ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem in
their legacy systems. Many companies took this opportunity to replace such information systems

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with ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time
most companies had already implemented their Y2K solution.
ERP systems are often incorrectly called back office systems, indicating that customers and the
general public are not directly involved. This is contrasted with front office systems like
customer relationship management (CRM) systems that deal directly with the customers, or
the business systems such as eCommerce, eGovernment, eTelecom, and eFinance, or supplier
relationship management (SRM) systems
ERP systems are cross-functional and enterprise-wide. All functional departments that are
involved in operations or production are integrated in one system. In addition to areas such as
manufacturing, warehousing, logistics, and information technology, this typically
includes accounting, human resources, marketing and strategic management.
ERP II, a term coined in the early 2000s, is often used to describe what would be the next
generation of ERP software. This new generation of software is web-based and allows both
employees and external resources (such as suppliers and customers) real-time access to the
system's data.
EAS — Enterprise Application Suite is a new name for formerly developed ERP systems which
include (almost) all segments of business using ordinary Internet browsers as thin clientsThough
traditionally ERP packages have been on-premise installations, ERP systems are now also
available as Software as a Service.
Best practices are incorporated into most ERP vendor's software packages. When implementing
an ERP system, organizations can choose between customizing the software or modifying their
business processes to the "best practice" function delivered in the "out-of-the-box" version of the
software
Prior to ERP, software was developed to fit individual processes of an individual business. Due
to the complexities of most ERP systems and the negative consequences of a failed ERP
implementation, most vendors have included "Best Practices" into their software. These "Best
Practices" are what the Vendor deems as the most efficient way to carry out a particular business
process in an Integrated Enterprise-Wide systemA study conducted by Ludwigshafen University
of Applied Science surveyed 192 companies and concluded that companies which implemented
industry best practices decreased mission-critical project tasks such as configuration,
documentation, testing and training. In addition, the use of best practices reduced over risk by
71% when compared to other software implementations.[
The use of best practices can make complying with requirements such as IFRS, Sarbanes-Oxley,
or Basel II easier. They can also help where the process is a commodity such as electronic funds
transfer. This is because the procedure of capturing and reporting legislative or commodity
content can be readily codified within the ERP software, and then replicated with confidence
across multiple businesses who have the same business requirement
Implementation
Businesses have a wide scope of applications and processes throughout their functional units,
producing ERP software systems that are typically complex and usually impose significant
changes on staff work practices. Implementing ERP software is typically too complex for in-
house developers, lacking the required skills, so it is desirable and advisable to hire outside
consultants who are professionally trained to implement these systems.[1] This is typically the
most cost-effective way There are three types of services that may be employed - Consulting,
Customization, and Support. The length of time to implement an ERP system depends on the
size of the business, the number of modules, the extent of customization, the scope of the change,

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and the willingness of the customer to take ownership for the project. ERP systems are modular,
so they don't all need be implemented at once. Implementation can be divided into various
stages, or phase-ins. The typical project is about 14 months and requires around 150
consultants. A small project (e.g. a company of less than 100 staff) can be planned and delivered
within 3–9 months; however, a large, multi-site or multi-country implementation can take
years .The length of the implementations is closely tied to the amount of customization desired.
To implement ERP systems, companies often seek the help of an ERP vendor or a third-
party consulting company. Consulting firms typically provide three areas of professional
services: consulting, customization, and support. The client organization can also employ
independent program management, business analysis, change management, and UAT specialists
to ensure their business requirements remain a priority during implementation.
Data Migration
Data migration is one of the most important activities in determining the success of an ERP
implementation. Since many decisions must be made before migration, a significant amount of
planning must occur. Unfortunately, data migration is the last activity before the production
phase of an ERP implementation, and therefore receives minimal attention due to time
constraints. The following are steps of a data migration strategy that can help with the success of
an ERP implementation
Identify the data to be migrated
Determine the timing of data migration
Generate the data templates
Freeze the tools for data migration
Decide on migration-related setups
Decide on data archiving
Process preparation

ERP vendors have designed their systems around standard business processes, based upon best
business practices. Different vendor(s) have different types of processes but they are all of a
standard, modular nature. Firms that want to implement ERP systems are consequently forced to
adapt their organizations to standardized processes as opposed to adapting the ERP package to
the existing processes. Neglecting to map current business processes prior to starting ERP
implementation is a main reason for failure of ERP projects.] It is therefore crucial that
organizations perform a thorough business process analysis before selecting an ERP vendor and
setting off on the implementation track. This analysis should map out all present operational
processes, enabling selection of an ERP vendor whose standard modules are most closely aligned
with the established organization. Redesign can then be implemented to achieve further process
congruence. Research indicates that the risk of business process mismatch is decreased by:
Linking each current organizational process to the organization's strategy;
Analyzing the effectiveness of each process in light of its current related business capability;
Understanding the automated solutions currently implemented.
ERP implementation is considerably more difficult (and politically charged) in organizations
structured into nearly independent business units, each responsible for their own profit and loss,
because they will each have different processes, business rules, data semantics, authorization
hierarchies and decision centers. Solutions include requirements coordination negotiated by
local change management professionals or, if this is not possible, federated implementation using

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loosely integrated instances (e.g. linked via Master data management) specifically configured
and/or customized to meet local needs
A disadvantage usually attributed to ERP is that business process redesign to fit the standardized
ERP modules can lead to a loss of competitive advantage. While documented cases exist where
this has indeed materialized, other cases show that, following thorough process preparation, ERP
systems can actually increase sustainable competitive advantage.

]Configuration
Configuring an ERP system is largely a matter of balancing the way you want the system to
work with the way the system lets you work. Begin by deciding which modules to install, then
adjust the system using configuration tables to achieve the best possible fit in working with your
company’s processes
Modules — Most systems are modular simply for the flexibility of implementing some functions
but not others. Some common modules, such as finance and accounting are adopted by nearly all
companies implementing enterprise systems; others however such as human resource
management are not needed by some companies and therefore not adopted. A service company
for example will not likely need a module for manufacturing. Other times companies will not
adopt a module because they already have their own proprietary system they believe to be
superior. Generally speaking, the greater the number of modules selected, the greater the
integration benefits, but also the increase in costs, risks and changes involved]
Configuration Tables – A configuration table enables a company to tailor a particular aspect of
the system to the way it chooses to do business. For example, an organization can select the type
of inventory accounting – FIFO or LIFO – it will employ, or whether it wants to recognize
revenue by geographical unit, product line, or distribution channel.
So what happens when the options the system allows just aren't good enough? At this point a
company has two choices, both of which are not ideal. It can re-write some of the enterprise
system’s code, or it can continue to use an existing system and build interfaces between it and
the new enterprise system. Both options will add time and cost to the implementation process.
Additionally they can dilute the system’s integration benefits. The more customized the system
becomes the less possible seamless communication between suppliers and customers
Connectivity to Plant Floor Information
ERP systems connect to real-time data and transaction data (data accumulated into collections to
deliver sets of information) in a variety of ways. These systems are typically configured
by System Integrators, able to bring their unique knowledge on process, equipment and vendor
solutions.
Direct Integration – ERP systems connectivity (communications to plant floor equipment) as part
of their product offering. This requires the ERP system developers to offer specific support for
the variety of plant floor equipment that they want to interface with. ERP Vendors must be
expert in their own products, and connectivity to other vendor products, often those offered by
competitors.
Relational Database (RDB) Integration – ERP systems connect to plant floor data sources
through a Relational Database Staging Table. Plant floor systems will deposit the necessary
information into a Relational Data Base. The ERP system will remove and use the information
from the RDB Table. The benefit of RDB Staging is that ERP vendors do not need to get
involved in the complexities of plant floor equipment integration. Connectivity becomes the
responsibility of the System Integrator.

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EATM (Enterprise Transaction Modules) – These devices have the ability to communicate
directly with plant floor equipment and will transact data with the ERP system in methods best
supported by the ERP system. Again, this can be through a staging table, Web Services, or
through system specific business system APIs. The benefit of an EATM is that it offers a
complete, off the shelf solution, minimizing long term costs and customization.
Custom Integrated Solutions – Many system integrators designs offer custom crafted solutions,
created on a per instance basis to meet site and system requirements. There are a wide variety of
communications available for plant floor equipment and there are separate products that have the
ability to log data to relational database tables. Standards exist within the industry to support
interoperability between software products, the most widely known being OPC, managed by
the OPC Foundation. Custom Integrated Solutions typically run on workstation or server class
computers. These systems tend to have the highest level of initial integration cost, and can have a
higher long term cost in terms on maintenance and reliability. Long term costs can be minimized
through careful system testing and thorough documentation.
Consulting services
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:
Selecting
Planning
Training
Testing
Implementation
Delivery
of any customized modules.

Core system" customization vs configuration

Increasingly, ERP vendors have tried to reduce the need for customization by providing built-in
"configuration" tools to address most customers' needs for changing how the out-of-the-box core
system works. Key differences between customization and configuration include:
Customization is always optional, whereas some degree of configuration (e.g., setting up
cost/profit centre structures, organizational trees, purchase approval rules, etc.) may be needed
before the software will work at all.
Configuration is available to all customers, whereas customization allows an individual customer
to implement proprietary "market-beating" processes.
Configuration changes tend to be recorded as entries in vendor-supplied data tables, whereas
customization usually requires some element of programming and/or changes to table structures
or views.
The effect of configuration changes on the performance of the system is relatively predictable
and is largely the responsibility of the ERP vendor. The effect of customization is unpredictable
and may require time-consuming stress testing by the implementation team.
Configuration changes are almost always guaranteed to survive upgrades to new software
versions. Some customizations (e.g. code that uses pre-defined "hooks" that are called
before/after displaying data screens) will survive upgrades, though they will still need to be
retested. More extensive customizations (e.g. those involving changes to fundamental data
structures) will be overwritten during upgrades and must be re-implemented manually.

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By this analysis, customizing an ERP package can be unexpectedly expensive and complicated,
and tends to delay delivery of the obvious benefits of an integrated system. Nevertheless,
customizing an ERP suite gives the scope to implement secret recipes for excellence in specific
areas while ensuring that industry best practices are achieved in less sensitive areas.
Extensions
In this context, "Extensions" refers to ways that an ERP environment can be "extended"
(supplemented) with third-party programs. It is technically easy to expose most ERP transactions
to outside programs that do other things, e.g
Archiving, reporting and republishing (these are easiest to achieve, because they mainly address
static data);
performing transactional data captures, e.g. using scanners, tills or RFIDs (also relatively easy
because they touch existing data).
However, because ERP applications typically contain sophisticated rules that control how data
can be created or changed, such functions can be very difficult to implement.
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 lead time 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-break-even 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.

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Disadvantages
Problems with ERP systems are mainly due to inadequate investment in ongoing training for the
involved IT personnel - including those implementing and testing changes - as well as a lack of
corporate policy protecting the integrity of the data in the ERP systems and the ways in which it
is used.
Disadvantages
Customization of the ERP software is limited.
Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system
may lead to a loss of competitive advantage.
ERP systems can be very expensive. (This has led to a new category of "ERP light" solutions.)
ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business
process of some companies—this is cited as one of the main causes of their failure.
Many of the integrated links need high accuracy in other applications to work effectively. A
company can achieve minimum standards, then over time "dirty data" will reduce the reliability
of some applications.
Once a system is established, switching costs are very high for any partner (reducing flexibility
and strategic control at the corporate level).
The blurring of company boundaries can cause problems in accountability, lines of
responsibility, and employee morale.
Resistance in sharing sensitive internal information between departments can reduce the
effectiveness of the software.
Some large organizations may have multiple departments with separate, independent resources,
missions, chains-of-command, etc., and consolidation into a single enterprise may yield limited
benefits.

Methodology & Schedule: The various methodologies that will be used in order to collect the
data for this project “Customer client relationship of Cox and Kings India ltd in context to
purchase and post purchase period”.

Primary data:
The primary data will be directly collected from the technical support team and network
administrator of Cox and kings.
Survey through Questionnaire, Attending live sessions and ERP analysis of Cox & Kings.
Responses obtained through Live problem situations and error recovery and management
Secondary data:
By interviewing the Technical team of Cox and Kings.
Data obtained by attending the day to day working of Cox & kings .
By studying the various criteria’s that led to various awards won by Cox and Kings at national
level.

Phase 1:
Extensive study:

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Study of various process and departments to find out the situations and problems handled.
Observing closely by looking in to the techniques of ERP management of Cox and Kings.
Secondary information through internet surfing and company data.
Phase2:
Direct Verification :
Attending Sessions
Observing Workstations (If permitted)
Simulation

Data Collected - Through Questionnaire and Feedback forms

Type of Data - Primary Data
Mode of Data Collection - One-to-one Survey
Source of Data - Cox & Kings
Respondents - Senior Administration and Technical support team
Phase 3:
Analysis:

Analysis Tools; CRM and Other Utility tools ,SPSS Tools-(Factor Analysis)
Data Organizing and Mining-(MS-EXCEL)

Limitation of the study:

Non-Availability of specific information about the exact process involved because of privacy
policy of Cox & Kings.
Unavailability of some confidential data of Cox & Kings.
Mislead and Ignorance of technical support team members .
Organization lack of will to provide access to exact data and process.

Main Text:
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PHASE-I: Understanding the ERP Concept
An Enterprise Resource Planning (ERP) system is an integrated computer-based application 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

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.

PHASE 2: Survey through Questionnaire(Direct Method)

 Preparation of the Questionnaire .

 Data collection through questionnaire.
 Systems Analysis

The Phase 2 comprises of collection of data by the use of questionnaire (Direct

Survey method) .The significance of this phase is to collect data, enhance
technical know how and extensive systems analysis .

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 Questionnaire
For
“Relational networking and Network Marketing in Tourism
Industry”

I would like to take few moments of your precious time with your permission to
find out few details that are considered to be a requirement for the survey process.
Question 1-6 are to be ticked, questions 7 & 8 are to be rated on a scale of 1-10
based on your preferences and the questions 9 & 10 are brief descriptive type
feedback questions.

Requesting your valuable observation and thanking for not being biased.

Your participation is praiseworthy. Before proceeding can I request you to fill up

the contact details for future references????

CUSTOMER DETAILS:
Name: __________ Occupation: ___________

Contact No:_______ Email id: _____________

Sex: M F

Contact details: +91-___ -____-_____ (India)

Thank you once again. So can I request you to proceed to the next part of the
questionnaire?

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Following questions are to be ticked in the boxes provided
1. When have you implemented the ERP?

Within a month 2-4 months 4-6 months

6-8 months 8-11 months A year ago

2. How much helpful has it been to the workplace?

Very helpful Helpful Optional Not required

3. To what extent has the ERP speeded up the process?

High Medium Low Insignificant

4. What is your comfort level with the ERP?

Very High High Normal

Medium Low Very Low

5. How much is your compatibility with the ERP?

Very High High Normal

Medium Low Very Low

6. What type( High/Low) end is the ERP

High – End Low - End Medium

Very Complicated(Requires high technical know-how)

The following questions are to be rated on a scale of 1-10 based on choice and
preference. Thank you for holding your patience. We would request for just a more
couple of minutes.

7. How satisfied you were with the ERP at work

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  With the Comfort Level
 With the technical compatibility
 With the template features

8. How satisfied you were with the value added services provided by ERP?

(Rate between 1-10 in the box provided)

9. What kind of assistance and services you expect from the ERP vendor
additionally?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

10.Any added features you would like to be include in the ERP?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

We would like to have feedbacks and suggestions if any, on your part….

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Thanking you for the wonderful effort provided by you and the precious time you spent,
and looking forward to strengthen our relationship further.

THANK YOU …

PHASE 3: Analysis of Collected Data and report generation

The 3rd phase deals entirely with the analysis of the collected data and using the
available technology to do the same. The analyzed report helps in suggestions and
inferences that are the needful of the project as well as the company.

References:
 Bidgoli, Hossein, (2004). The Internet Encyclopedia, Volume 1, John Wiley & Sons, Inc. p.
707.
 Khosrow-Puor, Mehdi. (2006). Emerging Trends and Challenges in Information Technology
Management. Idea Group, Inc. p. 865.
 L. Wylie, "A Vision of Next Generation MRP II", Scenario S-300-339, Gartner Group, April 12,
1990
 "ERP". Retrieved 2009-10-07.
 Sheilds, Mureell G., E-Business and ERP: Rapid Implementation and Project Planning. (2001)
John Wiley and Sons, Inc. p. 9.

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 Chang, SI; Guy Gable; Errol Smythe; Greg Timbrell (2000). "A Delphi examination of public
sector ERP implementation issues". International Conference on Information Systems.
Atlanta: Association for Information Systems. pp. 494–500. ISBN ICIS2000-X. Retrieved
September 9, 2009.
 Sheilds, Mureell G., E-Business and ERP: Rapid Implementation and Project Planning. (2001)
John Wiley and Sons, Inc. p. 9-10.
 Anderegg, Travis. "MRP/MRPII/ERP/ERM — Confusing Terms and Definitions for a Murkey
Alphabet Soup". Retrieved 2007-10-25
 Monk, Ellen; Wagner, Bret (2006). Concepts in Enterprise Resource Planning (Second ed.).
Boston: Thomson Course Technology. ISBN 0619216638
 Monk, Ellen and Wagner, Brett."Concepts in Enterprise Resource Planning" 3rd.ed.Course
Technology Cengage Learning.Boston, Massachusetts.2009
 "Enhanced Project Success Through SAP Best Practices – International Benchmarking
Study". ISBN 1-59229-031-0.
 What is ERP?, http://www.tech-faq.com/erp.shtml
 CRITICAL ISSUES AFFECTING AN ERP
IMPLEMENTATION, http://carl.sandiego.edu/gba573/critical_issues_affecting_an_erp.htm
 Ramaswamy V K (2007-09-27). "Data Migration Strategy in ERP". Retrieved 2008-04-08.
 Turban et al. (2008). Information Technology for Management, Transforming Organizations in
the Digital Economy. Massachusetts: John Wiley & Sons, Inc., pp. 300-343. ISBN 978-0-471-
78712-9
 Brown, C., and I. Vessey, "Managing the Next Wave of Enterprise Systems: Leveraging
Lessons from ERP," MIS Quarterly Executive, 2(1), 2003.
 King. W., "Ensuring ERP implementation success," Information Systems Management, Summer
2005.
Yusuf, Y., A. Gunasekaran, and M. Abthorpe, "Enterprise Information Systems Project
Implementation: A Case Study of ERP in Rolls-Royce," International Journal of Production
Economics, 87(3), February 2004.
"Requirements Engineering for Cross-organizational ERP Implementation: Undocumented
Assumptions and Potential Mismatches" (PDF). University of Twente. Retrieved 2008-07-12.
 Turban et al. (2008). Information Technology for Management, Transforming Organizations in
the Digital Economy. Massachusetts: John Wiley & Sons, Inc., p. 320. ISBN 978-0-471-78712-9
 Dehning,B. and T.Stratopoulos, 'Determinants of a Sustainable Competitive Advantage Due to
an IT-enabled Strategy,' Journal of Strategic Information Systems, Vol. 12, 2003

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