A REPORT

ON

Subject: Tally ERP

Industry: IT/ITES

Submitted to:

PROF. AMARJEET PATPATIYA

Submitted by:

Meet Shah: 19BSP1555

Nikhil B Sebastian: 19BSP1720
Nisha Naik: 19BSP1760
Shalin Sharma: 19BSP2553
Shivam: 19BSP2626
Vaibhav Joshi: 19BSP3136
 TALLY
Tally Solutions Pvt. Ltd., is an Indian multinational company that
provides enterprise resource planning software. It is headquartered in
Bengaluru, Karnataka India. The company reports that its software is
used by more than 1.8 Million customers
Businesses may gather financial, marketing and sales-related
information, or more technical data; a business report sample will be
your all-time assistance to adjust purchasing plans, staffing schedules,
and more generally, communicating your ideas in the business
environment.
General business report Examples
There are 12 types of business reports that virtually every business
and consultant needs:

 Weekly activity reports

 Project status reports
 Sales reports
 Digital marketing reports
 Competitor analysis reports
 Case studies
 Growth strategy reports
 Market research reports
 Budget reports
 Annual reports
 White papers
 Project plans
 Business proposals
Tally ERP falls under the “Other” category in the above given market
share pie chart as it is meant for MSME sector and widely used in
India mostly by the firms that are handled by sole proprietors who are
medium educated.
Top Alternatives to Tally
 Sage Business Cloud X3.
 NetSuite.
 SAP ERP.
 Odoo ERP.
 Sage Intacct.
 Oracle PeopleSoft.
 Epicor ERP.
 Acumatica.
TALLY

Tally Solutions, then known as Peutronics was co-founded in 1986

by Shyam Sunder Goenka and his son Bharat Goenka. Shyam Sundar
Goenka was running a company that supplied raw materials and
machine parts to plants and textile mills in southern and eastern India.
Unable to find software that could manage his books of accounts, he
asked his son, Bharat Goenka, 23, a Maths graduate to create a
software application that would handle financial accounts for his
business. Tally's main product is its enterprise resource
planning and accounting software called Tally ERP 9.

SEGMENTATION

Market segmentation is the process of dividing a market of potential

customers into groups, or segments, based on different characteristics.
Tally has segmented the industries under the following categories
based on the type of business they conduct. They have been listed
down as follows with examples of a few companies in the particular
Industry that currently use the software:

INDUSTRY Existing Customers

Distribution Ravi Traders, EOS
Healthcare
Government Karnataka State Police
Housing Corporation
Manufacturing K.K Hameed & Co.
Retail U.K International
Services Danspark & Co.
Trading Town Essentials Pvt. Ltd.
TARGETING

Targeting in marketing is a strategy that breaks a large market into

smaller segments to concentrate on a specific group of customers
within that audience.
The target audience being served are the people running their own
venture and company’s mainly the MSME’s.

POSITIONING

Positioning refers to the place that a brand occupies in the minds of

the customers and how it is distinguished from the products of the
competitors
TALLY has focused on portraying themselves as a Company centred
around simplifying commerce for people all over the world and
making it easier for people to transact.

DIFFERENTIATION

TALLY has a robust network of 28000+ partners deliver unmatched

customer experience in sales, support and services. With a strong
research and development division, Tally strives to deliver innovation
and excellence in enterprise resource planning software for small and
medium businesses.

Company Analysis of Tally ERP

ERP (Enterprise Resource Planning) Implementation Life Cycle

ERP Life Cycle:

Life cycle of erp is in which highlights the different stages in

implementation of an ERP. It is very essential to keep sound

knowledge on life cycle of erp so that an end-user, implementer, or a

manager who uses ERP will find it easy to study and understand the

different functions and capabilities of ERP. The life cycle of any ERP

is similar to the normal software development life cycle (SDLC). The

stages involved are designing, growth, maturity, and decline. In any

company, and especially textile and apparel industries, implementing

ERP will go through the following phases: evaluation, selection,

implementation, and post-implementation phase.

The phases of erp implementation life cycle in different steps are

given below. Simple steps are given for better understanding of how

ERP is implemented. Let us go through the steps to understand the

life cycle in a better way.

Step 1: Decision to invest in ERP:
The company decides to go for an ERP solution to cater to their
needs. The needs can vary and could be anything discussed in
previous sections. Based on the needs, the budget for implementing
ERP is allocated.

Step 2: Evaluation of available ERP systems:

This process has two key prerequisites: (a) Initial planning by the
management requiring ERP and (b) Formation of a team to take
charge of the implementation process and detailed analysis to be
carried out by the team. In initial planning, various decisions need to
be taken, such as determining whether industry-specific solutions are
required and whether ERP has to integrate multiple locations and
businesses. A team should be formed to evaluate various ERP
systems available in the market. Therefore, the evaluation process
involves choosing the right vendor from among the various vendors.
Vendors will be called for to demonstrate the capabilities of their ERP
system. During demonstration the vendor should be assessed in the
context of various factors, including time limit for implementation,
cost for basic package, customization possibilities, types of reports
that can be generated, and various modules available.

Step 3: Selection of ERP system:

In this step, the various ERP solutions should be compared based on
the demonstration given and two to three vendors should be
shortlisted. After shortlisting, selection and negotiation must be done
to match costs vis-à-vis features required from the ERP. Once
discussions are concluded, based on the outcome the ERP software of
a particular vendor that provides maximum features for the cost paid
is selected.

Step 4: Requirement analysis by vendor:

The vendor sends his implementation team to perform a requirement
study. It is known as business process study and is sometimes called
gap study also. In this step, vendor team will study the business
processes of the company and prepare a requirement document that is
required for ERP. The existing functionalities of the system will be
shown to the various department heads and any changes required will
be noted down.

Based on changes and customization, there will be some changes in

the total cost estimated for implementing ERP. This should be kept as
the final step for cost finalization, and any changes in pricing should
not be entertained after this step. A requirement document will be
prepared stating “AS IS” and “TO BE.” AS IS is the existing process
and functionality available in ERP, and TO BE refers to changes to be
made to the system for successful implementation of ERP. This is a
critical step, as the company requirements are finalized and any major
changes in the system cannot be accepted by the vendor after this
step. It is essential that the in-house team created for overseeing ERP
implementation understands the ERP functionality clearly before
finalizing the requirement.
Step 5: Developing and customizing the ERP:
In this step, the vendor develops and customizes the ERP software as
per the requirement of the company. The vendor develops
requirements on the basis of the business process study document
prepared as discussed in the previous step. This phase will last
anywhere from 15 days to 3 months and simultaneously
implementation of ERP can be commenced. In the meantime the
company should be ready with the server and database on which the
ERP software package will be installed.

Step 6: Implementation:
The implementation process involves implementers coming to the
company and starting the implementation process by installing the
software package and creating the various data required for ERP.
Details like materials, machines, company name, and so on will be
entered into the system. All the modules of the software will be
implemented. This process along with end-user training can last
anywhere between 2 and 6 months, depending on the size and
processes of the company.

Step 7: Training the end-user:

This is a simultaneous step along with the implementation phase. In
this phase, all staff and workers of the company who need to use ERP
are trained on using ERP for recording various transactions and
making appropriate data entries. The training processes involve
showing all the available features of the software to the staff and
make them enter all transactions to enable them to get familiar with
all the functionalities of ERP. All the requirements based on the
business process study document are checked in this step. The various
reports that can be obtained in the ERP are shown to the users and
approval is received.

Step 8: Parallel run of ERP software and existing

practices:
In this step, along with the existing practices of the company, ERP
system will be used in parallel. All the entries made in the existing
systems will also be made in the ERP system, and the accuracy of the
reports will be checked after the entries are made. Any errors found in
the ERP system will be corrected in this parallel run. All the entries
will be made by the staff with an implementer supervising their
activities. All doubts will be clarified during this period. Any
shortcomings in the ERP system will be identified in this phase and
corrected quickly before the live run starts. If there are any major
requirements arising at this stage, it has to be discussed by the vendor
and customer to arrive at an amicable solution. If there is any major
change required to be made to ERP, doing so will affect the entire
implementation process.

Step 9: Live run using the ERP system:

Once all the requirements are met and all the transactions and reports
are verified and confirmed as accurate, the existing systems are
withdrawn and ERP comes into full force and becomes the only
platform in which data are fed and reports are generated. This is the
phase where error or bugs surface in the system mostly on account of
incorrect entries. So proper care should be taken in ensuring that live
run goes smoothly. This is the final step where implementer will be
present in the company and oversee the entries and reports generated
from the system. The outcome will be shown to the management and
a final sign-off will be obtained from the concerned head and
implementer will hand over the ERP system to the client’s team. The
company will then start using the ERP system on its own.

Step 10: Periodic updates to the system and fixing errors:

Once live run starts, user will encounter errors or bugs in the ERP
system. These can be reported to the vendor and the vendor will
correct the errors and send appropriate software updates to fix the
bugs and errors. Also frequently, vendors send periodic software
updates (colloquially called as patch) that are incorporated into the
ERP system.
Step 11: Continuous usage:
This is the goal behind ERP implementation; the company starts using
ERP continuously and reaps benefits in terms of costs, error
containment, and enhanced productivity and efficiency. It is where
company’s goals for using an ERP system are fulfilled.

Step 12: Replacement of existing ERP system:

After using the ERP system for a few years, there will be new
advancements in ERP like ERP II, or the company might diversify
and would need CRM, BI, or PLM and, hence, may consider
replacing the existing ERP system with a new one.

Understanding Enterprise Resource Planning

You can think of an enterprise resource planning system as the glue
that binds together the different computer systems for a large
organization. Without an ERP application, each department would
have its system optimized for its specific tasks. With ERP software,
each department still has its system, but all of the systems can be
accessed through one application with one interface.

ERP applications also allow the different departments to

communicate and share information more easily with the rest of the
company. It collects information about the activity and state of
different divisions, making this information available to other parts,
where it can be used productively.

ERP applications can help a corporation become more self-aware by

linking information about the production, finance, distribution, and
human resources together. Because it connects different technologies
used by each part of a business, an ERP application can eliminate
costly duplicate and incompatible technology. The process often
integrates accounts payable, stock control systems, order-monitoring
systems, and customer databases into one system.
ERP offerings have evolved over the years from traditional software
models that make use of physical client servers to cloud-based
software that offers remote, web-based access.

A company could experience cost overruns if its ERP system is not

implemented carefully.

Special Considerations
An ERP system doesn't always eliminate inefficiencies within the
business. The company needs to rethink the way it's organized, or else
it will end up with incompatible technology.

ERP systems usually fail to achieve the objectives that influenced

their installation because of a company's reluctance to abandon old
working processes that are incompatible with the software. Some
companies are also reluctant to let go of old software that worked well
in the past. The key is to prevent ERP projects from being split into
many smaller projects, which can result in cost overruns.

ERP Solutions Providers

Some familiar names are leaders in ERP software. Oracle Corp.
(ORCL) originally supplied a relational database that integrated with
ERP software developed by SAP (SAP) before entering the broader
enterprise market in a big way in the early 2000s. Microsoft (MSFT)
has long been an industry leader, with many customers using multiple
software applications from the company.

As cloud-based solutions have grown in popularity in recent years, the

traditional ERP industry leaders have seen challenges from upstarts
such as Bizowie and WorkWise.
SWOT Analysis of ERP Software in Textile and Apparel Industry

Strengths:
Strength means the characteristics or factors that give an edge for a
company over its competitors, the advantages over others in the
market. The strength factors, depending on the organization, for ERP
systems implementation are some of the factors listed in the matrix,
such as cost, schedule, infrastructure, efficient and experienced
manpower, and a long-term mission and vision. The organization that
has a strong financial hand can go for any new change in the
organization, and as an ERP system needs lots of money, cost can be
one of the important strengths of the organization. The
implementation is a long and time-consuming process, so it requires
more time for better implementation in organization, and if the
organization has the time, it will be more of a benefit to the ERP
system. If the organization already has better infrastructure in hand,
the implementation is easy, otherwise more time is needed to create a
new setup for the new technology deployment. Human resources is a
main strength, and if the organization has efficient and experienced
manpower, thing are easily adopted and perfectly implement in most
of the cases. Above all, a clear, advanced, long-term mission and
vision in top-level management will always stand as a supporting poll
for the ERP system development team as the parental tree for
achieving the goals and objectives.

A few domain specific strengths are listed:

 Industry-specific functionality
 Dedicated support and implementation for professionals well
versed in the textile and apparel industry
 Benchmarking abilities and world-class industry experience
 Minimum customizations
 Improve company performance with industry-specific
optimization functions (fabric cut optimization, cost optimization,
and optimize planning and scheduling)
  Integrated solution for all areas (fiber to garment) and all
activities (sales to purchasing)

Weaknesses:
Weaknesses are characteristics or factors that can be harmful if used
against the firm by its competitors or disadvantages relative to the
internal environment of the organization. During the ERP system
implementation, the role and support of top-level management plays
a vital role, and if decision-making is of a bureaucratic nature at the
top level of management during the implementation, others in the
organization may not have faith in management, adversely affecting
the implementation. Sometimes not all in the organization may have
as much technical savvy as the development team, yet if they will use
the ERP system, they must understand the technology. If they failed
in this effort, it will be a weakness for the organization. Sometimes,
the people of the organization are not in position to change their
traditional working environment nor to acquire the new technology in
their working mode, or it can be dangerous for the organization to
acquire the new technology. The organization hired the consultants
for implementation and deployment of the ERP system, but after
finishing the task, the consultants leave the organization. Here the
problem arises in regard to the maintenance of the ERP system. If
there is no group of people in the organization who have deep
knowledge of ERP system technology, the consultation process must
start again, increasing the cost of the process. Most of the
organization fails to analyze the need of market and customer
requirements, and by poor knowledge of the market, the ERP system
implementation may fail.

A few domain specific weaknesses are listed:

 Too small of an investment in dedicated R&D, mostly
customer-based modifications
 Too small of a customer base to provide support to help desk
facilities
 No proper version control and no new releases
 Need to patch many solutions together
 Lack of integration
  Older technology, and no funds to invest in leading-edge
technology
Opportunities:
Opportunities are characteristics or favorable situations that can bring
a competitive advantage in the market. The organization that is
always looking for the new opportunities to achieve their objectives
will never face failure in the market. Similarly, the organization that is
planning for ERP system implementation needs to find opportunities
in the market for the implemented technology adopted by the
organization. While considering the opportunities in the market, the
first element is the customer, and an ERP system will create the rapid
and corrective responses to the request for proposals (RFPs) of
customers. Further, it can create a consultant division in the market
for the ERP system implementation for other organizations without an
ERP system. With the help of rapid responses to the RFPs of
customers, the ERP system creates the opportunities to make the
customer satisfied at a certain level.

With the help of an ERP system, we can have an idea about how and
what data is flowing among the different processing activities in the
organization, which keeps top-level management updated. The ERP
system also gives a better understanding of the current organizational
workflow and fund flow, which helps the organization to change its
tactical decisions by creating new strategies for the improvements.

A few domain-specific opportunities are listed:

 Reduce need of customizations

 Change and optimize business organization
 Improve customer service and profitability
 Reduce inventory and WIP
 Minimize lead times
 Control costs
 React quickly to market changes
 Minimize investment and IT budget
 Fast and on-budget implementation
Threats:
Threats are characteristics or unfavorable situations that can
negatively affect the business or cause trouble for the organization.
While considering the threats parameter in an ERP system
implementation, the very first factor that comes to mind is security of
data that travels from the different individuals, divisions, departments,
offices, and plant, sometimes at the same location or different
geographical locations, which needs even more security. One of the
costliest threats for the ERP system implementation is the
maintenance cost of the ERP system, which requires continuous
monitoring, time, and people in the process. Sometimes, slow growth
of the organization also has serious effects on the process, where the
organizational growth is not up to the mark as decided by the top-
level management during the implementation. Competition is the
biggest threat for any organization, especially if the competitor is
more advanced in technology.

After completing the implementation, some people from the

organization must have enough technical knowledge to solve the
problems they may face in the future to reduce the dependency on the
ERP system development consultant, who are outsiders to the
organization, thereby reducing the cost of maintenance.

A few domain-specific threats are listed as follows:

 Company may close or sell off to others, losing focus
 Obsolete technology, no Internet access, etc.
 Supporting Hardware can become obsolete soon
 High turnover of employees may lead to loss of installation
expertise
 High costs of upgrading to new modern software or hardware
Textile industry ERP system solutions may become a risk if selected
poorly. The selection must not be based on the presentations and
demonstration alone: all the aforementioned factors have to be well
considered if success is to be achieved.
Competitor Analysis
In the Indian accounting software market there are 11 players in total
and Tally solutions Pvt Ltd is the leading company in this business.
For the competitor analysis we have taken the leading accounting
software solutions provider in India such as Tally solutions Pvt Ltd,
Book Keeper, Quick Books and BUSY. The factors considered for the
competitors analysis is majorly depended on the features provided by
the company also considering the Prices and subscription fees.

Accounting Book Quick

Tally BUSY
software’s Keeper Books
Educational
Trail Period 14Days 30Days 30Days
mode
Rs. Rs.
Rs. 21690/ Rs. 8000/
Price 5000/ 13500/
Lifetime Lifetime
Year Lifetime
Internet
required to No No Yes No
operate
Inventory
Yes Yes Yes Yes
Management
Support for
Yes Yes No Yes
Manufacturing
Payroll Yes Yes Yes Yes
 Data stored
locally on Yes No Yes Yes
device
Access data
anytime, No Yes Yes No
anywhere
Cloud based No No Yes No
Desktop
software Yes Yes Yes Yes
available
Android app
No Yes Yes No
available
iOS app
No Yes Yes No
available
New updates Paid Free Free Paid
Call Call
Call
Call Email Email
Customer care Email
Email Whatsapp Web
iMessage Chat
B2B Concepts for ERP Software (TALLY)
Market Synopsis
Global ERP software market is expected to grow from USD 32.44
billion in 2017 to USD 49.03 billion by 2023, at a compound annual
growth rate (CAGR) of 7.45% during the forecast period. Key drivers
for the growth of this market are the growing adoption of ERP
software to increase transparency and operational efficiency of
organizations. Also, the high adoption of cloud-based deployment
model is driving the growth of ERP software market. However, high
cost and availability of open source applications are a few factors
restraining the market growth. The market is expected to open-up
numerous opportunities due to the adoption of cloud ERP software
which offers more flexibility to businesses. North America is
expected to dominate the ERP software market during the forecast
period. ERP software enables efficient resource management and
integration of organizational activities. Implementation of ERP
enhances the operational efficiency thus providing competitive edge
to enterprises. The ERP software includes several ERP modules such
as sales, finance, HR, marketing, among others. Integration of
business functions are effectively performed using ERP software.
Thus, it enables efficient and smooth functioning of businesses.
Among the several verticals, finance vertical is expected to drive the
ERP software market significantly and would contribute a large share
in the overall market revenue. Many key players in the market are
launching ERP products which can be easily accessed via mobile
devices like smartphones and tablets. Also, efforts are been taken by
several companies to develop ERP system that could be easily
delivered from third-party vendor platforms. Some major players in
the ERP software market are Oracle Corporation, SAP SE, Infor,
Syspro, Sage Software Inc and Epicor Software Corporation.
Segmentation
By deployment, the market is segmented into cloud and on-premise.
By function, the market is segmented into CRM, sales, accounting
and finance, HR and others. By organization size, the market is
segmented into SMEs and large enterprises. By vertical, the market is
segmented into BFSI, manufacturing, IT, communication, retail,
healthcare, aerospace & defense, education and others. By region, the
market is segmented into North America, Europe, Asia-Pacific and
the rest of the world.
Regional Analysis
The global market for ERP software is estimated to grow at a
significant rate during the forecast period from 2018 to 2023. The
geographical analysis of ERP software market is done for North
America, Europe, Asia-Pacific, and the rest of the world. North
America is expected to have huge market share and dominate the ERP
market during the forecast period, owing to the presence of large
number of cloud ERP solution vendors across the US and Canada.
APAC is expected to see potential growth opportunities in the ERP
market, due to the wide presence of small- and medium scale
enterprises that are turning towards such hosted ERP solutions to
efficiently manage their business processes, particularly in developing
countries such as China, India, and Singapore.
Competitive Analysis
Many key players adopt organic strategies such as product
development and enhancement as well as inorganic strategies such as
merger & acquisitions, collaborations, partnerships, and joint ventures
to gain significant share in the market. Companies actively aim at
increasing participation through partnerships and new product
launches in order to expand their operations and offerings to better
target potential customers.
 Effective B2B Marketing Strategies for ERP Software

For example, TALLY is an ERP, but its priced very low. So how can
you fight against USD 300 product with SAP or ORACLE ERP of
USD 2000+ per license?
Start with “Customer Persona” and find the niche segment that you
want to attack. This would help to decide what stories, marketing
plans and how to attract them. Important is make sure that your ERP
fits 90% to them, so that they are a happy customer.
Few marketing strategies as we see is
1. Most of the earlier strategy still works like Hunting, Farming
and closure.
2. References from existing customers, family members, bosses
etc.
3. Paper advertisements so that business “remembers you”.
4. Participating on Events and exhibition works to create an
awareness, but not sales.
5. SEO, Digital Marketing to create awareness. But this BURNS
hole in your POCKET in large way.
6. Based on the Target market, start sending emails, quality
contents.
 7. Start the Webinars, videos on the application usage etc.

In India, one of the problems is customer expects you to be “face to

Face”, So this takes huge amount of time in selling.

SUGGESTIONS:

Tally is the famous Indian ERP accounting software, is offering so

many amazing advance features to its user on a constant basis which
is very much appreciated. Some of features which may increase user’s
overall experience with Tally.erp 9 and the same is very beneficial to
small and micro SMB who cannot invest huge amount after SAP,
Quick book or other customized software. Further we can say no
other ERP accounting software can beat job prosperity which is
available only for tally accountants.

ENHANCED RATIO ANALYSIS IN TALLY

Ration analysis help managers to understand financial position

quickly and help them in immediate decision-making and tally is
providing ratio analysis is however the facility is limited only to few
Ratio which cuts the usability of this great managerial tool. By taking
an example of equity Ratio or net worth Ratio. It is different from
debt equity Ration shows the relationship of stakeholder’s fund and
total asset. If it will consist of interest coverage ratio. It is lacking in
that part, if it will cover that part it will be more helpful to compare
net profit and fixed interest charges and to analyze loan and debt.

FIXED ASSET REGISTER

Maintenance of fixed asset register is a statuary and compulsory need

under the companies Act, 1956 (now companies Act, 2008). There is
a large number of private and public limited companies are using
Tally.erp 9 as their sole accounting software as well as to manage
statuary compliance. However, maintaining fixed asset is not
available in Tally.erp 9 which is a big con for both private and public
companies. Fixed asset register is also helpful for other small and
medium SMB to track of asset in a systematic manner. So that user
can easily capture important details like an asset purchased,
depreciation, sale and remaining part of the asset.

MISSING ELEMENTS TO BE A COMPLETE ERP

SYSTEM

TALLY has converted Tally.epr 9. It means all the facilities has been
integration of business. But as per others like Quick book, Economic
Accounting Software, some part of it is still missing in Tally.erp 9. To
make it user friendly they should include EFT (electronic fund
transfer, DSS (decision support system, credit/debit card payment
mechanism, HR management.