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ERP market in India steadily growing for the last few years and the main reason for
this enormous growth can be attributed to the inability of order system to manage the
conversion to year 2000.
There are also other factors such as industry best practices, easy and faster
implementation and good cost predictions. Another factor behind the growth is that
already existing clients acquire more licenses and modules. The number of employees
using the ERP system is increasing and the ERP clients who have started with the
basic modules are going for subsequent applications.
According to observation made by some experts in the field, the ERP market started
showing solid organic growth since 2004 as IT spending improved.
The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2
during the period of 2004-2009. The market was $83 million in 2004, and is projected
to be over $250 million in 2009, according to a research report.
The report further clarifies that manufacturers in India are increasingly implementing
ERP solutions to ensure that decision makers have the required information visibility
across the value chain.
· Cost Savings:
Gain efficiency
The various limitations of enterprise resource planning (ERP) software include the
following:
Here are the 10 primary advantages of a Sales force-native ERP system that will help position
your business for success.
* Maximized planning and resource management
Enterprise Resource Planning is aptly named because it truly does enable planning across
your organization so you know how to predict and forecast sales, costs, and the resources you
need, whether that’s materials, equipment, or people.
* Greater enterprise collaboration
Personnel are often siloed across an organization, but ERP consolidates information from all
departments into a single source of truth, making it simple to share accurate data in real-time.
* Increased productivity
By automating major processes like inventory tracking or invoice generation, you can realize
productivity gains across the board and place greater focus on tasks that may have otherwise
fallen by the wayside.
* Reduced overhead costs
When used properly, ERP systems can deliver significant cost savings to your organization.
Prevent disruptions and delays that can be caused by a lack of accurate or available
information, keeping projects on track and on time.
* Better customer relationships
Using ERP on Sales force allows for integration with your Sales force Customer Relationship
Management (CRM) platform, drastically expanding the visibility you have over your
operations.
* Improved quality control
Quality management is a significant benefit of an ERP system. Let’s say you have a product
that has just completed the manufacturing process, but before you can sell the product, you
still need to review and sign off on the corresponding paperwork.
* Better inventory tracking
Tracking and monitoring inventory is a challenge, especially for large companies that
constantly have products coming in and going out and a high level of customer demand.
* Simplified risk management & regulatory compliance
Every business takes on some form of risk in the process of creating and disseminating
products.
* Enhanced data security
Using ERP on Sales force is the most secure way to store your data, hands down.
* Predictability & scalability
Without question, an ERP system allows your business to be more predictive, driving better
business results that enable you to scale.
6. Determine term ERP?
Enterprise resource planning (ERP) is the integrated management of main
business processes, often in real time and mediated by software and
technology. ERP is usually referred to as a category of business management
software—typically a suite of integrated applications—that an organization
can use to collect, store, manage, and interpret data from many business
activities.
ERP facilitates information flow between all business functions and manages
connections to outside stakeholders. Enterprise system software is a
multibillion-dollar industry that produces components supporting a variety of
business functions. Though early ERP systems focused on large enterprises,
smaller enterprises increasingly use ERP systems.
The ERP system integrates varied organizational systems and facilitates error-
free transactions and production, thereby enhancing the organization's
efficiency. However, developing an ERP system differs from traditional
system development.
Enterprise refers to a for-profit business started and run by an entrepreneur. And we will
often say that people running such businesses are enterprising. The roots of the word lie in
the French word entreprendre (from prendre), meaning ‘to undertake’, which in turn comes
from the Latin “inter prehendere” (seize with the hand).
Entrepreneurs usually start an enterprise – with the associated risks – to make a profit, and for
one of several reasons:
Problem-solving. They see a particular issue that they feel they can solve.
Exploit ideas. They have a new idea or product they believe will be successful.
Filling a gap. They see a gap in the market they believe they can fill.
Competitive pricing. They believe they can produce something on the market cheaper and
offer it at a lower price.
Knowledge-based. Where they believe they can supply specialist knowledge that customers
will pay for.
8. Complete the reason for growth of ERP market.
Since 1970, ERP is growing every year which you can find ERP history report.
Growing rate of ERP in the market is 30% every year. There are many reasons behind
this whose list, I am given below.
Better Supply Chain Management. Cloud-based ERP can greatly improve a supply chain by
linking supplier systems, automating key functions, and boosting responsiveness.
Improved Data Quality and Accessibility. As a single source for all business data, often
collected, consolidated, organized and analyzed through automation, cloud ERP systems
improve data accuracy and reliability.
Increased Automation. Business processes can be linked and automated because all data
flows into a single system or record.
Reduced inventory and stock obsolescence. With complete, real-time visibility over all
aspects of operations, including those with suppliers and customers, inventory levels can be
refined and managed with greater precision.
Intangible Benefits
Reports can be generated automatically for any part of the business, including financial,
sales, operational, inventory, procurement, administrative and elsewhere.
Enterprise-Wide Integration.
Cloud ERP systems integrate various functions and business processes across an organization
and store them in a single database.
Standardized and Simplified Business Processes. Because systems and data are linked
between departments, cloud ERP systems simplify business processes and bring greater
synergy across an organization through standardization.
ERP systems tie together a multitude of business processes and enable the flow of data
between them. By collecting an organization’s shared transactional data from multiple
sources, ERP systems eliminate data duplication and provide data integrity with a single
source of truth. Today, ERP systems are critical for managing thousands of businesses of all
sizes and in all industries 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.
To these companies, ERP is as indispensable as the electricity that keeps the lights on.
Businesses employ enterprise resource planning (ERP) for various reasons, such as
expanding business, reducing costs, and improving operations.
The benefits sought and realized by one company may be different from another; however,
there are some worth noting. Integrating and automating business processes eliminates
redundancies, improves accuracy, and improves productivity.
Departments with interconnected processes can now synchronize work to achieve faster
and better outcomes. Some businesses benefit from enhanced reporting of real-time data
from a single source system.
Accurate and complete reporting help companies adequately plan, budget, forecast, and
communicate the state of operations to the organization and interested parties, such as
shareholders.
ERPs allow businesses to quickly access needed information for clients, vendors, and
business partners, contributing to improved customer and employee satisfaction, quicker
response rates, and increased accuracy rates. Associated costs often decrease as the
company operates more efficiently.
UNIT- II
1. Summarize the phases of BPR.(part .b)
2. Infer the meaning of BPR.
Business process reengineering (BPR) is an approach to change management in which the
related tasks required to obtain a specific business outcome are radically redesigned. An
important goal of BPR is to analyze workflows within and between enterprises in order to
optimize end-to-end processes and eliminate tasks that do not provide the customer with
value.
BPR was a very important management concept from the mid-1980s to the mid-1990s. The
concept is generally credited to MIT professor Michael Hammer and Babson College
professor Thomas Davenport. Hammer and Davenport started out as colleagues, working on
a research program called PRISM (Partnership for Research in Information
Systems Management). Their research efforts, which were sponsored by some of the
biggest corporations at the time, involved developing an architectural model that would help
large companies take advantage of recent advances in technology, including personal
computers (PCs) and the internet.
Technology vendors quickly jumped on the BPR bandwagon and enterprise resource
planning (ERP) vendors such as SAP, JD Edwards, Oracle and PeopleSoft promoted their
products as solutions for the redesign and improvement of business processes and helped to
turn BPR into a multi-billion dollar industry seemingly overnight. Consultants followed the
money too, and suddenly firms that previously promoted their expertise in systems
thinking found themselves in high demand as reengineering experts.
3. Comment the reason for implementing business process.
o ERP implementation consultants, users and vendors work together to achieve the
overall objectives of the organization.
o The ERP implementation consultants have to understand the needs of the users,
understand the prevailing business realties and design the business solutions keeping
in mind, that it is the users who will be driving the implementation and therefore ,all
these factors active involvement at all stages of implementation is vital for the
overall success of implementation.
o It is worthwhile to remember that ERP is an enabling tool, which makes one do his
work better, which naturally needs additional efforts.
o During the course of ERP implementation, the standard package may undergo
changes which may be a simple one or a major ‘functionality’ change. Implementing
such changes is known as Customization.
o The contents of the ERP package are known as modules and the modules are further
divided into Components.
o The roles and responsibilities of the employees have to be clearly identified,
understood and the employees will have to accept new processes and procedures
configured and laid down in the ERP system.
o At the same time these processes and procedures have to be simple and user-friendly.
o A well managed and implemented ERP package can give a 200 percent return on
investment whereas a poorly implemented one can yield a return on investment as low
as 25 percent.
• Key Planning and ERP Implementation decisions: A number of the key decisions that
need to be made when this discussion looks at considering an enterprise integration
effort.
Enterprise application integration (EAI) is the use of technologies and services across an
enterprise to enable the integration of software applications and hardware systems. Many
proprietary and open projects provide EAI solution support.
EAI is related to middleware technologies. Other developing EAI technologies involve Web
service integration, service-oriented architecture, content integration and business processes.
Intercommunication between enterprise applications (EA), such as customer relations
management (CRM), supply chain management (SCM) and business intelligence is not
automated. Thus, EAs do not share common data or business rules. EAI links EA
applications to simplify and automate business processes without applying excessive
application or data structure changes.
Only the current status could be accessed, such as open orders. But managers often need to look beyond the
current status to find trends and patterns for better decision-making.
The data in the ERP application was not integrated with other enterprise systems and did not include external
intelligence.
ERP systems could not meet all of the analytical and reporting needs of organizations.
Enterprise Resource Planning (ERP) systems are generally very expensive to install. They call for voluminous
and exorbitant investments in terms of time and money without guaranteeing the said benefits. The time taken
for an organization to migrate to an ERP system is quite substantial. Extensive training has to be provided at the
expense of existing working hours which can also result in a loss of business during the transition period. Apart
from the installation costs, companies also charge annual maintenance and renewal costs. These costs put
together may not justify the implementation of ERP systems especially for companies that are smaller in scale.
The major aims of business process reengineering are reducing costs and improving quality.
Reducing costs by eliminating inefficiency can include restructuring departments,
redesigning processes, laying off redundant employees, and eliminating unnecessary
organizational layers. Oftentimes the “reimagining” characteristic of business process
reengineering also entails a transformation in company values.
Ford found that every time their purchasing department wrote an order for a purchase, a
series of processes was triggered that required accounts payable to do not one but three
things,: process the order from the purchasing department, process the copy of the order sent
by the material control department, and process the copy of the receipt sent by the vendor. All
of this took place before the accounts payable clerk could match the three orders and finally
issue a payment. As part of the business process reengineering, Ford used digital technology
to totally redesign the process and eliminate the inefficiency.
3. MAKE IT RELEVANT
Human beings have limited memory storage capacity, and the memories that transition from short-
term to long-term memory are not fully at a person's discretion, meaning we do not remember
everything we learn. Instead, people remember what seems relevant to them, and subconsciously
discard the rest. The more relevant and in-context ERP implementation training is, the more your
employees will retain.
4. REDUCE STRESS
Studies have also shown that stress disrupts working memory, which is the ability to recall what
someone has learned when they need to apply that knowledge. Obviously, stress is not 100%
avoidable, and everyone experiences stress differently. Still, organizations can take steps to reduce
stress levels during any ERP implementation through proper planning, rollout, training, ongoing
support, and other implementation strategies.
Workflow
Inter-departmental communications
Customer satisfaction
Vendor relationships
Organizational competitiveness
The health of the organization, which generally equals more job security and
promotional opportunities
However, in many departments, employees "playing around" while practicing what they learned on
live software would spell disaster. ERP training simulations and step-by-step eLearning tools allow
employees to practice what they're learning in a mock setting, so they're more prepared when they
work on the actual company software.
Business function
The Sales Department generates & submits the order. It is then passed onto the Accounting
Department to check the credit of the customer, who after approval generates the invoice to
the customer. After credit approval the Manufacturing & Production Department know to
assemble the product and ship to the customer.
This is a clear example of how a firm uses cross- functional business processes to improve
efficiency and work in synchronization to get the order out.
13. Express the challenges faced in reengineering process.
The top challenges and factors affecting the implementation of business process reengineering
includes –
1. Inadequate Knowledge
2. Wrong Direction and Irregularity in Implementation
3. Unsuited Team Formulation
4. Insufficient And Incorrect Placement Of Resources
5. Unsound analysis and lack of support
Inadequate Knowledge
The team must be clear on why and apparent on where to implement the reengineering
processes. This furthermore needs a proper prioritization of the business process for
reengineering.
The employees must have appropriate knowledge for performing BPR, retouched with
substantial Business Process Re-Engineering training programs.
The implementation, if done on wrong processes, is an utter waste of resources. With proper
training, guidance, and knowledge transfer, the business will see the correct process
implementation.
BPRE cannot trigger an instant competitive advantage. For visible growth, the process must
be followed through and through.
But, that does not mean that BPRE works in every process of the organization. The
reengineering is unsuitable for many.
Furthermore, when the company is able to achieve its benchmark once, the BPR practice shall
not be discontinued.
An irregular BPR process hinders the many opportunities and growth that it comes with. The
objectives and expectations must be set and made more explicit.
A well-defined team must be put on a constant look-out for any updates on all of its
processes’ Reengineering practice.
The team should have not only proper knowledge but also include correct employee vital for
both operation and management.
The team must be adequately structured and at least add a senior and operations manager
having the right set of business process knowledge and expertise.
The team is thus completed with suitable engineers for every single field, i.e., from
manufacturing to IT, working under constant supervision in the set direction.
The lack of essential resources for a business process reengineering, in the first place, is
enough to break off the engagement between the organization and the reengineering process.
When required, the proper resources must be readily available to the process in force at the
right time.
The skilled human resources, adequate budgeting/funding, correct set of BPR tools,
knowledge directory and experience in the system in and out, availability, and timely
approval; all of these must be on- all set and ready to go.
Also, the team must be clear on what to analyze and prioritize for coordinated work without
wasting any precious time.
There are many exciting career paths available for students who are interested in working
with data warehouses or within the larger field of business intelligence (BI). BI
professionals include data architects, database administrators, coders and analysts, among
others.
BI professionals have a wide variety of educational backgrounds, but most employers look
for a degree in information technology. Learn more about Herzing's IT programs here.
The typical EIS has four components: hardware, software, user interface and
telecommunication.
UNIT- III
1. Comment the reason for implementing MIS.
The literature about management information systems (MIS) has been developed since the
1960s. An evolution of MIS can be divided into three periods: data processing, management
information systems, and strategic information systems.
The first era, “data processing”, is mainly focused on improving the efficiency of business
through automation of basic information processes with not too much control over planning
or resources. The second era, “management information systems”, was concerned about the
enhancement of managerial effectiveness by satisfying widespread information
requirements.
Managers of each organization came to realize the capability of information technology
resources and started to acquire their own systems to meet the requirements. The third era,
“strategic information systems”, focused on improving organizational competitiveness
advantages by affecting the overall organizational business strategies.
Various characteristics of MIS are considered as important factors for the efficiency of MIS
which is to report with fixed and standard information; to have reports developed and
implemented using information system personnel, including systems analysts and computer
programmers; to require formal requests from user; and to produce scheduled and
demanded reports.
In addition, external data are used by the MIS while it is not captured by the organization.
2. Summarize the history of SCM.
In the late 1920s, the introduction of mass production along assembly lines laid the
foundations for supply chain management. First successfully implemented by Ford, the
idea of producing consistent products on a large scale with increased efficiency changed
trade and supply chains irreversibly.
Mass production and the concept of interchangeable parts originated in the late 18th
century with weaponry in America and ship pulley production in England but had not
previously been combined with division of labor, continuous workflow and
specialization.
Containerization, or container shipping, not only increased the quantity of available space
for goods, but also increased the speed of the freight movement while decreasing the cost.
The speed increase came from more effective warehousing processes as well as transport
terminal efficiency.
Bar-coding was another game changer for the industry, finally being used in a
commercial context in the 1970s despite being patented more than twenty years before.
Its adoption was spurred forward by a standard requiring an identifying number from the
US national association of food chains and subsequent research showing large increase in
profit from point scale scanning’.
Once the barcode was adapted to become an internationally used standard, it could be
used from for monitoring of the supply chain both globally and internationally.
3. Outline the different phases of BPR.
Decision Support Systems (DSS) help executives make better decisions by using historical and
current data from internal Information Systems and external sources. By combining massive
amounts of data with sophisticated analytical models and tools, and by making the system easy to
use, they provide a much better source of information to use in the decision-making process.
Decision Support Systems (DSS) are a class of computerized information systems that support
decision-making activities. DSS are interactive computer-based systems and subsystems intended
to help decision makers use communications technologies, data, documents, knowledge and/or
models to successfully complete decision process tasks.
While many people think of decision support systems as a specialized part of a business, most
companies have actually integrated this system into their day to day operating activities. For
instance, many companies constantly download and analyze sales data, budget sheets and
forecasts and they update their strategy once they analyze and evaluate the current results.
Decision support systems have a definite structure in businesses, but in reality, the data and
decisions that are based on it are fluid and constantly changing.
5. Associate the SCM processes and participants.
ERP software doesn’t just enable supply chain management strategies; it informs your teams
and keeps them running at peak efficiency. This ensures your business runs smoothly in the
face of supply chain disruption. We can break down the role of Epicor ERP alongside supply
chain management into eight main categories:
Purchase Management
Demand Management
Inventory Management
Shipping And Receiving
Warehouse Management
Advanced Material Management
Supplier Relationship Management
Supplier Connect
There are a number of Decision Support Systems. These can be categorized into
five types:
Communication-driven DSS
Most communications-driven DSSs are targeted at internal teams, including
partners. Its purpose are to help conduct a meeting, or for users to
collaborate. The most common technology used to deploy the DSS is a web
or client server. Examples: chats and instant messaging software, online
collaboration and net-meeting systems.
Data-driven DSS
Most data-driven DSSs are targeted at managers, staff and also
product/service suppliers. It is used to query a database or data warehouse to
seek specific answers for specific purposes. It is deployed via a main frame
system, client/server link, or via the web. Examples: computer-based
databases that have a query system to check (including the incorporation of
data to add value to existing databases.
Document-driven DSS
Document-driven DSSs are more common, targeted at a broad base of user
groups. The purpose of such a DSS is to search web pages and find
documents on a specific set of keywords or search terms. The usual
technology used to set up such DSSs is via the web or a client/server system.
Examples:
Knowledge-driven DSS:
Knowledge-driven DSSs or 'knowledgebase' are they are known, are a
catch-all category covering a broad range of systems covering users within
the organization setting it up, but may also include others interacting with
the organization - for example, consumers of a business. It is essentially
used to provide management advice or to choose products/services. The
typical deployment technology used to set up such systems could be
silent/server systems, the web, or software running on stand-alone PCs.
Model-driven DSS
Model-driven DSSs are complex systems that help analyze decisions or
choose between different options. These are used by managers and staff
members of business, or people who interact with the organization, for a
number of purposes depending on how the model is set up - scheduling,
decision analyses etc. These DSSs can be deployed via software/hardware in
stand-alone PCs, client/server systems, or the web.
Let’s take a look at three benefits of merging your ERP and CRM software.
A 360 degree view of your customer. How well do you know your customers? One of the
biggest advantages of CRM and ERP integration is that it gives you a complete view of your
customer. From prospect, to sales and support, to finance and accounting, together these
systems provide complete visibility into your customers’ needs, buying habits, order history,
preferences, account standing, etc.
Better access to critical information. A CRM and ERP solution that is fully integrated gives your
employees the ability to access important information in real-time. Without it, your employees
are less efficient and your customers will pay the price. A fully integrated ERP and CRM solution
empowers your employees with access to the information they need exactly when they need it.
With the touch of a button, they can retrieve inventory levels, shipments, customer financials,
order history, returns, payments, pricing, etc.
Streamline business processes. In the past, without an integrated solution, many business
processes were manual and time-consuming. However, a key benefit to merging your ERP and
CRM software is enhanced productivity through streamlining processes and automating
workflow. Additionally, an integrated solution cuts down on the amount of duplication of data
entry tasks.
10. Predict the components of the e-business supply chain.
The need for additional reduction in the costs as well as improvements in the
processes through the expansion of the tools for modern management in the
organizations from the supplier channels to the customer channels.
The introduction of computerization and digitalization of the internal functions of the
organizations with new techniques, tools, and management methods.
The need for efficiency and agility of the organizations in order that they can respond to
the higher demands of the customers whose growing demands and bargaining power
continually increases.
The effort to optimize the organization by having lower inventory levels both in
manufacture and distribution by, in parallel, offering supreme quality and service.
The deserting of vertical integration and functional oriented organizations.
The tendency for outsourcing of some operational functions that are not the core of
the business to other organizations specialized in that field.
The explosive expansion of global commerce and the opening of new markets that only
few years ago were closed.
The e-business technologies, particularly internet, have enabled organizations of all
sizes to have a network and be closely connected with their partners and conquer and
compete for market share which were only possible before for the large corporations.
A computer based system that optimizes the collection, collation, transfer and
presentation of information throughout an organization, through an integrated
structure of database and information flow.
MIS is flexible and can be adapted to the changing needs of the organization
The world moved from desktops to servers to the web and then to mobile. As the technology
progressed, GIS also took this transition. GIS moved from being a desktop software, to be a server
based, to Web GIS and now to mobile GIS.
But, what made the change is the need for people to take advantage of the power of maps, the
power of location intelligence, the power of geography! Here are the aspects that brought this
change.
UNIT- IV
Section - A (5 Marks)
a) Plex Systems: - Plex was one of them in the race to Cloud ERP solutions. They helped
pioneer the process and for that reason, they tend to be one of the more mature cloud ERP
systems out there.
b) Microsoft Dynamics 365:- This software offers a lot of capabilities, both within and
outside of the manufacturing space, and they continue to evolve and improve as they build
upon manufacturer functionalities.
f) Epicor :- Along with many others, Epicor is making its transition to the cloud space. They
bring a new sense of transparency and seamlessness into manufacturing operations that have
benefited many of our clients.
g) Oracle ERP Cloud: - Oracle has traditionally been used by upper market organizations,
and their legacy products have done great in manufacturing.
h) Acumatica :-This is a newer product that has been around for just over 10 years, but it’s
one of the fastest-growing ERP systems on the market.
I) IQMS:-This product has been around for a long time and has been dedicated to the
manufacturing space since the beginning. IQMS is suitable for small to mid-sized
companies, and their biggest strength is the breadth of functionality within the manufacturing
space.
k) IFS: - IFS is a company based out of Europe, but they have become more well-known
across the globe in recent years. IFS is a manufacturing-focused product and it’s a great fit
for organizations with heavy project management.
Increase Labour Productivity
Improve Warehouse Space Utilization
Improve Inventory Visibility and Accuracy
Increase On-Time Shipments
Inventory Management
Order Management
Warehouse Inward
Warehouse Outward
Returns Management
Logistics Management
2. Aptien
3. EZOfficeInventory
4. Cryotos
5. UpKeep
6. Asset Panda
7. mHelpDesk
8. Verizon Connect
9. eSpace
10. Odoo
Business software
SAP Net Weaver Platform
An all-in-one business management solution that connects financials, sales, service, and
operations to streamline business processes and improve customer interactions.
User Minimum: 1
Capability: Core capabilities across finance, operations, supply chain, and project
management.
User Minimum: 2
CRM: No CRM capability but Dynamics 365 for Sales is included with the full Dynamics
365 purchase plan.
We began with a few local customers, supporting them from our headquarters in
Santa Barbara, California. But as our customers took their brands to the next level—
international—we adapted quickly to keep up.
Today we support customers in over 100 countries around the world. Our products
have gone global, too, and we have spent years innovating and growing our offering
as our customers expand their businesses overseas.
You’ll often hear us say that at the heart of QAD is a strong and loyal customer
community. We really believe that to create the best full-featured manufacturing ERP
software for our customers we need to work together.
It’s been over four decades; we still focus solely on manufacturing—we live and
breathe it every day alongside you. Together we are building an Adaptive
Manufacturing Enterprise.