1. What is ERP?

ERP is an enterprise-wide inIormation system designed to coordinate all the

resources,
inIormation,
activities needed to complete business processes such as;
order IulIillment
billing.
Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
'a business strategy and set oI industry-domain-speciIic applications that build
customer and shareholder communities value network system by enabling and
optimising enterprise and inter-enterprise collaborative operational and Iinancial
processes

2. Why implement an ERP System?
To support business goals
O Integrated, on-line, secure, selI-service processes Ior business
O Eliminate costly mainIrame/Iragmented technologies
Improved Integration oI Systems and Processes
Lower Costs
Empower Employees
Enable Partners, Customers and Suppliers.

3. How should we implement ERP Systems?
People
Project Structure
Should be aligned to processes
Process
Implementation Process (outlined in detail)
Adapt your processes to those oI the ERP.
Technology
Hardware
SoItware
Integrated Systems


4. How ERP Systems Works?


Enterprise Resource Planning
O Computers have become so complex and commonplace in organizations, it is much easier to
integrate all oI the data and processing soItware modules and hardware into one large unit
that is easier to access and control. This is called Enterprise Resource Planning, or ERP.
Normally ERP systems use the same database throughout an entire company to store various
types oI data Ior diIIerent computerized Iunctions. When Iirst developed, ERP systems were
used only Ior large manuIacturing companies. Today, they beneIit all sizes oI companies,
even those that are quite small.
Importance of Integration
O The primary objective oI using an ERP system is to integrate the data and processes oI a
business to enhance work Ilow. Although most organizations would like one ERP to be
integrated Ior all its Iunctions, many larger companies establish a primary ERP Irom which
standalone units are attached to improve perIormance.
Ideal ERP System
O In an ideal world, the ERP system includes integration oI all oI the soItware modules, which
can include manuIacturing, Iinance, human resources, supply chain management and
inventory, projects, customer relationships and the data warehouse.
Increased Productivity
O Instead oI having each computer system acting on its own, the ERP system allows everything
to work together in a compatible harmonic whole. This increases productivity, improves
quality and reduces costs. It makes the organization more competitive against other like
companies.
5. What are the benefits of ERP?
The Iundamental advantage oI ERP is that integrating the myriad processes by which
businesses operate saves time and expense. Decisions can be made more quickly and with
Iewer errors. Data becomes visible across the organization. Tasks that beneIit Irom this
integration include:
Sales Iorecasting, which allows inventory optimization
Order tracking, Irom acceptance through IulIillment
Revenue tracking, Irom invoice through cash receipt
Matching purchase orders (what was ordered), inventory receipts (what arrived),
and costing (what the vendor invoiced)
ERP systems centralize business data, bringing the Iollowing beneIits:
They eliminate the need to synchronize changes between multiple systems
consolidation oI Iinance, marketing and sales, human resource, and manuIacturing
applications
They enable standard product naming/coding.
They provide a comprehensive enterprise view (no "islands oI inIormation"). They make
realtime inIormation available to management anywhere, any time to make proper
decisions.
They protect sensitive data by consolidating multiple security systems into a single
structure.

6. What are the drawbacks of ERP?
O Customization is problematic.
O Reengineering business processes to Iit the ERP system may damage
competitiveness and/or divert Iocus Irom other critical activities
O ERP can cost more than less integrated and/or less comprehensive solutions.
O High switching costs increase vendor negotiating power vis a vis support,
maintenance and upgrade expenses.
O Overcoming resistance to sharing sensitive inIormation between departments can
divert management attention.
O Integration oI truly independent businesses can create unnecessary dependencies.
O Extensive training requirements take resources Irom daily operations.
The limitations oI ERP have been recognized sparking new trends in ERP application
development, the Iour signiIicant developments being made in ERP are, creating a more
Ilexible ERP, Web-Enable ERP, Interenterprise ERP and e-Business Suites, each oI
which will potential address the Iallbacks oI the current ERP.


7. Which are the different softwares of ERP?
ERP SoItware Companies & Market shares are as Iollows:

8. What is SAP ERP?

The SAP ERP application is an integrated enterprise resource planning (ERP)
soItware manuIactured by SAP AG that targets business soItware requirements oI
midsize and large organizations in all industries and sectors. It allows Ior open
communication within and between all company Iunctions.

Advantages of SAP:
1. Integration Integration can be the highest beneIit oI them all. The only real project
aim Ior implementing ERP is reducing data redudancy and redudant data entry. II this
is set as a goal, to automate inventory posting to G/L, then it might be a successIul
project. Those companies where integration is not so important or even dangerous,
tend to have a hard time with ERP. ERP does not improve the individual eIIiciency oI
users, so iI they expect it, it will be a big disappointment. ERP improves the
cooperation oI users.
2. Efficiency Generally, ERP soItware Iocuses on integration and tend to not care
about the daily needs oI people. I think individual eIIiciency can suIIer by
implementing ERP. the big question with ERP is whether the beneIit oI integration
and cooperation can make up Ior the loss in personal eIIiciency or not.
3. Cost reduction It reduces cost only iI the company took accounting and reporting
seriously even beIore implementation and had put a lot oI manual eIIort in it. II they
didn't care about it, iI they just did some simple accounting to Iill mandatory
statements and iI internal reporting did not exists oI has not been Iincancially-
oriented, then no cost is reduced.
SAP; 15,6
Peoplesoft;
4,9
Oracle ; 4,8
Baan; 3
CA; 3
JDE; 2,2
SSA; 2,1
GEAC; 2
BM; 1,8
JBA; 1,7
Others ; 59
4. Less personnel Same as above. Less reporting or accounting personnel, but more
sales assistants etc.
5. Accuracy No. People are accurate, not soItware. What ERP does is makes the lives
oI inaccurate people or organization a complete hell and maybe Iorces them to be
accurate (which means hiring more people or distributing work better), or it Ialls.

Disadvantages of SAP:
1. Expensive This entails soItware, hardware, implementation, consultants, training,
etc. Or you can hire a programmer or two as an employee and only buy business
consulting Irom an outside source, do all customization and end-user training inside.
That can be cost-eIIective.
2. Not very flexible It depends. SAP can be conIigured to almost anything. In
Navision one can develop almost anything in days. Other soItware may not be
Ilexible.