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ERP and

It’s Implementation
Objective
To know about ERP and its
relevant importance
To know about the ERP
implementation and its likely
outcomes if not implemented
properly.
ERP
Serves as a cross-functional
enterprise backbone that integrates
& automates many internal business
processes and information systems
Helps companies gain the efficiency,
agility, & responsiveness needed to
succeed today
Gives a company an integrated
real-time view of its core
ERP software suites typically
consist of integrated modules
of…
Manufacturing
Distribution
Sales
Accounting
Human Resource Management
Benefits of ERP
Decision support
 Provides cross-functional information on business
performance to assist managers in making better
decisions
Enterprise agility
 Results in more flexible organizational structures,
managerial responsibilities, and work roles
Resource Integration
 Helps in integrating resources in an efficient and
effective manner.
Processes in ERP
Implementation
ERP Packages
On the basis of application
Customized Package
Readymade Package
On the basis of implementation
Big Bang
Franchising option
Slam dunk
Top 10 ERP Vendors
share 2006

Source: AMR Research,


2007
Different Phases of ERP
Implementation
 Pre evaluation Screening
 Evaluation Package
 Project Planning
 Gap analysis
 Reengineering
 Team training
 Testing
Going Live
 Post implementation
Major ERP Vendors
SAP AG
Microsoft
Oracle
Baan
J D Edwards
Peoplesoft
Infor
Exact
Facts about SAP AG
SAP is founded by five former IBM employees in 1972.
SAP is situated in Walldorf, Germany.
Number one vendor of standard business application
software, with a worldwide market share of 41%.
Fourth-largest independent software supplier in the world.
Available in more than 14 languages.
10 out of 10 largest US companies with the highest
market value use SAP software.
8 out of 10 largest US corporations use SAP software.
More than 7500 customers in over 90 countries have
chosen SAP.
mySAP Modules
mySAP PLM

Life-Cycle-Data, Project-,
Quality- and Asset Management

mySAP ERP

Purchase Order
Requisitioning

Internet Sales
Sales Order
mySAP Analytics
Financials
mySAP
SRM Human Resources CRM
Corporate Services
Operations
Inventory & Warehouse Mgmt.
Manufacturing & Transportation

mySAP SCM

1993 - 1995
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Interval Description

1990 2010
SAP R/3 Modules
Causes of ERP Failure
Underestimating the complexity of the
planning, development, and training
required
Failure to involve affected employees in
the planning & development phases and
change management programs
Trying to do too much, too fast
Insufficient training
Believing everything the software
vendors and/or consultants say
SAP ERP Solutions in
TISCO
Decided to implement SAP ERP 3
Forecasted for future operations
Took a long span of one year
Never bogged down by repeated
failures
Brought about substantial increase in
profits
Focus on implementation and timely
completion.
Solution and
Implementation
Study was conducted related to
functionality, esteem, operability, support
& future requirements.
Idea is to strengthen its position in market.
Challenge is not implementation but to
build a conducive environment for it.
Identified branches with huge transactions
as HUB and smaller branches as SPOKES
In Jan. 1999, “TERM ASSET “ is
devised which is Achieve Success
Through SAP enabled Transformation
It has two axioms- “go live date- 1st
Nov.,1999” and “ there are only 24
hours a day”.
Planned a big bang approach of
going live with all modules.
Benefits
Spent 40 crores and saved 33 crores
in first two years.
Man power cost reduced from $200
per ton to $140 per ton in two years.
Inventory cost deflated from Rs. 190
per ton to Rs. 155 per ton in one
year.
THANKS