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Program Semester Subject Code Subject Name Unit Number

: MBA : IV : MI0038 : Enterprise Resource Planning : 15

Unit Title
Lecture Number Lecture Title

: Future Directions in ERP


: 15 : Future Directions in ERP

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Unit-15 Future Directions in ERP

Future Directions in ERP

Objectives :
To study the future directions of the ERP market. To analyse the market trends that shape the future products of ERP.

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Unit-15 Future Directions in ERP

Lecture Outline

Introduction New Markets New Channels Faster Implementation Methodologies Business Models Factors for Choosing Application Platforms New Business Segments Summary Check Your Learning Activity

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Unit-15 Future Directions in ERP

Introduction

The future focus of the ERP vendors is to develop a single application that can monitor all the business functions. The vendors are adding more features to their products and newer advanced applications are integrated to the existing packages. Vendors are increasing investment in futuristic and innovative FrontOffice applications such as electronic commerce, and supply-chain and HR/customer self-service. Vendors are developing effective ERP implementation methodologies based on industry experience gained over many years. These methodologies aim not only to save the overall cost of the system implementation, but also provide a faster time-to-benefit.

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Unit-15 Future Directions in ERP

New Markets
ERP has a very large and rapidly growing national and global demand. The demand is not only by large organisation but mainly the mid and small scale organisations.

ERP has occupied its place in every manufacturing industry, at the


same time it has grown beyond the expectation. It has proven its importance in every sector like retail, health care, and so on. ERP has not only ventured into private sector but it has its presence in the public sector also. Market growth is expected to come from software that enables companies to link up their back offices with those of partners, automating a process which is largely done via human contact such as procurement officers.
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Unit-15 Future Directions in ERP

New Channels

To provide complete-one-stop shopping for the ERP solutions the ERP

vendors are building worldwide reseller channels.


The ERP vendors are lowering the entry price point for each module to make it affordable for the smaller businesses who are looking for the

ERP solutions.
ERP implementation is cost and time intensive, it is better to evaluate various alternative channels and choose the one that best fits your requirements and budget.

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Unit-15 Future Directions in ERP

Faster Implementation Methodologies

To get the better advantage and delivery in terms of results implementation of the ERP system must be faster. ERP vendors are making the implementation process easier by offering new tools and methodologies to speed up the process. SAP has introduced a method called Accelerated SAP (ASAP) that takes knowledge obtained from thousands of R/3 implementations to combine this skill in a product called the Business Engineer.

Oracles method called Fast Forward, which speed up implementations of Oracle Applications suites and cut down the implementation costs.

The ERPs model-based approach methodology has enabled to achieve


this objective of faster implementation.

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Unit-15 Future Directions in ERP

Business Models

The sources of revenue and the way the company organises its activities to profitably exploit these sources is described by the business model.
ERP Business Modelling emphasise on managing the group decisionmaking process for developing the required process descriptions. Some of the business models are Open ERP Model Global Business Process Model

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Unit-15 Future Directions in ERP

Factors for Choosing Application Platforms

The organisation has to be very careful while choosing the platform for their application, it has to be compatible with the current work settings. Each company is trying to extend the reach of its software and to make it an application platform rather than a suite of modules. The company must look at all the internal and external factors to decide on the matter of choosing the ERP platforms.

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Unit-15 Future Directions in ERP

New Business Segments

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Unit-15 Future Directions in ERP

Summary
ERP is an industry that always shows various prospects of investment rather than just technology. The most challenging part is implementing the system into a companys culture, where it is necessary to develop a business and fulfil a vision. ERP trends also reflect positive signals for the ERP vendors and companies availing their service. ERP product and ERP software will always be on great demand. ERP vendors have increased their appeal to small business clients through a number of initiatives. ERP vendors are making the implementation process easier by offering tools and methodologies to speed up the process. Business Modelling also called as process facilitation approach, emphasise on managing the group decision-making process of developing the required process descriptions. The ERP vendors are moving on to new business segments such as supply chain management and demand forecasting or sales automation and marketing.
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Unit-15 Future Directions in ERP

Check Your Learning

1. Describe Business Model.

Ans. Business model is described as the sources of revenue and the way
the company organises its activities to profitably exploit this sources. 2. List the latest trends improvising the functioning of ERP system.

Ans. The latest trends that have improvised the functioning of the ERP
system are: Open source ERP Web enabled ERP

Wireless ERP

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Unit-15 Future Directions in ERP

Activity
List out the types of application platform installed by various companies for implementing the ERP system to improve their business efficiency.

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