ERP

&
CHANGE MANAGEMENT
The Current Scenario
Islands of Information
Difficult to get timely & accurate information
Heterogeneous Hardware & Software platforms &
practices
Poor connectivity between different
organizational locations
Sticking with obsolete technology
Resist to change
Information Islands
So Need Raised for…………….an
Integrated System & that is
ENTERPRISE RESOURCE PLANNING
What is ERP?

Enterprise Resource Planning covers the

techniques and concepts employed for the
integrated management of business as
whole, from the view point of the effective
use of management resources, to improve
the efficiency of an enterprise.
Information Integration

Evolution of ERP
 1960’s - Systems Just for Inventory Control

 1970’s - MRP – Material Requirement Planning

(Inventory with material planning & procurement)

 1980’s - MRP II – Manufacturing Resources Planning

(Extended MRP to shop floor & distribution Management)

 Mid 1990’s - ERP – Enterprise Resource Planning

(Covering all the activities of an Enterprise)

 2000 onwards – ERP II – Extended ERP

(Extending ERP to external business entities like SCM,CRM)
What is an ERP – Key Characteristics
Integration
seamless integration of all the information flowing
through a company – financial and accounting,
human resource information, supply chain
information, and customer information.
What is an ERP – Key Characteristics
Packages
Enterprise systems are not developed in-house
 ITS life cycle is different
1. Mapping organizational requirements to the processes
and terminology employed by the vendor and
2. Making informed choices about the parameter setting.
 Organizations that purchase enterprise systems enter
into long-term relationships with vendors.
Organizations no longer control their own destiny.
What is an ERP – Key Characteristics
Best Practices
ERP vendors talk to many different businesses within a
given industry as well as academics to determine the best
and most efficient way of accounting for various
transactions and managing different processes. The
result is claimed to be “industry best practices”.
Example of Industry Best Practices are :- KANBAN, JIT,
Electronic Fund Transfer,etc.
What is an ERP – Key Characteristics
Some Assembly Required
Only the software is integrated, not the computing
platform on which it runs. Most companies have great
difficulty integrating their enterprise software with a
package of hardware, operating systems, database
management systems software, and telecommunications
suited to their specific needs.
 Interfaces to legacy systems
 Third-party bolt-on applications
 Best of Breed Strategy
What is an ERP – Key Characteristics
Evolving
Enterprise Systems are changing rapidly
Architecturally: Mainframe, Client/Server, Web-
enabled, Componentization (Java, XML)
Functionally: front-office (i.e. sales management),
supply chain ,advanced planning and scheduling,
data warehousing, specialized vertical industry
solutions, etc.
Benefits of ERP
 For Management – to know what is happening
in the company
 One solution for better Management
 For cycle time reduction
 To achieve cost control & low working capital
 To adopt latest technologies
 To shun the geographical gaps
 To satisfy the customers with high expectations
 To be Competitive & for survival
ERP VENDORS
ERP MARKET SHARE
SAP R/3 APPLICATION MODULES
CHALLENGES - ERP
IMPLEMENTATION
Resource Gathering
Communication between the core team
Top Management Support
Project Management
Change Management
Change Management Strategies
Top Management Support

Restructure for Competing Group Performance

Education Empowerment

Cross Functional Leadership

Team

Risk Management Communication

Transformation
Q&
A
THANK – YOU
