ERP

ENTERPRISE RESOURCE
PLANNING

 IT IS HIGHLY INTEGRATED AND ENTERPRISE WIDE

INFORMATION SYSTEM THAT COVERS ALL THE

FUNCTIONAL AREAS OR DEPARTMENTS OF THE
ORGANIZATION.
IN TRADITIONAL COMPUTERIZED SYSTEM MAIN
FUNCTIONAL AREAS ARE 1) MARKETING
INFORMATION SYSTEM 2) ACCOUNTING AND
FINANCE INFORMATION SYSTEM 3) PRODUCTION
INFORMATION SYSTEM 4) HUMAN RESOURCE
INFORMATION SYSTEM AND SO ON

CHALLENGES
1) COMPETETITIVE ENVIRONMENT
2) INFORMATION AGE

ERP : IS ONE SUCH COMPUTER BASED

INFORMATION SYSTEM THAT SUPPORTS THE
ORGANIZATION IN ITS OPERATIONS AND ENABLES IT
TO TAKE ENTERPRISE WIDE AND STRATEGIC
DECISIONS.

BENEFITS
Reduces inventory
2) Reduced carrying cost of inventory
3) Reduced work force
4)Reduced cycle time
5) Reduced data transfer time
6) Reduces errors
7)Reduced quality costs
8)Improved information accuracy
9)Improved decision making capability
10)Improved customer satisfaction
1)

SCOPE OF ERP SYSTEM

1) Production and manufacturing planning
2) Finance and Accounting
3) Sales and Distribution
4) Human resources
5) Quality
6) Plant maintenance
7) Marketing
8) Inventory Management

MAJOR AREAS OF ERP

STRATEGIC
PLANNING
NEED OF
ERP

ANALYSIS
TOOLS AND
BPR

BASIC CONCEPTS OF
BUSINESS AND ERP
SYSTEM

IMPLEMENTATI
ON OF ERP
SYSTEM

CHALLENGES
OF ERP
SYSTEM

EVOLUTION OF ERP
1960

Inventory management and control - using third

generation soft wares like COBOL , Fortran
1970 Materials requirement planning (MRP) -using third
generation soft wares like COBOL , Fortran
1980 Manufacturing Requirement planning Using fourth
generation application DBMS. LINC Omnis Studio SDK
Panther PowerBuilder DEC RALLY SheerPower4GL
(Microsoft Windows only) SQLWindows/Team Developer
Uniface Visual DataFlex (Microsoft Windows only)
WinDev Unix Shell XBase++ AND SO ON
1990 ERP - client server using fourth generation
database soft ware and package soft ware applications

 2000 Extended ERP - fifth generation applications like

Supply chain management (SCM); CRM , Sales force

automation (SFA) SaaS(Soft ware as a Service.
Functional areas
An ERP system covers the following common functional
areas. In many ERP systems these are called and
grouped together as ERP modules:
Financial accounting General ledger, fixed asset,
payables, receivables, cash management, financial
consolidation
Management accounting Budgeting, costing,
cost management, activity based costing

 Human resources Recruiting, training, payroll, benefits, 401K,

diversity management, retirement, separation

Manufacturing Engineering, bill of materials, work orders, scheduling,

capacity, workflow management, quality control, manufacturing

process, manufacturing projects, manufacturing flow,
product life cycle management
Supply chain management Supply chain planning, supplier

scheduling, order to cash, purchasing, inventory, product configurator

, claim processing

 Project management Project planning, resource planning, project

costing, work break down structure, billing, time and expense,

performance units, activity management Customer relationship
management Sales and marketing, commissions, service,
customer contact, call center support - CRM systems are not
always considered part of ERP systems but rather Business
Support systems (BSS). Specifically in telecom scenario
Data services Various "selfservice" interfaces for customers,

suppliers and/or employees

Best practices
Most ERP systems incorporate best practices. This means the software reflects
the vendor's interpretation of the most effective way to perform each business
process. Systems vary in how conveniently the customer can modify these
practices.[18] Companies that implemented industry best practices reduced
timeconsuming project tasks such as configuration, documentation, testing,
and training. In addition, best practices reduced risk by 71% when compared to
other software implementations.[19]
The use of best practices eases compliance with requirements such as IFRS,
Sarbanes-Oxley, or Basel II. They can also help comply with de facto industry
standards, such as electronic funds transfer. This is because the procedure can
be readily codified within the ERP software, and replicated with confidence
across multiple businesses who share that business requirement

COMPONENTS OF ERP
1) People
2) Hard ware
3) Data base
4) Model base
5) Process

ERPMODULES

Site Map

July 16, 2013

Client Log
in

Hom
e

Solu

ERP modules
Sales and distribution module
Material management
Production planning
Quality planning
Plant maintenance
Asset management
Human resource
Project system
Financial accounting
Controlling
Work flow

 Project life cycle management

Supply chain management
Customer relationship management
Advanced planning and optimization(APO)
Business information system warehouse(BIW)
Strategic Enterprise Management (SEM)
Enterprise Portals (EP)

Role of ERP in business

1) integration of functional areas
2) Redesigning of business process
3) standardization of business system
4) Net worked business

Challenges of ERP
1) implementation is done in stages
2) Appropriate training is very essential
3) Lack of proper analysis of requirements
4) Lack of Support from Senior Management
5) Compatibility Issues with ERP Modules lead to

issues in integration of modules. Companies associate

different vendors to implement different ERP modules,
based on their competency. It is very essential that there
is a way to handle compatibility issues.
6) Cost Overheads
7) Investment in Infrastructure

Typical Benefits of ERP

Lower costs

Many companies have reported reductions

in transaction processing costs, software,
hardware, and IT support personnel when
using an ERP system.

Gain efficiency and Improve quality

By using an ERP system companies

improve the quality and efficiency of
customer service, production and
distribution. ERP helps the manufacturing
process flow more smoothly, and it
improves visibility of the order fulfillment
process.

Decision support

ERP system provides a real-time view of

the companys overall performance which
helps managers to make proper decisions
in a timely manner.

Flexibility and agility

ERP system allows organizations to be

more flexible so that they can more easily
adapt and capitalize on new business
opportunities.

Typical Disadvantages of ERP

ERP system can be very expensive

The cost of implementing and maintain

an ERP system is very high, and can
challenge ROI calculations

User resistance to new system and

business process

Some departments and users may be

hesitant to adopt the new ERP system.
Resistance in sharing sensitive
internal information between
departments can reduce the
effectiveness of the software

Rigid structure of an ERP system

ERP systems are often seen as too

difficult to adapt to the specific
business process of some companies

Typical causes of failed ERP project

Failure to involve affected employees in the planning and

development phases
Insufficient training for personnel, including those
implementing and testing changes.
Failure to do enough data conversion and testing
Lack of corporate policy protecting the integrity of the data
in the ERP systems and how it is used

AD VANCED ERP
NEW USES OF INFORMATION SYSTEM AND NEW

BUSINESS MODELS HAVE BECOME POSSIBLE

BECAUSE OF THE INTERNET WHICH HAS
ELIMINATED MANY TECHNICAL, GEOGRAPHICAL
AND COST BARRIERS GLOBAL FLOW OF
INFORMATION.

 THE ENTERPRISE SYSTEM SUCH AS CRM SYSTEM

FOCUS ON ACQUIRING AND RETAINING PROFITABLE

CUSTOMERS THROUGH MARKETING, SALES AND
SERVICE PROCESSES AND SIMILARLY SCM SYSTEM
FOCUS DEVELOPING THE MOST EFFICIENT AND
EFFECTIVE SOURCING AND PROCUREMENT
PROCESSESS WITH SUPPLIERS FOR THE
PRODUCTS AND SERVICES NEEDED BY A BUSINESS

SUPPLY CHAIN MANAGEMENT

THIS SYSTEM MAKES SUPPLY CHAIN MANAGEMENT

MORE EFFICIENT BY HELPING COMPANIES

COORDINATE SCHEDULE AND CONTROL
PROCUREMENT, PRODUCTION, INVENTORY
MANAGEMENT AND DELIVERY OF PRODUCTS AND
SERVICES

SUPPLI
ER

MANUFACTU
RER

DISTRIBUTER

RETAILER

DRIVERS OF SCM
FACILITIES
INVENTORY
TRANSPORTATION
INFORMATION

CUSTOMER

 SCM IS DEFINED AS A CROSS FUNCTIONAL INTER-

ENTERPRISE SYSTEM THAT USES INFORMATION

TECHNOLOGY TO HELP SUPPORT AND MANAGE THE
LINKAGES BETWEEN COMPANYS PROCESSES
INVOLVED IN THE SUPPLY CHAIN OF AN
ORGANIZATION THAT IS BUYING , MAKING AND
MOVING A PRODUCT

E- COMMERCE AND ERP

E- COMMERCE REFERS TO THE USE OF THE

INTERNET AND THE WEB TRANSACT BUSINESS.

ERP AND E-COMMERCE ARE HIGHLY RELATED BOTH
ARE COMPLEMENTARY AND SUPPLEMENTARY TO
EACH OTHER
BUILDING BLOCKS
E-COMMERCE AND ERP ARE RELATED TO NET
WORK COMMUNICATION AND FACILITATING USER
ACCESS. ERP PROVIDES INFORMATION
COMMUNICATION NET WORKS CONNECT VARIOUS
ORGANIZATIONS

 E-COMMERCE INTIATIVES LIKE FACILITATING

CUSTOMER TRACKING OF GOODS, CUSTOMER

ORDERING OF GOODS, VENDOR MANAGED
INVENTORIES , BUILDING GOODS TO ORDER ,
LINKING WITH SUPPLIERS AND SO ON
E-COMMERCE IS UNDERSTOOD AS THE ENTIRE
ONLINE PROCESS OF DEVELOPING, MARKETING,
SELLING, DELIVERING,SERVICING AND PAYING FOR
PRODUCTS AND SERVICES TRASACTED THROUGH
THE INTERNET.
IN THE RECENT TIMES IT IS REGARDED AS JUST
ONLINE BUYING AND SELLING OF PRODUCTS

 ERP IT PROVIDES A MAIN REPOSITORY FOR THE

INFORMATION AND THUS REGARDED AS THE

CENTRE OF THE E-COMMERCE
TASKS BY E-COMMERCE
1) IT HELPS IN PROVIDING THE INFORMATION ABOUT
THE PRODUCT
2)IT HELPS IN DEFINING THE REQUIREMENTS OF THE
CUSTOMER.
3) E COMMERCE HELPS IN TRANSACTION
4)PAYMENT CAN BE DONE ON LINE
5) ONLINE DELIVERY OF PRODUCT /SERVICE
6)PROVIDING CUSTOMER SERVICE ELECTRONICALLY

TYPES OF E-COMMERCE
B2C

C2C

B2B

G2C

eCOMM
ERC

B2E

G2G
G2B

E-COMMERCE SALES LIFE CYCLE(ECSLC)

MODEL
THIS MODEL DESCRIBES CUSTOMER PERSPECTIVE

FOR THE PURCHASES OF AN ITEM OVER INTERNET

1) SERCHING FOR AN ITEM
2) SELECTION AND NEGOTIATION
3) PURCHASING
4)PRODUCT AND SERVICE DELIVERY
5)AFTER SALES SERVICE

E-COMMERCE TECHNOLOGY
INFRASTRUCTURE
HARDWARE
IT IS MAIN HARDWARE IS WEB-SERVER. LIKE

STORAGE CAPACITY, COMPUTING POWER

SOFTWARE
1) WEB-SERVER SOFTWARE: IT PERFORMS
NUMBER OF FUNCTIONS LIKE SECURITY AND
IDENTIFICATION OF RETRIEVAL AND SENDING WEB
PAGES, WEBTRACKING, WEBSITE DEVELOPMENT
WEBPAGE DEVELOPMENT. IT NEEDS WE-SERVER
OPERATING SYSTEM

2) E-COMMERCE SOFTWARE
1) CATALOGUE MANAGEMENT
2) PRODUCT CONFIGURATION
3)SHIPPING CART
4)e-COMMERCE TRASACTION PROCESSING
5) WEBTRAFFIC DATA ANALYSIS

MOBILE ELECTRONIC COMMERCE or mcommerce

IT IS DEFINED AS ANY ELECTRONIC TRANSACTION

CONDUCTED USING A WIRELESS, MOBILE DEVICE

AND MOBILE NET WORK FOR URCHANSING GOODS
OR SERVICES.
1) on line purchasing of goods or services
2)m-wallets
3)vending machine purchases
4)stock trading and other investments
5)paying bills, online banking
6)reservation of tickets for airlines movies
7)down loading playing games
8)general information related to whether or news.

ERP architecture
It has to be viewed in two different angles
1) functional angle
2) technical angle or the system angle defines the physical

components of ERP like Hard ware, software net working and

database
PURPOSE OF STUDY
1) it helps an organization and implementation team to
understand in details the component features of the enterprise
system
2) it provides frame work for the complex system
3) it helps the organization in developing better IT plan
understanding the architecture would provide better picture
about system infrastructure requirements.

 ERP is highly integrated information system comprising

various components like user interface (windows), business

logic operations (SAP R/3) oracle, database
ERP systems are commonly deployed in a distributed and
often widely dispersed manner. In this architecture servers
are centralized clients are usually spread to different
locations throughout the enterprise
1) two tier client server architecture
2) three tier client server architecture
Two tier architecture is inflexible in terms of adding more
clients and software. Requires middleware for integration
and provides very limited flexibility in moving program
functionality form one server to another

 In three tier architecture the user interface layer

communicates only with business rules layer and not

directly with the database layer
The different layers API (application program interface)
ODBC ( Object data base connectivity) JDBC (java
database connectivity)
BENEFITS
1) FLEXIBILITY
2) SCALABILITY
3) RELIABILITY
4) SECURITY
5) MAINTAINABILITY

 A WEB ENABLED OR INTERNET BASED

ARCHITECTURE IS OFTEN DESCRIBED AS A FOURTH

TIER WHERE THE PRESENTATION TIERS ARE
FURTHER SPLIT INTO WEB SERVICES TIER AND
WEB-BROWSER TIER.

CLOUD COMPUTING

Grid Computing

Utility Computing

Refer to resource-pooled environments for running compute jobs (like

image processing) rather than long running processes (such as a Web
site or e-mail server)
Refer to resource-pooled environments for hosting long running
processes, and tends to be focused on meeting service levels with the
optimal amount of resources necessary to do so

Cloud Computing

Refer to a variety of SERVICES available over the Internet that deliver

compute functionality on the service provider's
Its environment (infrastructure) may actually be hosted on either a grid or
utility computing environment, but that doesn't matter to a service user
The DATA in the cloud, as Intel inside (or intelligence inside), is often an
important part of the services

Cloud Computing Simple Definition

Cloud Computing = Software as a Service
+ Platform as a Service+ infrastructure as
a service +Data as a service
SOFT AS A SERVICE
From end users point of view

Apps are located in the cloud

Software experiences are delivered through the Internet

Dapta as a Service

 PLAT FORM AS SERVICE

From developers point of view (i.e. cloud users)

Cloud providers offer an internet based plat form to developers

who want to create services but don't want to build their own
cloud

INFRASTRUCTURE AS A SERVICE
Cloud providers build datacenters

Power, scale, hardware, networking, storage, distributed systems, etc

Datacenter as a service
Cloud users rent storage, computation, and maintenance from

cloud providers (pay-as-you-go; like utility)

DATA-INFORMATION-KNOWLEDGEINTELLIGENCE
Infrastructure for Web-scale data mining and knowledge discovery;

empower people with knowledge; empower services and applications

with intelligence.

Benefits of Cloud Computing

Reduce capital and operations costs

No longer required to make large up-front capital investment on datacenters
Eliminate the need to plan ahead for provisioning
Allow companies to start small and increase their resources investment as

needed (pay-as-you-go)

Simplify app deployment & management

Common programming model across mobile, browser, client, server, cloud
Access to strong ecosystem of widely deployed applications
Integration with existing IT assets (Software + Services)

 With cloud computing information can be stored

permanently on the internet in huge servers and cached

on desktops, table computers, notebooks, monitors
handbooks, monitors, handhelds etc on temporary basis.
CHARACTERSTICS
1) IT IS PROVIDED ON DEMAND TYPICALLY BY THE
MINUTE OR BY THE HOUR
2)A USER CAN HAVE AS MUCH AS LITTLE OF A
SERVICE AS THEY WANT AT ANY GIVEN TIMETHUS IT
IS FLEXIBLE
3) IT IS FULLY MANAGED BY SERVICE PROVIDER
4

 ERP PLAT FORMS ARE DOTNET AND J2EE(JAVA 2

PLTFORM ENTERPRISE ENDITION) DOT NET IS

CHEAP IN COMPARING WITH J2EE.
OPEN SOURCE OF ERP ADVANTAGE
1) COST ADVANTAGE 2) REDUCES DEPENDENCE ON
VENDORS 3) OPENSOURCE HAS BEEN FOUND
UNSUITABLE FOR CONVETIONAL APPLICATIONS
THAT REQUIRE THAT FULFILLS THE PRESET
CRITERIA.
OPENSOURCE PROVIDES THE USER ALL THE
DETATIS AND EVEN PROVIDES THE SOURCE CODE
THIS IMPLES SAVING TIME.

ERP NEED ANALYSIS

For establishing the need for ERP systems

organizations must perform a

strategic/competitive analysis and ensure
that proposed ERPsystem aligns with the
mission goals and strategies of the
organization.
MISSION
It is a broad enduring statement giving the
organizations reasons for being. It answers
the basic questions what is our business.

STRATEGY
ACCORDING TO PORTER (1980) IT IS A BROAD

BASED FORMULA FOR HOW BUSINESS IS GOING TO

COMPETE, WHAT ITS GOALS SHOULD BE AND WHAT
POLICIES WILL BE NEEDED TO CARRY OUT THESE
GOALS.
TO PERFORM STARTEGIC ANALYSIS ORGANIZATION
IS IN NEED OF ENVIORNMENT, ORGANIZATIONAL
SOURCES.
TO ANALYSE THE ENVIRONMENT THERE ARE THREE
MODELS

 1) PORTERS FIVE FORCES MODEL (COMPETITIVE

ANALYSIS)
2) STAGES GROWTH MODEL (LIFE CYCLE ANALYSIS)
3)SWOT ANALYSIS
PORTERS FIVE FORCES
1) BARGANING POWER OF SUPPLIERS
2)BARGANING POWER OF BUYERS
3)THREAT OF NEW ENTRANTS
4)THREAT OF SUBSTITUTE PRODUCTS OR
SERVICES
5)RIVALARY AMONGST EXISTING COMPETITORS

STAGES GROWTH MODEL

1)INTRODUCTION
2) GROWTH
3)MATURITY
4)DECLINE
SWOT ANALYSIS
PORTERS VALUE CHAIN MODEL
It views an organizations as a chain or net work of basic

activities and each activity in the chain adds value to the

final product or service

Portals two types of activities

PRIMARY ACTIVITIES
1) INBOUND LOGISTICS
2)OPERATIONS
3)OUTBOUND LOGISTICS
4)MARKETING AND SALES
5)SERVICES
SUPPORTING ACTIVITIES
1) FIRMS INFRSTRUCTURE
2)HRM
3)TECHNOLOGY DEVELOPMENT
4)PROCUREMENT

BCG MATRIX MODEL (PORPOSED BY

BOSTON)boston consulting group(BCG)
IT IS A RELATIONSHIP BETWEEN A DIVISION OF

PRODUCTS CURRENT REVENUE POTENTIAL

(MARKET SHARE) AND MARKET GROWTH
1) cash cow: it represents those products or divisions
which are having high income earners. They are
relatively short term expected to provide significant future
revenues. In this shifting the product is possible.
2) star: the products of this provides significant revenues
are expected to continue to earn profits in future. These
products require ongoing investments and thus do not
generate as much as cash cows generate

 DOG: products that provide little or no contribution to

profits at present it is not that situation will improve.

These products that have lost market share. The
organization may think of taking steps to reduce the costs
WID CAT: products that an organization is currently
prepared to carry despite the fact that currently these
products are contributing either nothing or very little to
profits of the organization expected to contribute in future.
These have low market share but in fast growing markets.
ADVICE
Star- investin: Wild cat: Examine: Dog Divest:
Cashcow_ Milk

ESTABLISHING NEED FOR ERP

BEFORE GOING FOR ERP IMPLEMENTATION

ORGANIZATIONS NEED TO UNDERSTAND NECISSITY

OF ERP
1) GOALS 2) STRATEGIES 3) INFORMATION ANALYSIS
4)IS SOLUTIONS 5) IMPLEMENTATION PLAN
STEPS FOR ERP SYSTEM
1) STRATEGIC ANALYSIS
2) INFORMATION REQUIREMENT ANALYSIS
3)IS SOLUTIONS (ERP SYSTEM)

STRATEGIC ANALYSIS
MISSION , GOALS AND STRATEGIES OF THE

ORGANIZATION IS ANLYSED
IS STRATEGIES FOR DEALING WITH COMPETETIVE
FORCES
1) LOW COST LEADERSHIP
2) PRODUCT DIFFERENTIATION
3) FOCUS ON MARKET NICHE
LOW COST LEADERSHIP
IT FOCUSES ON LOW COST LEADERSHIP STRATEGY
AND LOWER THE OPERATIONAL COSTS.

 Ex: wal mart was able to become leading retail chain in

the united states

PRODUCT DIFFERENTIATION: ex: Google; Apple; Dell
computers;
FOCUS ON MARKET NICHE: An organization can focus
on a small market niche so as to serve this narrow target
market better than competitors. Ex : customer relationship
management
Ex: Amazon.com keeps track of user preferences for book
and CD purchases

Life cycle or Nolan Stage Model

Nolan Stage Model
1) Initiation
2) Expansion
3) control
4) maturity
SIX STAGE MODEL
1) INITIATION
2)EXPANSION
3)CONTROL
4)DATA INTEGRATION
5) DATA ADMINISTRATION
6)MATURITY

STRATEGIC INFORMATION GRID

1) STRATEGIC CELL: it indicates the critical role of the

information system in the existing competitive strategy

and future strategic directions of the organization. IS is a
part of it.
2)Factory cell: it is a vital position of the existing
information system. It is not a part of strategic cell
3) support cell : IS applications are useful in supporting
the organizational activities
4) Turn around: it is a state of transition from support to
strategic stage. It indicates the organizations has had
only support applications

 Strategic grid helps in analyzing the current and future IS

applications and thus acts as diagnostic tool. The grid is

diagnostic because it helps understand the role of IS in
the organization.
VALUE CHAIN MODEL
It is used to analyse the companys key processes and
core competencies
1) value adding activities:
2) value enabling activities
3) non-value adding activities

INFORMATION REQUIREMENT ANALYSIS

1) define underlying organizational sub-systems
2)define information requirements for organizational sub-

systems
3)evaluate information system
4)evaluate business processes
5) Gap analysis and IS solutions

BUSINESS CASE FOR ERP

1) improves operational efficiency
2)replace obsolete systems and technology
3)improve effectiveness
4)to gain competitive advantage/strategic advantage
NEED FOR BUSINESS CASE FOR ERP
Proper information system plan in the organization which

must be comprehensive and derived from organizational

strategic plan.
A business case is a document that will explain why an
organization should make the upfront investment and
gives an account expected benefits and a return on
investment at some predictable point in the future

BUSINESS RAIONALE FOR ERP

IMPLEMENTATION
STRATEGIC RATIONALE
TECHNOLOGY RATIONALE
COMPETITIVE RATIONALE
BUSINESS PROCESS RATIONALE

COST-BENEFIT ANALYSIS (CBA)

IN THIS EXPECTED COSTS ANDEXPECTED BENEFITS ARE

EVALUATED TO KNOW WHETHER BENEFITS JUSTIFY THE

INVESTMENT IN PROPOSED SYSTEM

ROI

 VALUE ANALYSIS
WHILE VALUING INTANGIBLE BENEFITS ARE ALSO MEASURED

AND TAKEN INTO ACCOUNT WHILE MAKING A JUSTIFICATION

OF INVESTMENTS, THE QUANTIFIABLE OR TANGIBLE AND
QUALITATIVE OR INTANGIBLE COSTS AND BENEFITS OR ERP
SYSTEM ARE IDENTIFIED AND ANALYSED.
COSTS OF ERP SYSTEM
1) BUSINESS ANALYST FEE.
2)CONSULTANT FEE
3)SOFTWARE/HARDWARE/NETWORKING COST
4)PROJECT TEAM MEMBER TIME
5)EMPLOYEE TRAINING
6)PRODUCTIVITY LOSSES
7) MAINTANANCE COST

BENEFITS OF ERP SYSTEM

1)REDUCED INVENTORY COSTS
2)REDUCED INVENTORY CARRYING COSTS
3)REDUCED WORK FORCE COSTS
4)IMPROVED CUSTOMER SERVICE
5)IMPROVED SALES
FEASIBILITY STUDY
IT PROVIDES AN OVERVIEW OF THE PROBLEM AND

ACTS AS AN IMPORTANT CHECKPOINT THAT

SHOULD BE COMPLETED BEFORE COMMITTING
MORE RESOURCES.

 TECHNICAL FEASIBLITY
LEGAL FEASIBILITY
OPERATIONAL FEASIBILITY
SCHEDULE FEASIBILITY

ERP LIFE CYCLE

IT IS A STANDARD PACKAGE SYSTEMS THAT ARE

GENERALLY DEVELOPED BY THE SOFTWARE

DEVELOPMENT COMPANIES BASED ON SOME BEST
PRACTICES OF INDUSTRY
IMPLEMENTATION FACTORS
1) ANALYSING THE NEED FOR ERP
2)REDESIGNING THE BUSINESS PROCESS
3)INVOLVEMENT OF USERS
4)COMMITMENT OF THE TOP MANAGEMENT

ERP IMPLEMENTATION LIFE CYCLE

1)PREIMPLEMENTATION
A) NEED ESTABLISHMENT
B)FEASIBILITY ANALYSIS
C) PACKAGE SELECTION
D) HIRING OF CONSULTANTS
2)IMPLEMENTATION PHASE
A)IMPLEMENTATION PLAN
B)BUSINESS PROCESS REINGINEERING
C)CUSTOMISATION
D)ACQUISTION OF INFORMATION TECHNOLOGY

INFRASTRUCTURE
E)DATA CONVERSION
F)GO LIVE

 3) POST-IMPLEMETATION PHASE
A) POST IMPLEMENTATIONREVIEW
B) MAINTENANCE OF ERP
PRE IMPLEMENTATION PHASE
1) ESTABLISHING THE NEED FOR ERP SYSTEM
2) FEASIBILITY ANALYSIS
3)SELECTION OF AN APPROPRIATE PACKAGE
4)HIRING OF CONSULTANT

 IMPLEMENTATION PHASE
1) IMPLEMENTATION PLAN
2) BUSINESS PROCESSING REVIEW
3)CUSTOMIZATION
4)ACQUISITION OF IT INFRASTRUCTURE
5)DATA CONVERSION
6)GO LIVE
POST IMPLEMENTATION PHASE
POST IMPLEMENTATION REVIEW
MAINTENANCE OF ERP

ERP AND BUSINESS PROCESS

REENGINEERING
Business process may be defined as a set of logically

related activities or tasks performed to get a work done or

pre defined business outcomes.
Business process reengineering refers to a systematic
methodology to identify the best of doing the business
and to re-engineer or redesign the business processes so
as to get the maximum benefit.
BUSINESS PROCESS REEINGINEERING MAY BE
DEFINED AS A SYSTEMATIC METHODOLOGY TO
IDENTIFY THE BEST WAY OF DOING BUINESS.

REASONS TO CONDUCT BPR

1) To implement the current purchased ERP system
2) To automate the existing manual processes
3) To improve the customer service
4)To streamline the current business processes to increase the

efficiency reduce cost and so on.

BPR LIFE CYCLE
1) Preparation and planning for under taking BPR is done:
2) Current or existing business processes of the organization are
understood
3)Business process mapping and gap analysis is done
4)Business processes are redesigned so as to match best practices
5) Redesigned processes are tested and evaluated for further
improvement.

PROCESS MAPPING AND GAP ANALYSIS

PROCESS MAPPING REFERS MODELING THE

BUSINESS PROCESSES USING SOME GRAPHICAL

TOOLS AND TECHNIQUES S AS TO UNDERSTAND
THE BUSINESS PROCESSES.
BPR TOOLS AND TECHNOLOGIES
1) Technology enabled reengineering
A) it provides structure for BPR process
B) builds better solutions
C) constrain the design effort
D) Generate cost effective design processes
E) Ensure timely implementation

 2) CLEAN SLATE RENGINEERING

A)organizations are free to redesign their processes
B) future revisions are not limited by the technology
C)organizations can develop unique process designs
D) reengineering is not confused with technology

implementation.
E) clean slate may be the only approach to build
processes for use in new technologies.

SUCCESS AND FAILURE FACTORS IN

IMPLEMENTING BPR
1)Top management commitment
2) BPR planning
3)User participation
4)Collaborative environment
5)IT applications
6) Training and education
7) Resistance to change