Om Kothari Institute of Management & Research

Presentation on ERP
Guided By: Presented by: Mr. Chetan Sharma 4/22/12 Sharma Kaveesh

Enterprise Resource Planning

Contents Over View & Concept of ERP ERP in service sector(Highlights) ERP features ERP Benefits Disadvantages ERP is considered to be the backbone of e-business Conclusion
4/22/12 Bibliography

ERP
Enterprise resource planning (ERP) integrates internal

and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, CRM, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

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Characteristics: An integrated system that operates in real time (or next to real time), without relying on periodic updates.

A common database, which supports all applications. A consistent look and feel throughout each module.

Installation of the system without elaborate application/data integration by the Information Technology (IT) department.

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ERP in service sector(Highlights)

Transportation, medical care, hospitality, courier service,

telecommunication, banking and financial services, and entertainment represent the major components of India's service sector, and on probing into the various needs of these groups, it becomes apparent that the courier, transportation, and entertainment industries do not have specific current needs for ERP. Banking and telecommunication each have very specialized requirements that the manufacturing-inclined software solutions on the market would not effectively address.

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The same holds true for the medical care and hospitality industries. The service sector has the potential to become an important ERP market within a few years. At this time ERP implementation in the services sector is very limited - only a few hospitals and banks have done small-scale experiments. New software and processes will need to be developed to meet the specific demands of the service industries, so ERP players should begin now to prepare themselves for the tremendous potential of this future market.

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ERP Features
Business Intelligence CRM (Customer Relationship Management) Financial Management HCM (Human Capital Management)
4/22/12 Manufacturing Operations

ERP Benefits
Streamlining processes and workflows with a single

integrated system.
Reduce redundant data entry and processes and in other

hand it shares information across the department.

Establish uniform processes that are based on recognized

best business practices

Improved workflow and efficiency Improved customer satisfaction based on improved on-

time delivery, increased quality, shortened delivery times

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Reduced inventory costs resulting from better planning, tracking and forecasting of requirements

Turn collections faster based on better visibility into accounts and fewer billing and/or delivery errors

Decrease in vendor pricing by taking better advantage of quantity breaks and tracking vendor performance

Track actual costs of activities and perform activity based costing

Provide a consolidated picture of sales, inventory and receivables.

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Disadvantages
Customization is problematic. Reengineering business processes to fit the ERP system

may damage competitiveness and/or divert focus from other critical activities
ERP can cost more than less integrated and/or less

comprehensive solutions.
High switching costs increase vendor negotiating power

vis a vis support, maintenance and upgrade expenses.

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Overcoming resistance to sharing sensitive information between departments can divert management attention.

Integration of truly independent businesses can create unnecessary dependencies.

Extensive training requirements take resources from daily operations.

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Business enterprises in India are in the process of a major

ERP is considered to countries, such as be the Most of the enterprises in developing India, are in theof e-business process of implementing Enterprise backbone (ERP) system in alignment with Resource Planning
organizational transformation and process of reengineering initiatives. ERP system promise benefits that 4/22/12 range from increased efficiency to transformation of

transformation due to globalization and the deregulation of Indian economy, coupled with fundamental changes in the business models due to the emergence of Information Technology based business practices.

However, its implementation poses some unexpected organizational challenges and changes that can be structural as well as cultural in nature. ERP not only helps establish world-class best business practices and brings transparency to the organization but also demands for empowerment and flexibility in decision making process.

The most promising argument is that, to thrive in the ecommerce world companies need to transform their internal business process with the deployment of ERP

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The Future of ERP

Enterprise Resource Planning (ERP) solutions are vital to

many organizations. In fact, many businesses cant survive with their ERP solutions. Enterprise Resource Planning solutions are proven to save companies money, make them more efficient, and strategically align them. If ERP solutions did not do these things for companies then they would not sell and the Enterprise Resource Planning vendors would go out of business. Lately, weve witnessed Enterprise Resource Planning solutions in two and three tier form, as SaaS (Software as a Service) solutions, and even as open source solutions.
As we all know, the ERP market has evolved greatly from 4/22/12

the 1980s to present day. Gone are the Enterprise

Global Enterprise

Resource Planning solutions are growing in numbers and strength. It is probable that this market will boom in the next ten years. Many organizations are building or strengthening their global ERP solutions in order to be strong competitors. Specifically, some vendors in the global ERP market are; SAP, Oracle. QAD, Ramco, CDC Software, COA Solutions, Consona Corporation, Unit 4 Agresso NV, Plex Systems, Epicor, and ABAS Software.

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The future of Enterprise Resource Planning solutions is strong. With the evolution of the internet, SaaS and open source ERP products will flourish. Global ERP products will unify countries and companies. As new technology evolves, you can bet that the Enterprise Resource Planning vendors will yet again adapt just as they adapted their ERP solutions for specific industries and business sizes. Adapting and repositioning oneself is the only way to stay in the game. Its the only way to be current and survive the future and whatever the future may hold.

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 Conclusion
ERP helps in:
Business

integration and Improved Data Accuracy: ERP system is composed of various modules. Where a module represents a particular business component. If data is entered in one module such as receiving, it automatically updates other related modules such as accounts payable and inventory.

Planning and MIS: The various decision support tools

like planning engines and simulations functions, form integral part of an ERP system which helps in proper utilization of resources like materials, human resources 4/22/12 and tools.

Improved Efficiency and Productivity: In addition to provision of improved planning, ERP system provides a tremendous boost to the efficiency of day to day and routine transactions such as order fulfilment, on time shipment, vendor performance, quality management, invoice reconciliation, sales realization, and cash management Flexibility and technology: Due to globalized environment, where production units, distribution centres and corporate offices reside in different countries, organizations need multi currency, multi language and multi accounting modes, in an integrated manner. These provisions are available in most of the ERP systems.

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