Enterprise Resource Planning: The Business Backbone

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ENTERPRISE RESOURCE

PLANNING: THE BUSINESS


BACKBONE

Made By:
Akhil Jindal
Neetika Sharma
Rajdeep Khiwa
What Is ERP?

ERP is the technological backbone of


e-business, an enterprise-wide
transaction framework with links into
sales order processing, inventory
management and control, production
and distribution planning, and
finance.
The Major Application Components
Of Enterprise Resource Planning Demonstrate
The Cross Functional Approach Of ERP System
ERP – An Integrated Real Time
View Of Core Business
Processes
Cash, Raw Materials and Production Capacity

ess
usin rces
B ou
s
Re
Customer Orders, Purchase Orders and
ERP Status of
Employee Payroll
Commitments

De
par
tme
nts
Manufacturing, Purchasing Sales, Accounting, etc
ERP Software Suites
 Material Requirements Planning
Manufacturing Processes  Production Planning.
 Capacity Planning.

 Sales Analysis.
Sales & Marketing
 Sales Planning.
Processes
 Pricing Analysis.

 Order Management.
Distribution Processes  Purchasing.
 Logistics Planning.

 Personnel Requirements Planning.


HR Processes
 Salary and Benefits Administration.

 Financial Record Keeping.


Financial Processes
 Managerial Accounting Applications.
ERP Implementation Methodology
1. Identification of the needs for implementing an ERP package.
2. Evaluating the “as-is” situation of your business.
3. Deciding upon the desired would be situation for your business.
4. Re-engineering of the business process to achieve the desired
result.
5. Evaluation of the various ERP packages.
• Global presence
• Local presence
• Investment in R&D
• Target market
• Price
• Modularity
• Obsolence
• Ease of implementation
• Cost of implementation
• Post implementation support
6. Finalizing the ERP package.
7. Installing the requisite hardware and network.
8. Finalizing the implementation consultants.
9. Implementation of the ERP package.
• Formation of implementation team
• Preparation of implementation plan
• Mapping of business processes on the package
• Gap analysis
• Customization
• Development of user specific reports and transactions
• Uploading of data from existing system
• Test runs
• User training
• Parallel run
• Migration to the all the systems.
• User documentation
• Post implementation support
• System monitoring and fine tuning.
Benefits of ERP
1. Operational Benefits

2. Business Benefits

3. Management Benefits
Costs Of ERP

“An ERP Implementation is like the


corporate equivalent of a brain transplant.
The risk is certainly disruption of business,
because if you do not do ERP properly, you
can kill your company, guaranteed.”
Typical Costs Of Implementing
A New ERP System

Reengineering
15%
Hardware
15%
43%
Software
15% 12%

Training and change


management
Data Conversions
Trends In ERP
Four important trends are shaping
ERP’s continuing evolution:

1. Improvement in integration and


flexibility.
2. Extensions to e-business applications.
3. A broader reach to new users.
4. The adoptions of internet technologies.
Trends in the evolution of
ERP applications
E-Business Suites

Inter-enterprise ERP

Web Enabled ERP

Flexible ERP
Thank You

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