Enterprise

Resource
Planning

GROUP 3
Table of Contents
 What is ERP?
 The Current Scenario
 Definition
 Why ERP?
 Evolution
 Relevant Issues
 Expectations
 Product selection Phase
 Product Selection – Parameters
 Pitfalls & Points of concern
 Critical Success Factors for ERP
 Building ERP using Ext. sources
 What is ERP?
ERP is a solution, which
Enterprise Resource Planning

• facilitates company-wide integrated

information systems, covering all
functional areas

• performs core Corporate activities and

increases customer service augmenting
Corporate Image

• facilitate the flow of information between all

business functions inside the boundaries of the
organization and manage the connections to
outside stakeholders.
 The Current Scenario
Enterprise Resource Planning

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
• Lack of proven man-power to develop
integrated software
Information Islands
 ERP - Definition
Enterprise Resource Planning

“Software solution that addresses the

Enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform”
 Why ERP?
Enterprise Resource Planning

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 marry latest technologies
To shun the geographical gaps
To satisfy the customers with high expectations
To be Competitive & for survival
ERP systems typically include the following
characteristics:

 An integrated system that operates in (next to)

real time, without relying on periodic updates
 A common database, that 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
 Evolution of ERP
Enterprise Resource Planning

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 Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000 onwards – ERP II – Collaborative Commerce
(Extending ERP to external business entities)
 Relevant Issues
Enterprise Resource Planning

 Need based application

 Expenditure
 Reduction in implementation
 Wireless Technologies (Web Enabled)
 ERP – Expectations
Enterprise Resource Planning

Integrating all the functions

Integrating the systems running in all the locations

Transparency of information using a single

data source across the organization

Software must be responsive

Modular
Flexible
Easy to add functionalities
Provide growth path
 ERP Product selection Phase
Enterprise Resource Planning

 ERP Team formation for selection

 Appointment of Consultants [if needed]
 Scoping study
 Product selection
 Implementation partners selection
 Hardware/Communication cost estimation
 Product Selection - Parameters
Enterprise Resource Planning

 Reputation of the ERP product

 No.of installations in the geographical vicinity
 % of the overall functional availability
 Customization possibilities
 After sales support
 Your investment plan & budget
 Implementation partner’s track record
 ERP Product selection Criteria
Enterprise Resource Planning

Functionality

Technology
Goal: atteeggiicc
Sttrra
5S
To select the
Requirement
Most Suitable Software
Leveellss
Lev Vendor
Package Solution

Support

Costs
 Preparation Phase
Enterprise Resource Planning

 Framing ERP Implementation Strategies

 Formation of Apex & Steering committees
 Functional & IT team formation
 Training on ERP functions & features
 Scope finalization
 Action plan to resolve the gaps
 Pitfalls & Points of concern
Enterprise Resource Planning

 Costly comparing to custom-built options

 Lot of hidden costs
 Chances of cost & time overrun are high
 Compulsion to pay for redundant modules/features
 Vigorous involvement of all during implementation
 Non-availability of special practices like Customer
Complaint, Logistics
 Linking historical data – offline & painful
 The requirement of Change Management is a must
 Dependency on outsiders is high
 IT department – Poor grip on the Implemented systems
 Critical Success Factors for ERP
Enterprise Resource Planning

 The firm & optimistic approach of the Management

- on adapting the ERP product driven methodologies
- on customization
- on monetary commitments
 The dedicated Team
 Good Training
 Strict adherence to the Project schedules
 Right technical infra-structure
 Change Management
 Building ERP using Ext. sources - Steps
Enterprise Resource Planning

1. Software vendor selection

2. Detailed study by the vendor
3. Scope & platform finalization
4. Freezing the commercials
5. Development
6. Hardware addition/upgradation
7. Old master/transaction data migration
8. Parallel run with Integration & connectivity check
9. Implementation
10. Maintenance
 ERP Software - Vendor Selection
Enterprise Resource Planning

The following traits should be considered while

selecting the software vendor for building the ERP
application
 Technical expertise
 Domain knowledge
 Adequate manpower
 Project management skills
 Long existence in the field
 Extra skills [e-biz & workflow]
Enterprise Resource Planning
ERP modules
THANK YOU!!!!