ABSTRACT

Project Title: Needs and Advantages of ERP Implementation to simplification of Business

Process
Company: Sapient

Introduction
Enterprise resource planning (ERP) systems have emerged as the core of successful
information management and the enterprise backbone of organizations. Organizations opt for
such system with variety of intents which range from the system acting as enabler of future
growth to having it simply because it is the current buzzard in the industry circles. Whatever the
intents may be, many organizations reap huge benefits from implementing such systems.

In todays highly competitive global market, a company faces exponential degrees of
pressure to find new ways to create and deliver value to customers. Over the years consumer
orientation has converted markets into a buyer market.

In this market there is only one boss i.e. the customer. He can fire anybody in a company
from chairman down, simply by spending his money somewhere else. This has completely
changed the rules in the market. Now companies that used to focus strongly on products are
shifting their attention towards customer & their wants. Practically, customer no longer wants
more choices. They want exactly what they want when, where and how they want it.

These new rules of business, combined with maturity of product lines and new sources of
global competition, has led to overcapacity in many industries, leading to an inevitable pressure
on price. Price has always been a critical competitive variable in many markets (especially
developing ones). Majority of the researches and companies focus their efforts on trying to find
tools and process that can achieve some degree of price reduction.

Also customer service, order fulfillment improvement, cycle time reduction and
Inventory reduction plays a necessary role. To meet this a usage of ERP software package and
other sophisticated technology is necessary. This project work carries a detail study on ERP
concepts and its Advantages.

AIMS
To get ERP integrated management information, consistent and up-to-date information
across several locations are the primary requirements for any organization. ERP with its ability
to bring to gather people who work on shared tasks with in enterprise or in their dealings with
supplier, customers and the capability to integrate business process using well defined workflows
provides a great number of benefits to organization.

Increase efficiency in a business process is a key factor to ensure that companies retain a
competitive edge and improves both profit margin and customer service. In common sales and
distribution process may face difficulties while distributing product with respect to delivery
quantity and delivery dates. Using ERP package we can upgrade the Business Process technique
according to customers and organization.

OBJECTIVES
Reduced lead time in shipping and transportation.
Improve the responsiveness across the organization.
Capability to provide order status information to customers.
To support business growth requirements like multiple language & currency.
Inventory control.
Improve the customer satisfaction.
Increase flexibility.
Improve vendor performance.

METHODOLOGY
The Study provides the theoretical foundation required to study in depth the concept
behind ERP and its functionality. Identify different parameters for the need and implementation
feasibility of ERP.

Developing questionnaires and statements for each area like need and implementation
feasibility of ERP. Meeting industry experts to validate and clarify the ERP and also study the e-
commerce integration and ERP related technologies.

Understanding integration one module to other business module like MM, PP, FI and SD
process like function, controlling, assignment and customisation.

ERP Implementation methodology

Generally an ERP implementation can be divided into four phases.

Understanding the problem

This is the first phase and the goal of this phase is to establish the foundation that
permits the software package to be implemented in the best possible manner. It is
necessary to understand the kind of business the company conducts and how the package
will fit the businesss processes. Decision makers and project team member who will
carry out this phase of the project need to determine the characteristics of the current
systems and what Darts of these will be preserved in the new environment. They should
also arrange for the training of the implementation team members & chalk out plans for
customizing the software package if such a need exists. They should also determine how
the existing data will be migrated to the new system and how the end-users will be
trained.

Defining Solutions

This is the most critical phase of the project, because it is during its development
that all concepts associated with the operation of the software package will be defined the
project team will conduct simulations of the application processes to identify differences
between the present work processes and the new work environment that will come into
existence once the software is fully implemented. All basic definitions of information and
data modeling will be made. The degree to which the company will have to adopt to the
package in established and also the degree to which the package has to be customized is
also defined. Usually during this phase a prototype or a model of the future operations in
created.

Getting down to work

If phase two was the most critical, this phase in the most difficult. It is in this phase
that the project schedule may founder. In the previous phases the project team was
concerned with designing and detailing which involved in a lot of paper work. In phase
three the objective is to the works as per the project plan. In this phase, the project team
will do the following activities.

Lead the initial data.
Develop test and place the customization into operation.
Develop and test the interferes and place them into operation.
Document the new procedures associated with the system.
Test the new test environment
Train the end - users.


Going Live

To arrive at the fourth phase - the moment at which the system will start to be used
- in synonymous with being close to success. There in no guarantee of success. Because
this project phase may still hold surprises. The focus here in an making the systems
happen or go live The software in usually run in parallel with the current system for
some time (Parallel-run) in this phase , the project team will provide support to users who
are still insecure in the new work environment. It is also in this phase that the final
adjustments (fine-tuning) are made to the system. Once the system is found to be stable
and once the project team and the executive committee is satisfied of its success. The
system in released to normal use and the current system in shut down. Or in other words
the organization makes the complete switch over from the old system to the new one.

ERP COST

When talking about ERP implementation, one of the most frequently asked
question is, How much is it going to cost? The answer is that it depends. It depends
on a lot of factors like the package chosen, the technology used, whether the company is
using the existing hardware/software infrastructure, how much training is needed, what
are the resources available in-house for implementation, whether external consultants are
required, and so on. But one thing is sure; the investment will be substantial - starting at
several lakhs and running into crores of rupees depending on the size of the company and
the scope of the implementation.











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