INTODUCTION ABOUT ERP SOFTWARE

ERP stands for Enterprise Resource Planning. ERP is a way to integrate the
data and processes of an organization into one single system. Usually ERP systems
will have many components including hardware and software, in order to achieve
integration, most ERP systems use a unified database to store data for various
functions found throughout the organization. Enterprise resource planning (ERP) is a
company-wide computer software system used to manage and coordinate all the
resources, information, and functions of a business from shared data stores.

Origin of ERP

In 1990 Gartner Group first employed the acronym ERP as an extension of

material requirements planning (MRP), later manufacturing resource planning and
computer-integrated manufacturing. Without supplanting these terms, ERP came to
represent a larger whole, reflecting the evolution of application integration beyond
manufacturing. Not all ERP packages were developed from a manufacturing core.
Vendors variously began with accounting, maintenance and human resources. By the
mid–1990s ERP systems addressed all core functions of an enterprise. Beyond
corporations, governments and non–profit organizations also began to employ ERP
systems.

Expansion

ERP systems experienced rapid growth in the 1990s because the year 2000
and the Euro disrupted legacy systems. Many companies took this opportunity to
replace such systems with ERP. This rapid growth in sales was followed by a slump
in 1999 after these issues had been addressed.

ERP systems initially focused on automating back office functions that did not
directly affect customers and the general public. Front office functions such as
customer relationship management (CRM) dealt directly with customers, or e–
business systems such as e–commerce, e–government, e–telecom, and e–finance, or

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supplier relationship management (SRM) became integrated later, when the Internet
simplified communicating with external parties.

"ERP II" was coined in the early 2000s. It describes web–based software that
allows both employees and partners (such as suppliers and customers) real–time
access to the systems. "Enterprise application suite" is an alternate name such
systems.

Enterprise Resource Planning (ERP) integrates different software applications

in a company to ensure internal communication and improve manufacturing
productivity or management efficiency. It can be part of a company’s whole
management system that combines customer relationship management (CRM)
software, supply chain management, human resources (HR) management, project
management (PM), or Business Intelligence (BI) software.

In the last decade, ERP software has exploded into the global business
landscape. With the opening up of the Indian economy, there has been a turnaround
growth in different industry verticals thereby helping them reach a level of maturity
that demands advanced technologies to efficiently manage and streamline their
processes. This growth and along with the associated competition and quest for
enhancing market share has led the organizations to re-look at its processes and
procedures and put in place proper processes enablers and solutions to make its
business more efficient and effective. Many Indian industries already have realized
the need for ERP solutions, and the industry-related market growth should match the
expansion of the sector as a whole.

ERP in different Industries

Manufacturing

ERP has helped to increase the efficiency and quality of the manufacturing
process. The manufacturing process experienced slumps quiet often because of
improper communication, miscommunication, wrong communication and even lack

2
of communication. ERP provided solutions to those troubles by coordinating the
actions of supply chains, ware house and logistics. It also helped greatly in functions
like tracking down the status of the product. Formerly customers were made to run
from pillar to post to enquire the status of product or for enquiring a technical
problem. The customer service representative would not be in a position to directly
reply to these queries. On the contrary he would ask the person from the concerned
department. The person would check the details and get back to him be it the status of
a product or technical issue. This seemed to be time-consuming and meaningless. The
longer the chains of communication greater are the chances of mistakes.

Software

The manufacturing sector has been rated as the largest beneficiary. This sector
can be rated as the one who uses ERP easily because it is a product from their species.
This does not undermine ERP'S use in Software sector because it becomes easy to
manage projects with acute deadlines. ERP industry paper will also reveal that it is
easy to train and make people work in this sector than anywhere else.

Insurance

Enterprise Resource planning has played a vital role in this business by

covering three vital areas. Firstly it has provided a common platform for insurers and
his agents. This has helped in easing the transactions and keeping an eye on the
performance of the agent. This has addressed the difficulties of both the agents and
insurers and thus facilitated coordination in the better interests of the business.
Secondly it has helped in curbing procedural delays and inefficiencies for which the
sector is famous for. This statement can turn out to be truer if the sector is owned and
controlled by the government either fully or partially. IBM erp Insurance is a famous
player in this sector.

Healthcare

The sharing of databases among hospitals seemed to be a great advantage for

doctors and patients. This even makes one to exaggerate that a person need not

3
maintain a collection of his medical problems provided that his/her choice of
hospital/hospitals has a database of patient records(or commonly shares them by any
other means).Even though it is not practical to follow those practices ERP has been a
lifesaving measure to patients who are admitted in a hospital in an emergency
condition irrespective of the fact that the doctor in charge is aware of his medical
history as ERP provides everything. ERP industry analysis here will reveal that
confidentiality is affected but the life of a person is to be given the utmost priority.

Hospitality

ERP has helped a lot in bringing down the operational costs and coordinating
the acts of individual departments. Hotels are well known for the segregation of
functions. One can find many small departments like house keeping beverage supply
room service etc. Even though these segregations sound small they have a large
impact on the organizational structure. ERP offers a common medium to coordinate
their actions. The entire action can be controlled in the reception desk. ERP industry
paper points the exact benefit as per ERP industry analysis.

Various Modules in ERP

Sales and Distribution Module

See your customer Order Management getting easier day by day with the help
of our sales module. The sales module implements functions of order placement,
order scheduling, shipping and invoicing. It is closely integrated with the
organizations e-commerce web sites. We provide you right solution and efficient flow
of information.

Manufacturing Module

Manufacturing Resource Planning OR MRP II by itself is the original

modality of what we know now as ERP, and covered materials planning.
Manufacturing module in eresource provides a collaborative environment for

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performing manufacturing tasks. It contains the necessary business rules to manage
the entire supply chain process whether within a facility, between facilities, or across
the entire supply chain. It constitutes of number of functionalities, mainly, Bill of
Material, Engineering Change Note, Shop Floor Control, Sales and Distribution Plan,
Master Production Schedule, and many more.

Supplier and Purchase Order Management

Purchase Module in eresource streamlines procurement of required raw

Materials, Packaging materials, sub Assembly and other non inventory materials. The
procurement plan in eresource is derived from the Material Requirement Planning or a
direct PO can also be indented. The purchase module is well integrated with the
Production Planning and Inventory Control Modules and also the supply chain
process.

Inventory & Material Management Module

Inventory module in eresource facilitates the process of maintaining the exact

level of stock in warehouse and helps you manage and report your inventory
information. The functions of Inventory Control Module involves identifying
inventory requirements, setting targets, providing replenishment techniques and
options, monitoring item usages, reconciling the inventory balances and reporting
inventory status.

Total Quality Management

Total Quality Management (TQM) is tightly integrated with Quality Control

Management and Quality Assurance. The TQM configuration and acceptable
tolerance is a configurable feature, enabling the Quality Department to scale the ERP
even with any new product development. eresource ERP Quality Control Module not
only monitors quality by control plans in purchasing and manufacturing but also
provides real-time process capability index for quick review.

5
Plant Maintenance Module

Plant maintenance module in eresource ERP provides with technical and

business reports for different work area within the plant, location, Organizational unit,
Machines and downtime analysis for each different categories or machines.
Preventive Maintenance Schedule and record can be captured. Tracking of
Components, Spare part replacements, maintenance warranty claim tracking are easily
available to view at one single screen

Financial Module

ERP Financial module is tightly integrated with all departments' functionality

and generates valuable financial reports such as Profitability Report, Cost Center
Analysis report, Management Information Report. The financial module in eresource
ERP provides financial functionality and analysis reports for different departments
and cost centers.

Human Resource Management

ERP Human resource Management is a suite of integrated solution, facilitates

HR operations by reducing time-intensive administrative tasks and lowering costs by
deploying self-service applications. Eresource ERP solution offers many different
sub-systems under the HR module. The subsystems are Personnel Management,
Organization Management, Payroll Management, Time Management and Personal
Development.

ERP Major Benefits

● A primary benefit of ERP is easier access to reliable, integrated information,

elimination of redundant data and the rationalization of processes, which results in
substantial cost savings.

6
 ● It enables decision-makers to have an enterprise-wide view of the
information they need in a timely, reliable and consistent fashion. The system
provides consistency, visibility and transparency across the entire enterprise.

● The integration among business functions facilitates communication and

information sharing, leading to dramatic gains in productivity and speed.

ERP Features to Considered

User friendliness

How easy will it be to train your staff to use the EPR software? If the system
is not user friendly, then it is no use to you.

Customer Support

Did you purchase your ERP software from a vendor and if so, what kind of
support are they offering? Most ERP vendors will customized, install and train your
employees on the system. However, is there additional technical support offered along
the way?

Updates

The business and financial world is bound to change and it’s smart to look into
the automatic updates that are offered with your ERP system. If there are changes to
the taxation rules or anything else, will your system automatically update to conform
to these changes?

Safety and Security Features

Finally, another ERP feature that you should be on the lookout for is the
security features. Does the system come with mal-ware and password protection? Can
you adjust the settings to allow certain people access to certain areas? You do not
want your private information getting into the wrong set of hands.

7
 GET MORE TECHNOLOGIES

Get More Technologies provide Information Technology Solutions and

Business Process Outsourcing services. Get More Technologies provides services to
industries such as Insurance, Manufacturing, Retail, Transports and Institutions with a
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professional service.

Our extensive skills encompass all aspects of implementation and

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specifications for client approval, system design, and overseeing development teams
customizing software to fit specific client needs. Typically, we are on-site at the
retailer’s locations handling client contact, providing functional and technical training
and support, and resolving all troubleshooting issues that arise when the client
initiates software usage in a live environment.

We are well versed in all aspects of multiple location management,

from budgeting to productivity for establishing and maintaining business
partnerships. We pride ourselves on our proven track record for effectively
administering multiple implementations. Our dedicated team members always ensure
that all business requirements are met within budget restraints and time
schedules. Through the company’s ongoing research and development activities we
are able to stand competitive in technology market.

In order to meet the individual needs of clients, Get More

Technologies maintain a wide range of qualifications. We excel in Oracle databases,
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functional and technical experience extends to interfacing with third-party conveyers

8
and various unit sorters. At Get More Technologies we are continually expanding
upon our knowledge and services to assist clients with successfully implementing
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Exceptional functional and technical expertise coupled with extensive

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Products & Services.

GetMore Technologies offers programming, design Services to a wide

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• Inventory Management
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9
 CURRENT TRENDS IN INFORMATION TECHNOLOGY - 2010

According to a research report, The Indian ERP market experienced

compounded annual growth rate of 25.2 per cent during the period 2004-2009. The
market was $83 million in 2004, and is projected to be around $160-180 million in
2010. Some of the potential target segments which have shown high penetration are
Automotive, Steel, Consumer Durables, Engineering, Retail, Communications and
Textiles thereby making it attractive for the ERP vendors

Market Trends in the Indian ERP Market

● SMBs as a potential market for ERP Vendors: Most of the mid sized
organizations are working with applications which are non-integrated and on disparate
technology architectures, built in-house. This has resulted redundant technology, loss
of support, non availability of critical information at the right time resulting in overall
business loss. ERP vendors in India will have a great opportunity when they explore
into the untapped areas of the SME segment with innovative practices tuned to mid
size organisations processes and business needs.

● Adoption of ERP as a Service (SaaS)-SaaS (Software-as-a-Service)-based

Enterprise Resource Planning (ERP) is an on-demand deployment of ERP software,
where the user can access the software through license as a Web-based service. It
provides an alternative to implementation or maintaining ERP software. SaaS - based
ERP includes finance, order management, inventory control, purchasing and
manufacturing functionality. The increasing popularity of the SaaS-based applications
account for the growth of ERP, as the enterprise resources are maintained by a service
provider.

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 There needs to be no doubt in the promising opportunities and prospects of
ERP in the future in both software and non software sectors. Whether your growth
plans include buying and selling in the global marketplace, adding more talent to your
team, or expanding your services, ERP has the tools and the flexibility to successfully
accelerate your business expansion and streamline existing business and operational
processes thereby improving efficiency and productivity.

Importance and Benefits of ERP System in SME Segment

ERP (Enterprise Resource Planning) is a system which integrates various

business data in a single database and provides cross function reporting on click of a
single button. Earlier ERP was made for large organizations but, now it is made for
medium and even for small organizations. In this global competitive market,
organizations need to upgrade with latest technologies. Most of the large
organizations are using enterprise resource planning system. To deal with those large
organization SMEs (Small and Medium Enterprises) need to work on a similar type of
technologies. In this case, importance of ERP system for SMEs increases.

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 OBJECTIVE OF THE STUDY

Primary Objective:
To study the consumer awareness of Enterprise Resource Planning
software in Virudhunagar District.

Secondary Objective:

 To find the Consumer preference about the type of ERP preferred.

 To find the problems faced in implementing ERP.

 To find if the Corporate agree that ERP will be useful for their business.

 The education level of the users of the computers is to be found.

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 SCOPE OF THE STUDY

India is a well known player in the ERP market. India occupies a promising
position in the whole of IT market .The governments, educational institutions and
companies are constantly working towards promoting and expanding the IT market.
In this context ERP holds lot of promises both in terms of supply and demand. There
are some issues to worry about and some others which deserve appreciation.

ERP software programs were initially used only for back office functions.
They were not given the due importance and treated just like another supporting
function. Reasons like lack of awareness formed one part while other reasons were
costs and technical difficulties. These aspects with respect to Virudhunagar district
can be uncovered with the help of this project.

ERP uses sophisticated analytical business tools, forecasting tools for the
purpose of reporting. The user of these tools must have the ability to understand them
to use and the education level of the user plays an important role. The type of the
training program to be given can be formulated.

The current study helps to perform a GAP analysis and preparing a SRS –
System Requirements Specification , the features that can be provided can be and the
expectations of the corporates from the software industry can be found. A detailed
study has to be performed and sufficient time has to be spend on SRS for successful
implementation of ERP. This gives a detailed study for formulating the SRS.

The business transformation is a painful and is the same with transforming the
business by implementing ERP. A good understanding between the ERP vendor and
client is needed so as to make the transformation a successful one. This study brings
them more understanding.

13
 NEED FOR THE STUDY

Importance of computer literacy in business

Computer Literacy is the knowledge and ability to use computers and

technology efficiently. Computer Literacy can also refer to the comfort level someone
has with using computer programs and other applications that are associated with
computers. ERP being sophisticated application software the computer literacy plays
a vital role in the study. Since SME’s has become the target for the ERP vendors, the
computer literacy among the employees have to be enriched so that they can adapt to
ERP.

Computer Influence on business

Everyone is aware that Information Technology (IT) has played a very

significant role in taking businesses to new heights. Before the advent of computers
and relevant technology, businesses were totally done using manual resources. As a
result, the time taken to complete a task was more, quality of work was not up to the
mark, and the procedures also tended to be more complicated. However, as computers
started to be used in businesses establishments, the processing of work got more
stabilized. The ERP provides advanced tool that aids in making business decisions.

Impact of ERP

In business the ERP has made the reporting of cross functional activity has
been made easier. This makes the business process systematic and improves the
business efficiency. The corporate awareness about these features of ERP must be
communicated so as to influence them to purchase a ERP software.

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Total Integration

The companies consider the ERP and Accounting as a different system. But
ERP modules must be a complete integrated system for the purpose of efficient
reporting. The separate usage of a ERP and Accounting may cause data integrity
problems, double entry of data which causes unnecessary delay in business activity.

Internal Resistance

The resistance to change the old process has to be studied. Being human
nature a proper confidence building is to be done during training session. The
education level of the employees using the computers also is one of the influencing
factors in the resistance to change.

15
 LIMITATIONS OF THE STUDY

 Many of the respondents are busy with their work and it was found very
difficult to collect data.

 Some industries were reluctant to give the data because of their company’s
policy.

 The requirement of the people, changes from time to time, hence the result of
the project may not be applicable for long run.

 The computer literacy among the users of computers was low as they were
unaware about the sophisticated application software’s.

16
 REVIEW OF LITERATURE

ERP involves all of the functional departments in an organization and for a

successful implementation of the ERP requires the co-operation for synchronizing the
inter department activities by the use of ERP. The requirement collection plays a vital
role and the customer must make sure that they give a clear cut idea of their
requirement to the ERP vendor.

SME’s becoming the choice for ERP vendors, the major software vendors has
developed customizable and ready to implement modules to these market segment
and are reaching these segments through business magazines and business expo.

The implementation of the ERP is a time consuming process and the time to
develop an ERP for a SME varies from two to four months. A service support for up
to one year has to be given by the vendor post implementation of the ERP system.

The major reasons for switching of software were found to be system

flexibility, lack of customer support and lack of pricing flexibility during updation of
the software.

17
 STATEMENT OF THE PROBLEM

 ERP’s were only targeted for the Multi National Companies in the earlier
stages but in the recent times, the ERP’s are also developed for SME’s and
hence the awarness of the ERP in the SME sectors is low.

 The education level of the employees using computer is low and they perform
a repetitive task with the computer. ERP uses sophisticated reporting tools and
the adaptation to these technologies is unknown.

 The ERP make the business process systematical. But certain industries do not
maintain systematic records.

 The SME’s have an opinion that ERP as costly investment in their business.

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 RESEARCH METHODOLOGY
TYPE OF RESEARCH:
The research is of descriptive in nature.

(a) Nature of data Used:

The nature of the data used for research is Primary Data.

(b) Period for Data Collection:

The Data were collected during the period of 12/01/2011 to 27/01/2011.

(c)Tools for Data Collection:

The researcher has used interview schedule as tool for data collection.

SAMPLING PROCEDURES:
(d) Sampling Method:
Convenience sampling method is used to collect the data. 100
Questionnaire were distributed and were followed up to collect the
data.
(e) Sampling Unit:
The sampling area covered in Virudhunagar and Sivakasi.
(f) Sample Size:
The sample size is 64.
(g) Tools for analysis:
Chi-square statistical tool has been used.
Simple percentage analysis.
(h) Table for presentation:
Bi-variate table.

19
Table 1:

Type of Operation going in the Company

SI NO Operation Frequency Percentage

1 Manufacturing 38 59.37
2 Service 12 18.75
3 Intermediate 14 21.87
Total 64 100

The above table shows that 59.37% of the respondents were engaged in
manufacturing, 18.75% of the respondents were engaged in providing service and
21.87% of the respondents were acting as intermediate.

Inference

The majority of the corporates 59.37% were engaged in manufacturing operations.

Chart 1:

20
 Type of Operation going in the Company

70
62.5
60

50
Freq
uen
cy

40
40

30

21.87
20
15.62
14
10
10

Manufacturing Service Intermediate

Operation

No of Respondents

Percentage of Response

21
Table 2:

Number of Computers used in the Company

SI NO No of computers used Frequency Percentage

1 Less than 10 38 59.37
2 10 to 25 12 18.75
3 26 to 50 8 12.5
4 51 to 100 2 3.12
5 Greater than 100 4 6.25
Total 64 100

The above table indicates that 59.37% companies have less than 10
computers, 18.75 percentage of the respondent were have 10 to 25 computers, 12.5%
of the companies have 26 to 50 computers and 6.25% of companies have greater than
100 computers.

Inference

The most of the corporates 59.37% have less than 10 computers. Configuring
them in a client-server model is costlier and not advisable

22
Chart 2:

Number of Computers used in the Company

70

60

50

No of Respondents
40 Percentage of Response

30

20 No of Respondents 23

Percentage of Response
Table 3:

Availability of System Administrator in the Company

SI NO System Administrator Frequency Percentage

1 Available 22 34.38
2 Unavailable 42 65.62
Total 64 100

The above table shows that 34.38% of the companies have a separate System
Administrator in their company and in 65.62% of the companies system
administrators were unavailable.

Inference

A separate system administrator was unavailable in majority 65.62% of the

corporates.

24
Chart 3:

Availability of System Administrator in the Company

70

60

50

No of Respondents

40 Percentage of Response

34.38

30

22
20 25
Table 4:

Availability of Own Server in the Company

SI NO Server Frequency Percentage

1 Available 20 31.25
2 Unavailable 44 68.75
Total 64 100

The above table indicates that 68.75% of the companies have own server and
31.25% of the companies doesn’t have an own server.

Inference

The majority 68.75% of the companies don’t have its own server.

26
Chart 4:

Availability of Own Server in the Company

80

70

60

50
No of response

`
No of Respondents

Percentage of Response

40
31
30

20
20
27
Table 5:

Availability of original Anti-Virus

SI NO Original Anti-Virus Frequency Percentage

1 Available 56 88
2 Unavailable 8 12
Total 32 100.00

From the above table it can be found that 88% of the companies had original
antivirus and 12% of the companies don’t have original anti virus.

Inference

The majority 88% of the corporates have an original anti virus software.

28
Chart 5:

Availability of original Anti-Virus

100

90

80

70
No of response

60 No of Respondents
56
Percentage of Response

50

40

30

20 29
Table 6:

Qualification of the Employees using the computer in the Company

SI NO Qualification Frequency Percentage

1 HSC 8 10.25
2 Diploma 28 35.89
3 Under Graduate 30 38.46
4 Post Graduate 12 15.38
78 100.00

It can be observed that employees who have completed HSC were using
computers in 10.25% of the companies, 35.89% of the employees operating
computers have completed diploma, 38.46% of the employees using computer have
completed their under graduation and 15.38% of the employees operating computers
have completed their post graduation.

Inference

The majority 38.46% of the employees operating computers have completed

Under Graduation.

30
Chart 6:

Qualification of the Employees using the computer in the Company

45

40

35

30
No of Employees

No of Respondents
25 Percentage of Response

20

15
10.25
10 8 31
Table 7:

List of functions carried out with the help of Software

SI NO Function Frequency
1 Human Resource 18
2 Cost Accounting 56
3 Customer Relationship 12
4 Marketing 22
5 Inventory 20
6 Logistics 12
140

From the above table we come to know that 9 companies were using software
for their Human Resource department, 28 companies were using software for their
Cost Accounting, 6 companies were using software for their Customer Relationship
management, 11 companies were using software for Marketing department and 10
companies were using software for Inventory control and 6 companies were using
computer software for Logistics.

Inference

The majority of the companies 56 were using software for Cost Accounting.

32
Chart 7:

List of functions carried out with the help of Software

12

20

22
33
Table 8:

Availability of Internet Facility in the Company

Internet

SI NO Facility Frequency Percentage

1 Available 58 90.62
2 Unavailable 6 9.38
Total 64 100.00

It is understood from the above table that 90.62% of the companies have
internet facility during office hours and 9.38% of the companies are not connected
with internet.

Inference

The majority of the companies 90.62% have internet facility.

34
Chart 8:

Availability of Internet Facility in the Company

100
90
90

80

70
No of respondents

60 58
No of Respondents

Percentage of Response

50

40

30

35
20
Table 9:

Consumer awareness of ERP

SI NO Awareness Frequency Percentage

1 Aware 30 46.87
2 Unaware 34 53.12
Total 64 100.00

The above table shows that 46.87% of the respondents were aware of ERP
software and 53.12% of the respondents were unaware of the ERP software.

Inference

The advantages of ERP software in business is unknown to the 53.12% of the

corporates.

36
Chart 9:

Consumer awareness of ERP

60

50 46

40
No of Response

No of Respondents

Percentage of Response
30
30

20

37
Table 10:

How the companies came to know about ERP

SI NO Source Frequency Percentage

1 Internet 10 20.00
2 ERP Seminar 6 12.00
3 Auditors 14 28.00
4 Consultant 20 40.00
Total 50 100.00

The Internet acts as 20% of the source of information about ERP, ERP
seminars acts as 12% source of information about ERP, Auditors acts 28% as source
of information about ERP to the companies and Consultants hold 40% as the source to
spread about ERP awareness.

Inference

Consultants act as the major 40% source to spread the awareness about ERP.

38
Chart 10:

How the companies came to know about ERP

20

39
Table 11:

Number of companies that approached for Marketing ERP

SI NO Number of Companies Frequency Percentage

1 None 26 40.62
2 1 to 5 22 34.37
3 5 to 10 4 6.25
4 Greater than 10 12 18.75
Total 64 100.00

40.62% of the companies state that no company has approached it for

marketing ERP, 34.37% of the companies state that 1 to 5 companies have
approached them for marketing ERP, 6.25 companies state that 5 to 10 companies
have approached them for marketing ERP and 18.75% of the companies claim that
more than 10 companies have approached them for marketing ERP.

Inference

The majority of the companies 40.62% have not been approached for
marketing ERP software.

40
Chart 11:

Number of companies that approached for Marketing ERP

45
40.62
40

35

30
No of Respondents

26
No of Respondents
25 Percentage of Response

20

15

10 41
Table 12:

Constraints in Implementing ERP

SI NO Number of Companies Frequency Percentage

1 Lack of Technical Human Resource 36 23.40
2 Integrity Problem 10 10.63
3 Lack of Technical Service provider 16 17.02
4 Lack of awareness about ERP 32 31.91
5 Financial Constraint 16 17.02
Total 110 100.00

The lack of technical human resource as 23.40% reason for not implementing
ERP, Integrity problem to be 10.63% reason for not implementing ERP, lack of
technical service provider to be 17.02% reason for not implementing ERP, lack of
awareness to be 131.91% reason for not implementing ERP and financial constraint is
17.02% of the reasons for not implementing ERP

Inference

31.91 of the respondents feel that lack of awareness about ERP was the reason
for not implementing ERP.

42
Chart 12:

Constraints in Implementing ERP

16

g
36
43
Table 13:

The extend to which the companies business process is aided with software

SI NO Automated upto Frequency Percentage

1 10 to 25% 28 43.75
2 26 to 40% 14 21.87
3 41 to 60% 10 15.62
4 61-75% 4 6.25
5 Greater than 75% 8 12.50
Total 64 100.00

The above table shows that the business process of 43.75% of the companies
business process is automated between 10 to 25%, 21.87% of the companies business
process is automated between 26 to 40%, 15.62% of the companies business process
is automated between 41 to 60%, 6.25% of the companies business process is
automated between 61 to 75% and 12.5% of the companies business process is above
75%.

Inference

The majority of the companies 43.75% business process is automated only

between 10 to 25%.

44
Chart 13:

The extend to which the companies business process is aided with software

50

45

40

35
No of Companies

30 No of Respondents

Percentage of Response

25

20

15
45

10
Table 14:

Type of ERP package preferred

SI NO Type of ERP Frequency Percentage

1 Customized 52 81.00
2 Generalized 12 19.00
Total 64 100.00

The table shows that 81% of the respondents prefer customized ERP and 19%
of the respondents prefer a generalized ERP.

Inference

A remarkable number of corporate 81% preferred a customized ERP package.

46
Chart 14:

Type of ERP package preferred

90
8
80

70

60
No of Companies

No of Respondents
52
50 Percentage of Response

40

30

20 47
Table 15:

The respondent agreement that ERP improves Business Efficiency

SI NO Agreement Frequency Percentage

1 Strongly Agree 16 25.00
2 Agree 48 75.00
3 Disagree 0 0.00
4 Strongly Disagree 0 0.00
Total 64 100.00

It can be observed from the above table that 25% of the companies strongly
agree that ERP can improve their business efficiency and 75% of the respondents
agree that ERP can improve their business efficiency.

Inference

The majority of the respondents 75% agree that ERP can improve their
business efficiency.

48
Chart 15:

The respondent agreement that ERP improves Business Efficiency

90
8
80

70

60
No of Companies

No of Respondents 52
50 Percentage of Response

40

30

20 49
Table 16:

Production planning of the Organization

SI NO Production Planning Frequency Percentage

1 Daily Basis 22 34.37
2 Weekly Basis 12 18.75
3 Monthly Basis 12 18.75
4 Demand Basis 18 28.12
Total 64 100.00

The above table shows that 34.37% of the companies plans its production on a
daily basis, 18.75% of the companies plans its production on a weekly basis, 18.75%
of the companies plans its production on a monthly basis and 28.12% of the
companies plans its production on demand basis.

Inference

The production planning was done on daily basis in majority 34.37% of the
corporates.

50
Chart 16:

Production planning of the Organization

40

34.37
35

30

25
No of Response

No of Respondents

22
Percentage of Response

20

15

10 51
Table 17:

The respondent agreement that Working Capital can be managed effectively with
ERP

SI NO Agreement Frequency Percentage

1 Strongly Agree 18 28.12
2 Agree 40 62.50
3 Disagree 6 9.37
4 Strongly Disagree 0 0.00
Total 64 100.00

It is known from the above table that 28.12% of the companies strongly agree
that working capital can be managed effectively with ERP, 62.5% of the companies
agree that working capital can be managed effectively with ERP and 9.37% of the
companies disagree that working can be managed effectively with ERP

Inference

The majority of the companies 62.5% agree that working capital can be
managed effectively with ERP.

52
Chart 17:

The respondent agreement that Working Capital can be managed effectively with
ERP

70

60

50

No of Respondents
No of Response

Percentage of Response
40

30 28.12

20 18 53
Table 18:

Respondent agreement that Inventory can be managed effectively with ERP

SI NO Inventory Management Frequency Percentage

1 Strongly Agree 20 31.25
2 Agree 40 62.50
3 Disagree 4 6.25
4 Strongly Disagree 0 0.00
Total 64 100.00

The table shows that 31.25% of the companies strongly agree that an efficient
inventory management system can be achieved with ERP, 62.5% of the companies
agree that an efficient inventory management can achieved with ERP and 6.25% of
the companies disagree with the same.

Inference

The majority 62.5% of the companies agree that an proper inventory

management can be achieved by implementing ERP.

54
Chart 18:

Respondent agreement that Inventory can be managed effectively with ERP

70

60

50
No of Response

No of Respondents

40 Percentage of Response

31.25
30

20
20
55
Table 19:

Customer Satisfaction can be attained with ERP

SI NO Customer Satisfaction Frequency Percentage

1 Strongly Agree 16 25.00
2 Agree 42 65.62
3 Disagree 6 9.37
4 Strongly Disagree 0 0.00
Total 64 100.00

The above table shows that 25% of the companies strongly agree that
customer satisfaction can be achieved by implementing ERP, 65.62% of the
companies agree with same and 9.37% of the companies disagree with this fact.

Inference

The majority of the companies 65.62% agree that customer relationship can be
improved by implementing ERP.

56
Chart 19:

Customer Satisfaction can be attained with ERP

70

60

50
No of Response

No of Respondents
40 Percentage of Response

30
25

20
16
57
Table 20:

Communication Gap can be bridged with ERP

SI NO Agreement Frequency Percentage

1 Strongly Agree 6 9.00
2 Agree 48 75.00
3 Disagree 10 16.00
4 Strongly Disagree 0 0.00
Total 64 100.00

From the above table it can be understood that 9% of the companies strongly
agree that communication gap can be bridged by implementing ERP, 75% of the
companies agree with the same and 16% of the companies disagree with this fact.

Inference

The majority 75% of the companies agree that communication gap in the
company can be bridged by implementing ERP.

58
Chart 20:

Communication Gap can be bridged with ERP

80

70

60

50
No of Response

No of Respondents

Percentage of Response

40

30

59

20
 HYPOTHESIS TESTING - I

Relationship between awarness of ERP and qualification of Employee using

computers in the organization.

CHI-SQUARE TEST
Table 21:
BI-Vary table shows the comparison between awareness of ERP and qualification of
employees using computers in the organization.

Awareness/Qualification Aware Unaware

Diploma 12 16 28
HSC 3 5 8
Under Graduation 13 17 30
Post Graduation 8 4 12
36 42 78

Null Hypothesis (H0)

There is no significant relationship between the awareness of ERP and
qualification of the employees using the computers in the organization.

Alternate Hypothesis (H1)

There is significant relationship between the awareness of ERP and
qualification of the employees using the computers in the organization.

FORMULA = ∑(O-E)2
----------
E

60
 Observe
Expected
d (O-E)2
Value
Value O-E (O-E)2 -------
E
O E
12 12.92 -0.92 0.85 0.066
16 15.08 0.92 0.85 0.056
3 3.69 -0.69 0.48 0.129
5 4.31 0.69 0.48 0.110
13 13.85 -0.85 0.72 0.052
17 16.15 0.85 0.72 0.045
8 5.54 2.46 6.05 1.092
4 6.46 -2.46 6.05 0.937
2.49

Degree of freedom= (r-1) * (c-1)

= (4-1) * (2-1)

=3*1

=3

At 5% level of significant the table value of chi-square at degree 3 of freedom is 7.82

Chi square (critical value) = 7.82

Chi square (calculated value) = 2.49

Since the calculated value of Chi-square is less then the table value, the null

hypothesis is accepted.

Result:

61
There is no significant relationship between the awareness of ERP and qualification of
the employees using the computers in the organization.

62
 HYPOTHESIS TESTING - II

Relationship between qualification of Employee using computers in the

organization and lack of human resource as a constraint in implementing ERP.

CHI-SQUARE TEST
Table 22:
BI-Vary table shows the comparison between awareness of ERP and qualification of
employees using computers in the organization.

Lack of
Awareness/Qualification Human Other Reasons
Resource
Diploma 15 13 28
HSC 5 3 8
Under Graduation 11 19 30
Post Graduation 5 7 12
36 42 78

Null Hypothesis (H0)

There is no significant relationship between qualification of employee using
computers in the organization and lack of human resource as a constraint in
implementing ERP.

Alternate Hypothesis (H1)

There is significant relationship between qualification of
employee using computers in the organization and lack of human resource as a
constraint in implementing ERP.

FORMULA = ∑(O-E)2
----------

63
 E

Observed Expected
(O-E)2
Value Value
O-E (O-E)
2
-------
O E
E
15 12.92 2.08 4.33 0.335
13 15.08 -2.08 4.33 0.287
5 3.69 1.31 1.72 0.465
3 4.31 -1.31 1.72 0.398
11 13.84 -2.84 8.07 0.583
19 16.15 2.85 8.12 0.503
5 5.53 -0.53 0.28 0.051
7 6.47 0.53 0.28 0.043
2.66

Degree of freedom= (r-1) * (c-1)

= (4-1) * (2-1)

=3*1

=3

At 5% level of significant the table value of chi-square at degree 3 of freedom is 7.82

Chi square (critical value) = 7.82

Chi square (calculated value) = 2.66

Since the calculated value of Chi-square is less then the table value, the null
hypothesis is accepted.

64
Result:

There is no significant relationship between qualification of employee using

computers in the organization and lack of human resource as a constraint in
implementing ERP.

65
 FINDINGS

1. The majority of the corporate 59.37% were engaged in manufacturing

operations.

2. The most of the corporate 59.37% have less than 10 computers. Configuring
them in a client-server model is costlier and not advisable.

3. A separate system administrator was unavailable in majority 65.62% of the

corporate.

4. 68.75% of the corporate don’t have its own server.

5. The majority 88% of the corporate have an original anti virus software.

6. 38.46% of the employees operating computers have completed Under

Graduation.

7. The majority of the corporate 56 were using software for Cost Accounting.

8. The majority of the corporate 90.62% have internet facility.

9. The advantages of ERP software in business is unknown to the 53.12% of the

corporate.

10. Consultants act as the major 40% source to spread the awareness about ERP.

11. The majority of the corporate 40.62% have not been approached for marketing
ERP software.

12. 31.91 of the respondents feel that lack of awareness about ERP was the reason
for not implementing ERP.

66
13. The majority of the corporate 43.75% business process is automated only
between 10 to 25% with the help of software.

14. A remarkable number of corporate 81% preferred a customized ERP package.

15. The majority of the respondents 75% agree that ERP can improve their
business efficiency.

16. The production planning was done on daily basis in majority 34.37% of the
corporate.

17. The majority of the corporate 62.5% agree that working capital can be
managed effectively with ERP.

18. 62.5% of the corporate agree that a proper inventory management can be
achieved by implementing ERP.

19. Most of the corporate 65.62% agree that customer relationship can be
improved by implementing ERP.

20. The majority 75% of the corporate agree that communication gap in the
company can be bridged by implementing ERP.

21. There is no significant relationship between the awareness of ERP and

qualification of the employees using the computers in the organization

22. There is no significant relationship between qualification of employee using

computers in the organization and lack of human resource as a constraint in
implementing ERP.

67
 SUGESSTIONS

1. Since many of them are unaware of ERP software some special lectures about
ERP can be given to spread the awareness about ERP.

2. Since many of them don’t have a separate server to implement ERP they can
adopt to SaaS technology of ERP software.

3. Initially the companies can implement Customer Relationship Modules.

Reasons for suggesting CRM software

• Stronger revenue and profitability

• Improved customer satisfaction
• Streamlined processes and lower costs
• Better insights and decision-making
• Availability of information to fulfill the government norms and
condition.

68
 CONCLUSION

S.M.E.'s are becoming the popular choice of ERP vendors. There is an

increasing awareness of ERP in S.M.E. market. This is because of the advertisement
that reaches these sectors through magazines, through industrial exhibitions and direct
marketing.

ERP vendor has to address all these issues in order to ensure that there is ERP
implementation success. If everything goes as per the plan then there are no chances
of an ERP implementation failure. If these issues are not addressed there will be
problem caused in the integrity of data i.e. data migration etc.

The importance of good User Interface Design can be the difference between
product acceptance and rejection in the marketplace. If end-users feel it is not easy to
learn, not easy to use, or too cumbersome, an otherwise excellent product could fail.
Good User Interface Design can make a product easy to understand and use, which
results in greater user acceptance.

To make a ERP effective a complete integrated system has to be implemented

instead of implementing different modules from various vendors which might be
developed in various technologies causing data migration problems.

69
 BIBLIOGRAPHY

1. C.R.Kothari. Research Methodology: Methods &Techniques New Age

International(P) Limited, Publisher, 1985.

2. S.P.Gupta Business Statistics Sultan Chand & Sons Publication,2005.

3. http://www.erppandit.com/erp-in-India.html

4. http://www.erpwire.com/erp-articles/erp-for-small-business.htm

Source: Internet
A recent study done by Frost & Sullivan highlights the increasing awareness
levels and market potential. The SaaS market in India is expected to record a
compound annual growth rate (CAGR) of 53% for the period 2008-2015. The
country, characterized by a high presence of SMEs, growing need for mobility,
strengthening internet infrastructure with heavy investments expected in 3G and
WiMax, promises a huge potential in this space. There is an active participation by
many global software vendors, to provide SaaS based offerings in the region.

Source : www.erpwire.com

Discussing ERP's intervention in small and Medium Enterprises

On the discussion of the above topic it was concluded as “S.M.E.'s are

becoming the popular choice of ERP vendors. There is an increasing awareness of
ERP in S.M.E. market. It has practically helped to unravel the myth that ERP is
exclusively meant to business empires. ERP and S.M.E have become important part
of enterprise studies.”

Source : http://erpcloudnews.com/2010/09/switching-saas-erp-software-
providers
The top reason cited for switching was “lack of pricing flexiblity,” but the lack
of stellar customer support, and lack of system flexibility were also cited.

70
 A STUDY ON CORPORATE AWARENESS OF ENTERPRISE

RESOURCE PLANNING (ERP) IN VIRUDHUNAGAR DISTRICT

1. Name of the Company _____________________________

2. Core Business ____________________________________

3. In which year was the Company established ____________

4. Name of the Respondent ____________________________

5. Designation of the Respondent _______________________

6. May I know the types of operation going on in our company?

[ ] Manufacturing [ ] Service [ ] Intermediate

7. Please mention the list of functions carried out in our organization?

[ ] Human Resource Planning [ ] Cost Accounting

[ ] Customer Relationship Management [ ] Marketing

[ ] Inventory Control [ ] Logistic & Supply Chain Management

8. Can I know the number of computers used in the Company?

[ ] less than 10 [ ] 10-25 [ ] 26-50 [ ] 51-100 [ ] Greater than 100

9. Do you have a separate System Administrator in the Company?

[ ] Yes [ ] No

10. Is it our company have an own ‘Server’?

[ ] Yes [ ] No

11. Which operating System currently installed in the client?

[ ] Linux [ ] Windows XP [ ] Windows Vista [ ] Windows 7 [ ] Others_____

12. Do you use original Anti-virus software in the company?

[ ] Yes ______________ (Specify) [ ] No

71
13. Mention the qualification of the employees using the computer in the

organization?

[ ] Diploma [ ] HSC [ ] Under Graduate [ ] Post Graduate

14. What are the Operations in the Company that are done with the help of

Software?

[ ] Manufacturing [ ] Service [ ] Intermediate

15. Please mention the list of functions carried out with the help of software?

[ ] Human Resource Planning [ ] Cost Accounting

[ ] Customer Relationship Management [ ] Marketing

[ ] Inventory Control [ ] Logistic & Supply Chain Management

16. Is Internet facility available in the during the office hour?

[ ] Yes [ ] No

17. Are you aware of ‘Enterprise Resource Planning’ software?

[ ] Yes [ ] No

18. If Yes, How did you come to Know about ERP

[ ] Internet [ ] ERP Seminar [ ] Conferences [ ] Auditors [ ] Consultant

19. How many companies have approached you for marketing an ERP?

[ ] None [ ] 1-5 [ ] 6-10 [ ] Greater than 10

20. If you haven’t implemented ERP what are the reasons?

[ ] Lack of technical Human Resource [ ] Due to Integrity Problem

[ ] Unavailability of technical Service Provider

[ ] Lack of Awareness about ERP [ ] Financial constraints

21. To what extent is your company’s business process is aided with software?

[ ] 10-25% [ ] 26-40% [ ] 41-60% [ ] 61-75% [ ] Greater than 75%

72
22. Do you prefer a ‘Customized ERP’ package?

[ ] Yes [ ] No

23. Can ERP improve your business efficiency?

[ ] Strongly Agree [ ] Agree [ ] Disagree [ ] Strongly Disagree

24. On what basis is the company’s production schedules are planned?

[ ] Daily Basis [ ] Weekly Basis [ ] Monthly Basis [ ] Demand Basis

25. Do you agree ‘Working Capital’ can be managed effectively by implementing

ERP?

[ ] Strongly Agree [ ] Agree [ ] Disagree [ ] Strongly Disagree

26. Is it agreed that proper ‘Inventory Management’ can be achieved by

implementing ERP?

[ ] Strongly Agree [ ] Agree [ ] Disagree [ ] Strongly Disagree

27. ‘Customer Satisfaction’ - Can be achieved by implementing ERP?

[ ] Strongly Agree [ ] Agree [ ] Disagree [ ] Strongly Disagree

28. ‘Communication Gap’ in the company can be bridged by implementing

ERP?

[ ] Strongly Agree [ ] Agree [ ] Disagree [ ] Strongly Disagree

OFFICE SEAL Signature

Thank you very much for your cordial co-operation.

Have a nice day.

73