ENTERPRISE

RESOURCE
PLANNING
GROUP 3
 Table Of
Contents

Introduction Without ERP Software

What's ERP Types of ERP

How ERP Works Advantages of ERP

With ERP Software Disadvantages of ERP

 INTRODUCTION

WITHOUT ERP
HOW DOES ERP
SOFTWARE
WORK?

WHAT'S ERP?
WITH ERP
SOFTWARE
WHAT'S ENTERPRISE
RESOURCE
PLANNING
refers to a type of software that organizations use
to manage day-to-day business activities such as
accounting, procurement, project management, risk
management and compliance, and supply chain
operations. A complete ERP suite also includes
enterprise performance management, software that
helps plan, budget, predict, and report on an
organization’s financial results
ERP Systems and software support multiple
functions across the enterprise, mid-sized, or small
businesses, including customizations for your
industry.
 HOW DOES
ERP WORKS?

ERP System is made up of integrated modules or

business applications that communicate with
each other and share a common database. Every
ERP module typically focuses on one business
area but they work together using the same data
to meet the company’s needs. There are many
components such as Finance, HR,
Accounting,Procurement, Sales, Logistics and
Supply Chain companies can choose the module
they want and can add on the scale as required.
Once all departments are linked to the system all
data is collected on the server and becomes
instantly available to those with permission to
use it. It can generate reports with metrics,
Graph or other visual aids that a client needs to
determine how the business and departments
are performing.
WITH ERP SOFTWARE

Each department still has its system, but all of

the systems can be accessed through one
application with one interface
WITHOUT ERP SOFTWARE

Each department would have

its system optimized for its
specific tasks.
 Types of erp
The on-premises enterprise resource planning system refers to software that is installed on an organization's own
On-Premise ERP servers and computer equipment. It is a licensed system that can be customized and upgraded, typically maintained by
the organization's IT team onsite to streamline the business workflow.

Cloud-based ERP systems have gained popularity, particularly among small and medium-sized businesses. These
solutions, often referred to as SaaS (software as a service), are managed remotely by third-party vendors. This eliminates
the need for an extensive on-site IT team and utilizes an ongoing billing model. Moreover, dedicated servers for business
Cloud-Based management solutions are no longer necessary. It runs a remote server and is managed by a third party, it will provide
great flexibility to access information and report anywhere with just an internet connection.
Single tenant and multi-tenant

Hybrid ERP systems combine on-premises and cloud ERP infrastructure for organizations with specific needs or strict
Hybrid regulatory requirements. They offer on-premises hardware for data storage and cloud scalability, utilizing public and
private cloud services.

It is like other inexpensive or sometimes free open source solutions that are for some small scale businesses. Allowed
Open Source businesses to download their software for free. They will be charged a minimal annual fee for cloud access.
 Advantages of erp
Improves Accuracy & Integrating and automating business process eliminate success effort and improves accuracy and productivity,
department with interconnected processes can synchronize work to achieve faster and better outcomes.
Productivity

Some businesses benefit from enhanced real- time data reporting form a single source system , correct and
Improves Reporting complete help companies adequately plan budget forecast and communicate the state of operations to
stakeholders.

ERP allows businesses to quickly access needed information for clients, Vendors and Business partners. With
improved planning the ERP system delivers a huge increase in the efficiency of day-to-day and routine transactions
Improved Efficiency such as order completion, on-time shipment, Seller performance, Quality management, invoice reconciliation and
sales Completion.

The more divisions your enterprise has, the more critical it is to manage internal communication techniques to avoid
Cross-Department errors and if your enterprise branches all over the world you must need a strategy for everyone to stay in touch
across time zones and language barriers. With ERP communications tools, you can manage scan documents, file,
Collaboration email, texts and phone calls recording.

Your company deals with a lot sensitive data, an ERP system provides security by keeping all your important and
Data Security secret documents and communications in one place
 DisAdvantages of erp
Sometimes, ERP projects are not successful because business processes and data requirements are found to be
Complexity and Risk complex during the requirements gathering method and employees are forced to take part and change management.
Because of a long deployment method, the ERP system might not keep speed of with modification that the business
of failure needs to make in a dynamic environment of intense competition

Setting up an on-premise ERP system requires a huge investment in Hardware, Software, and its teams. Traditional
Costly and on- premise and hybrid ERP requires on- site service and networking infrastructure of the data structure of the
company, not only that server must be powerful enough to handle huge amounts of data. Companies also need
infrastructure needed strong and and effective security system to protect every data

Long Deployment The process of deployment of any ERP system requires a long period of time as it involves many functions,
departments and changes. Employees also take time to get comfortable with this system.
Period