ENTERPRISE RESOURCE PLANNING

(ERP)

Submitted to: Dr.Sneh Prabha Daniel Submitted by: Syed Ali Abbas Rizvi
Mam Id: 20mba027
Subject: Management information Sahil id- 20mba012
system Mohd tarique id -20mba008
Md asgar khan id - 20mba028
TODAY WE WILL BE COVERING:
 What is ERP.?
 History/Evolution of ERP.
 Module/components of ERP.
 ERP Implementation and Selection.
 Advantage & Disadvantages of ERP.
 Why ERP Fails?.Future of ERP.
 Conclusion.
WHAT IS ERP?
 ERP is a set of integrated business applications, or modules which carry
out common business functions such as general ledger, accounting, or
order management.
 IT software that integrates business activities across an enterprise
 ERP is short for enterprise resource planning.
 An ERP system is an attempt to integrate all functions across a
company to a single computer system that can serve all those functions'
specific needs.
 Support business through optimizing, maintaining, and tracking
business functions.
 From product planning, parts purchasing, inventory control, and
product distribution, to order tracking.
EVOLUTION /HISTORY OF ERP
 In 960's- Systems Just for Inventory Control
 1970's -MRP-Material Requirement Planning(Inventory
with material planning &procurement).
 MMAS-Material Management and Accounting System.
 1980's MRP II - Manufacturing Resources
Planning(Extended MRP to shop floor & distribution
Management.)
 Mid 1990's - ERP-Enterprise Resource Planning.
COMPONENTS OF ERP
 Accounting and Finance- This gathers and manage financial data and
financial processes from various functional departments and generates
valuable financial reports such as balance sheet, general ledger; trial balance
and quarterly financial statements.
 Human Resources- This component maintains a employee database
containing information about employees contact information, salary details.
attendance, performance evaluation and promotion details.
 Manufacturing-This component provides the information needed for the
manufacturing process to take place. It contains number of manufacturing
methods, so that the organization can choose the best which fits for them.
 Projects Management- Project management is the discipline of planning,
organizing, motivating, and controlling resources to achieve specific goals,
Costing, Billing.
ERP VENDORS
 SAP - Systems Applications Products in Data Processing
37.50% - Honda, IBM, Bank of Canada, P & G.
 Oracle - 10.50% - USPS, CBS, Nike, Kodak, Toronto
Dominion Bank.
 Peoplesoft - 16.50% - NBA, Adidas, Anderson
Consulting. Hilton Hotels, NYNEX.
 J.D. Edwards -16.50% - Harley Davidson, Saab
Automobile, BellSouth Cellular Corporation, Holiday
Inns, Fox Television Stations.
 And 21% others.
ERP - IMPLEMENTATION OPTIONS

 OPTION 1 -
MAKE [Using Internal resources]Developing a custom-built
ERP package, specific to the requirements of the
organization, with the help of then-house IT department
 OPTION 2 -
BUY Going for Tailor-made ERP packages available in the
market like SAP, Oracle applications, Baan, PeopleSoft etc.
 MAJOR THINGS FOR ERP
IMPLEMENTATION
 Flexibility of software system upgrades.
 Availability of internal technical knowledge and
resources.
 Education and training.
 Need an outside consultant.
 Implementation strategy and execution
ERP SELECTION
 Check whether all functional aspects of your Business are
covered.
 Check whether all the business functions and processes are
integrated.
 Check whether all latest IT trends are covered
 Check whether the vendor has customizing & implementing
capabilities.
 Check the Service options available.
 Check your purse & calculate ROI (Return On Investment)
ADVANTAGE OF ERP
 Business Integration.
 Improved customer service and order fulfillment.
 Improved communication with suppliers and customers.
 One common system - less duplication, more efficient.
 Reduce inventory.
 Saves enormous time and effort in data entry.
 Improved business performance.
DISADVANTAGES OF ERP
 High Software cost.
 Consulting Fees.
 Forced change of processes.
 Very complex software Lack of trained people.
 Not Internet-ready
 WHY ERP FAILS?

 Systems can be very difficult to use.

 Software logic and the company strategy may not
match!
 Inadequate training to to end users. Many companies cut
costs by cutting user training.
 ERP systems can be very expensive to install.
ERP IN FUTURE
 • Internet - continue to help organizations integrate data and
process across functional departments.
 Availability of web-based and wireless ERP systems.
 Adoption of easy-to-install ERP systems.
 Linkage to other software systems, e.g., supply chain
management system, e-commerce, customer relationship
management system.
CONCLUSION
 ERP is a key backbone application for companies in a fast
changing industry.
 The risks in an ERP implementation are usually
outweighed by the benefits.
 ERP is recommended in an organization not only because
the advantages outnumber the disadvantages but also by
keeping in mind the ways to overcome the disadvantages.
An organization has to correctly weigh the advantages and
disadvantages of ERP before going for them.
THANK YOU
Name: Syed Ali Abbas Rizvi
ID: 20mba027