Enterprise Resource Planning

By:- WWW.Offer2day.biz
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

facilitates company-wide integrated
information systems, covering all
functional areas

performs core Corporate activities and

increases customer service augmenting
Corporate Image
The Current Scenario

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
ERP - Definition

“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?

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
Evolution of ERP

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

 Need based application

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

 ERP Team formation for selection

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

 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
Goal:
Functionality
To select the
Most Suitable Software 5 Strategic
Package Solution Requirement
Levels Technology

Vendor

Support

Costs
Preparation Phase

 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

 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

 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

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

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]
Beyond ERP

Supplier
Collaboration

Supply Chain
Management

Key Process
Integration via
ERP
Product
Lifecycle Customer
Management Management

Consumers and
Design Partners Channels
THANK YOU