ERP IS NOT

A NAM E OF ANY SOFTWARE, INSTEAD IT IS A CLASS (OR TYPE) OF SOFTWARE.

AN ERP SOFTWARE PROVIDES AN END TO END INFORM ATION M ANAGEMENT SOLUTION FOR A
COM PANY . THE SOFTWARE COULD BE USED BY ALL DEPARTMENTS OF THE COM PANY TO
M ANAGE THE INFORM ATION.

OBJECTIVE:
THE

GOAL IS THAT RIGHT INFORM ATION IS AVAILABLE TO THE RIGHT PERSON AT THE RIGHT TIME.

ERP SOFTWARE INTEGRATES ALL AREAS OF OPERATIONS INCLUDING:

PRODUCT PLANNING
M ANUFACTURING PROCESSES
SALES
M ARKETING
FINANCE
HUMAN RESOURCES

PROCUREMENT

 AN ERP SOFTWARE IS TYPICALLY MODULAR BUT INTEGRATED. M EANING IT CONSISTS OF MULTIPLE

MODULES THAT ARE CONNECTED TO EACH OTHER.
EACH MODULE IS FOCUSED ON ONE AREA OF BUSINESS PROCESSES E.G. FINANCE, HUMAN
RESOURCES ETC.
WHEN WE SAY MODULES ARE INTEGRATED THAT MEANS:

A MODULE COULD SHARE INFORMATION STORED IN ANOTHER MODULES E.G. LIST OF SUPPLIERS ETC.
ALSO INFORMATION COULD FLOW FROM ONE MODULE TO THE OTHER E.G. ACCOUNTING ENTRIES
ETC.

MANAGEMENT REPORTING:

SINCE M ODULES ARE CONNECTED, M ANAGEMENT OF A

COM PANY COULD RUN REPORTS ON

ANY ASPECTS OF THE BUSINESS TO GET A COM PLETE VIEW OF ACTIVITIES. REPORTS HELP
EXECUTIVES M AKE STRATEGIC DECISIONS.

LICENSING
MODULES

COULD BE INDIVIDUALLY PURCHASED BASED ON WHAT BEST M EETS THE SPECIFIC

NEEDS AND TECHNICAL CAPABILITIES OF THE COM PANY .

STUDY THE BUSINESS REQUIREM ENTS. FIND OUT HOW THE ERP SYSTEM

SHOULD BE BEHAVING.

SETUP OR CONFIGURE THE SOFTWARE SUCH THAT IT STARTS WORKING AS PER BUSINESS
REQUIREM ENTS. BY THIS TIME THE SOFTWARE M UST BE INSTALLED AND AVAILABLE FOR SETUP.
FILL THE GAPS BETWEEN BUSINESS REQUIREM ENTS AND THE FUNCTIONALITY OFFERED BY ERP
SOFTWARE.

ERP IMPLEMENTATION PROJECT

A PROJECT

IS INITIATED TO PERFORM

V ARIOUS ROLES

ERP IM PLEMENTATION.

PLAY PART IN A TYPICAL ERP PROJECT . A ROLE M AY BE FILLED BY ONE OR

M ORE PEOPLE DEPENDING ON THE NEEDS. SOM ETIMES ONE PERSON M AY BE GIVEN M ORE
THAN ONE ROLES.

ROLES IN A ERP PROJECT

HERE ARE IMPORTANT ROLES:
NETWORK ADM INISTRATOR
OPERATING SYSTEM ADM INISTRATOR
DATABASE ADM INISTRATOR
ERP SYSTEM ADM INISTRATOR
PROJECT MANAGER
FUNCTIONAL CONSULTANT
TECHNICAL CONSULTANT
BUSINESS ANALYST

 IN ALM OST ALL THE CASES SOM E BUSINESS REQUIREM ENTS ARE SO UNIQUE THAT THE ERP
SYSTEM HAS NO BUILT -IN FUNCTIONALITY TO HANDLE THOSE UNIQUE CASES. THE TERM "GAP" IS
USED FOR SUCH BUSINESS REQUIREM ENTS.

CUSTOMIZATION
TO

SATISFY THESE REQUIREM ENTS WE M ODIFY THE SOFTWARE BY GOING UNDER THE HOOD AND

ADD THE M ISSING FUNCTIONALITY E.G. NEW REPORTS ARE CREATED IN THE SYSTEM THAT WERE
NEEDED BY THE BUSINESS. THIS STEP IS CALLED CUSTOMIZATION OR EXTENSION.

THIS IS WHERE TECHNICAL CONSULTANTS COM ES IN.

COMMUNICATION AMONG APPLICATIONS

IN M OST CASES ERP SYSTEM TALKS TO OTHER THIRD PARTY SYSTEM RUNNING WITIN THE SAM E
COM PANY OR IN AN EXTERNAL COM PANY E.G. SUPPLIERS AND CUSTOM ERS.
INTERFACES
TECHNICAL CONSULTANTS ASSIST IN WRITING PROGRAM S THAT HELP COMMUNICATE
INFORM ATION BACK AND FORTH BETWEEN THE ERP SOFTWARE AND THE THIRD PARTY
SOFTWARE EITHER WITHIN THE COM PANY OR OUTSIDE IT . PROGRAM S THAT AIDS
COMMUNICATION BETWEEN TWO SOFTWARE IS CALLED "INTERFACE".