INTRODUCTION

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 INTRODUCTION

BRIEF HISTORY
PHASE I -The History of the ERP systems can be traced back to the 1960s when the
development of computer software for inventory management purposes started.

PHASE II -The next generation of business software were Materials Requirement

Planning (MRP) systems which were introduced in the early 1970s. MRP systems were
focused on demand- based planning of production and inventory control and the purpose
was to guide purchasing activity and to automate the creation of purchase orders

PHASE III -Manufacturing Resource Planning (MRP-II) systems emerged in the 1980s.
MRP-II concept was based on the MRP systems but new features were added.

PHASE IV -The initials ERP originated as an extension of MRP (material requirements

planning; later manufacturing resource planning) and CIM (Computer Integrated
Manufacturing). It was introduced by research and analysis firm Gartner in 1990s. ERP
systems now attempt to cover all core functions of an enterprise, regardless of the
organization's business or charter. These systems can now be found in non-manufacturing
businesses, non-profit organizations and governments.

MEANING
Enterprise Resource Planning (ERP) is a software solution that integrates business
functions and data into a single system to be shared within a company. While ERP
originated from manufacturing and production planning systems used in the
manufacturing industry, ERP expanded its scope in the 1990’s to other "back-office"
functions such as human resources, finance and production planning Moreover, in recent
years ERP has incorporated other business extensions such as supply chain management
and customer relationship management to become more competitive.

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To be considered an ERP system, a software package must provide the function of at
least two systems. For example, a software package that provides both payroll and
accounting functions could technically be considered an ERP software package

APPLICATION IN ORGANISATION
Some organizations — typically those with sufficient in-house IT skills to integrate
multiple software products — choose to implement only portions of an ERP system and
develop an external interface to other ERP or stand-alone systems for their other
application needs. For example, one may choose to use human resource management
system from one vendor, and perform the integration between the systems themselves.

This is common to retailers, where even a mid-sized retailer will have a discrete Point-of-
Sale (POS) product and financials application, then a series of specialized applications to
handle business requirements such as warehouse management, staff roistering,
merchandising and logistics.

Ideally, ERP delivers a single database that contains all data for the software modules,
which would include:
 Manufacturing Engineering, bills of material, scheduling, capacity, workflow
management, quality control, cost management, manufacturing process,
manufacturing projects, manufacturing flow
 Supply chain management Order to cash, inventory, order entry, purchasing,
product configurator, supply chain planning, supplier scheduling, inspection of
goods, claim processing, commission calculation
 Financials General ledger, cash management, accounts payable, accounts
receivable, fixed assets
 Project management Costing, billing, time and expense, performance units,
activity management
 Human resources Human resources, payroll, training, time and attendance,
rostering, benefits

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 Customer relationship management - Sales and marketing, commissions,
service, customer contact and call center support
 Data warehouse - and various self-service interfaces for customers, suppliers, and
employees
 Access control - user privilege as per authority levels for process execution
 Customization - to meet the extension, addition, change in process flow

Application in companies

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ORIGINATE
Enterprise resource planning is a term originally derived from manufacturing resource
planning (MRP II) that followed material requirements planning (MRP). MRP evolved
into ERP when "routings" became a major part of the software architecture and a
company's capacity planning activity also became a part of the standard software activity.
ERP systems typically handle the manufacturing, logistics, and distribution, inventory,
shipping, invoicing, and accounting for a company. ERP software can aid in the control
of many business activities, including sales, marketing, delivery, billing, production,
inventory management, quality management and human resource management.

ERPs are often incorrectly called back office systems indicating that customers and the
general public are not directly involved. This is contrasted with front office systems like
customer relationship management (CRM) systems that deal directly with the customers,
or the eBusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or
supplier relationship management (SRM) systems.

ERPs are cross-functional and enterprise wide. All functional departments that are
involved in operations or production are integrated in one system. In addition to
manufacturing, warehousing, logistics, and information technology, this would include
accounting, human resources, marketing and strategic management.

ERP II, a term coined in the early 2000's, is often used to describe what would be the next
generation of ERP software. This new generation of software is web-based, and allowed
both internal employees, and external resources such as suppliers and customer’s real-
time access to the data stored within the system. ERP II is also different in that the
software can be made to fit the business, instead of the business being made to fit the ERP
software. As of 2009, many ERP solution providers have incorporated these features into
their current offerings.

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EAS — Enterprise Application Suite is a new name for formerly developed ERP systems
which include (almost) all segments of business, using ordinary Internet browsers as thin
clients.

Best practices are incorporated into most ERP vendor's software packages. When
implementing an ERP system, organizations can choose between customizing the
software or modifying their business processes to the "best practice" function delivered in
the "out-of-the-box" version of the software.

Prior to ERP, software was developed to fit the processes of an individual business. Due
to the complexities of most ERP systems and the negative consequences of a failed ERP
implementation, most vendors have included "Best Practices" into their software.

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 RESEARCH
METHODOLOGY

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 RESEARCH METHODOLOGY
INTRODUCTION
Research includes two words Re + search means again find out new thing. In fact
research is a process which unrevealing the facts underlying a phenomenon.
According to Redman and mory defines research as a “systematic efforts to gain new
knowledge.”

To determine the significance and growth of ERP implementation, a survey as conducted

during Feb- 2017. The survey questionnaire was designed on the requirements and
significance of ERP implementation in Gondia. The survey instrument focused on the
following areas:

1. Implementation of ERP in the organizations

2. Reasons for ERP implementation
3. The impact of using ERP on logistics performance of the companies.

SCOPE OF THE STUDY

This survey conducted at various computer institutes, Educational organization,
construction firm, finance company, Software Company in Gondia Region their name as
follows.
 TIU Software consultancy Pvt. Ltd.
 Gokul Computer Institute,
 Pratham I.tec.,
 Trimurti construction firm,
 Mahi construction firm,
 Brother Construction,
 Commerce Academy,
 3P Designer,
 Megma Finance pvt. Ltd.

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PERIOD OF SURVEY OR RESEARCH
In this project I am personally spent approx. 35 days this project began from 27 feb. to
4april 2017 and included various origination and companies mentioned above.

OPINION OF VARIOUS ORGANIZATIONS DURING SURVEY

Furthermore, the literature indicates that ERP implementations have sometimes failed to
achieve the organization’s targets and desired outcomes. Much of the research reported
that the failure of ERP implementations was not caused by the ERP software itself, but
rather by a high degree of complexity from the massive changes ERP causes in
organizations (Pratham itech.)
These failures can be explained by the fact that ERP implementation forced companies to
follow the principle of ‘best practices’ in most successful organizations and form
appropriate reference models.(Mahi Construction Firm)

Unlike other information systems, the major problems of ERP implementation are not
technologically related issues such as technological complexity, compatibility,
standardization, etc. but mostly [about] organization and human related issues like
resistance to change, organizational culture, incompatible business processes, project
mismanagement, top management commitment, etc.(TIU Software consultancy Pvt.
Ltd.)

“ ERP Implementation such as great revolution in the finance sector it support to easily
handling and maintenance. (Branch manager of megma finance- vijay Bhaghele)

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a
research Marketing Research is the systemic design, collection, analysis and reporting of
data and finding relevant solution to a specific marketing situation or problem.

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 Sampling Plan: Sampling can be defined as the section of some part of an
aggregate or totality on the basis of which the judgment or an inference about
aggregate or totality is made The sampling plan helps in decision making.
Sampling units- The companies and origination or institute that was targeted
consists of computer institutes, Educational organization, construction firm,
finance company, Software Company
Sample size- The sample size for my study was -2 companies, 3 institutes, 4
constructions.
Sampling procedure- Random sampling method was used.

For this study, the research was organized along key ownership experience criteria that
allowed the research to capture quantitative and qualitative information across the major
components of enterprise applications. The list of criteria was thoroughly defined to take
into account the experience of not only the technical staff, but also end users who must
accomplish specific business tasks with the application. The software that included:
Microsoft
Oracle E-Business Suite
PeopleSoft Enterprise and Enterprise One
AutoCAD
CorelDraw
Tally ERP and Busy
The research also included functional areas such as Financial and Human Capital
Management Systems (FMS & HCM), Supply Chain Management (SCM), Customer
Relationship Management (CRM); and application lifecycle phases such as installation,
implementation, configuration, usage, maintenance, support, and upgrades. We have
broken the entire process down into five steps:

 Reviewed vendors' web sites and their positioning documents, as well as their
online and hard copy documentation.
 Utilized analyst reports, press articles, and technical reviews that are available to
the general public.

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  Validated, using the defined criteria, the information collected in steps 1 and 2
through in-depth interviews with the consulting panel of experts. For the interview
process, preference was given to respondents with multi-year experience and
experience with the latest version of the application to ensure that the entire
application lifecycle was properly covered.
 Compared and analyzed findings from this primary and secondary research to
generate a rating for each vendor on specific criteria. In this comparison and
analysis, the respondent's experience with multiple vendors was leveraged as well.
 Aggregated comparisons and ratings along three major phases of the enterprise
application ownership lifecycle.

This study is confined to cover ERO implementation project up to the final selection of
the ERP product and its vendor and therefore it does not cover the actual deployment
stage.

This project aims to provide useful general level information on enterprise resource
planning and despite focusing on the case company and Institute; the case study can be
helpful in gaining a general understanding of ERP implementation projects in SMEs and
start-up companies. The project is beneficial for the case company itself, because the
research will contribute significantly to ERP implementation project.
It can also be advantageous for other SMEs or startup companies who are undertaking the
same project.

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PROBLEM STATEMENT
In spite of ERP’s significant growth from the late 1990s to the present day, there are a
number of challenges that companies or institution may encounter when implementing
ERP. In Gondia Region Due Low Investment many Institute and companies are not
interested in an implementation of ERP System.
In Gondia TIU Software consultancy Pvt. Ltd. Gokul Computer Institute, Pratham I.tec.,
Trimurti construction firm, Mahi construction firm, Brother Construction, Commerce
Academy, 3P Designer, megma Finance pvt. Ltd. are using ERP and that more small and
midsize companies have begun to adopt ERP. Despite ERP’s promises to benefit
companies and a substantial capital investment, not all ERP implementations have
successful outcomes. ERP implementations commonly have delayed an estimated
schedule and overrun an initial budget.

RISK FACTOR OF IMPLEMENTATION OF ERP

Risk Factor
1 Lack of senior manager commitment
2 Ineffective communications with users
3 Insufficient training of end-users
4 Failure to get user support
5 Lack of effective project management methodology
6 Attempts to build bridges to legacy applications
7 Conflicts between user departments
8 Composition of project team members
9 Failure to redesign business process
10 Misunderstanding of change requirements

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AIMS AND OBJECTIVE

The major goal of ERP is to increase operating efficiency by improving business

processes and decreasing costs. ERP allows different departments with diverse needs to
communicate with each other by sharing the same information in a single system. ERP
thus increases cooperation and interaction between all business units in an organization
on this basis. Also, ERP standardizes processes and data within an organization with best
practices.

The goals of this project include providing general level information on ERP systems and
their problem-prone implementation projects by researching the literature and previous
studies on the comparing the different system options available in the market in order to
propose a suitable ERP solution for the company as well as institute is also included into
the goals of the project.

Therefore, the main goals of this research work can be further divided into three
objectives.
 The first objective is to provide a theoretical background for the subject matter of
the project.
 The second objective is to define the Implementation requirements for ERP
system and to determine the functionalities that need to be included in the
software.
 The third objective is to find an ERP system that would best suit the needs,
requirements, and resources of organization and companies.
This project consists of two parts: a theoretical part and a Vendors of the ERP(various
software).

The first part,

which is the theoretical part, aims to provide an insight into the subject matter, i.e., ERP
systems and ERP implementation projects. The purpose of the theoretical part is to
explain the function, history, benefits Advantages and disadvantages of ERP systems. The
first part also covers ERP implementation projects on a general level.

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The second part,
The project, the Vendor of the ERP(Various Software), is a part of the ERP system
implementation project for an organization & Companies. ERP implementation project by
planning, carrying out and documenting the necessary tasks in the early stages of the ERP
implementation project.

ADVANTAGES OF ERP
In the absence of an ERP system, a large manufacturer may find itself with many
software applications that cannot communicate or interface effectively with one another.
Tasks that need to interface with one another may involve:

 Integration among different functional areas to ensure proper communication,

productivity and efficiency
 Design engineering (how to best make the product)
 Order tracking, from acceptance through fulfillment
 The revenue cycle, from invoice through cash receipt
 Managing inter-dependencies of complex processes bill of materials
 Tracking the three-way match between purchase orders (what was ordered),
inventory receipts (what arrived), and costing (what the vendor invoiced)
 The accounting for all of these tasks: tracking the revenue, cost and profit at a
granular level.

ERP Systems centralize the data in one place. Benefits of this include:
 Eliminates the problem of synchronizing changes between multiple systems
 Permits control of business processes that cross functional boundaries
 Provides top-down view of the enterprise (no "islands of information")
 Reduces the risk of loss of sensitive data by consolidating multiple permissions
and security models into a single structure.

Some security features are included within an ERP system to protect against both outsider
crime, such as industrial espionage, and insider crime, such as embezzlement. A data-

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tampering scenario, for example, might involve a disgruntled employee intentionally
modifying prices to below-the-breakeven point in order to attempt to interfere with the
company's profit or other sabotage. ERP systems typically provide functionality for
implementing internal controls to prevent actions of this kind. ERP vendors are also
moving toward better integration with other kinds of information security tools.

LIMITATION OF ERP IMPLEMENTATION STUDY

Problems with ERP systems are mainly due to inadequate investment in ongoing training
for the involved IT personnel - including those implementing and testing changes - as
well as a lack of corporate policy protecting the integrity of the data in the ERP systems
and the ways in which it is used.
Limitation:
 Customization of the ERP software is limited.
 Re-engineering of business processes to fit the "industry standard" prescribed by
the ERP system may lead to a loss of competitive advantage.
 ERP systems can be very expensive (This has led to a new category of "ERP
light" {Expand section} solutions)
 ERPs are often seen as too rigid and too difficult to adapt to the specific workflow
and business process of some companies—this is cited as one of the main causes
of their failure.
 Many of the integrated links need high accuracy in other applications to work
effectively. A company can achieve minimum standards, then over time "dirty
data" will reduce the reliability of some applications.
 Once a system is established, switching costs are very high for any one of the
partners (reducing flexibility and strategic control at the corporate level).
 The blurring of company boundaries can cause problems in accountability, lines
of responsibility, and employee morale.
 Resistance in sharing sensitive internal information between departments can
reduce the effectiveness of the software.
 Some large organizations may have multiple departments with separate,
independent resources, missions, chains-of-command, etc, and consolidation into
a single enterprise may yield limited benefits.

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  The system may be too complex measured against the actual needs of the
customers.
ERP Systems centralize the data in one place. This can increase the risk of loss of
sensitive information in the event of a security breach.

HYPOTHESIS
1. Customer wants to implement ERP system- In this project various vendors are
available in the market but due to lack of funding or scale of business organization
customer in gondia Region are normally not interested to invest money on that
particulars system. Those customer which are dealing with technology or at large
they used ERP system.
2. Consumer wants to understand advantages and disadvantages of ERP –
many of the consumers in Gondia they are not exactly known that what are the
drawback of ERP or its benefits, that’s why they are not taken properly or
correctly any decision.
3. Manufacturer wants to earn edge benefit- any industry wants to earn higher
profit therefore they are trying to use all the resources available in their front now
a days very important aspect of business (manufacturing concern) that apart from
the Raw material or laboure they required proper management regards with
inventory therefore they need to software implementation.

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LITERATURE
REVIEW

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 LITERATURE REVIEW
INTRODUCTION

An enterprise resource planning (ERP) is an enterprise-wide application software package

that integrates all necessary business functions into a single system with a common
database. Enterprise resource planning (ERP) systems integrate and streamline the
business processes of an organization across departmental and geographical borders.
Today, many public and private organizations worldwide are implementing ERP systems
in place of the functional legacy systems that are not anymore well-compatible with
modern business environment.
The promise and pitfalls of ERP and Significance of exploring ERP implementation
issues

Enterprise systems appear to be a dream comes true. The commercially available software
packages promise seamless integration of all information flows in the company --
financial and accounting information, human resource information, supply chain
information, and customer information. For managers who have struggled, at great
expense and with great frustration, with incompatible information systems and
inconsistent operating practices, the promise of a quasi-off-the-shelf solution to the
problem of business integration is enticing.

1. Strategic goals are not clearly defined.

2. Top management is not committed to the system.
3. Implementation project management is poor.
4. The organization is not committed to change.
5. A great implementation team is not selected.
6. Inadequate education and training results in users that are unable to satisfactorily run
the system.
7. Data accuracy is not ensured.
8. Performance measures are not adopted to ensure that the organization changes.
9. Multi-site issues are not properly resolved.

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CRITICAL FACTORS FOR SUCCESSFUL ERP
IMPLEMENTATION
Implementing an ERP system is not an inexpensive or risk-free venture. In fact, 65% of
executives believe that ERP systems have at least a moderate chance of hurting their
businesses because of the potential for implementation problems .
The most prominent of these are described below.
1. Clear understanding of strategic goals
2. Commitment by top management
3. Excellent project management
4. Organizational change management
5. A great implementation team
6. Data accuracy
7. Extensive education and training
8. Focused performance measures
9. Multi-site issues

LITERATURE REVIEW
Table 1:
Categories / class Software

Name of barrier for ERP Lack of selection criteria

implementation
Name of author with year Dr. Chi-Tai Lien
Dr. Hsiao-Ling Chan 2006
Key Research finding by It is found that out the ‘business process reengineering
this author (BPR) and system tuning time’ is significantly important
of entire criteria in this ERP project. It is also found that
‘recoverability’ is the most important criteria among the
software criteria of ERP software.
Methodology used Enterprise resource planning (ERP) software
Tools used (FAHP)

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Table 2:
Categories / class Analysis

Name of barrier for ERP Lack of shortage of traditional analytic hierarchy process
implementation
Name of author with year Gao-yang Yin et al. 2011
Key Research finding by The simulation proved that the threat assessment result of
this author anti-warship missiles to warship obtained through the
threat assessment algorithm based on AHP and the
principal components analysis was objective and
reasonable.
Methodology used Threat Assessment Algorithm
Tools used AHP

Table 3:
Categories / class Supplier

Name of barrier for ERP Lack of evaluation and selection

implementation
Name of author with year MOU Rui , 2004

Key Research finding by System offers the interface of many kinds of data bases
this author and has the characteristic of integration and extension.
It introduces a computer decision system utilizing this
model.
Methodology used ERP System combined with SCM

Tools used AHP Algorithm

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Table 4:
Categories / class Analyze
Name of barrier for ERP Lack of certain risk factors.
implementation
Name of author with year Prasanta Kumar Dey 2012
Key Research finding by The severity of failure is determined through consequence
this author analysis. From this, the effect of a failure caused by each
risk factor can be established in terms of cost, and the
cumulative effect of failure is determined through
probability analysis. The technique does not totally
eliminate subjectivity, but it is an improvement over the
existing inspection method.
Methodology used a multiple-attribute decision making technique,
Tools used AHP

Table 5:
Categories / class Review
Name of barrier for ERP Lack of challenges
implementation
Name of author with year Faridun Ahmadi Jaafar Mahmoudi 2011

Key Research finding by 1) Presented the research results for determining ERP
this author success factors in Iranian organizations. 2) Analyzed and
defined Critical Success Factors (CSF) to implement
successful ERP system in large governmental
organizations.
Methodology used Finding out the SFs(Success Factors) &analyze them.
Tools used ERP System

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Table 6:
Categories / class Issues
Name of barrier for ERP Lack of realization
implementation
Name of author with year N. Venkateswaran and V. Mahalakshmi2 2012
Key Research finding by Relative scores of issue importance are compared across
this author the firms, roles (client versus implementation partner) and
organizational levels. Study findings confirm the
importance of this finer partitioning of the data and
distinctions identified, reflecting the circumstances of
ERP lifecycle implementation, management and support
among the stakeholder groups.
Methodology used ERP life cycle implementation
Tools used SAP financials

Literature Review On ERP Implementation Challenges

The study focuses on the ERP implementation challenges from four different perspectives
such as: technology selection; change management, knowledge management and
emerging technologies.

ERP technology selection challenges

ERP technology selection is a crucial and paramount consideration for enterprise level
decision makers in organisations aspiring to sustain staying competitive since, it is a
serious investment decision.

Radut and Codreanu (2012) argued that the most important part of adopting an ERP
system is the selection part and the selection process should be specific to organisation as
it takes into account the requirements of the organisation and should be an analytical
method based on criteria. The most important of which are functionality, technology and
expertise, flexibility and application scalability, costs, implementation and ease of use.

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Johansson et al. (2011) studied relationship between factors influencing selection of
implementation approach and companies’ ability to stay within budget when
implementing ERPs. The main findings are that:
1 the number of implemented modules influences selection of an implementation
approach
2 companies with information strategies are more likely to stay within budget regarding
ERP systems implementation.

Garg and Khurana (2013) presented the ERP product selection criteria for Indian
SMEs. The finding of this research will help the marketing and sales team of ERP product
companies to improve upon the key points and also enable end users to make informed
decisions in selecting the ERP package for the organisation.

Another review of literature on various misc. categories:

According to King (2002), the main advantages of ERP in HEIs are :-
(1) improved information access for planning and managing the institution,
(2) improved services for the faculty, students and staff,
(3) lower business risks, and
(4) increased income and decreased expenses due to improved efficiency.

Sabau, Munten, Bologa, Bologa and Surcel (2009) provide ERP benefits for
universities in terms of business and technical point of views.

(Murphy, 2004; Zornada & Velkavrh, 2005) As different departments across an

institution share an integrated database, end users can access data in real time. Best-of-
breed information technology such as web technologies, mobile phones, and on-line
services offer additional benefits not only to the administration within an institution, but
also to people who constantly interact with the institution – faculty, students, and staff.

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 DATA
COLLECTION

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 DATA COLLECTION
INTRODUCTION
Data Collection: If people want to studies on any subject matter then data should be
required for the analysis and interpretation. It is 1st collects the raw data and applies on
research mythology method or technique and converted into useful data. Collection of
data plays an important role for any research or analysis.
Before starting the collection of the data, it is necessary to know the sources from which
the data are to be collected. Information was collected from both Primary and Secondary
data

Primary sources- When the data are collected 1st time directly by person through various
methods is known as primary Data collection.
Sources of primary collection of data
1. Interview method
2. Mailed questionnaires method
3. Observation method
4. Question filled

I had collected Primary data by conducting surveys through Interview method

Questionnaire, which include both open-ended and close-ended questions.

Secondary sources- Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical processes.
I had collected secondary data through:-
1. Private or public sector
2. Internet or all search engines (Google).
3. Magazine
4. Publication and Research University Reports of commission and committees.

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PRIMARY DATA COLLECTION

Enterprise resource planning is generally implementation in TIU software consultancy

Pvt. Ltd they are work on various project regarding software development BPO and KPO
work therefore they are maintain or successful implement ERP system in there company
which assist to maintain the salary records project completion duration responsibilities
project management rating factor etc.

Enterprise resource planning is implementation in Megma Finance Pvt. Ltd they are
work on various project regarding to provide vehicle loan such as tractor loan, car loan,
truck loan etc. Therefore they are maintain or successful implement ERP system in there
company which assist to maintain the salary records of an employee, CIBIL of customer
and installment system or hire purchase system etc. they are prefer oracle because as per
their opinion this software is smoothly work when internet connection is breakdown or
slowly.

In a Commerce academy Microsoft and Tally ERP are used for the maintain the track
record of the business.

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Enterprise resource planning is implementation in Gokul Computer Institute they are
work on various project regarding to Computer courses, Software Development, etc.
Therefore they are maintain or successful implement ERP system in there institute which
assist to maintain the salary records of faculties, student database, they are prefer oracle
Microsoft because as per their opinion this software is smoothly work.

SECONDARY DATA COLLECTION

CIOs have expressed growing concerns over the Total Cost of Ownership (TCO) of
enterprise software and have highlighted costs as a contributing factor in the decline of IT
investments.
As a result, software vendors are trying to develop more structured "Ownership
Experience" strategies and, in some cases, have focused R&D efforts and resources on
improving the ownership experience for customers.
We have considered and find in enterprise application software and every phase of the
ownership lifecycle has reviewed and evaluated key software features that directly
impact the ownership experience of enterprise applications. Some of these feature sets
included: advanced data loading and moving during the implementation phase, task-
oriented navigation for the usability phase, and user-centric performance testing for the
maintenance phase. This research offered an objective assessment of these detailed
features, validated through in-depth interviews with the panel of consulting experts
distinguished by multi-vendor and multi-lifecycle experience.

ERP Vendors
MICROSOFT:
Microsoft has no formal ownership experience program defined. Microsoft has developed
its cost management strategy based on a very low software price point and close to 100%
out-of-the-box deployments with little ability to customize the software. As a result,
Microsoft offers basic functionality that does not require extensive training, but it also
does not necessarily deliver the full value expected by the customer in view of the
ownership experience.

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ORACLE:
Addressing cost of ownership is at the heart of Oracle's philosophy for Enterprise
Applications. Based on the Oracle eBusiness Suite, an integrated suite of applications,
Oracle claims that it can lower implementation costs by avoiding unnecessary costs, such
as those associated with costly custom integration between applications. Although
Oracle's approach has some merit - some measurable benefits have been highlighted
through ROI case studies, serious concerns are still being raised regarding what Oracle
has delivered to date.

PEOPLESOFT:
Structured in a formal program, PeopleSoft dedicated over 1,000 developers and $800
million to improve the Total Ownership Experience for customers. Rather than focusing
simply on best practices that improve the ownership experience, PeopleSoft has rethought
its entire set of applications to ensure that they are built from the ground up to minimize
deployment and maintenance costs.

SAP:
Many users of SAP applications have, over the years, noted the complexity of SAP
applications, the resulting high implementation costs, and consequent budget overruns. In
response to these issues, SAP today highlights SAP NetWeaver as the centerpiece to
SAP's product strategy for decreasing the complexity and cost of ownership for SAP
applications. Currently, the impact of SAP NetWeaver on the overall SAP cost of
ownership remains to be proven. SAP has not yet provided proof points validating that its
customers benefit from improved ownership experience through the implementation of
SAP's latest technology.

SIEBEL:
Siebel's customer experience initiative was first focused on customer satisfaction and
high-level ROI measurements. It is only recently (12+months) that Siebel has focused
more specifically on cost-of-ownership issues (mainly in response to customers'
complaints). Siebel's improvements to its software development process are guided by the

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experience and insight gained from close examination of 200 Siebel 7.x deployments.

TALLY ERP
This is accounting software which assist to all the business or non-business organization
or companies for maintain their business monetary transaction this assist to business units
in finance sector it is also very useful for taking any decision regarding with the business.
It includes various feature and configuration.

Vendor evaluation for ERP System

The company also streamlines data flow between different parts of a business by creating
a one-transaction system Standardization and integration of processes and data allows a
company to centralize administrative activities, improves ability to deploy new
information system functionality, and reduces information system maintenance costs As a
result of its benefits, ERP has become the backbone of business intelligence for
organizations by giving managers an integrated view of business processes ERP is
designed to adapt to new business demands easily. The continuous technological
advancement and the increasing complexity of ERP require companies to regularly
upgrade their systems. Most ERP vendors provide an opportunity to update procedures
and align with perceived best practices to meet changing business needs more quickly.

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ANALYSIS OF
DATA AND
HYPOTHSIS
TESTING

Page | 30
 ANALYSIS OF DATA AND HYPOTHSIS
TESTING
ERP System Selection Methodology
An ERP system selection methodology is a formal process for selecting an Enterprise
Resource Planning (ERP) system.
Irrespective of whether the company is a multi national multi-million Rupee organization
or a small company with single digit million turnover, the goal of system selection is to
source a system that can provide functionality for all of the business processes; that will
get complete user acceptance; management approval and, most importantly, can provide
significant return on investment for the shareholders.

Since in the mid-70s , when there was wide-spread introduction of computer packages
into leading companies to assist in Material Requirements Planning software companies
have strived, and for the most part succeeded, to create packages that assist in all aspects
of running a business from Manufacturing; Supply Chain Management; Human
Resources; through to Financials. This led to the evolution of ERP Systems.
Accordingly, a significant number of packages purporting to be ERP systems have
entered into the marketplace since 1990. There are packages at the upper end of the
market such as SAP; Oracle; Movex; and IFS among others in addition to medium
enterprise systems such as Microsoft Navision;

In this research analysis that multiple problem faced by organization during

implementation of ERP system they are analysis below:

Poor System Selection

It is seldom that companies adopt a fully objective system selection methodology when
choosing an ERP System. Some of the common mistakes that companies resort to are.

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Incomplete Set of Requirements
When a new ERP has been implemented in an enterprise, "it requires people to do their
job differently" . Therefore, it is very important to understand the requirements of each
user for current processes and for future processes [i.e. before and after the new system is
installed].

Reliance on Vendor Demos

Vendor Demonstrations tend to be focus on very simplistic processes. A typical
demonstration will show an ideal order to cash process where a customer orders a
quantity of product that is in stock. The reality in most businesses is that most customers
have varying and more complicated commercial arrangements and products are not
always in stock.

Over-Emphasis on System Cost

According to Finlay and Servant “The differential in purchase price between packages is
unlikely to be the dominant factor". While the cost of an ERP system is very important
for a company, there tends to be a lack of focus on the other important decision criteria
such as functionality; future proofing; underlying infrastructure [network & database];
and e-commerce capability among others.

Most Common Reasons for ERP Implementation Failure

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HOW TO REDUCE THE FAILURE OF
IMPLEMENTATION OF ERP

Proper Implementation And Finance

Their implementation process should take place in a smooth manner and in accordance
with the set standards .There should be no compromise or controversy in the funds
allocated. One mistake which is normally done by companies is that they tend to cut
down the expenditures on some areas in order to be monetarily benefited.

Strict Adherence to Changes

Many of ERP's welfare measures are visible to the naked eye. However there are some
elements that are unseen but still impact the organization in a large manner. These
elements make the company to assume that ERP is not worth the money and hence they
even go to the extent of violating/discarding it halfway and not following the changes that
were arrived after a long suggestion and deliberate planning.

Selection Bias
It is not unusual that the decision on which system to purchase is made by one individual
or by one department within the company. In these situations, an ERP system that may be
excellent at one function but weak at other processes may be imposed on the entire
enterprise with serious consequences for the business.

Failure to use Objective Professional Services

One the main reasons for failure in system selection is the understandable lack of
knowledge within the company. Experienced Consultants can provide excellent
information on all of the packages that are available in the marketplace; the latest
functionality available in the most common packages and, most importantly, can assist
the user in deciding whether a specific requirement would provide added value to the user
and to the business.

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Inability to Understand Offering by ERP Vendor
"It is estimated that approximately 90% of enterprise system implementations are late or
over budget". A plausible explanation for implementations being late and over budget is
that the company did not understand the offering by the vendor before the contract was
signed.

A Proper System Selection Methodology

To address the common mistakes that lead to a poor system selection. It is important to
apply key principles to the process, some of which are listed hereunder:

Structured Approach
The first step in selection of a new system is to adopt a structured approach to the process.
The set of practices are presented to all the stakeholders within the enterprise before the
system selection process begins. Everyone needs to understand the method of gathering
requirements; invitation to tender; how potential vendors will be selected; the format of
demonstrations and the process for selecting the vendor.

Focused Demonstrations
Demonstrations by potential vendors must be relevant to the business. However, it is
important to understand that there is considerable amount of preparation required by
vendors to perform demonstrations that are specific to a business. Therefore it is
imperative that vendors are treated equally in requests for demonstrations and it is
incumbent on the company [and the objective consultant assisting the company in the
selection process] to identify sufficient demonstrations that will allow a proper decision to
be made but will also ensure that vendors do not opt out of the selection process due to
the extent of preparation required.

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Important Issues to Consider Before ERP Implementation
Before integrating business functions, managers must consider several important issues
that will help them decide whether an ERP integration is the right choice for their
organization. These pertinent issues are classified under the following categories:
fundamental issues, organizational change process, people, and the different approaches
to implementing ERP.

Fundamental Issues
First, managers must consider the fundamental issues of system integration by analyzing
the organization’s vision and corporate objectives. For instance, does management fully
understand its current business processes, and can it make implementation decisions in a
timely manner?

Is management ready to undertake drastic business process reengineering efforts to yield

dramatic outcomes? Is management ready to make any changes in the structure,
operations, and cultural environment to accommodate the options configured in the ERP
system?

Is the organization financially and economically prepared to invest heavily in an ERP

implementation? Next, management needs to decide on the key related implementation
and business issues and how to proceed.

People
People-related issues such as corporate philosophy and leadership style can play an
important role in the ERP implementation process. Research has concluded that active top
management support and commitment are essential to the success of any system
implementation

The Organizational Change Process

ERP implementation requires organizations to reengineer their key business processes in
fundamental ways, revamping old ways of conducting business, redefining job

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responsibilities, and restructuring the organization. For major multinational corporations
(MNC), the ERP systems must be customized to address global issues where different
countries have different ways of doing business, and to incorporate country-specific
business practices pertaining to accounting, tax requirements, environmental regulations,
human resources, manufacturing, and currency conversion into the integrated systems.
While integrating the information systems across various countries, three types of misfits
(relating to data, process, and output) can occur due to incompatibilities between software
functionality and organizational requirements as well as differences in cultural and
regulatory environments.

Methods in implementing ERP

ERP implementation support includes all the services of the vendor. Companies spend a
lot of time in discussing about the need to go for ERP. They make all sorts of assessments
and bring the necessary resources to work on ERP.

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DATA ANALYSIS

1. HOW MUCH % ERP IMPLEMENT

NAME OF HOW MUCH % ERP

INSTITUTE/COMPANY/ORGANSIATION IMPLEMENT
TIU Software consultancy Pvt. Ltd. 95%
Gokul Computer Institute, 60%
Pratham I.tec., 55%
Trimurti construction firm, 30%
Mahi construction firm, 45%
Brother Construction, 20%
Commerce Academy, 30%
3P Designer, 88%
Megma Finance pvt. Ltd. 90%

GRAPH

TIU Software
consultancy
Pvt. Ltd., 95%
Megma
Finance pvt.
Ltd., 90%
Gokul
Computer
3P Designer, ,
Institute, , 60%
88%
Pratham
I.tec., ,
Commerce
55%
Academy, , 30%
Brother Mahi Trimurti
Construction, , construction construction
20% firm, , 45% firm, , 30%

ANALYSIS
As per the above in concluded that those organization which are operate at large scale
they are majorly used ERP and also small organization used but at less space for ERP
Implementation.

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 2. WHERE ARE CURRENT POSITION?

NAME OF WHERE ARE CURRENT

INSTITUTE/COMPANY/ORGANSIATION POSITION
TIU Software consultancy Pvt. Ltd.
Gokul Computer Institute,
Pratham I.tec.,
Trimurti construction firm,
Mahi construction firm,
Brother Construction,
Commerce Academy,
3P Designer,
Megma Finance pvt. Ltd.
hired after the product was
implemented.
after the planning but before
ERP implementation began
before the planning for ERP
began
after the planning but before
ERP implementation began
hired after the product was
implemented.
hired during the implementation
hired during the implementation
after the planning but before
ERP implementation began
hired during the implementation

Number of organization current position?

Before the planning for erp began 1
After the planning but before erp implementation began 3
Hired during the implementation 3
Hire after the product was implemented. 2
GRAPH

before the planning

for ERP began

after the planning but

before ERP
implementation
began
hired during the
implementation

ANALYSIS
In this analysis shown that no. of organization their current position how much
organization are which stage is define in the analysis mostly org. are ERP Implement
after the product or its hire.

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 3. WHAT YEAR DID YOU START YOUR PLANNING?

NAME OF WHAT YEAR DID YOU

INSTITUTE/COMPANY/ORGANSIATION START YOUR PLANNING
TIU Software consultancy Pvt. Ltd. pre 2015
Gokul Computer Institute, pre 2015
Pratham I.tec., 2016
Trimurti construction firm, pre 2015
Mahi construction firm, pre 2015
Brother Construction, after 2016
Commerce Academy, 2016
3P Designer, pre 2015
Megma Finance pvt. Ltd. pre 2015
No. of Origination
what year did you start your
planning No. of Organization
pre 2016 6
2016 2
after 2016 1
Don’t Know 0

GRAPH

No. of Organsation

pre 2016
2016
after 2016
Don’t Know

ANALYSIS
Most of organization is ERP implement before 2016 because they are work from before
2016.

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4. OVER THE COURSE OF THE PROJECT DID YOU CHANGE YOUR ERP
VENDER?

OVER THE
COURSE OF THE
PROJECT DID YOU
NAME OF CHANGE YOUR
INSTITUTE/COMPANY/ORGANSIATION ERP VENDER
TIU Software consultancy Pvt. Ltd. no
Gokul Computer Institute, yes
Pratham I.tec., no
Trimurti construction firm, no
Mahi construction firm, yes
Brother Construction, no
Commerce Academy, no
3P Designer, yes
Megma Finance pvt. Ltd. yes

Over the course of the project did you change your ERP VENDER
Yes 5
No 4

GRAPH

over the course of

the project did
you change your
ERP vender
yes

No

ANALYSIS
Most of the organization are change the ERP vendor if they are not satisfy.

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5. DID YOU ACHIEVE THE OUTPUT FROM ERP THAT YOU EXPECT?
name of Did you achieved the output from
Institute/Company/Organization ERP that you expect
TIU Software consultancy Pvt. Ltd. Yes
Gokul Computer Institute, Yes
Pratham I.tec., No
Trimurti construction firm, Yes
Mahi construction firm, Yes
Brother Construction, No
Commerce Academy, Yes
3P Designer, Yes
Megma Finance pvt. Ltd. Yes

Did you achieve the output from ERP that you expect.
Yes 7
No 2

GRAPH

Did you achieved

the output from
ERP that you
expect
Yes

No

ANALYSIS
Maximum organization achieved the output after implementation of ERP system.

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HYPOTHESIS TESTING
Configuration
Configuring an ERP system is largely a matter of balancing the way you want the system
to work with the way the system lets you work. Begin by deciding which modules to
install, then adjust the system using configuration tables to achieve the best possible fit in
working with your company’s processes.

Modules — Most systems are modular simply for the flexibility of implementing some
functions but not others. Some common modules, such as finance and accounting are
adopted by nearly all
companies implementing enterprise systems; others however such as human resource
management are not needed by some companies and therefore not adopted.

Configuration Tables – A configuration table enables a company to tailor a particular

aspect of the system to the way it chooses to do business. For example, an organization
can select the type of inventory accounting – FIFO or LIFO – it will employ or whether it
wants to recognize revenue by geographical unit, product line, or distribution channel.

Consulting services
Many organizations did not have sufficient internal skills to implement an ERP project.
This resulted in many organizations offering consulting services for ERP implementation.
Typically, a consulting team was responsible for the entire ERP implementation including
planning, training, testing, implementation, and delivery of any customized modules.

Maintenance and support services

Maintenance and support services involves monitoring and managing an operational ERP
system. This function is often provided in-house using members of the IT department, or
may be provided by a specialist external consulting and services company.

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 FINDINGS &
SUGGESTION

Page | 43
 FINDINGS & SUGGESTION
FINDINGS
In this research I am finding that it is beneficiaries for business organization and also it
promotes technology.

BUSINESS BENEFITS
 Campus wide integration on a common system;
 Improve internal communications;
 Reduce or eliminate manual processes;
 Enhance strategic decision making and planning capabilities;
 Establish a self-service environment for employees;
 Improve self-service environment for students and faculty;
 Enable higher availability of administrative systems;
 Support sophisticated data analyses for use in decision-making;
 Integrated workflow, industry best practices, and reduced dependence on paper;

TECHNICAL BENEFITS
 Reduce or eliminate the need for backup or shadow systems;
 Platform for re-engineering business practices and continued process
improvements;
 Develop and maintain consistent data definitions;
 Provide accessible, user-friendly administrative and student support services;
 Increase data integrity, validity and reliability;
 Assure system wide security and protection of confidential information;
 Create a more seamless integration between technology and education delivery by
providing a single platform based on new technologies;
 Access to data in real time.

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RETURN ON INVESTMENTS FOR ERP
Some of the instructions that have to be followed to ensure adequate Return on
Investments are given below:

Working out the Myths of ERP in the Initial stage

The question of Erg's ROI remains a puzzle to companies who are experiencing
difficulties even in implementing it. There is a simple and straight answer to the question
of ROI on ERP. Companies can definitely be assured of ROI from ERP if they properly
follow the procedures and implement the right practices.

Objective Decision Process

"Choosing which ERP to use is a complex decision that has significant economic
consequences, thus it requires a multi-criterion approach.". There are two key points to
note when the major decision makers are agreeing on selection criteria that will be used in
evaluating potential vendors.

Full Involvement by all Personnel

The decision on the system must be made by all stakeholders within the enterprise. "It
requires top management leadership and participation…… it involves virtually every
department within the company". Representatives of all users should:
 Be involved in the project initiation phase where the decision making process is
agreed;
 Assist in the gathering of requirements;
 Attend the Vendor Demonstrations;
 Have a significant participation in the short-listing and final selection of a vendor.

Joint ventures with the Respective Industry

The company need not necessarily implement ERP all on its own. They can as well share
it with leading players in the same industry. This will ensure that the risks will not be
heavy in the case of loss. This practice is assuming greater significance in the current

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scenario. The sharing allows them to have an interface with the systems on the basis of a
common platform.

Doing it all alone

This is in fact one of the primitive methods and is no doubt followed till date. This
method takes a lot of risks in this method. But if they are calculated properly then the
regime would be inscribed as a golden period in the company's history.

Full/Partial Implementation
It has always been said that ERP products and services are purely based on the needs and
resources of the company. This is not a risk for ERP implementation.

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 SUGGESTION

For successful implementation I am personally suggest that following point should

be consider:

Vendor Selection- The choice of vendor for your ERP software is critically important to
the success of your project. A good fit for your industry and business ensures a relatively
smooth transition from old to new.

Choosing an Implementation Consultant- Depending on the size and scope of your

ERP implementation, you may be faced with choosing a vendor to provide a consulting
team for your implementation. Not every ERP project requires a full time consultant
team.

Change Management- In matters of faith, it is a close call between which requires more:
your belief in a deity of choice as part of your spiritual health, or your belief in change
management as part of your ERP project’s health.

Data Cleansing- Ask any veteran of an ERP implementation to cite critical success
factors, and you will always hear “data cleansing” near the top of the list. Then ask those
same veterans to identify the top two or three tasks that they most underestimated, in
terms of scope and complexity, and see if “data cleansing” does not also make that list as
well. Let’s talk about why data cleansing is important to ERP success, and some tips to
improve your approach.

Leadership commitment- Having a committed executive group is an important key to

ERP implementation success.

Team Talent- To cite “assembling the right team” as a key ERP success factor seems as
obvious as saying the key to growing your business is to increase your revenue, or the key
to wealth accumulation is to earn more than you spend.

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Testing- It would be easy to expect that after analysis of business implementations, ERP
software ought to be mature enough to just run the “install wizard”.

User Training- One of the best ways to increase the likelihood of an ERP
implementation success is with an effective end user training process.

Spending Wisely- An oft-repeated rule of thumb is that an ERP implementation will cost
you twice as much as you planned for by the time you are finished.

Adapting Business Processes- One of the most difficult tasks you will undertake in your
pursuit of a successful ERP implementation is knowing when to change a business
process to conform to out-of-the-box ERP.

Defining Success- Defining success for an IT project seems to be inherently more

difficult than defining successful financial expectations, or manufacturing objectives.

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 CONCLUSION

It is clear that many modern companies need access to accurate real-time information as
well as support and automatization for their business processes in order to keep up with
the competition. Enterprise resource planning systems can provide access to such
information and automate the business processes along with other benefits. ERP systems
are not problem-free but instead are often associated with problematic implementations
and high costs. Despite the problems, ERP systems are widely used and deemed
beneficial.

Page | 49
BIBLOGRAPHY

Page | 50
 BIBLOGRAPHY

1. Class A ERP Implementation: Integrating Lean and Six Sigma

- by Donald H. Sheldon

2. IPCC Audit & Assurance - by CA Ravi Taori

3. Maximizing Your ERP System: A Practical Guide for Managers

- by Scott Hamilton

4. Enterprise Resource Planning

- by Bret Wagner

5. www.wikipedia.org

6. www.sap.com

7. www.oracle.com

8. www.nasscom.com

9. www.google.com

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ERP IMPLEMENTATION SURVEY QUESTIONARIES

Que.1 your institution implemented purchased ERP software for student, Human
resource, or financial system?
a. Student
b. Human resource
c. Financial system.

Que.2 were you in your current position during your intuition’s ERP
implementation?
a. I was in my position before the planning for ERP began
b. I was in my position after the planning but before ERP implementation began
c. I was hired during the implementation
d. I was hired after the product was implemented.

Que. 3 In what year did you start your planning?

a. Pre 2015
b. 2016
c. After 2016
d. Don’t know

Que. 4 In what year did you purchase your software?

a. Pre 2015
b. 2016
c. After 2016
d. Don’t know

Que. 5 If you have purchased ERP software and haven’t implemented all the
module, why have you waited?(select all that apply)

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 a. We are following a Phased implementation plan, and haven’t installed that
modules yet
b. We are waiting for the product to mature in a later release
c. We are seeking funding for implementation
d. We are seeking top management approval to proceed
e. We have conflicting projects/ priorities and must complete them first
f. Other

Que.6 over the course of the project did you change your ERP vender?
a. Yes
b. No

Que. 7 If above ans. is yes, why?

Que. 8 why did your intuition choose the ERP Vendor that you Did?
a. Product feature and function best fit our requirements.
b. Product architecture best fir with our IT strategy
c. Product price
d. Vendors or product vision

Que. 9 How many total consulting firms did you work with to implement your ERP
software?
a. None
b. 1
c. 2
d. More then 2

Que. 10 why did you hire consultant?

a. To be a strategic partner from planning to implementation
b. To provide project design and advice
c. To manage the implementation
d. To provide training
e. To provide transfer to knowledge

Que. 11 why did you select consultant firm that you did ?

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 a. Reduce cost
b. Availability of special personnel
c. Size and proximity
d. Strong experience in higher education.

Que. 12 At the time your institution choose an ERP product which factor was the
most important for intuition?
a. Modernize the IT campus
b. Increase efficacy
c. Provide better management Tools
d. Keep institute competitive

Que. 13 who was the 1st advocate for an ERP implementation at your institute ?
a. Chief HR officer
b. President of the institute or organsation
c. Any consulting firm
d. Any other (if any mention there name )

Que. 14 Did you achieved the output from ERP that you expect?
a. Yes
b. No
c. Don’t know

Que. 15 what you Do if vendors are not provide information properly?

a. Fire on them
b. Change the vendor
c. Scarifies or settlement with vendor
d. Can’t do anything.
e. Communicate with them

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