Enterprise Management Systems

ERP Definition
 ERP is a networked system of functional processes
designed to meet customer expectations using all
resources effectively & efficiently. Focus on Resource

 ERP is a integrated system of business applications &

has open system architecture independent of OS and DB
promising seamless flow of data & information. Focus on
Integration

 ERP is a IT enabled resource management system

Helping resource mobilization and deployment to
achieve business goals. Focus on management of
enterprise
 Enterprise Resource Planning
(ERP ) system

 ERP systems are designed to make a effective use of

resources ( Men, Machines & Materials ) through its
planning and control for achieving designated business
goals.

 ERP is an integrated resource management system where

business processes are managed seamlessly across the
business functions.

 ERP is capable of data acquisition & processing, transaction

processing, application and systems processing and offers
best practices of running the business.
 Features of ERP
1. Focus on process

2. Offers best process practices for implementation

3. Process automation through embedding the rules

and DSSs.reducing processing cycle

4. Status updating , automatic across the process

 Features of ERP (Contd…)

5. Analytics and Decision making combined

6. Flexible to configure for specific business

requirement

7. Capable of interfacing to other technologies

saving processing time

 Additional features

 Work group & Work flow processing

Efficient use of Human resource & faster
processing

 Ease of access to empowered & authorized

personnel from any where
Faster decision making due to access

 Business rules embedded in the system

Automation of operational decisions
 ERP design features

 Integrity of information & same status to all

Same understanding and response across organization

 Multiple & simultaneous update across

functions. Same base view to all who access

 ERP design features (Contd…)

 Consistent look & feel of all applications

Ease in understanding the change and learning

 Provision of best practices making ease of

change. Efficient use of investment in ERP

 ERP Benefits: Operational
1. Operational

 Reduction in processing cycle

 Empowerment of decision makers due to

access to information

 Automated decision making eliminates delays

 Reduction in overheads due to HR saving

 Resource productivity increased

 Business operations more efficient & effective

 ERP Benefits: Business

2. Business benefits

 Higher profits due to better efficient use of

resources

 Less working capital due to reduced inventory

& receivables, and better credit management

 Reduction in managerial overheads

 ERP Benefits: Management

3. Management benefits

 Lean flat organization

 Same information status to all

 Collaborative working in network

environment

 Improved strategic management of business

 Outcome of ERP

 Single Information resource

 Improved Information accuracy

 No information redundancy

 Lower transaction processing cost

 Integrated price, cost, sales information

 Integration of information, applications, systems

 Automated decision at operations level

 ERP impact

 Working capital: Reduced

 Fixed assets: Improved utilization
 Organization: Lean ,flat & learning
 Larger market reach: Growth in business
 Distributed operations & working: Quicker
access & availability
 Learning organization: Able to face competition
 Performance: Shows radical change