R E S O U R C E S

ERP
RESOURCE MANAGEMENT SOFTWARE

The SAP ERP system was developed by SAP AG, a company founded by five former IBM employees in 1972 who wanted to create a real-time Systems, Applications and Products" business system. SAP was one of the first major enterprise res In 2005 SAP launched its ERP Central Component (ECC) 6.0 to redefine enterprise resource planning delivering role-based access to crucial data, applications, and analytical tools. The SAP ERP system is traditionally implemented by very large corporations or growing midsized companies. They have, however, introduced the SAP Starter Pack for small businesses.

The first edition of mySAP ERP was launche in 2003 and bundled previously separate products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management (SEM) and extension sets. The SAP Web Application Server was wrapped intoNetWeaver, which was also introduced in 2003. A complete architecture change took place with the introduction of mySAP ERP edition 2004. R/3 Enterprise was replaced with the

SAP ERP consists of several modules, including utilities for marketing and sales, field service, product design and development, production and inventory control, human resources, finance and accounting. SAP ERP collects and combines data from the separate modules to provide the company or organization with enterprise resource planning. Although there can be major benefits for customers of SAP ERP, the implementation and training costs are high. Many companies experience problems when implementing SAP ERP software, such as failing to specify their operation objectives, absence of a strong commitment or positive approach to change, failing to deal with organizational differences, failing to plan the change to SAP ERP properly, inadequate testing. All these factors can mean the difference between having a successful implementation of SAP ERP or an unsuccessful one. If SAP ERP is implemented correctly an enterprise can go from its old calculations system to a fully integrated software package. Potential benefits include efficient business process, inventory reduction, and lead time reduction.

Main Functionality CRM, Business Intelligence, Accounting, Human Resources, Inventory Management, Manufacturing, Project Management, Supply Chain Management, and Procurement Features Business Size Ideal for a large business.

Use the CRM features to keep all of your customers' information in one place. Your marketing and sales teams will be happy. Create reports and keep them in a centralized dashboard, to help you keep track of a variety of performance indicators. Keep your finances in check with the accounting features included in SAP Use the HR features to help with your most important customer: your employees. Keep track of the ins and outs of your inventory. Literally. Use the manufacturing features to help you control your production process. Take control of your projects and make sure they are finished on time and on budget. Use the included procurement capabilities to make the whole process faster and more efficient. Manage your entire supply chain with the features included in SAP.

Advantages Allows easier global integration (barriers of currency exchange rates, language, and culture can be bridged automatically) Updates only need to be done once to be implemented company-wide Provides real-time information, reducing the possibility of redundancy errors May create a more efficient work environment for employees[5] Vendors have past knowledge and expertise on how to best build and implement a system User interface is completely customizable allowing end users to dictate the operational structure of the product Disadvantages Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high Inflexibility - vendor packages may not fit a company's business model well and customization can be expensive Return on Investment may take too long to be profitable Implementations have a risk of project failure

he Nashik Municipal Corporation (NMC) has started working on Enterprise Resource Planning (ERP) to integrate functioning of all departments of NMC and the new SAP system is to be made operational from the beginning of the next financial year.

comparison

SAP Largest share of the market Highest short-listing rate Lowest selection rate when short-listed Longest payback period Oracle Highest selection rate when short-listed Longest implementation duration Largest delta between planned and actual implementation duration Lowest percent of users who realized between 81and 100-percent of benefits Microsoft Dynamics Smallest share of the market Lowest short-listing rate Shortest implementation duration Highest percentage of users who realized between 81- and 100-percent of benefits