ENTERPRISE RESOURCES PLANNING (ERP)

What is ERP ?
Process of using integrated application software to improve the effectiveness & efficiency of the enterprise. Originated as an extension of MRP (Material Requirements Planning; later Manufacturing Resource Planning) and (CIM) Computer Integrated Manufacturing. Introduced by research & analysis from Gartner in 1990.

Non-integrated IS
HR applications Marketing applications

Integrated IS
HR applications Marketing applications

HR data

Marketing data

Financial applications

Production applications

HR,marketing ,financial and production data

Financial data

Production data

Financial applications

Production applications

Purpose of ERP
High level of integration across all enterprise functions. Integrates organizational units. Integrates a firm with its suppliers and customers. Helps to integrate the entire value chain.

Implementation of ERP
Critical Success Factors Of ERP
Strong top management Support Centralized project management with a business leader in charge Strong IT management and staff support Retraining of existing software developers in ERP implementation and maintenance Extensive training of end users in the new system A respected and effective champion for ERP within the organization Effective and continuous communication among all parties involved in the ERP Project

Approaches To ERP
Comprehensive package To purchase a comprehensive packaged system e.g, SAP, Peoplesoft, Oracle, baan and so on. Best-of-breed Best available software is chosen for a particular application and is integrated other best-of-breed solution in other functional areas. e.g, e-Commerce Hybrid (comprehensive + Best-of-Bread)

Comprehensive package

Best-Of-Breed

Hybrid

Advantages of ERP
ERP system connects the necessary software in order for accurate forecasting to be done. Integration Design engineering Order tracking Revenue cycle Tracking three way match Centralized the date in one place

Disadvantages of ERP

Problem with ERP system are due to inadequate investment in ongoing training for the involved IT personnel. Customization Expensive Too rigid too difficult to adapt specific work flow Need high accuracy

ERP & Applications

in this time of drastic change, it is the learners who inherit the future ----Eric Hoffer

Features

Automate & integrate. Share data, procedures & practise across enterprise. Produce, share & access info. Analysis data in real time. Synergy effect CRM & SCM. Process innovation.

as per mc Kinsey around 1990s $300 was invested by business around the world

Leading Players

J.D. Edwards. BAAN. Oracle. Peoplesoft SAP

erp marKet showed solid organic growth in 2004 as i.t spending improved- Jim Shepard

Comprehensive Enterprise Application

ERP v/s CRM

ERP v/s SCM

its not the vision is, but its what the vision does Robert Fritz

Applications & Priorities

1. 2. 3.

Getting Strategic choice made. Implementation under Control. CEO agendas Outline strategic Priority. Get the Organization involved. Link Management Control & Incentives to project Success.

most of us prefer being precisely wrong rather than vaguely right John Maynard Keynes

Future Scope
Supply Chain Mgmt. HR Mgmt. Business Intelligence.

 SCM ---- Service, resource utilization, response time. HRM ---- Intra comm., info. transfer, work force efficiency. Business Intelligence ---- Gather info., identify strengths & weaknesses.