NHPC

A PROJECT REPORT
On ERP SYSTEM with
(FROM 10-FEB.-2010 TO 11-MAR.-2010)
A PROJECT REPORT SUBMITTED AS A PARTIAL

REQUIREMENT FOR THE FULLFILLMENT OF THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

(JULY-2008-JULY2010)
TO
EIILM UNIVERSITY, 16TH MILE

CAMPUS, JORETHANG, SOUTH-SIKKIM,
PIN-737121
BY
SATYENDRA NATH YADAW (MBA IT 4 TH

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SEM)
SATYENDRA NATH
YADAW (MBA IT) IV TH SEM
ENROLLMENT NO.-
Rangit Power Station
Features
SALIENT FEATURES
Location Distt. South Sikkim, Sikkim
Approach Nearest Rail Head - New Jalpaiguri, Airport-Bogdogra
Capacity 60 MW (3 x 20)
Annual Generation 338.61 million units
Project Cost Rs. 492.26 Crore
Beneficiary States Sikkim, West Bengal, Orissa & Bihar
Year of Commissioning/Completion Schedule December 1999
TECHNICAL FEATURES
• 45 m high, 100m long concrete gravity dam.
• 4.5 m dia, 3 km long head race tunnel.
• Surface power house containing 3 units of 20 MW each.
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ERP SYSTEM
ERP, which is an abbreviation for Enterprise Resource Planning, is

principally an integration of business management practices and modern
technology. Information Technology (IT) integrates with the core business
processes of a corporate house to streamline and accomplish specific
business objectives. Consequently, ERP is an amalgamation of three most
important components; Business Management Practices, Information
Technology and Specific Business Objectives.
In simpler words, an ERP is a massive software architecture that supports

the streaming and distribution of geographically scattered enterprise wide
information across all the functional units of a business house. It provides
the business management executives with a comprehensive overview of
the complete business execution which in turn influences their decisions
in a productive way.
At the core of ERP is a well managed centralized data repository which

acquires information from and supply information into the fragmented
applications operating on a universal computing platform.
Information in large business organizations is accumulated on various

servers across many functional units and sometimes separated by
geographical boundaries. Such information islands can possibly service
individual organizational units but fail to enhance enterprise wide
performance, speed and competence.
The term ERP originally referred to the way a large organization planned
to use its organizational wide resources. Formerly, ERP systems were used
in larger and more industrial types of companies. However, the use of ERP
has changed radically over a period of few years. Today the term can be
applied to any type of company, operating in any kind of field and of any
magnitude.
Today's ERP software architecture can possibly envelop a broad range of

enterprise wide functions and integrate them into a single unified
database repository. For instance, functions such as Human Resources,
Supply Chain Management, Customer Relationship Management, Finance,
Manufacturing Warehouse Management and Logistics were all previously
stand alone software applications, generally housed with their own
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applications, database and network, but today, they can all work under a
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single umbrella - the ERP architecture.
In order for a software system to be considered ERP, it must provide a

business with wide collection of functionalities supported by features like
flexibility, modularity & openness, widespread, finest business processes
and global focus.
Integration is Key to ERP Systems
Integration is an exceptionally significant ingredient to ERP systems. The

integration between business processes helps develop communication
and information distribution, leading to remarkable increase in
productivity, speed and performance.
The key objective of an ERP system is to integrate information and

processes from all functional divisions of an organization and merge it for
effortless access and structured workflow. The integration is typically
accomplished by constructing a single database repository that
communicates with multiple software applications providing different
divisions of an organization with various business statistics and
information.
Although the perfect configuration would be a single ERP system for an

entire organization, but many larger organizations usually deploy a single
functional system and slowly interface it with other functional divisions.
This type of deployment can really be time-consuming and expensive.
The Ideal ERP System
An ERP system would qualify as the best model for enterprise wide
solution architecture, if it chains all the below organizational processes
together with a central database repository and a fused computing
platform.
Manufacturing
Engineering, resource & capacity planning, material planning, workflow

management, shop floor management, quality control, bills of material,
manufacturing process, etc.
Financials
Accounts payable, accounts receivable, fixed assets, general ledger, cash

management, and billing (contract/service)
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Human Resource
Recruitment, benefits, compensations, training, payroll, time and

attendance, labour rules, people management
Supply Chain Management
Inventory management, supply chain planning, supplier scheduling, claim

processing, sales order administration, procurement planning,
transportation and distribution
Projects
Costing, billing, activity management, time and expense
Customer Relationship Management
Sales and marketing, service, commissions, customer contact and after

sales support
Data Warehouse
Generally, this is an information storehouse that can be accessed by

organizations, customers, suppliers and employees for their learning and
orientation
ERP Systems Improve Productivity, Speed and Performance
Prior to evolution of the ERP model, each department in an enterprise had

their own isolated software application which did not interface with any
other system. Such isolated framework could not synchronize the inter-
department processes and hence hampered the productivity, speed and
performance of the overall organization. These led to issues such as
incompatible exchange standards, lack of synchronization, incomplete
understanding of the enterprise functioning, unproductive decisions and
many more.
For example: The financials could not coordinate with the procurement
team to plan out purchases as per the availability of money.
Hence, deploying a comprehensive ERP system across an organization

leads to performance increase, workflow synchronization, standardized
information exchange formats, complete overview of the enterprise
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functioning, global decision optimization, speed enhancement and much
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more.
Implementation of an ERP System
Implementing an ERP system in an organization is an extremely complex

process. It takes lot of systematic planning, expert consultation and well
structured approach. Due to its extensive scope it may even take years to
implement in a large organization. Implementing an ERP system will
eventually necessitate significant changes on staff and work processes.
While it may seem practical for an in-house IT administration to head the
project, it is commonly advised that special ERP implementation experts
be consulted, since they are specially trained in deploying these kinds of
systems.
Organizations generally use ERP vendors or consulting companies to

implement their customized ERP system. There are three types of
professional services that are provided when implementing an ERP
system, they are Consulting, Customization and Support.
• Consulting Services - are responsible for the initial stages of ERP

implementation where they help an organization go live with their
new system, with product training, workflow, improve ERP's use in
the specific organization, etc.
• Customization Services - work by extending the use of the new ERP
system or changing its use by creating customized interfaces and/or
underlying application code. While ERP systems are made for many
core routines, there are still some needs that need to be built or
customized for a particular organization.
• Support Services - include both support and maintenance of ERP
systems. For instance, trouble shooting and assistance with ERP
issues.
The ERP implementation process goes through five major stages which
are Structured Planning, Process Assessment, Data Compilation &
Cleanup, Education & Testing and Usage & Evaluation.
1. Structured Planning: is the foremost and the most crucial stage

where an capable project team is selected, present business
processes are studied, information flow within and outside the
organization is scrutinized, vital objectives are set and a
comprehensive implementation plan is formulated.
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2. Process Assessment: is the next important stage where the
prospective software capabilities are examined, manual business
processes are recognized and standard working procedures are
constructed.
3. Data Compilation & Cleanup: helps in identifying data which is to be
converted and the new information that would be needed. The
compiled data is then analyzed for accuracy and completeness,
throwing away the worthless/unwanted information.
4. Education & Testing: aids in proofing the system and educating the
users with ERP mechanisms. The complete database is tested and
verified by the project team using multiple testing methods and
processes. A broad in-house training is held where all the concerned
users are oriented with the functioning of the new ERP system.
5. Usage & Evaluation: is the final and an ongoing stage for the ERP.
The lately implemented ERP is deployed live within the organization
and is regularly checked by the project team for any flaw or error
detection.
Advantages of ERP Systems
There are many advantages of implementing an EPR system. A few of

them are listed below:
• A perfectly integrated system chaining all the functional areas

together
• The capability to streamline different organizational processes and
workflows
• The ability to effortlessly communicate information across various
departments\
• Improved efficiency, performance and productivity levels
• Enhanced tracking and forecasting
• Improved customer service and satisfaction
Disadvantages of ERP Systems
While advantages usually outweigh disadvantages for most organizations

implementing an ERP system, here are some of the most common
obstacles experienced:
• The scope of customization is limited in several circumstances

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• The present business processes have to be rethought to make them
synchronize with the ERP
• ERP systems can be extremely expensive to implement
• There could be lack of continuous technical support
• ERP systems may be too rigid for specific organizations that are
either new or want to move in a new direction in the near future
Significance of ERP Implementation
Companies have to clearly know what enterprise resource is planning

before thinking of implementing them. The catch word of ERP
implementation is speed.
The faster it is implemented the quicker and better are the advantages
and delivery in terms of results. This early process has another hold. The
returns are sought at a shorter period. This deviation from the
conventional practice has become the order of the day as far as many
companies are concerned. Formerly Business process reengineering
played a vital role with respect to implementation. It is important to know
the components of Enterprise resource planning .Merely defining
enterprise resource planning will not help in this.
This naturally paved way to development of gaps between the actual

results and the one derived during the process of foreseeing. Tuning ERP
as per the whims and fancies of the practices followed in the company
became a routine affair. This led to slogging and dragging beyond the
time limits permitted. It was monetarily pinching and played havoc in the
customer's trust. It is also necessary to understand that mere ERP
planning does not guarantee the benefit of erp.It has to be implemented
as planned after understanding the components of enterprise resource
planning.
In spite of having improved the implementation issues what remains static

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and unfettered is the manner in which companies go ahead with ERP

implementation. They do it for the heck of it and without following
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systematic procedures. Infact they don't even check the desirability of
going into ERP. Some issues that an organization has to address after
defining enterprise resource planning are
• Popular information systems

• Likelihood of fluctuations in the choice of technology
• The ability of market players to stay in tune with it
• The ways and means to implement a business applications
like ERP
• To benefit from the same so as to gain a competitive edge
• Their usage and services
• The necessity for innovating software applications
If an organization is able to answer these questions without any ambiguity

and substantiate the results then it can be said that it has a path or up
focus in taking ERP. The questions mentioned above are crucial and will
even decide the business model of the company. ERP implementation is a
vital in the whole process of ERP. They can take place only if one
understands "What is enterprise resource Planning" and defining
enterprise resource planning in their organization.
Current Approach
It is essential to have an overview of the current approach. The current
approach is claimed to be relatively successful.
The current approach more popularly referred to as "baan" has two

underlying principles
The idea which concentrates on molding the business

This category is prominent when the organizational unit calls for a radical
restructing process by all means. This process will be carried in all aspects
of the business .Some of them include strategic manouvere, operation of
trade and the circumstances that call for change and adaptability.
Defining enterprise resource planning in context to the concerned
organization will help to decide on this issue.
The plan which lays more emphasis on technical parameters.

Here business takes the back seat. The thrust lies on technical
dimensions. This does not ignore the commercial viability as such but they
occupy seat only in the due course of time more so when operations are
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triggered in full stream and not at the initial stage itself. The advantage
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with this type is that it does not call for an immediate modification of the
business structure. However it is essential to know the components of
enterprise resource planning.
Conclusion
The popularity of ERP as a business application does deserve a special

mention. The most crucial factor in the whole system of ERP is the
implementation aspect. The implementation phase has the ability to cast
the spell on ERP'S fortune. As discussed before the success of an ERP
Implementation lies in quicker processes and hence training and the
speed at which the quintessence of training is received decides its worth
and value. Above all one has to clearly understand "What is Enterprise
resource Planning"? and then implement it.
Errors in ERP implementation

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ERP implementation failure is a major concern for companies. ERP
implementation needs to be done without allowing any scope for
limitations and mistakes. If it is not done perfectly then the success of ERP
system will remain a question mark.
The first and foremost factor that discourages ERP in an organization is
the exorbitant costs and investment. The second one is the drafting of an
ERP implementation plan to ensure ERP implementation success.
Some more issues that arise during and after the course of ERP
implementation is discussed below:
Enhancement of ERP'S functions

Erg's scope gets wider as it is implemented in an organization. There is a
call for including many tasks under the purview. This dilutes the ERP
Existing system after modifying it a couple of times. Repeated change in
configurations and systems will only add to the confusions. When the
functions are operated by a machine it becomes increasingly difficult to
make the necessary changes. These troubles arise when they are not
foreseen and addressed in the implementation stage. They have to be
given a place in ERP implementation plan.
Organizational reaction to change

Changes do happen quickly and immediately in the organization after ERP
is implemented. But if there is no proper understanding of the process or
mishandling of information, it will result in questioning the ERP process. If
updating is not done in the machine it will only affect the business process
and create unnecessary confusions. The changes don't happen all on a
sudden in an organization and expecting it immediately will only cause
needless disappointments. In spite of all this expecting every member in
the organization to respond proactively will not happen. If that happens
the chances of ERP implementation success are great.
Inflating resources for ERP implementation

The implementation time and money always exceeds the promises and
stipulated deadline and amount. This makes companies to lose faith on
ERP and ERP vendors. They think that ERP vendors overplay on the costs
and time required but it is not so. Infact they are aware of it in the very
beginning stage itself but have a different reason for concealing. They
don't disclose it in the beginning because it would look like exaggerating.
Infact no one would like to lose a prospective business and vendors are
equally aware of the fact that "Truths are always bitter"! However many
people mistake this to be the cause for ERP implementation failure.
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Organizations non adherence to the stated principles
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Organizations largely experience a wide gap between practices and
preaching .Infact this has a negative effect on the entire business scenario
itself. The voracity and impact of loss could be greater and more
devastating when this turns out to be true even in the case of ERP. Since
ERP successful functioning is purely based on following the laid down
procedures the lag could throw a serious challenge on ERP'S potential
right from the stage of its implementation.
Problem of Transformation due to ERP

Employees find it hard to digest the transformations that place in an
organization all on a sudden due to ERP implementation. Infact employees
exhibit positive signs as everything goes right in the first place. But as one
progresses he finds difficult to work as it gets more complex. The initial
interest and expectation turns into apprehensiveness in due course of
time. There is another category of people who did not encourage ERP
right from the conceptualization stage. Their state of mind during these
circumstances deserves no special mention.
Conclusion
ERP vendor has to address all these issues in order to ensure that there is
ERP implementation success. If everything goes as per ERP
implementation plan then there are no chances of ERP implementation
failure.
Return on investments for ERP
This article can form the basis for a research namely "ERP Industry
paper". The intervention of ERP has resulted
in lot of discussions among IT professionals, employees, and market and
so on.
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.
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This is often well said than done. One common blunder committed by the
company is following the age old methodologies and thereby the ERP
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process will not add any value to the company and business process. The
difficulty in implementation process makes them think it ids difficult to
embrace ERP and the returns will not be guaranteed. This mindset is not
true and hence companies have to work more as the process deepens and
not vice versa, in order to achieve optimum benefits from ERP. Otherwise
the operations done by ERPROI calculator will not be true. Even using
ERPROI tools will serve no purpose.
Proper Implementation and Finance

There 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.
However the fact is that it will affect the company in the long run unless
the step is meant to change the decision like partial implementation
(provided it is supported by some logical reasons. While talking about the
implementation process it is important to ensure that it confirms with the
standards and as per the instruction of the vendor/ERP consultant.
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. They will defeat
the very objective of ERP ROI .There will be no use even in disgruntling on
ERPROI tools.
Conclusion
As said in the initial part of this article ERP success solely depends on
successfully following the laid steps. It will be proper to use ERP ROI to
find the quantum.
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How to make ERP User friendly?
The very thought of ERP function creates a sense of apprehension and

hesitation among users. They get scared on thinking about their fate of
working with the technology. These are only mindsets.
They have to be dealt carefully so that the end users are comfortable in
working with ERP software application so that they contribute towards the
company's benefits.
Some of the steps suggested include:
Proper Training
This is the most crucial factor in making ERP user friendly. The training
program has to be designed based on the requirements of the users. In
fact many companies use their in house IT staff to draft the training
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curriculum in consultation with the ERP consultant. It is advisable to follow
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this procedure because companies know what their employees are looking
and they will help in providing the required material to upgrade and clarify
them in all respects. ERP software vendor will not be able to provide this.
It has been often said that ERP training should not resemble a technical
symposium. If companies are unmindful to this notion then they are likely
to land in more trouble as the process will only create fear and confusions
among employees. The thrust areas in training should be as simple as
possible and reach the laymen so that he understands the procedures and
becomes a master over a period of time. These steps will ensure proper
use of ERP software application.
If these issues are not addressed in the right manner the companies will
later find their employees in debacle and blaming their employer in
infusing the technology despite opposition. The purpose in giving large
importance to training is to make the employees understand the nuances
and develop a liking. ERP function will then become a part and parcel of
their working. Training should impart the knowledge required to unravel
the mystery behind ERP software application.
Making the Employees a part of ERP committee

The employees will have to be included in the core committee of ERP
decision making team not because of power politics but for practical
reasons like expressing difficulties and making representations and as
when needed. If the management is thinking of hiring an ERP consultant
and making use of the services of IT personnel alone for ERP process it is
certainly an unwise move.
Neither the IT staff nor the ERP consultant is going to regularly use the
ERP systems of the company regularly. Even if the IT staff uses it will be
on the programming areas and not on the functional issues. Hence proper
attention should be received from the persons who would be making use
of it. This will help in rejuvenating the modification process and make it
more meaningful and user friendly. This committee should be in action
right from the time of making negotiations with ERP software vendor.
Make the necessary Alterations
The very purpose in having employees in the core team is to obtain

suggestions and make adjustments as and when demanded (of course
subject to the validity and approval from technical people. The
amendments shall be made as and when required and it need not
necessarily be at the request of the employee. The technical personnel or
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the consultant himself might find some flaws and advantages while
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examining ERP in the company. Whenever there is an opinion from any
source it should be immediately heard. The expression of views will go a
long way in making ERP user-friendly. These alterations should be
reviewed before deciding on the ERP software vendor.
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How to overcome ERP troubles?
ERP software reviews compare the implementation and the resultant

effect of ERP to developing another new company itself because the aim
is to introduce drastic changes in the entire environment.
The changes are not minor but extremely severe. In that context there are
so many troubles in ERP and they should be solved as and when identified
failing which there will be a decline in ERP's functioning.
Some of the common troubles and their solution include the

following.
Poor infrastructure and facilities

The first and foremost trouble in ERP could be poor infrastructure and
facilities. Poor does not only means low standards but also includes those
facilities that are either ill-equipped nor up to the professional standards
demanded for ERP. When this happens to be the trouble an analysis has
to be made right from the implementation process in order to check
validity and ensure quality. These do not necessarily speak on the future
of ERP or its intervention in the company because they are capable of
being solved through system manipulation in most cases. Otherwise some
maneuvers have to be done to confirm the suitable of the operations and
make it user friendly. ERP architecture of failed ERP systems has to be
analyzed in this context.
Mistakes in installation and implementation process

These problems occur when an ERP consultant is not given the required
liberty and freedom to make his own decisions. The management always
tries to thrust their way of getting things done and turn deaf to the expert
advice given by the ERP vendor and consultant. When they realize it
during the flaws in the regular course of business it becomes too late. The
companies can make use of ERP software reviews for this purpose so as to
avoid failed ERP systems.
Lack of proper usage

At many a times it is found that ERP does not serve the purpose for which
it is implemented in the sense the old procedures continue uninterrupted
while ERP is made to do its assigned tasks. In this case ERP does not add
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any values to the process.This basically show that the induction and
orientation done for change management is not up to the required extent.
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Attitudinal change could be the solution to this issue because people are
either reluctant to accept change or tend to accept it for the heck of it. In
fact it would be harsh to force people to accept change but if nothing else
works out that has to be the only alternative. ERP architecture has to be
constructed only after this process. The case histories of failed ERP
systems have to be studied.
Not making out the maximum benefits
This trouble sound very simple but it is not so. While the earlier one talks
about not using it at all or using it defectively and gaining lesser benefits
this discussion is about using it but not using it to attain excellence. ERP
has to be put to use in a full fledged manner. If it is used as a toll to
overcome issues like departmental inconvenience and without keeping
the organizational goals in mind then there is no point in bringing ERP.ERP
should be used with a long term objective in mind and not as a medium to
solve minor hitches. The business process must akin to ERP operations
without which there cannot be justification of its use. Frequently referring
ERP software reviews will also help to a considerable extent.
What are the steps to be taken to account the performance ERP

software programs in your organization?
Enterprise Resource planning ERP definition is not a technical aspect.

Enterprise resource planning is a huge investment on the part of
company. Therefore it is necessary to ensure the accountability of the ERP
vendor.
An understanding of ERP and language is must to follow ERP best
practices. The ERP vendor cannot be blamed if the company does not
follow the procedures correctly. On the contrary when his services are not
up to the industry standards he has to be held responsible. But how to
compute the services is another big question.
Some of the steps that can be taken to compute are as

underneath:
Preparations
The company should have a scale for evaluation right from the beginning
stage. This will help them to progress further in due course of time .This is
the primary step in the process .It includes everything is checking if the
vendor has given the necessary supporting services to the company in the
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process of implementation installation training and relevant areas. This is
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very important because it forms the foundation for the ERP process in the
company. One needs to be clear about ERP best practices for this.
Evaluating the work

This step concentrates on the core function. The company must
periodically make a note of the work done. Any discrepancies will be
brought to the vendor's notice immediately. The vendor should extend his
full fledged cooperation in making sure that the work gets done as
promised. Then only it is possible to scale ERP best practices.
Incase there are some inherent errors or technical flaws in the company
the ERP vendor can advise or suggest the company on how things are to
be done. This step by and large helps the company to find out if the
vendor stands up to the promise in terms of delivery. Understanding of
ERP and language is a must.
Calculating ROI
ROI helps to directly account the performance of ERP software programs.

In simple terms ROI calculates the returns from ERP software programs.
When the returns are high or at least meets the expected and industry
standards the performance of ERP software can be rated as "promising".
The ROI on ERP will not be merely achieved by ERP implementation. The
returns will be achieved only if the procedures are followed properly. But if
the software fails to deliver the required results even after following the
correct practices it shows lacuna on the part of ERP software. This will
affect the rate of ROI as well.
Following contracts terms
The performance of ERP software can be gauged on the basis of its

working in relation to the terms of contract. ERP software that accords to
contractual terms in relation to working definitely indicates better
performance than vice versa.
Conclusion
Accounting ERP software is an important factor that helps to decide the

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accountability of ERP vendors. It has helped too decide the fate of several
lawsuits and clarify Enterprise Resource planning ERP definition.
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Getting to know BPR
BPR is one of the fundamental steps undertaken prior to ERP

implementation. Business process reengineering analyses and suggests
the structural changes. This is regarded to be very important because it
helps in knowing how the organization should be customized inorder to
become ERPfriendly.
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Change and BPR
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BPR is inevitable not only for ERP but as far as any business process is
concerned. BPR becomes the first step in the process of ERP
implementation. Business process reengineering is taken to conduct
feasibility study and other restructuring exercises. Nothing can be done to
prevent change. The best way to manage change is to adopt it.
Time and again it has been proved that imposing change of any
magnitude all on a sudden is not the proper way. There needs to be a
proper method to bring about it. Business process reengineering is one
scientific study that helps organizations largely to analyse the viability of
not only ERP but any other dynamic change. BPR ERP is interrelated.
BPR and ERP

BPR does not necessarily stop with the process of identifying the
possibility. It also suggests a series of steps that needs to be executed, for
ERP to find a place in the organization. BPR is the first step that comes
prior to ERP implementation.
The reason is simple. Many parameters are taken while preparing ERP.
This includes the assumption of Predefined functions. Hence ERP software
will be preconceived to perform those set of functions. On the other hand
companies expect ERP to function in such a way that it coincides with the
regular business process. BPR ERP can be the biggest challenge for the
vendor and the company as such. BPR ERP forms an important part of ERP
study.
Solving BPR ERP Clash

There are two alternatives that will help the companies to combat this
menace. The company can either restructure the business process itself
or customize the ERP system so that it suits the business process.
Deciding this is paramount to ERP implementation. BPRERP has lot of
conflicts. The pros and cons of each of them are explained in the following
paragraphs:
Implementing ERP Software to Suit Business Needs

When the company demands a particular ERPsoftware they have to make
compromises on the budget because reworking modules and supplying an
ERP Software would definitely be a costly affair. This is because of the
complications involved in doing the same.
Apart from finance this also calls for persons with greater working
knowledge to design the systems. This means the process is not going to
be unambiguous.he process will also require frequent updations. This is
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going to be difficult taking into account the several changes that has
already been inflicted on the system to make it business friendly.
Restructuring the business process to be ERP Friendly:

This method also requires lots of monetary outlay because of the major
change in business process.
The customers will not be receptive to changes in business process. It is

possible to train the employees but whereas in the case of customers they
cannot be expected to stay in tune in tune with the whims and fancies of
the organization.
It is possible to train the employees. The likelihood of them to adapting to

the change at the immediate outset is very much limited. This will cast a
spell on the revenue of the business and unless ERP does not make it
good in the later days the voluminous investment cannot be justified.
Conclusion
The company would not have even arrived, or decided on this crucial
juncture but for business process reengineering. The success of ERP
depends on how the company comes over BPRERP issues. ERP
implementation can go further only when these controversies are cleared.
Hence BPR forms a crucial part in implementing ERP.
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Choosing ERP Software
ERP failure cannot be tolerated by organizations as it involves great

money. On the contrary ERP success makes great money. The causes of
ERP failure can be a result of any of the following elements acting in
combination or individually:
Meeting and consultations in the organizations to decide ERP

Selecting ERP software does not happen all on a sudden or as a result of
an overnight's discussion. There is lot of groundwork that needs to be
done in this regard. There are many reasons for the ambiguity, with the
foremost being advent of Internet. This has expanded the scope of
computers and redefined the technological implications in the business.
As a result there is more expectations and demand. These were not
foreseen earlier. Advancement in computing indirectly implies the
advancement in enterprise resource planning. Needless to say the
constant updating, upgrading and innovating have become the
benchmark of ERP packages. The indecisive mind of companies in
choosing ERP soft ware solutions needs no explanation.
Hire or Buy ERP

There are two alternatives in choosing ERP software for the company. The
first one is purchasing the software while the second one is obtaining one
on hiring basis. There aren't any differences in terms of costs or benefits
irrespective of the option that the company goes for. It all lies in how best
the company makes use of ERP. However the company has to stick on to
any one option as soon as it finalizes.
ERP should Suit company preferences

Companies that choose ERP on grounds of their own preferences succeed
in the long run than other companies. Other companies who sail by some
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decision that does not justify their preferences are most unlikely to
succeed.
Choosing the ERP vendor

The quality of the services offered by the vendor is equally detrimental in
choosing ERP software. Buyers generally tend to purchase from sellers
who have got adequate experience in ERP Products and services. This is
the usual practice for any commodity. This has to be strongly followed in
the case of ERP as there are several dimensions involved with regards to
decision making. Nevertheless Choosing to buy from the right person is
alone not enough. How the organization makes the best use of it in
response to the specific needs, to avail the best services is more
important in deciding to buy ERP Systems.
ERP implementation will be successful if certain guidelines are followed in

choosing ERP software. There is a dual purpose in ERP. It is neither meant
exclusively to benefit the trade procedures in the organization nor help
the technological contents. It has to make both ends meet. This Key
function holds ERP in a special manner when compared with any other
system. Therefore the company must be prudent enough to choose an
application that caters to this advantage to the maximum extent.
Therefore if a company chooses an enterprise process to assist the
business or technology alone the decision will not yield the required
results.
Essential Elements of an ERP System

If a company is able to obtain all the related products of ERP from one
seller /vendor then it can be termed as a profitable Venture. The company
will be able to avail their services in all matters relating to ERP solutions.
This is highly recommended and regarded as a wonderful combination.
When they choose to buy an ERP application of a particular module it
must be ensured that they enable connectivity and facilitate data transfer
which should easily be made available to the stakeholders. The advantage
in buying a modular application is that the company can choose to select
them on the basis of the function for which it is purchased. These are the
essential element of ERP systems.
Time constraints in respect to the organizations function

The ERP system should be purchased based on the long term needs of the
organization. In that sense the firm should visualize its prospects, position
and requirements in the long term also. Therefore it has to be made sure
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that ERP is not restricted to meeting the current needs. This will also help
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in implementation of ERP.
Suppose if a company is engaged in one particular domain of banking it

also needs to understand that it may have to cater to the entire banking
sector if the need arises. Hence it must purchase ERP that can serve
related banking applications or if not be capable of modification for the
said purpose in the future. This will also stand out to be true in the case of
organizations that aim at diversifying the business. A choice is to be made
from ERP implementation models. This will also help in implementation of
ERP
Employees to express their opinion on ERP

The core members in the decision making body (for ERP) should hear and
heed to the views of all the employees in the company as long as they are
valid. This will make sure that everyone is given an opportunity of being
heard so that they don't lament that they were not allowed to express
their opinions on ERP. This discussions will facilitate the decision making
body to know how well ERP is received in the company and what are the
setbacks that are to be removed. This will also help in implementation of
ERP
There is another important objective in these meetings. They help to bring

out the various modifications and technological changes that the company
has to undergo to become ERP friendly. Gap meeting and business
process requirements do help in bringing out them. But these processes
will witness the employees difficulties and requirements directly. The
impact is also bound to be more when it is voiced out in person and in
detail.
Customizable and predefined Modules

A large majority of ERP sellers sell customized application in addition to
predefined applications to ERP customers. They assist the customers in
making all decisions right from implementation to use. Both have their
own advantages and disadvantages. In the case of customizable
applications the buyers will be instructed about the various options
available for modifying. The users have to make a decision of choosing
the appropriate combinations on the basis of their business requirements.
Resorting to an External Body for ERP Services

Some organization finds it tedious to undertake the above mentioned
steps. Their workload would be too large to concentrate on this. In that
case they can be outsourced to a third party who can take care by
keeping the needs of the organizations in mind. There are many
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competitive advantages in availing the services of such person. Firstly
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they have the professional expertise and the required experience. The
third party will also face the difficulties of the firm but there wont be any
mindset or favoritism as far as he is concerned .these are all inevitable
when the company is doing the service. Their services will be suited even
for bigger operations that have numerous complexity and ambiguity in
operations. This will also help in implementation of ERP.
Verifying the credibility of Vendor's services

The company has to check if the Vendor has already installed a similar
configuration elsewhere as it would not be advisable to be subjected to
first time testing given the huge investment in the name of ERP. If
possible the company can try to get information from the ERP customers
of the vendors but it is not practically possible to elicit the necessary
information whether they are competitors or not, as business ethics and
professional code of conduct would not permit the same. They will also
help in analyzing ERP Systems.
Application Service Provider

Application service provider is an emerging concept in ERP packages.
These are built in packages that have their own setups for hardware and
business process. The usual manner of choosing ERP viz Deciding, buying
and installing has even been given a go by in some occasions. This will
also help in ERP integration
The edge enjoyed by S.M.E.'s

ASP was discussed as a profitable option. The actual fact is that it is a
boon to small and medium enterprises (S.M.E.'S).They would not have
been able to think about ERP but for ASP and outsourcing. They would
choose these due to efficient services and affordable costs.
Choosing an outsource service provider

These companies may also choose to select the systems on a rental basis
so that they are not burdened with the tasks like administration, handling
network as these are too big when compared with the size of their firms.
As per ASP arrangement the infrastructure part will be taken care of by
the service provider. The company can access everything online, while the
customers access to ASP at an agreed Service charge for the stipulated
periods.
In the case of business process outsourcing the organization can avail the
services of a consultant for its business that will perform the required
functions on behalf of the company. The company can also choose to
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outsource inhouse operation to the outsourcer to get maximum benefits

be made from ERP implementation models.
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Choosing ERP vendors for ASP
Companies must exercise caution in choosing Asp service provider. Many
ERP sellers offer ASP services in response to the rising market demand.
Their expertise is unquestionable but the trouble lies in terms of costs as
the ERP vendor would price them at high rates. In addition the choices are
not plenty interms of choosing players. Therefore it is advised to refrain
from vendors offering ASP services and approach ASP service providers
alone. This will also help in implementation of ERP.
Resorting to an External Body for ERP Services

Some organization finds it tedious to undertake the above mentioned
steps. Their workload would be too large to concentrate on this. In that
case they can be outsourced to a third party who can take care by
keeping the needs of the organizations in mind. There are many
competitive advantages in availing the services of such person. Firstly
they have the professional expertise and the required experience. The
third party will also face the difficulties of the firm but there wont be any
mindset or favoritism as far as he is concerned .these are all inevitable
when the company is doing the service. Their services will be suited even
for bigger operations that have numerous complexity and ambiguity in
operations. There are different software solutions available for both
purposes.
Verifying the credibility of Vendor's services

The company has to check if the Vendor has already installed a similar
configuration elsewhere as it would not be advisable to be subjected to
first time testing given the huge investment in the name of ERP. If
possible the company can try to get information from the ERP customers
of the vendors but it is not practically possible to elicit the necessary
information whether they are competitors or not, as business ethics and
professional code of conduct would not permit the same.
The Nuances in choosing ERP Software

Pre ERP implementation includes analysis, constructive criticism;
homework's has a significant place in the whole process of ERP. Lot of
research and background work needs to be completed prior to the
implementation of ERP or even before thinking about bringing Erp into the
organization. The plans of the organization must be clearly charted out
and how it intends to benefit from Erp operations have to be looked from
a broader context.
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Important Points in the discussion
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This discussion should include important element namely financial issues.
Besides it should also account for the potential threats, strengths and
weakness. How much profit will be incurred have to be discussed and
substantiated? Other non monetary benefits should also find a place.
These studies should involve the contribution of the entire group in the
organization right from the person in the highest hierarchy to the one in
the lowest level. The contribution should be validated and sharpened by
means of presentations which will help everybody to get insight of the
different perspectives, and views. All of them will be helpful in
implementation of ERP.
The cost factor and compensation

ERP will definitely yield the required monetary benefits to organizations
whether they have the practice of built in systems or individual practices.
If we are to calculate the costs involved in preserving and building them
over a period of time it will be evident that the ERP costs incurred to
support and facilitate the said functions will be comparatively less.
This calculation will prove to be equally true even if we take the case of
individual department for that matter. Another important point in this
issue is that it has to align with the target goals of the organization (the
purpose for which it is sought and justified) as organizations generally
tend to go far ERP with a view to improve or increase the efficiency of a
particular section /dept and the whole process in general. Similarly the
costs incurred to facilitate that particular function must not be monetarily
pinching on the organization and even if they are the benefits and profits
from that particular department or the whole organization preferably
should exceed the exorbitant costs. Everything has to be calculated on
the basis of the chosen ERP software systems
Committee to look after ERP process

Analysis and criticism will go a long way in deciding the fate of the ERP
product. They are alone not enough. The next process would be the
services of the team who can decide everything concrete with regards to
ERP. The required powers are to be delegated to them. They will do the
screening of the potential vendor based on the organizational needs that
have been classified and discussed earlier. This will be helpful in
implementation of ERP.
Conclusion
The organization should focus on what it wants to achieve out of ERP

before going ahead with the process. When that is done successfully the
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ERP operations will have to be shifted to that particular objective in
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general and to the whole organization in particular. This cannot happen in
the absence of ERP integration.
Customizing ERP Software
Customizing is an integral part of ERP solutions. This is a crucial decision

which needs to be taken by the organization as it is detrimental in ERP'S
success. The rate of customization is directly proportional to ERP success.
Customization tends to pose a challenge to time and the funds allocated.
The challenge of a successful management lies in balancing them and
making both ends meet. It is a difficult task but the success speaks for the
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process.
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Burning Issues
The major issues that require attention in the process of customizing ERP
are strong knowledge about the current system and the likelihood of
innovations in ERP. These two issues have their own say in the process of
ERP customization. The process of customization will not take place
properly unless or otherwise there is a strong working knowledge about
ERP systems. Even if it does the rate of success won't be to that of the
desired or atleast required extent. The chances of innovation in ERP will
have a say on the customization of ERP because whatever modifications
are done now would not have any relevance if they are already covered in
the new systems. If the management addresses these two issues properly
then the chances of ERP's customization are pretty high which also speaks
for ERP'S success. A proper ERP solution can be provided by the Right ERP
company.
Features of ERP innovations

The innovations of new ERP applications help users to include all the
specific details in ERP system itself. This means they don't have to input
these details into the ERP systems every time they login. This also implies
that the operators need not recompile ERP softwares as and when there is
a change in the attributes or methodology of data fed. Customization has
also helped the users to act independently rather than depending on the
vendors whenever a modification is required. The innovations in New ERP
systems have made it so userfriendly that the customers go to the extent
of modifying the systems to perform functions exclusive to the
organization. ERP solutions are now handier to customize than ever. ERP
company offers numerous and flexible ERP solution.
Sound knowledge about ERP System

The features be it old or new or modern or traditional will not be of any
use unless the users are aware of the ERP Systems features and
modalities. This knowledge has to be imparted to the end users apart
from IT personnel. They should have a clear knowledge about the entire
system in finger tips. If questioned or demanded they must be capable of
bringing that particular function into effect. The services of an expert ERP
consultant will come in handy for an organization to supply this
information to the user. The consultant will make a decision on the basis
of the organizational needs and system configuration. He will be a part of
the organization for quiet some time. This will also help him in know the
organization and people better. He will therefore be able to work easily.
Customization is an important part in implementation of ERP.ERP
Company can decide the proper ERP solution for the organization.
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Conclusion
The extent of customization does not solely decide the success of ERP. If it
results in user satisfaction another important criterion then customization
and ERP success go hand in hand. The best choice has to be made from
ERP solutions.
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How to set ERP Standards?
ERP practice is given importance because the process of enterprise

resource planning is regarded as crucial in the life time of a company. The
investment in terms of time money and men along with the expectation of
the management and employees and many more factors accord the
significance of ERP. It is a delicate process that requires meticulous
planning and deliberate actions. Any minor hitch or flaw or tussle would
disrupt the functioning and even bring the business to a standstill along
with systems. ERP best business practice should be followed for the by the
company .Only then the ERP project will be a successful one. Therefore
there are certain set levels which must be followed by any company in
making the maximum use of Enterprise resource planning tools.
Some of them are as follows:
Good Start
Lot of groundwork and research needs to be done before establishing ERP
in a concern. If this stage is not carried without haste then the company
will regret later for the defects. This research process itself is a parameter
by itself that helps in deciding if the company has done everything
systematically. Lot of major and important decisions is taken by the
organization at this juncture. Only then they can follow ERP best business
practice.
This process helps to identify many factors related with ERP. Meetings and
conferences are usually criticized for not serving the purpose. This stage
requires many evaluations and so it is important to see to that the
discussions don't stand in true to the criticism. On the other hand they
must bring concrete and relevant details pertaining to ERP which have to
be dealt seriously and with all efforts. This is an important step in ERP
project.
Change in Business Process

Many a time companies hesitate to restructure the business process in
order to suit ERP workings. They follow a conventional working pattern.
This is neither akin to the competition nor to ERP implementation. People
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dying for change should seize this opportunity and take the necessary
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steps to restructure the business process to face competition and to adapt
to ERP as well. They don't understand the precise fact that ERP is based
on the latest trends in the industry. This will help them to compete
domestically and in the international market. ERP practice needs to be at
par with the market standards. This should be the main objective of the
ERP project.
This change is a single process but the benefits are two namely ERP and
business opportunities. On the other hand companies do all sorts of
maneuvering in the ERP systems which by and large disrupts the business
process and damages the objective in establishing an ERP system. This is
viewed as an unprofessional method in spite of the little success
experienced by few companies so far. Whatsoever is the choice of the
company the end result should be ERP best business practice.
Allocating the necessary Resources

The company has to supply the required impetus for successful ERP
implementation and subsequent results. This will help them to acquire the
maximal standards in ERP process. On many occasions companies
hesitate to spend in terms of the three resources men, money and time. It
is important to ensure the required contribution from each of them so that
there is no hindrance in the (perfect) establishment of ERP process.
Managements are taken aback when ERP costs exceeds the quotation at
the final stage. This is a peculiar feature of ERP because the
vendor/consultant gets to know more details only during the exploration
process of infrastructural modification and other process. Unfortunately
his pocket swells as there is more digging into the process. If a company
wishes to attain the industry standards in ERP it should not curtail any
process (for saving costs) at this stage.
Conclusion
The above mentioned points are only a tip of the iceberg. There are many
more standards that have to be followed which are discussed in other
parts of the website under different side headings. They represent ERP
practice either directly or indirectly.
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What is the Necessity for ERP Gap Analysis and how is it done?
Why Gap Analysis?

Gap analysis is an important step in ERP implementation. ERP is meant to
integrate the data of all the departments in a company under one
common platform. This calls for a radical change in the system of the
company's functioning.
The organization can either drop the idea of implementing ERP or choose
to go by it. Such a decision can be arrived only by comparing with
parameters like the reaction of their customers. The organization can go
ahead with ERP by modifying the software to suit their needs but as
earlier discussed it leads to other complications and dilutes the working of
erp.If the company decides not to go about in searching for another
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alternative arrangement. On the other hand if the company wants to go

for ERP it will stick on to ways and means for implementing ERP. In order
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to help the company arrive at a proper decision in such unwary
circumstances GAP analysis is advocated and followed. Gap analysis
basically identifies analyses and as well suggests a sequence of steps to
be followed after taking into account "What ought to be "and "what
actually exists". It provides to overcome /bridge the gap. Above all it is
aimed at improving the commercial viability. The process is aimed at
facilitating ERP function so that the benefit of ERP is received in full.
Steps in a Gap Analysis
• The primary step will be to make a note of the existing

business system and list out the flaws and positive aspects. This
is an attempt to have an idea of what is currently happening
given the scenario in question so as to help in ERP
implementation.
• Evaluate and decide the additions that need to be made to the
business in view of ERP implementation. The aim is to make sure
that there is not even a thin line of difference between ERP and
the organizations commercial activities. It will be oriented to ERP
function.
• Rating the existing level of performance to set a benchmark or
standards for the business as on date. This will help in finding out
the benefit of ERP.
• Having an in-depth study of the regulations and statements in
the organizations and suggesting modifications. This also will
decide ERP implementation.
• Clearly defining the roles of individuals in the organization so
that the priorities are met and the structure remains undisturbed.
This is to make things clear for ERP function.
• Checking if the objective in discharging duties are met
because it is the ultimate solution to any issue. If they are not
met the gaps should be made known and corrected. Only then
the organization can achieve the benefit of ERP.
• Ensuring that functions are executed properly and if need be
personnel can be rewarded to boost up and encourage
performance.
• Similarly comparisons are to be made for every other factor
that draws relation in one way or other. These results are to be
complied for ERP gap analysis.
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• The gap analysis takes into account all the factors of study
and gives the results. It either recommends the implementation
of an ERP system or rejects the idea in totality.
This whole process takes about 90-120 days depending on the

complexities and technicalities involved. Gap analysis requires the proper
understanding of the firm and the ERP product in question. The analysis
should fully focus on how the business process and software can be
mutually beneficial to one another. GAP analysis becomes instrumental in
deciding ERP implementation, so as Business Process Reengineering.
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ERP Implementation Life Cycle
The process of ERP implementation is referred as d as "ERP

Implementation Life Cycle". The following are the steps involved in
completing the lifecycle.
Shortlist on the basis of observation

Selecting an ERP package for the company can nevertheless be compared
with the process of "Selecting the right Person for the Right Job". This
exercise will involve choosing few applications suitable for the company
from the whole many.
Assessing the chosen packages

A team of Experts with specialized knowledge in their respective field will
be asked to make the study on the basis of various parameters. Each
expert will not only test and certify if the package is apt for the range of
application in their field but also confirm the level of coordination that the
software will help to achieve in working with other departments. In simple
terms they will verify if the synergy of the various departments due to the
advent of ERP will lead to an increased output. A choice is to be made
from ERP implementation models.
Preparing for the venture

This stage is aimed at defining the implementation of ERP in all measures.
It will lay down the stipulations and criterias to be met. A team of officers
will take care of this, who will report to the person of the highest hierarchy
in the organization.
Gap Analysis
This stage helps the company to identify the gaps that has to be bridged,
so that the companys practice becomes akin to ERP environment. This has
been reported as an expensive procedure but it is inevitable. The
conglomerate will decide to restructure the business or make any other
alterations as suggested by GAP analysis inorder to make ERP user
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friendly. Click here for a detailed study on GAP analysis. A choice is to be

made from ERP implementation models.
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Business process reengineering
Changes in employee rolls, business process and technical details find
place in this phase of restructuring most popularly refered as business
process engineering. For more details on BPR click here.
Designing the System

This step requires lot of meticulous planning and deliberate action. This
step helps to decide and conclude the areas where restructing have to be
carried on. A choice is to be made from ERP implementation models.
In-house Guidance
This is regarded as a very important step in ERP implementation. The
employees in the company are trained to face crisis and make minor
corrections as well because the company can neither be at liberty nor
afford the bounty to avail the services of an ERP vendor at all times. For
more details on ERP training click here.
Checking
This stage observes and tests the authenticity of the use. The system is
subjected to the wildest tests possible so that it ensures proper usage and
justifies the costs incurred. This is seen as a test for ERP implementation.
The real test

At this stage the replacement takes place viz the new mechanism of
operation and administration takes over the older one.
preparing the employees to use ERP

The employees in the organization will be taught to make use of the
system in the day to day and regular basis so as to make sure that it
becomes a part of the system in the organization.
Post Implementation
The process of implementation will find meaning only when there is

regular follow up and proper instruction flow thereafter and through the
lifetime of ERP. This will include all efforts and steps taken to update and
attain better benefits once the system is implemented. Hence an
organization has to perform ERP implementation safely and correctly.
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Flaws in ERP training
Training is an important determinant of ERP benefits. Unfortunately there

are many flaws in ERP training. This makes companies to think that ERP is
not worth for the money.
Some even conclude that ERP does not help in attaining the benefits as
promised. If one is able to identify the flaws in ERP training and suggest
the appropriate remedial measures the benefit of ERP will follow provided
whatever said in the training phase finds shape by way of action.
Some common mistakes that take place in ERP training include

the following:
Too much emphasis on technical aspects

By and large ERP training has become a technical symposium. The
modules lay more stress on the technical issues. The emphasis has to be
shifted to the actual workings and more inputs have to be thrown on
relevant issues like the problems faced by employees and its remedies.
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Besides it should account for other issues that employees will face in the
course of ERP's intervention in the organization. On the contrary all these
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have been given a goby and the training has been restricted purely to the
system and its applications. This will not give the necessary benefit of
ERP.
Does not address business issues

Trainings are of late becoming more system oriented without any
application of what happens in the real business situations. The trainees
get to follow everything in the sessions more clearly. The problem arises
when they use it during the regular course of business. The bridge
between practice and theory has made the training function meaningless
and will not help in attaining ERP benefits.
Less importance to training

Companies accord training as a mere procedure compliance. In that sense
it is just the process of testing the usage .the concept of training has
become a namesake affair. This creates lot of problems when workers use
ERP because they find that things don't work the way in business as it
used to while testing the usage. Training did not envisage what would and
what would not happen in the actual business scenario or in other words it
does not examine cause and effect relationships but just sticks to
demonstrating and explaining the working system. If more importance is
given it will help in getting the benefit of ERP.
Errors in administration
Even if training is the best in the industry and succeeds in meeting the
required parameters the resultant follow up is more important. In simple
words" what has been preached should be practiced". In reality the rules
and regulations followed in organization may clash with some of the new
practices advocated by ERP. The irony is that people decide to stick to the
organization procedures and policies without realizing the fact that the
violation is only for a short time and meant for the benefit of the
organization. This defeats the functioning of ERP and puts the
organization in the same old place. On the contrary if a compromise is
made in this regard the organization will enjoy the benefit of ERP
immediately.
Lack of operational awareness
The whole organization should know the working pattern of ERP after the
training process. If people tend to neglect it and specialize it for the heck
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of completing their area of operation then the desired benefits will not be
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sought. Since ERP involves lot of coordination it is essential for everybody
to be aware of the "Know How". ERP benefits cannot be achieved without
removing these drawbacks.
Factors influencing ERP price
ERP cost is an important issue that companies look forward while deciding
on ERP. ERP calls for a voluminous investment. By and large this step is
not a cakewalk for any company.
It is not possible to give a comprehensive price structure for all companies
implementing ERP.ERP pricing varies even among companies based on
requirement, facilities, size and nature of the business and so on. Above
all it is dependent on that particular factor which the company banks on
or in other words the root cause for the company to decide on ERP. ERP
implementation cost is not the only cost to the company.
Some of the well known factors which influence the cost of ERP
software product are as follows:
Execution of ERP
This term will include all the exercises from business process engineering
to gap analysis to actual restructuring and training. Above all this the
process of modifying and transferring data and systems from the old form
to new form is another costly affair. The manpower and time spent may
also be taken into account to know the nonmonetary costs precisely.
The company needs to calculate this though not for accounting purposes
as it will help be estimate the Regular work that was not carried during
the regular course of business (due to ERP intervention (some even call it
as interruption?!).Again these costs are solely dependent on the
company's workings.
If the company engages the services of an ERP consultant then the costs
will be quite different, if it goes ahead with the process with the help of In-
house IT staff (which is not encouraged during the initial stages).These
alone don't constitute ERP implementation cost. A host of other charges
will be included in erp implementing cost.
Consultation by ERP Expert

These factors also influence ERP cost to a considerable extent. The
professional charges payable to the outsider also depends on the extent
of the services availed by the company.
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If the company is restricts his service merely to training and
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implementation the fees will be different from seeking his expertise for
the entire process which includes staying with the company to rectify
practical difficulties after implementation, conducting refresher programs
and so on. This is important component of ERP implementation cost.
However this is not the only issue in ERP implementing cost.
Training
This is also a crucial determinant of ERP costs. There are two modes of
training offered in companies. Companies hire trainers to update their IT
staff on the nitty gritty of ERP. They in turn train the user to get
acclimatized to ERP's functioning. This method has lot of drawbacks but
still many companies go for it not only because of the comparative low
costs but doing away with the need to train everyone in the company. In
spite of the drawbacks this method has claimed relative success in some
companies.
The other methods is training the users and the IT staff as well .In this
method the IT staff will be trained on technical parameters while the users
will be trained on usage. But for the exorbitant costs this method is highly
successful. ERP implementing cost is very important. Similarly if the
company wants to seek the trainers service only for particular facets if it
believes that the pool of In-house It staff are competent to handle other
areas, then ERP costs will be different.
Conclusion
These factors are non exhaustive. The above discussion gives an account
of the common factors. Many more can crop up in due course of time and
as per the organizational environment.
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What are the lessons learnt from ERP Performance Studies?
An ERP performance study is undertaken by organizations to know the

effectiveness or benefit of ERP. ERP evaluation is an important step that
helps in analyzing the contribution of ERP to an Organization.
However this process of assessment itself poses many problems. Normally
organizations have the tendency to perform this process in a professional
manner so that it would yield the results. They tend to lose focus as the
whole process gets into action. It is geared with great enthusiasm but
confusions develop and mar things.
The Crux of ERP Performance Measurement

Many Companies get everything done at the right time with regards to
ERP right from software selection to customization to training and
Implementation. They take all measures to provide the necessary impetus
and investing in huge volumes even if it is pinching monetarily. They are
more particular about the benefits and are hence unmindful of the costs
and investments. What happens thereafter is something to be worried and
corrected. After going all the way and that too in the right manner,
companies don't bother to review the working pattern of ERP. Unless they
understand this it is not possible to achieve the benefit of ERP.
Errors Capable of Undermining the Process

Companies wrongly mistake that the proper implementation of ERP is a
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guarantee to its success whereas it is not so. Proper implementation
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facilitates efficient performance subject to the fulfillment of imposed
conditions. This is the major flaw that underplays the performance of ERP.
The validity of any process has to be constantly monitored and amended
if necessary, so as to ensure proper discharge of the assigned functions.
Since this does not take place in the case of ERP due to the popular myth
Erg's performance measure is neglected. ERP evaluation aims to correct
all the mistakes in addition to this.
What are the Reasons beyond those mistakes?

There are a couple of other reasons associated with this myth .One issue
is the lackadaisical attitude shown by the top managerial cadre in the
organization with regards to implementing ERP. The organizational politics
also have a vital role in this problem. Some Questions that will be raised in
this context will be:
• Who is to bell the cat?

• Who takes the blame on account of failure?
• Who takes credit for success?
Due to these inhibitions lot of controversies arise. This also accounts for
the failure to measure ERP. There might also be endless arguments
among personnel in the organization which might disrupt the performance
process.
Some Parameters for Measuring ERP Performance

There are some criteria involved in measuring the performance of ERP.
Before going into the specifications it is imperative to know the basis on
which performance measurement is to be made. There are innumerable
means of evaluating ERP performance. Each of them has their own
advantages and disadvantages. There is no hard and fast rule as far as
the appropriate method to be used is concerned. However the
organizations must deicide and stick on to one particular method which
must be put in use uniformly. It is usually recommended to execute it in
the midway of ERP implementation. The next appraisal shall take place
when the process is nearing completion .After ERP begins to Operate the
assessment shall take place within the time gap of 3, 6 and 12 months.
They must be done on the basis of some set criteria .If these steps are not
followed then the likelihood of ERP's success is limited. The frequency of
assessment depends on many factors like the volume of business, ability
to adapt to change and the characteristics features of the software that is
in use. The performance assessment will not serve the purpose if these
determinants are not taken into account. Besides any other measure
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deemed to result in the benefit of ERP, should be accounted for.
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Organizational chart Depicting the hierarchy and Properties
The Fundamental step in the evaluation process is to draw up an
organizational chart. The chart will help in identifying "What is What and
Who is Who" in the organization. The aim behind drawing this chart is to
give a picturesque representation of the company. This representation will
explain the organizational structure of the company in terms of materials
and manpower. This chart will serve as a guideline with respect to seeing
how things are moving about in the organization. It also helps to analyze
the mistakes committed in due course of time. This forms the crux of ERP
performance evaluation.
Suitability in relation to Business Mode

The performance assessment should not be a general process. It should
be designed specially to suit the particular business that the firm engages
in. Only then it will cater to the measurements properly, Otherwise the
assessment will be indifferent to the firm's modality of operation. ERP
evaluation should use this as a guideline or framework to get results.
Accurate Quantification to facilitate correct measure

The performance should be measured in terms of numeric variables. Only
then the results can be easily comprehended and become fit for analysis.
These variables have to be meaningful and realistic so that it serves the
purpose. They should be capable of being marked by a scale of ratings.
Only then it is possible to comment on what has been achieved
figuratively and, things lag behind. There is a reason behind advocating
this. Any study becomes authentic only when it is empirically supported
by facts and figures. Hence the assessment process will become valid and
useful only if it is supported by such statements. If the firm follows the
trends and standards with the industry it will be helpful for studying the
results and comparing the same with the competitors. This will help in
adding the benefit of ERP.
Account from all Relevant Sources

The records have to collect from reliable sources. It is better to trust the
state's machinery or approach the relevant trade union or cartel for this
purpose. These records will help in devising a measure for the
performance appraisal system. If a customary measure is arrived it will be
helpful in finding out the extent of ERP'S efficiency .It will be possible to
suggest alternatives to increase the efficiency and provide ways and
means to overcome the deficiency. ERP evaluation should play a
constructive role in this
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Perform Frequent Reviews during operation
The modalities of measuring ERP in the post implementation areas have
been so far discussed. The real challenge lies in measuring ERP once it
starts functioning in the organization. This requires things to be handled
methodically since the results are detrimental on ERP process. The
method should focus more on calculating what the firm gains from ERP in
connection with the money investment. The assessment should focus on
the following issues:
• How has it contributed to perform vital function in an easy and

convincing manner, which was otherwise and formally regarded
as very tough?
• What is their level of comfort and state of expertise in making
use of ERP software?
• How has it facilitated in correspondence within the
organization?
Some experts also advocate the use of statistical tools to gather this
information because it becomes practically difficult to obtain them at one
stroke.
Solve Employee Problems and clear their mindsets

The preconceived thought in the midst of the workers is another setback
to the process of performance evaluation. Employers often mistake that
this process is meant to judge their efficiency in dealing with the software.
They often tend to blow up issues beyond proportion in a positive manner
or negative manner inorder to stay in the goodbooks of the employer.
They don't understand the fact that this process is meant to test the
efficiency of the software and more so aimed at increasing their comfort
level with the software. Unless this is communicated clearly the employers
will continue to give a rosy picture about the workings of the software.
This will neither help to identify the defects of the software nor help in
tackling the employees problems with the software.
Classifying measurement areas

As stated earlier the measurement has to be constant in all areas.
However the voracity might differ in practice between one or more
areas.Infact the assessment process takes place quickly and with in some
areas whereas it tends to be tedious in certain other areas. Whatever be
the case companies need to constantly modify business process so that it
becomes ERP friendly. Moro ever the inherent flaws in the business
process should be identified and removed because ERP'S function will not
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be effective unless they are curbed and ERP is not meant to restructure or
modify the business process.
Protecting Privacy and Intellectual Property Rights

One important element of measuring performance is upgrading the
security systems so that the transparency does not lead to disturbing
privacy of the systems. The performance systems should always have a
vigilant eye on this aspect and advocate the scopes for improving the
same. Some accountability also can be vested to the employees so that
they ensure safety by all means. The methods adopted for evaluation
should also be safeguarded and kept exclusively for the company's use.
Pitfalls in Deficient Training

The process of performance appraisal might sometimes reflect defects in
training. The defects could be in the form of inadequate training or the
failure on the part of employees to grasp the necessary impetus during
training or it could be the indifferent attitude management.
Ensuring safety measures for ERP

Safety is another issue that has to be looked for when it comes to ERP.
Some of the reasons which cause concern are the fluctuation in trade,
accidents changes in demand and calamities caused by the environment.
The performance appraisal in the organization should cater to these
issues inorder to avail the benefit of ERP.
Conclusion
It should provide for techniques that help in keeping away from the
calamities and thereby giving the necessary competitive edge. Whenever
some discrepancy is identified during the process of performance
appraisal care has to be taken to draft necessary preventive measures. If
all these measures are implemented successfully then the ERP
performance studies will definitely deliver the results.
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Challenges faced by ERP
Organizations face lot of challenges right from choosing ERP vendor. It

was really a hilarious task to convince them on regarding implementing
ERP. ERP failures that arose in an organization were never analyzed or
studied.
Lot of excuses were given on the failure of ERP like the organization was
not yet well equipped to accept ERP, there was deficiency in service on
the part of vendor and so on. All this only led to skirmishes within the
organization and outside. The services of an ERP consultant was not
suffice to overcome these drawbacks of Enterprise resource planning
action.
Full fledged and Partial ERP

One basic problem with companies is that they go for ERP at a stretch.
This might be one potential reason in the case of backfiring. The
requirements of each organizations are entirely different .It is not
advisable to go for fullfledged ERP unless it is required by the
organization. Since ERP requires large investment in terms of Money and
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time the resources spent will not be justifiable unless they are optimally
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utilized. Partial ERP does not denote partial implementation of ERP but it
indicates the implementation of ERP to perform the required function and
role exclusively. Again size is not the deciding factor. It totally depends on
the nature of business, scope of operations and similar details. ERP is
definitely a flexible application however it is difficult to infuse this element
of partial and need based functions and it still remains a major challenge.
The company can even avail the services of an ERP consultant to decide
on Enterprise resource planning action
Surplus commodities in production

When ERP is used in the manufacturing one common problem that strikes
any user is the question of how to properly manage surplus commodities?
Infact ERP can regulate and monitor all resources and production factors.
The whole organization should work on this aspect failing which ERP will
not yield the necessary results. This poses to be another challenge to ERP
since each member/department have their own interest and plan of action
while working with ERP .This common objective of managing the surplus
will not work out without proper coordination no matter how best the
product is supplied by the ERP vendor.
Problem of sudden transformation

Unlike MRP which manages the surplus goods slowly and steadily ERP
operates very swiftly on them. This transformation is unlikely to be
received by the organization positively .Even persons in the managerial
cadre will not be receptive. The reason is that it demands tremendous
work load at the beginning though the fact remains that it will be much
lesser than MRP after further progress .At this stage the challenge lies in
bringing about an attitudinal change in the entire organization to match
with ERP's Speed. An ERP consultant will help to guide the company
properly in these areas along with enterprise resource planning action.
Equipping as a result of the transformation

It is not enough if one brings about an attitudinal change. certain changes
in the organization structure is also desired .The greatest challenge now
lies in restructuring the midway of ERP operations without affecting Erg's
functioning.
Meeting future needs
Organizations have started to prefer an ERP system that meets the future
needs. This can be a challenge to ERP as well because the visualization
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and expectations in companies may not always turn to be true. The
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quotation made to the ERP vendor has to be prepared only after keeping
all these details in mind.
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What are the different methods in implementing ERP?
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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. They even carry the exercises suggested in restructuring.
When the stage is all set to take ERP the next million dollar question that
comes to them is the appropriate method of implementation due to the
risk for ERP implementation.
Some popular methods for implementation are as follows:
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 scenario. The sharing allows
them to have an interface with the systems on the basis of a common
platform. This is catching up in the market with the only trouble being
reluctance of competitive firms to come together on a mutual agreement
for fear of losing business tactics. It is also seen as ERP implementation
problem solution.
Though the companies are at liberty to create security for their respective
information there will not be any protection for the (pool of) records in the
common database. However this has helped largely in many aspects. For
e.g. the medical history of a patient brought in an emergency condition
can be immediately accessed though ERP. This particular fact has itself
saved many lives. On the contrary they would have to go through the
rigorous process of finding the patient's identity and the steps aftermath
which brings down the chances of the patient's survival are very minimal,
in the absence of ERP. This is one of ERP implementation support. Perhaps
there are many risks for ERP implementation.
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. The simple formula behind this phenomenon is
that the company should go for it subject to its financial potential,
requirements, technical acumen management policy and similar facts. All
these will help them to arrive at ERP implementation problem solution.
Full/Partial Implementation
It has always been said that ERP products and services are purely based
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on the needs and resources of the company. This is not a risk for ERP
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implementation. Hence the companies can choose to go for a full fledged
ERP system and implement it throught the organization and thereby
interlink the whole process and the people concerned. Otherwise they
may prefer to go for an ERP system that performs a particular function of
the company. This is an important step in choosing the appropriate ERP
software but at the same time it also adds more value to the
implementation process. It is also an important ERP problem solution.
Conclusion
Companies even choose the service of the consultant for deciding on this.
The consultant will review the profile of the company with respect to ERP
before giving his suggestion. The implementation methods forms an
important part of ERP implementation support.
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Constituents of ERP Training
There has been lot of hype and a sensation regarding ERP.ERP training is
therefore necessary to unravel the myth regarding ERP. This is one of the
most important steps in ERP implementation.
Infact ERP has come a long way in doing away with exclusive business
applications designed and segregated department wise. This brings
another issue into limelight. Implementing ERP also means that
employees have to be molded to use a single application for many
functions rather than using multiple applications for a single function. ERP
implementation does not necessarily guarantee ERP benefit.
Understanding ERP Training

Corporates don't restrict training merely with their ERP seller. They avail
the Services of consultants in order to give the necessary impetus. This is
strongly advocated because many companies tend to ignore the
importance of ERP training. They perceive it as another IT product. It is
not like any other IT venture. There are much more to it as it involves the
whole business itself. The orientation and training required for ERP
implementation is something like the one required for a new entrant who
joins the company. So much of emphasis is laid on ERP training because it
is not like working on a new project or system but like working on a new
setup.ERP benefit will accrue only when ERP implementation is proper and
other steps are proper.
Flaws in ERP Training

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Case studies and earlier instances reveal that companies have not able
been reap the benefits from ERP due to the lack of proper training. Time
and money are key deciding factors. When they are not sufficient the
results from ERP won't be satisfactory. It is therefore advised to allocate a
sizable portion in the annual budget towards the company's training.
Money flow does not necessarily guarantee ERP Success. The commitment
and the level of interest shown by senior management and by persons
occupying key positions or otherwise referred as decision holders in the
company is another determinant. If they don't accord the required
importance and shun it with the casual attitude of any other project, the
probable success and investment made on ERP will be question marks.
The flaws in ERP training should be done away with immediate effect.
Steps Involved
The steps that need to be taken to ensure the success of ERP in an
organization are as follows:
• The trainers employed in the company must be trained on ERP

before taking it to the other set of employees. If the trainers are
themselves not self sufficient then nothing productive can be
expected from the others. These people are available to the
employer and the employees on regular rolls .It are not practical
to call the ERP vendor each and every time after the training
process. Even if it is done it will cost heavily on the pocket.
Therefore the trainers in the company must acquire a first hand
expertise and knowledge on ERP before taking it to others.
• While it is necessary to equip the trainers it is also not
possible to expect them to deliver the nitty gritty immediately
after the training period. The company should resort to tie-ups
and other partnerships with the consultants to disseminate ERP
information through t the organization.
• There should be a check on the employers proficiency level in
ERP to know the results of the training. This will ensure the
success of ERP training and ERP benefit will automatically follow.
• Providing employees with the latest facts, modules, modalities
and other details on ERP. ERP training should be a continual
process and not a one day affair.
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ERP Implementation Guideline
Research on enterprise resource planning have shown that the flaws in

ERP implementation have resulted in the vast majority of companies
failing to unleash the benefits of ERP softwares.
This has led to lot of problems right from litigations to misinterpretations
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in business media. The vendor is always taken aback because the entire
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community blames him and the products. Enterprise resource planning
phases are very important in this regard.
Probable reasons behind Failure

The actual problems lie in choosing the right software for your company. If
this is either taken for granted or done hastily then the chances of ERP
Success are rare. Some of the reason for failure could be exorbitant costs,
inadequate training, longer time, and failure of strategy and the lack of
attitudinal change on the part of employees to accept and manage
change. They have to analyze "What companies use enterprise resource
planning?"
Guidelines
• Very few companies succeed in the first instance after

implementing ERP.ERP is not a fortune but a technology that
delivers results only after effective execution of the laid down
procedures. Therefore to merely bank on it will not suffice to
obtain any results. What is more important is the implementation
of the necessary changes in the organization so as to combat
ERP.
• ERP is not an answer to the errors in business plans and
tactics. In fact ERP consultants are reluctant to attend to it
because they don't want it to disturb the purpose of ERP. It
should therefore be understood that ERP is an I.T. tool that
assists and facilitates the business process by being a part of it.
On the contrary it is misunderstood that ERP can rejuvenate the
business. The answer to the popular question "What companies
use enterprise resource planning?" will help in clearing this
trouble.
• ERP gap analysis and business process reengineering should
be performed properly. This will ensure that other steps are
followed systematically and in accordance to the company's
need. They are otherwise referred as enterprise resource
planning phases.
• IT facilities in the organization should be at par with market
standards and international reputation. This will enable the
operation people to constantly modify and update as and when it
is necessary in order to stay in tune with the competition.
Research on enterprise resource planning will reveal this.
• The process of ERP implementation should be carried on by a
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team of competent personnel so as to ensure perfection,

accountability and transparency.
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ERP should become a part of the daily routine. If that does not happen
then the company cannot expect any fruitful results inspite of having
followed the above mentioned steps meticulously inorder to ensure the
successful implementation of ERP and no amount of successful planning of
enterprise resource planning phases will help in this regard.
There is another important issue that needs to be addressed in this

regard. Even after successfully implementing and setting ERP right for
action the trick lies in combining it with the business process. The
restructuring should also address issues like finding solutions for the
current business problems. It should not be done with an illusion that ERP
will take care of everything. Unless these fundamental problems are
solved the functioning of ERP will do very little to help connectivity and
facilitation in business. A choice is to be made from ERP implementation
models after knowing "What companies use enterprise resource
planning?"
An organization needs to answer the following questions while thinking of

taking up ERP.
• Perception of the business problems

• The visualization of solving them.
• How is ERP going to solve the same and how worth is it and
how effective are the measures taken to implement it.
• How and who will coordinate the operation of ERP and is it
justified in terms of costs, time taken and efforts?
• What is the accountability and transparency of ERP operations
and how far it will affect issues like piracy, IPR and their impact
on the organizations performance and image and the possible
measures to curb any unnecessary elements?
Conclusion
If an organization follows all the abovementioned steps it will definitely

result in successful ERP implementation as it has been witnessed in the
research on enterprise resource planning phases.
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Process Management: Everything You Need To Know
Process management is the collection of activities that corresponds to the

planning and observing the effectiveness of a certain business process,
method, or solution.
Business process management uses tools, techniques, knowledge, and
systems to create, define, envision, measure, report, control, and of
course, improve the processes involved in a business. The main objective
is to make everything easy for the customers and end-users.
The Principles of Process Management

Process management follows ten principles to achieve its goal. Each
principle is listed here and explained so that the concept of process
management will be understood easier.
1. Any change in the business must be driven by

performance.
There should always be a defined reason as to why a change has
to occur inside a business or an organization. And the reason for
changes should always be to improve the performance of the
people or process involved. The end goal of the change should be
to improve the business in general.
2. The changes should always be made with the
consideration of the stakeholders.
Stakeholders encompass different categories. Consumers and
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customers also belong to the group of stakeholders. They, along

with the business owners, staff, suppliers, the community it
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belongs, and the business itself, should be regarded whenever a
change in the business is conceptualized. It also follows that the
change the business will undergo should benefit all these people
involved.
3. The changes should be accounted for.
Business changes should be carried out according to the criteria
created for stakeholders. Every change should follow these
criteria so that the outcome is ensured to be for the better of the
organization only. The criteria are made so that the interests the
stakeholders are protected.
4. Changes should be segmented for synchronization.
Sometimes, the change is so immense that it cannot be executed
in one go. If so, proper planning needs to be done. Process
management calls for a synchronized implementation, especially
if the change will create a relatively huge impact.
5. The entire process should be managed thoroughly.
When everything is ready, the realization of the change should
come next. Here, enters the correct process of carrying out the
said business change. Business process management requires
that once this step is reached, a holistic type of administration
should be employed.
6. The process should inspire insight.
Included in the process management procedure is the act of
gathering pertinent information and gaining understanding
regarding the matter at hand so as to arrive at a breakthrough
approach and design necessary to achieve a positive change. The
success of the process relies on the attainment of a shared
insight of all the people involved.
7. The process should follow the outside-going-to-the-
inside principle.
Because the change and renewal process is very complex on its
own, process modification should be conducted in this manner.
Look at the organization from the outside and observe to how it
interacts with its stakeholders. Then examine the processes
further until the core of the system is reached.
8. Proper timing is of essence.
All business processes requires optimum timing. Without it, the
processes could fail. A time-boxed approach is advisable,
because it can dictate the schedule of an activity involved as well
as the projected amount of work required within the timeframe
that is set for the said activity.
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9. Understand that the changes in the business should
always be about people.
If process management is created and implemented with real
people in mind, then the higher are the chances that it is going to
succeed. Every person in the organization assumes roles and
responsibility it is always best to execute the change around
them, either involving them or implementing the change within
them.
10. The changes in the business follow a continuous
process.
To achieve a particular business change is not the be-all and end-
all of the entire situation. In fact, it could just be the trigger point
of another business modification. This goes to show that business
changes are similar to a journey, with its destination as
something that could change from time to time.
Process management is very related to Enterprise Resource Planning or

ERP. In fact, process management is a part of ERP. Business process
management or BPM is slowly being integrated into ERP so that running a
business or an organization becomes a lot more efficient than it was
before. BPM alone is not sufficient to achieve this goal. BPM has to be
incorporated to an ERP system so that success will become more apparent
and achievable.
Currently, several process management software are helping small and

medium enterprises or SME's in achieving their business goals. The
software helps by implementing BPM through ERP. Because of this,
business process management consulting was made easier and more
effective.
Business process management, as a whole can create an astounding

effect on any organization or company. By following the right process
management procedure, business advancement can be materialized. As
an effect, establishing a highly successful company becomes a possibility.
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Web Links
1. http://www.nhpc.co.in
2. http://www.abb.com
3. http://www.hydropower.alstom.com
4. http://www.power-technology.com
5. http://www.iri.columbia.edu
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A PROJECT REPORT

On ERP SYSTEM with

(FROM 10-FEB.-2010 TO 11-MAR.-2010)

A PROJECT REPORT SUBMITTED AS A PARTIAL

MASTER OF BUSINESS ADMINISTRATION

EIILM UNIVERSITY, 16TH MILE

SATYENDRA NATH YADAW (MBA IT 4 TH

• Surface power house containing 3 units of 20 MW each.

ERP, which is an abbreviation for Enterprise Resource Planning, is

In simpler words, an ERP is a massive software architecture that supports

At the core of ERP is a well managed centralized data repository which

Information in large business organizations is accumulated on various

Today's ERP software architecture can possibly envelop a broad range of

In order for a software system to be considered ERP, it must provide a

Integration is Key to ERP Systems

Integration is an exceptionally significant ingredient to ERP systems. The

The key objective of an ERP system is to integrate information and

Although the perfect configuration would be a single ERP system for an

The Ideal ERP System

Engineering, resource & capacity planning, material planning, workflow

Accounts payable, accounts receivable, fixed assets, general ledger, cash

Recruitment, benefits, compensations, training, payroll, time and

Supply Chain Management

Inventory management, supply chain planning, supplier scheduling, claim

Costing, billing, activity management, time and expense

Customer Relationship Management

Sales and marketing, service, commissions, customer contact and after

Generally, this is an information storehouse that can be accessed by

ERP Systems Improve Productivity, Speed and Performance

Prior to evolution of the ERP model, each department in an enterprise had

Hence, deploying a comprehensive ERP system across an organization

functioning, global decision optimization, speed enhancement and much

Implementation of an ERP System

Implementing an ERP system in an organization is an extremely complex

Organizations generally use ERP vendors or consulting companies to

• Consulting Services - are responsible for the initial stages of ERP

1. Structured Planning: is the foremost and the most crucial stage

Advantages of ERP Systems

There are many advantages of implementing an EPR system. A few of

• A perfectly integrated system chaining all the functional areas

Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations

• The scope of customization is limited in several circumstances

Significance of ERP Implementation

Companies have to clearly know what enterprise resource is planning

This naturally paved way to development of gaps between the actual

In spite of having improved the implementation issues what remains static

and unfettered is the manner in which companies go ahead with ERP

• Popular information systems

If an organization is able to answer these questions without any ambiguity

The current approach more popularly referred to as "baan" has two

The idea which concentrates on molding the business

The plan which lays more emphasis on technical parameters.

The popularity of ERP as a business application does deserve a special

Errors in ERP implementation

Enhancement of ERP'S functions

Organizational reaction to change

Inflating resources for ERP implementation

Organizations non adherence to the stated principles

Problem of Transformation due to ERP

Return on investments for ERP

Some of the instructions that have to be followed to ensure

Working out the Myths of ERP in the Initial stage