JURY PROJECT

UNDER THE SUPERVISION OF

MRS. DIMPLE PANT
IN THE FULFILLMENT OF THE POST GRADUATE DEGREE
"MASTER OF FASHION MANAGEMENT (MFM)"

PRESENTED BY:
Abinaya J

Khushboo Bhushan

Neha Amrawat

Nikita Bharti

Prachi Chhajer

Purnima Ranjit

Ritika Choudhary

Smita Lakra

DEPARTMENT OF FASHION MANAGEMENT STUDIES (FMS)

NATIONAL INSTITUTE OF FASHION TECHNOLOGY (NIFT)

HAUZ KHAS, NEAR GULMOHAR PARK,

DELHI, INDIA 110016
 ACKNOWLEDGEMENT

We express our sincere thanks to our project guide, Mrs. Dimple pant, guest faculty of Masters
of Fashion Management Department, for guiding us right from the inception till the successful
completion of the project. We sincerely acknowledge her for extending her valuable guidance,
critical reviews of project and the report and above all the moral support she has provided to
us with all stages of this project.

(Name of Students)

Abinaya J

Khushboo Bhushan
Neha Amravat
Nikita Bharti
Prachi Chhajer
Purnima
Ritika Chaudhary

Smita Lakra
 CHAPTER 1: INTRODUCTION

Enterprise resource planning (ERP) is a state-of-the-art approach to running organizations

with the help of comprehensive information systems, providing support for key business
processes. They are software that standardize, streamline and integrate business processes
across finance, human resources, procurement, distribution and other departments.
An Enterprise resource planning system is a fully integrated business management system
software covering functional areas of an enterprise like Logistics, Production, Finance,
Accounting and Human Resources. It organizes, integrates operation processes and
information flows to make optimum use of resources such as men, material, money and
machine.
Enterprise resource planning promises:
· one database
· one application
· one user interface
for the entire enterprise, where once disparate systems ruled manufacturing, distribution,
finance and sales. 1
The architecture of the software facilitates transparent integration of modules, providing
flow of information between all functions within the enterprise in a consistently visible
manner. Corporate computing with ERPs allows companies to implement a single
integrated system by replacing or re-engineering their mostly incompatible legacy
information systems. American Production and Inventory Control Society (2001) has
defined ERP systems as “a method for the effective planning and controlling of all the
resources needed to take, make, ship and account for customer orders in a manufacturing,
distribution or service company.” 2
ERP utilizes ERP software applications to improve the performance of organizations'
resource planning, management control and operational control. ERP software is multi-
module application software that integrates activities across functional departments,
from product planning, parts purchasing, inventory control, product distribution, to order

1 "Chapter 7 An Overview of Enterprise Resource Planning (ERP)."

http://www.retawprojects.com/uploads/An-Overview-Enterprise-Resource-Planning__ERP.pdf.
Accessed 14 Nov. 2019.
2 "Enterprise Resource Planning - Department of Higher Education."
http://164.100.133.129:81/econtent/Uploads/ENTERPRISE_RESOURCE_PLANNING.pdf. Accessed
14 Nov. 2019.
tracking. ERP software may include application modules for the finance, accounting and
human resources aspects of a business.
An ERP system is based on a common database and a modular software design. The
common database can allow every department of a business to store and retrieve
information in real-time. The information should be reliable, accessible, and easily
shared. The modular software design should mean a business can select the modules
they need, mix and match modules from different vendors, and add new modules of
their own to improve business performance.
ERP delivers a single database that contains all data for the software modules, which
would include:
• Manufacturing: Engineering, bills of material, scheduling, capacity, workflow
management, quality control, cost management, manufacturing process,
manufacturing projects, manufacturing flow
• Supply chain management : Order to cash, inventory, order entry, purchasing,
product configuration, supply chain planning, supplier scheduling, and inspection of
goods, claim processing, and commission calculation
• Financials: General ledger, cash management, accounts payable, accounts
receivable, fixed assets.
• Project management: Costing, billing, time and expense, performance units,
activity management.
• Human resources: Human resources, payroll, training, time and attendance,
roistering, benefits.
• Customer relationship management: Sales and marketing, commissions, service,
customer contact and call center support, Data warehouse and various self-service
interfaces for customers, suppliers, and employees.
• Access control - user privilege as per authority levels for process execution
Customization - to meet the extension, addition, change in process flow.
 CHAPTER 2: HISTORY OF ERP
In 1990, Gartner created the term ERP to describe the evolution of materials requirements
planning (MRP) and manufacturing resource planning (MRP II) as they expanded beyond
manufacturing into other parts of the enterprise, typically finance and HR. ERP systems
evolved rapidly during the 1990s in response to Y2K and the introduction of the Euro.
Most enterprises viewed Y2K and the Euro as the cost of doing business, and ERPs
provided as a cost-effective way to replace multiple, old systems with a standardized
package that could also address these issues. 3
MRP was the fundamental concept of production management and control in the mid-
1970s and considered as the first stage in the evolution of ERP. Assembly operations
involving thousands of parts such as automobile manufacture led to large inventories. The
need to bring down the large inventory levels associated with these industries led to the
early MRP systems that planned the order releases. Such planned order releases ensured
proper time phrasing and accurate planning of the sub-assembly items, taking into account
complex sub-assembly to assembly relationships characterized by the Bill of Materials.
EVOLUTION OF ERP

Timeline System Description

1960’s Inventory Inventory Management and control is the combination

Management & of information technology and business processes of
Control maintaining the appropriate level of stock in a
warehouse. The activities of inventory management
include identifying inventory requirements, setting
targets, providing replenishment techniques and
options, monitoring item usages, reconciling the
inventory balances, and reporting inventory status.

1970’s Material Materials Requirement Planning (MRP) utilizes

Requirement software applications for scheduling production
Planning (MRP) processes. MRP generates schedules for the operations
and raw material purchases based on the production

3"Enterprise Resource Planning - Department of Higher Education."

http://164.100.133.129:81/econtent/Uploads/ENTERPRISE_RESOURCE_PLANNING.pdf. Accessed
14 Nov. 2019.
 requirements of finished goods, the structure of the
production system, the current inventories levels and
the lot sizing procedure for each operation.

1980’s Manufacturing Manufacturing Requirements Planning or MRP

Requirements utilizes software applications for coordinating
Planning (MRP manufacturing processes, from product planning, parts
II) purchasing, inventory control to product distribution.

1990’s Enterprise Enterprise Resource Planning or ERP uses multi-

Resource module application software for improving the
Planning (ERP) performance of the internal business processes. ERP
systems often integrate business activities across
functional departments, from product planning, parts
purchasing, inventory control, product distribution,
fulfillment, order tracking.

CHAPTER 3: ROLE & BENEFITS

Why is ERP Important?

Enterprise resource planning systems are an asset for many organizations.The importance
of ERP revolves around what it can do for your business. ERP manages a number of
business functions through streamlining and automating daily business operations. The
software creates a leaner and accurate operation and provides a complete, 360 view into
the ins and outs of your business. With the software, businesses are able to improve both
user efficiency and productivity, becoming agile which improves customer service.
The primary ERP benefits when implementing a robust ERP system are as follows:

1. Focused IT Costs

Although ERP is often a large investment, it can unify your IT costs and improve
efficiency. Instead of spending resources on multiple systems that all need dedicated staff,
infrastructure, support teams and licenses, you can focus all these costs into one ERP.
Additionally, if you spend more on disparate systems than you would on a centralized
ERP, you might even save on IT costs overall. Using a single system also reduces training
requirements for end-users, since they only need to learn one system rather than
interacting with numerous individual applications.
While an ERP can include numerous functional areas such as customer resource
management (CRM), accounting, HR management and supply chain management, the
design of the system is to be modular. This lets you use only the pieces that align to your
needs. At the core, an ERP is the glue that binds other systems and their data together.
Some ERPs let you integrate numerous third-party systems into a unified whole.

2. Total Visibility

This benefit of ERP is one of the biggest selling points for the software. ERP allows total
access to every important process in your business by making data from every department
easily accessible to you and your senior management. For example, you can monitor
inventory levels on a daily basis, including future consignments that are yet to be received
and inventory currently in transit. By knowing precisely where you stand regarding
inventory levels, you can control your working capital on a more precise level.
In addition, the availability of all of your company’s information in a centralized location
allows for increased collaboration and more streamlined completion of tasks. This
complete visibility provides more coherent workflows and allows inter-departmental
processes to be easily tracked with maximum efficiency. All of this makes it possible to
make quick decisions in confidence, as you can rest assured that you’re seeing the full,
complete picture at any given moment.

3. Improved Reporting and Planning

Along with improved visibility, better insight is a major advantage of ERP. Implementing
an ERP suite across departments means your organization has a single, unified reporting
system for every process. By having a single source of truth, an ERP system can readily
generate useful reports and analytics at any time. This software gives you the ability to
analyze and compare functions across departments, without the hassle of multiple
spreadsheets and emails. One of the most popular reports involves finances. Standard
financial reports such as income and cash flow statements generally are built-in, and
custom reports can be quickly generated without IT intervention.
In addition to this, many ERP vendors also offer business intelligence services with their
software. This BI functionality allows businesses to gain a deeper level of analytical
insight into their operations. These insights aid in corporate planning by identifying both
operational strengths and problem areas that need improvement. Providing this kind of
detailed view into a company’s data gives ERP users the ability to make better-informed
decisions based on trends and metrics.

4. Complete Customization

One of the biggest advantages of enterprise resource planning software in the present day
is its modular makeup. Most ERP vendors offer several applications that can be
implemented together according to business needs. Barring a few exceptions, each
application is designed to be able to stand alone or integrate with the larger suite. This
way, your company can pick and choose which components work best and can leave out
what you don’t need.
Another aspect of customization involves how the software is implemented. The two
major deployments are on-premise and through the cloud. With an on-premise system,
physical software must be purchased and installed on all company computers and servers.
With a cloud-based system, the entire software bundle is handled completely off-site by
an ERP provider.
5. Improved Efficiency
Along with reduced IT and training costs, an ERP can reduce the time and effort required
by your workforce to carry out their daily activities. Properly implemented, an ERP can
greatly reduce or eliminate repetitive manual processes, thus freeing up team members to
focus on revenue-affecting tasks. The system likewise can aid in the adoption and
enforcement of industry best-practice processes, aligning all actions across the enterprise.

6. Customer Service

Your company’s clients also receive ERP system benefits, even if they don’t know it.
Because client information is centralized and streamlined, your sales team will be able to
focus on building and maintaining customer relationships instead of maintaining
spreadsheets. At the end of the day, the number one thing a business should be concerned
about is customer acquisition and retention. Through the end-to-end tracking and insight
offered by an ERP, you can provide better customer interaction from targeted marketing
all the way through late-phase customer service.
Most up-to-date ERP suites also support eCommerce integration. This means your
business will be better able to handle web-based order processing and client interactions.
7. Data Security and Quality
One of the biggest advantages of an ERP system is data security. After all, at the heart of
the ERP concept is data. Sharing data across functional silos such as customer service,
sales, marketing and business development enhances collaboration throughout a
company. The other side to widespread data access is controlling who can see and edit the
information. ERP solutions have intrinsic controls to ensure the security of your data.
Further, what helps ERPs maintain a high level of data security is that they provide a
single input system. Merging information from multiple systems often causes conflicts
between sources, but having a single repository of information helps improve the
accuracy, consistency and security of your company’s data.
Both on-premise and cloud-based ERP systems offer your organization a higher degree
of security. The database system the ERP runs off of also enables centralized backups of
your critical and sensitive data. Cloud-based ERP systems, despite what many people
think, offer an extra layer of security. Since all of your company’s data is managed
through the cloud, they employ round-the-clock security experts to ensure their servers
are protected. This makes it far more difficult for hackers to run test attacks like they
would on a private server.

8. Improved Collaboration and Workflows

Collaboration is an essential part of a thriving business. But more often than not,
companies find their teams working in silos simply because collaboration requires more
time and effort. But ERP makes collaboration a piece of cake. An ERP platform
streamlines the process of collaborating with others by providing employees with access
to the data they need when they need it. They do this by providing an interdepartmental
database, where information from each department is funnelled into one centralized
location.
This allows for real-time project updates and better communication across the whole
company. With an ERP system in place, every employee has on-demand access to the
entire company’s wealth of data, which allows them to see the big picture. In turn, this
gives your employees the tools they need to make proactive decisions while making them
feel more valued. The net effect on your business is increased efficiency and reduced
 operational costs associated with manual data tracking, as well as higher employee
engagement.

9. Standardized Business Processes

Most ERP systems are developed according to industry best practices. These tried-and-
true processes bring major benefits to the table for businesses of all sizes. It also allows
businesses to standardize their own processes and systems, which further enhances
productivity and efficiency.
These processes deliver consistent results that allow the businesses to continually improve
the way in which they operate their organization. And because many processes are
automated, errors and costs are greatly reduced. As a result, there’s less friction and
improved synergy between departments.

10. Facilitated Regulatory Compliance

One of the most difficult ongoing tasks for businesses is meeting compliance
requirements. Maintaining perfect accuracy within your financial records isn’t exactly
easy, but needs to be done nevertheless. ERPs aid in regulatory compliance by virtue of
secure and validated data, combined with built-in reports. These reports can also be
automated to reduce the cost of continual audits. Additionally, many ERP vendors take
specific regulations into account such as the Sarbanes–Oxley Act (SOX) and the Federal
Information Security Management Act (FISMA).4

11. Improved Supply Chain Management

For companies that deal with the moving of physical inventory and production, an ERP
system bolsters supply chain management in a variety of ways. This improvement results
in shortened lead times, more on-time deliveries and many other benefits that enhance the
overall operation and success of the business. Through a well-designed ERP platform, the
supply chain can become better and more responsive via improved demand forecasting,
inventory management, procurement and more. A streamlined supply chain also

4"Top 6 Benefits Of Implementing ERP Software In An ...." 11 Sep. 2017,

https://www.itchimes.com/blog/top-6-benefits-implementing-erp-software-organization. Accessed 15
Nov. 2019.
 facilitates manufacturing innovations, which can help reduce costs and develop exciting
new products that give the business a competitive edge it needs to stay ahead.
In addition, an ERP can dramatically improve profitability and reduce overages involving
inventory and production. Unified insight into sales, production and delivery schedules
permit stock levels to be optimized rather than relying on “best guess” estimates for
upcoming volumes.

12. Superior Scalability

To ensure the ongoing success of the business, keep an eye on the future. All too often,
businesses fail to plan properly and experience serious growing pains that pose serious
roadblocks to whatever progress they’re enjoying. Having a system in place that can
elegantly and efficiently accommodate the company’s growth is of the utmost importance,
and the right ERP system makes it easy.
Whether it is about expanding the customer base; entering new markets; rolling out new
processes, departments or products; or are otherwise growing the business, adding new
functionality to an ERP platform is easy with the right software vendor. Make sure when
speaking to vendors, that they understand the 5 for growth in the future.
13.Accurate Forecasting
Enterprise resource planning software gives the users, and especially managers, the tools
they need to create more accurate forecasts. This helps software users, and businesses as
a whole, think ahead and properly plan what they need from inventory and sales down to
financials and customer service. With stronger forecasting, businesses can effectively
decrease business costs, which saves money as well as become a more overall proactive
unit. Since the information within ERP is as accurate as possible, updating in real time,
businesses can make realistic estimates and more effective forecasts. 5

Disadvantages of the ERP system:

Problems with ERP systems are mainly due to inadequate investment in ongoing training
for the involved IT personnel - including those implementing and testing changes - as well
as a lack of corporate policy protecting the integrity of the data in the ERP systems and
the ways in which it is used.

5"Benefits of ERP - Top 15 Advantages of ERP Software ...." 18 Jun. 2019,

https://www.workwisellc.com/blog/15-benefits-implementing-erp-software/. Accessed 15 Nov. 2019.
 Disadvantages are:
● Customization of the ERP software is limited.
● Re-engineering of business processes to fit the "industry standard" prescribed by
the ERP system may lead to a loss of competitive advantage.
● ERP systems can be very expensive leading to a new category of "ERP light"
solutions
● ERPs are often seen as too rigid and too difficult to adapt to the specific workflow
and business process of some companies—this is cited as one of the main causes
of their failure.
● Many of the integrated links need high accuracy in other applications to work
effectively. A company can achieve minimum standards, then over time "dirty
data" will reduce the reliability of some applications.
● Once a system is established, switching costs are very high for any one of the
partners (reducing flexibility and strategic control at the corporate level).
● The blurring of company boundaries can cause problems in accountability, lines
of responsibility, and employee morale.
● Resistance in sharing sensitive internal information between departments can
reduce the effectiveness of the software.
● Some large organizations may have multiple departments with separate,
independent resources, missions, chains-of-command, etc, and consolidation into
a single enterprise may yield limited benefits.
● The system may be too complex measured against the actual needs of the
customer.6

CHAPTER 4: FAMOUS ERP DISASTER

Twenty-one percent of companies who responded to a 2015 Panorama Consulting Solutions

survey characterized their most recent ERP rollout as a failure. So there are a lot of disasters
out there. But the high stakes in these projects, and the uptick in litigation, have meant that
they're simultaneously more and less visible than ever. When lawsuits go public, that's a flag

6"What are the Advantages and Disadvantages of ERP System." 3 Jan. 2016,
https://solutiondots.com/blog/advantages-and-disadvantages-of-erp-system/. Accessed 15 Nov. 2019.
that there's a juicy story out there — but legal necessities often mean that the full details of the
dispute never come out.
Nevertheless, we've assembled some dramatic ERP flops from over the years and tried to suss
some wisdom out of the wreckage.

1. MillerCoors X HCL
In 2014, MillerCoors was running seven different instances of SAP's ERP software, a legacy of
the years of booze industry consolidation that had produced the alcohol behemoth. The merged
company hired Indian IT services firm HCL Technologies to roll out a unified SAP
implementation that would serve the entire company. Things did not go smoothly: The first
rollout was marked by eight "critical" severity defects, 47 high-severity defects, and thousands
of additional problems recorded during an extended period of "go-live hypercare." By March
2017 the project had gone so far south that MillerCoors sued HCL for $100 million, claiming
HCL had inadequately staffed the project and failed to live up to its promises.
But the IT services company didn't take that lying down: In June of 2017 HCL countersued,
claiming MillerCoors was in essence blaming HCL for its own management dysfunction, which
HCL said was at the real cause of the failure. Outside observers noted that the wording of the
contracts, as outlined in the lawsuits, seemed to be based on a pre-existing general services
contract between the two companies, and left plenty of room for error. Then, in December 2018,
the two companies resolved the dispute "amicably," having apparently used the courts as a
venue for a high-stakes, public negotiating session.
2. Revlon
Cosmetics giant Revlon was another company that found itself needing to integrate its processes
across business units after a merger — in this case, it had acquired Elizabeth Arden, Inc. in
2016. Both companies had had positive experiences with ERP rollouts in the past — Elizabeth
Arden with Oracle Fusion Applications, and Revlon with Microsoft Dynamics AX. But the
merged company had made the fateful choice to go with a new provider, SAP HANA, by
December 2016.
Was HANA an undercooked product doomed to fail? Maybe. What's clear is that the rollout
was disastrous enough to essentially sabotage Revlon's own North Carolina manufacturing
facility, resulting in millions of dollars in lost sales. The company blamed "lack of design and
maintenance of effective controls in connection with the ... implementation" for the fiasco in
March 2019, and noted that "these ERP-related disruptions have caused the company to incur
expedited shipping fees and other unanticipated expenses in connection with actions that the
company has implemented to remediate the decline in customer service levels, which could
continue until the ERP systems issues are resolved." The crisis sent Revlon stock into a tailspin
that in turn led to the company's own stockholders to sue.
3. Lidl X SAP
It was supposed to be the marriage of two great German companies: SAP, the ERP/CRM
superstar, and Lidl, a nationwide grocery chain with €100 billion in annual revenue. The two
companies began working together on a transition away from Lidl's creaky in-house inventory
system since 2011. But by 2018, after spending nearly €500 million, Lidl scrapped the project.
What happened? The scuttlebutt is that the problem centered on a quirk in Lidl's record-keeping:
They've always based their inventory systems on the price they pay for goods, whereas most
companies base their systems on the retail price they sell the goods for. Lidl didn't want to
change its way of doing things, so the SAP implementation had to be customized, which set off
a cascade of implementation problems. Combine this with too much turnover in the executive
ranks of Lidl's IT department, and finger-pointing at the consultancy charged with guiding the
implementation, and you have a recipe for ERP disaster.
4. Hershey
Could a failed technology implementation (in this case SAP's R/3 ERP software) take down a
Fortune 500 company (in this case Hershey Foods)? Well, it certainly didn't help Hershey's
operations during the Halloween season in 1999 or make Wall Street investors thrilled.

In the end, Hershey's ghastly problems with its SAP ERP, Siebel CRM and Manugistics supply
chain applications prevented it from delivering $100 million worth of Kisses for Halloween that
year and caused the stock to dip 8 percent.

So I guess a failed technology project can't actually take down a Fortune 500 company for good,
but it can certainly knock it around a bit.
5. Target Canada
Many companies rolling out ERP systems hit snags when it comes to importing data from
legacy systems into their shiny new infrastructure. When Target was launching in Canada in
2013, though, they assumed they would avoid this problem: there would be no data to convert,
just new information to input into their SAP system.
But upon launch, the company's supply chain collapsed, and investigators quickly tracked the
fault down to this supposedly fresh data, which was riddled with errors— items were tagged
with incorrect dimensions, prices, manufacturers, you name it.

CHAPTER 5: SELECTING AND IMPLEMENTING AN ERP SYSTEM

Deploying an enterprise resource planning (ERP) system is an expensive proposition, not just
in terms of licensing dollars (SLA) and maintenance, but in terms of dedicated resources and
time. And yet all too often, organizations, dazzled by vendor promises and hype fail to come
up with a viable long-term (or even short-term) roadmap.
So to help organizations increase the odds of a successful ERP deployment, we came up with
an ERP selection and implementation tip sheet. Here are nine tips on how to choose an ERP
software solution and successfully deploy it.
1. Get upper management support. Companies that tend to struggle the most [with ERP] are
the ones that lack upper management level involvement. Resources at the lower level tend to
not be educated and engaged with the implementation project without senior level involvement.
Executives don't need to get to the point of knowing every single configuration detail. But [they
need to] be aware of the issues that are causing delays to the project.
2. Make a clear and extensive list of requirements before you start looking at vendors.
Begin by carefully defining the scope of your project. Focus on specific business processes and
system requirements. The more specific you can be upfront, the more detailed your vendors can
be in their proposals.
Too often, people select an ERP system based on factors such as price, current technology buzz
or the system that is the flashiest. But without a good fit, companies are left with expensive
customization and bolted together solutions. Find an ERP system that is industry-specific, with
tools and features designed to solve your business requirements. The ROI and long-term
benefits of a good fitting system are extensive.

3. Don't forget mobile users. As mobility and BYOD increase across industries, accessing
ERP systems from desktops only is no longer an option. Choose an ERP solution that "allows
users to be productive on smartphones and tablets." Yet at the same time will ensure that
sensitive information is secure.
4. Carefully evaluate your options before selecting your ERP system. Poorly run and ill-
defined evaluation projects can lead to poor implementations. Dicey requirement definitions
and vague priorities can lead to the wrong vendor selection.
Also, do not forget about integration. An ERP solution that does not work with your existing
legacy and/or critical office systems is not a solution but another expensive piece of unused or
unusable software.
Finally, find a partner that is dedicated to your industry. Those trying to tackle the entire ERP
world can't offer the same expertise.

5. Get references. First and foremost, when shopping for an ERP solution provider, ask the
vendor for at least three references. Ask the customers what went right, what went wrong and
what they might have done differently. If a vendor can't provide at least three verifiable, happy
customers, they may not have the experience you need.

6. Think before you customize. Consider the amount of customization required to configure
and deploy. Highly customized systems will generate higher cost, not only in the initial
deployment but when upgrading from release to release.

Those businesses with unique requirements need to consider whether those requirements can
be mainstreamed to eliminate the steep cost curve. A turnkey solution may offer less flexibility
but more stability, and less initial and ongoing cost.

Generally speaking, many companies' basic business processes are virtually the same (like
paying invoices, collecting revenue and procuring supplies). This is why ERP was built in the
first place. Companies can take advantage of standard processes that are leading class and have
been tested by many other companies.

7. Factor in change management. Organizational change management is pivotal to the success

of your project. Typical ERP projects facilitate massive change in organizations that can include
changing of day to day job descriptions or eliminating job descriptions in total. These changes
impact the culture of your company and without careful control and communication plans and
workshops you can create an adverse reaction to ERP resulting in barriers to implementation
and adoption.

8. Appoint an internal ERP product champion -- and surround him or her with good
people. Do not rely on the vendor-appointed project manager only; have someone on your staff
for this. Select someone within the organization, who knows or is comfortable managing
software systems, to serve as the project manager. This person will be responsible for collecting
all the end user requirements, learning the new system inside and out, working with the vendor
on data conversion, coordinating training and acting as the point of contact for all employees.
One of the most common mistakes made by companies during ERP implementation is spending
significant time, energy and money selecting the right software and implementation partners,
only to assign their own 'B' team to the program. This results in numerous issues during design
and implementation, slow decision making and delays. While it's difficult to free up your
brightest resources from their full-time jobs, ERP implementations are not simple and they can
be extremely expensive. So it's important to put your best people on the job. Not just your best
IT people, your best people, period.

9. Provide the necessary time and resources for training on the ERP system. Learning a
new way of operating will require a significant time commitment for everyone, so the project
team must take proactive measures to reduce the burden on employees. Identify department-
specific needs, allowing for sufficient time to develop and deliver training programs.

CHAPTER 6: DIFFERENT MODULES & THEIR FEATURES

In software, module is a part of a program, and programs are composed of one or more
independently developed modules that are not combined until the program is linked. ERP
(Enterprise Resource Planning) software typically consists of multiple enterprise software
modules that are individually purchased, based on what best meets the specific needs and
technical capabilities of the organization. Each ERP module is focused on one area of business
processes, such as product development or marketing.7

There are many vendors in the market which are providing traditional ERP solutions or Cloud-
based ERP solutions. Though implementation platforms or technologies are different, there are
common & basic modules of ERP which can be found in any ERP System. Depending on
organizations need required components are integrated & customized ERP system is formed.
The smooth running of a given business needs different functionalities. Enterprise Resource
Planning solution consists of these functionalities. ERP module is a part of the whole system.

7"Best ERP Software 2019: Comparison & Reviews - Webopedia."

https://www.webopedia.com/TERM/E/ERP.html. Accessed 14 Nov. 2019.
Each module provides specific and related functionalities. The functionalities related to one
area of business processes.

1. FUNCTIONAL MODULE

Sales and Marketing

Advanced ERP system modules related to sales

have the ability to integrate sales tax rules and
shipping trackers. Typical sales processes are
automated and this largely reduces the workload
of the company sales teams.

ERP solutions also store and track marketing

campaign data. They can measure client
engagement, email campaign success rate, and
search engine optimization statistics. Sales and marketing are one of the most successful and
useful ERP system modules. It escalates lead generation and optimizes the sales cycles, thereby
pushing up profitability to the highest possible levels.8

Customer Relationship Management (CRM) module

CRM module helps to manage & track detailed information of the customer like communication
history, calls, meetings, details of purchases made by the customer, contract duration etc. CRM

8"Different Types of ERP System Modules and Their Uses." 20 May. 2019,
https://www.softwaresuggest.com/blog/erp-system-modules/. Accessed 14 Nov. 2019.
modules of enterprise resource planning software ensure that this client information is easily
accessible to all employees who are in contact with the customer.

Most ERP systems can integrate the CRM module with the sales module to speed up conversion
rate and capture maximum opportunities in the long run.9

Financial Management

It helps to manage all cash inflows and outflows. It covers all the regular financial and
accounting functions such as ledger management, balance sheets, expenditures, and bank
reconciliation. Essentially it handles taxation and ensure that it is in accordance with current
government regulations.
Advanced financial reporting is a critical function of the financial management or accounting
module. It is able to display all important statistics so that managers can get a quick idea about
financial status.

Manufacturing

Enterprise resource planning systems are commonly used in the manufacturing industry. The
manufacturing module is tailor-made for manufacturing firms and one of the most well-
designed ERP modules. It handles the flow of engineering at all stages and ensures material
management, quality control, and expenditures. ERP tools optimize the production planning
process. It ensures that all resources are well utilized and the manufacturing capacity of the
organization is functioning in an optimum manner.

The manufacturing module is an automated solution that monitors the day-to-day production
activities. Some vital functionalities include shop floor control, plant maintenance, distribution
planning, and materials sourcing. Harnessing the power of ERP systems greatly reduces extra
costs associated with manufacturing by enhancing operational efficiency and task flow
management.

Human Resource Management

9"Basic Modules of ERP System - ESDS." 28 Nov. 2013, https://www.esds.co.in/blog/basic-modules-

of-erp-system/. Accessed 14 Nov. 2019.
This module includes tools such as time tracker, attendance sheets, skills matrix, and
performance management systems. HRM module of ERP software also manages a
comprehensive and updated database of all employee records. This enables managers to have
complete employee data at their fingertips, and make sure that the right person is put on the
right job. Another function that makes the HRM modules one of the most widely used ERP
system modules is payroll management. It handles the entire range of activities related to
employee salaries, travel expenses, reimbursements, and gratuity or other deductions. It
automates all lengthy manual tasks, bringing about speed and efficiency to the payroll function.

Supply Chain Management

One of the most popular ERP modules is supply chain management. It handles the flow of all
items/raw materials from the manufacturer to retailers and then the final customer. This is the
reason that enterprise resource planning systems are used by most stockists, distributors,
retailers, and manufacturers. The supply chain management module ensures that there is always
adequate stock and inventory so that no shortage arises due to which production may be halted.

Enterprise resource planning solutions also facilitate process automation. This streamlines all
major activities involved in the supply, inventory, transport, and distribution of materials or
finished products. Supply chain management module makes sure that the complete chain of
tasks involved with delivering a finished product is managed from beginning to end. It makes
an organization proactive and responsive to sudden market shifts.

Purchasing

The purchasing module manages all the tasks related to the procurement of raw materials and
items. Some main functionalities of the purchasing module include supplier-item linking,
sending quotation requests and tracking purchased items. It also enables managers to send or
receive quotations, prepare purchase orders and goods receipts notes (GRN’s).

The purchase module of ERP software works in integration with the inventory or the supply
chain module. It ensures that all data related to the movement and purchase of new materials
are stored in a unified manner. All the data is accessible to purchasing managers, and they can
view various reports based on the purchase requirements of the organization.
Project Management

Managing projects of any scale are super simple for organizations nowadays, especially if they
have an ERP solution. The project management module enables managers to track all activities
related to projects and ensures that they do not exceed the expected timeline. It monitors
resource allocation and adjusts the workflow pace for maximum productivity. ERP systems can
actually track real-time costs as the project moves along, and provides comparisons of future
expected expenditures.

Timing and billing of project hours can be handled through time tracking function in the project
management module. This ensures that clients are billed the right amount, and are not
overcharged for project services. Easy access to information allows team members to view

the project status, and take corrective action if required. This makes sure that projects are
delivered on time to keep clients satisfied and build a good brand reputation.

2. TECHNICAL MODULES

Technical modules come under

application platforms. This is like
the role of the operating system for
your laptop.
Technical modules are tightly
coupled with functional modules.
They help smooth integration with
different functional modules and
application suite.10

"ERP Modules - 3 types and useful functionalities." https://www.erp-information.com/erp-

10
modules.html. Accessed 15 Nov. 2019.
Technical components found in ERP systems are,
● Basis components
● ERP Security module
● Networking and interface
● Management Information System
● Application Programming module
● Analytic module
● APIs opened for external use

3. APPLICATION SUITE
The application suite is a collection of interconnected
information systems. That could be within and across
different companies. Currently, more and more
organizations begin utilizing ERP frameworks. The next
stage is to interface these frameworks. That will support
interactions that occur between and among organizations.
Few of the popular intercompany systems are,
Supply chain management (SCM): SCM interfaces an
organization to different organizations that supply the
materials. Regular SCM frameworks help organizations in planning. Planning for their creation
necessities and improve complex transportation and co-ordinations for materials.
Supplier relationship management (SRM): SRM frameworks normally deal with general
associations with the materials providers. SRM frameworks contain usefulness in dealing with
quotation and contract processes.
Companies can have more intra-company systems. That is an extension of the fulfillment
process of ERP systems and ERP modules.
Examples of intra-company systems are,
Customer relationship management (CRM): CRM frameworks associate an organization’s
ERP framework with those of its customers. CRM frameworks furnish organizations with
abilities to oversee showcasing, deals, and client administration. These frameworks are an
expansion of the satisfaction procedure of ERP frameworks.
Product life-cycle management (PLM): PLM frameworks help organizations to watch the
procedures of research, plan, and item the board. They help to take new item thoughts from the
virtual drawing board all the way to the manufacturing unit. 11
CHAPTER 7: COMPARISON B/W MOST POPULAR ERPS
Top 10 ERP Software Leaders by Analyst Rating (Selecthub.com)-

12

11 "ERP Modules - 3 types and useful functionalities." https://www.erp-information.com/erp-

modules.html. Accessed 15 Nov. 2019.
12 "Top 10 ERP Software Systems Vendor ... - SelectHub." 30 Aug. 2019, https://selecthub.com/erp-
software/. Accessed 15 Nov. 2019.
CHAPTER 8: TRENDS & LATEST DEVELOPMENTS

1. The Rise of Additive Manufacturing

Additive manufacturing — also known as 3D printing — is transforming how we manufacture

large-scale, high-volume and complex products. Bigger and faster printers make it possible to
cut costs, boost efficiency, and improve parts such as seat buckles and engines. The challenge
for manufacturers is managing the avalanche of data that comes with 3D printing.

Additive manufacturing increases your volume of data at every step of the production process,
and your ERP system must be able to keep up. As manufacturers implement 3D printers
throughout 2019, they will need to carefully review the capabilities of their existing ERP to be
able to reap the rewards of this trend.

2. Internet of Things

The IoT is defined as the interconnection of data from devices that normally would remain
disconnected from the Internet. Companies can gain valuable insights into how the ERP system
performs with the IoT, like how and where the system is used. IoT technology can improve
accuracy and expand data availability, which gives rise to intelligent and much more flexible
ERP systems as well.

IoT has a lot of applications in ERP, particularly in product-centric businesses. If you can look
at what’s going on in those systems in real time, you can really cut off a lot of problems before
they even happen.
The Internet of Things (IoT) is making manufacturing more efficient and improving
transparency as we move into the new year — and further into Industry 4.0.
Internet-connected sensors create a direct link between an operational piece of machinery and
your ERP system. The ERP system automatically collects real-time data about machine
performance, so production can be tracked closely and improved precisely, with fewer human
technicians and less manual input.
This data can help manufacturers schedule routine maintenance to avoid sudden mechanical
breakdowns and costly downtime. Using IoT devices with ERP promotes communication
between all of your systems and increases visibility into your supply chain, keeping your entire
organization on the same page.
Future ERP systems will need to be able to incorporate direct marketing and data gathering
links across multiple social media channels to remain competitive.

Blending IoT data with ERP systems can add valuable information to bigger picture within an
enterprise, for instance with the IoT, product shipments can be tagged with devices that report
transportation time and current location information. As a result, manufacturers can use this
information to better plan production schedules and plant locations.

3. MOBILE ERP

Ensure mobile accessibility. Regardless of industry, mobile devices are being used more
frequently, and mobile workforces are becoming more commonplace. ERP will give employees
the ability to access it from anywhere, at any time. Mobile ERP applications allow companies
to benefit from improved quality of service, deeper business relationships and more accurate
data capture – not to mention access to important data from any location at any time. For
instance, an employee from the sales department can check inventory levels or even close a sale
from home or while on the road traveling.

4. Built-In Analytics & Artificial Intelligence

Older ERP systems may excel at collecting and organizing data, but they are more limited when
it comes to analytics and reporting. Now that data-driven decision-making has become every
manufacturer’s priority, ERP solutions are improving their analytics capabilities to meet
manufacturers’ needs. Modern ERP solutions allow users to run ad-hoc reports, access data
visualizations or embed analytics tools into their existing applications. This provides real-time
information leaders can use to make key decisions quickly.
Through 2019 and beyond, ERP will increasingly become an end-to-end data tool that
informs decision-making at all levels — from the executive suite to the factory floor. For
modern manufacturers, this means it will be critical to invest in a modern ERP solution in order
to keep up with your data-driven competitors.
AI-ENABLED ERP - (iERP) systems can create an environment where a company’s data is
conversational and actionable. Not only that, but iERP systems can learn from the data sources,
create workflows, and reduce the time it takes to load data and reduce errors in the inserted
data. Since AI technology learns the different ways in which an organization and individual
users interact with the ERP software on a daily basis, AI-enabled ERP systems can suggest
different ways to optimize the system for individual users.

Today’s systems of record are fast being replaced by new systems of intelligence. These new
systems of intelligence retain the core “systems of record” capabilities while layering in new
automation and predictive intelligence capabilities. This transformation is occurring at the
platform tier across the spectrum of core software applications, including marketing,
automation, service and support, commerce, and sales, but the pace is most pronounced in the
ERP application suite. This is an approach where intelligence, enabled by AI, machine learning,
and analytics is not an ‘add-on’ but integral to the core part of the platform. However, very few
ERPs currently have a native intelligent core and only 4% of UK CIOs say that intelligent
technology is a core part of their current ERP set-up. The appetite exists, however: 53% said
that their current ERP system is inflexible and that they want to extend it, using intelligent
technology. In the future, all ERPs will be intelligent at the core.

ERP architectures are evolving to support real-time responses, which makes inherent sense. For
example, if you are a manufacturer sourcing parts from all over the world, wouldn’t it be great
to have a perfectly-coordinated, lean supply chain? It would mean that you could start
manufacturing the moment you receive the order, without holding excess inventory, and avoid
accepting orders that you could not meet in time. These can be nested into the application
architecture, allowing users to perform tasks such as simulation, planning, modelling and
forecasting without the need for standalone analytic applications.

Companies who appreciate the transformative power of data intelligence realise that the ability
to converge different data sources is essential in order to produce well-rounded insights. The
ERP trend today is to transition from ‘data traps’ to being ‘data progressive’.

5. Cloud Dominance : Treat Cloud As The Gateway To Modernisation.

CIO survey finds 78% of UK CIOs believe that cloud is critical to their IT strategy and corporate
strategy, and 50% say they are already running a hybrid cloud ERP and reaping its rewards of
Total Cost of Ownership (TCO) reduction and increased agility.

61% of UK CIOs from our survey report that they have more than half of their data and
applications in the cloud already, but only 6% are planning to be exclusively cloud-based in the
next 3-5 years. Cloud ERP is nothing new, but it’s quickly becoming industry standard for many
manufacturing sectors. The cloud ERP market is projected to grow from $18.5 billion in 2016
to $29.8 billion in 2021, as more companies look beyond on-premises solutions. The forecasted
growth makes sense considering the benefits of the cloud, which include lower costs, broader
access, easier management, and better security. An off-site ERP solution will become especially
advantageous as many manufacturers continue to expand their operations across the globe.

Cloud ERP allows for continuous upgrades. There are also downsides. Bad news is that the
company needs to be staffed and plan for an ongoing stream of feature changes and
enhancements, accommodate them because you cannot stay on an old release forever. Basically,
instead of one big change every few years, companies will have to adjust to many small changes
over time. Staff members will have to be more open to change and businesses may need to
invest more in training as well as vendor support.

6. Personalisation

ERP vendors will offer more personalized solutions as the low-code market reaches $15 billion
USD in 2020.

The reputation of legacy ERPs is of being reliable, but difficult to use – and this is not
surprising. Enterprises have seldom invested in ERP user experience (UX),

In the future, the ERP market will need to transition to assistive and conversational user
experiences (including chatbots, automation and human– machine interaction)

In the future, ERP users will look for solutions that are tailored specifically to their industry so
that they can avoid customization and ensure that they stay current. Instead of modifications,
manufacturers will personalize their solutions and look to extend their solutions to support
needs without altering code.
CHAPTER 9: DIFFERENT ERPS USED IN THE FASHION INDUSTRY

AIMS360FashionERP

It is a comprehensive, fully-integrated
cloud-based apparel manufacturing
software, as well as order and production
processing platform for vertical brands,
importers, wholesalers, and distributors.
AIMS360 leverages the latest versions of
Microsoft SQL and .NET platforms to
help to collect and organize customer data,
track inventory, manage orders and shipping, and more. The main features also include
complete apparel inventory management, style management, customer and order management,
high-level dashboards, multiple windows, enterprise-class business intelligence, and reporting

Apparel Magic

It’s an integrated solution that helps

to manage styles, sales, customers,
accounting, inventory, and
purchases in one place. Style
management enables to keep a
detailed library of your products’
colors and sizes with precise
tracking of costs. Cloud architecture,
open API, and a scalable SQL database make it suitable for both top multinational brands and
niche labels. Installation isn’t required; ApparelMagic cloud is entirely web-based and can be
used with any device and anywhere. Technical support and training are also free.
Fast React

Fast React is an industry-specific

software for the fashion business. The
product contains three different
solutions: Vision, an extended browser-
based PLM solution; Evolve, a tool for a
visual capacity planning and
management: and Align, built as a
modeling software solution to improve inventory levels and order confirmation process.All of
these help to coordinate operations in different stages and control them from a single
administrative console. Modules of Fast React also offer tools for new product development,
budgeting, forecasting, critical path, and user-defined reporting.

Intello Cut

IntelloCut is a planning optimization tool

designed to help apparel and textile businesses
save fabric in roll form in order to boost
topline. It takes the style details uploaded in a
cloud and generates a cutplan to minimize
wastage, maximize fabric utilization and cut
more garments with the same fabric. The
program also tracks manufacture compliance to ensure the best quality of materials.

Sync

Sync is a cloud-based integrated tool, created

specifically for the fashion industry. It combines the
features of product lifecycle management (PLM)
and enterprise resource planning (ERP) software.
The solution can incorporate up to 22 different
modules that enable you to manage everything from
style costing and materials sourcing to inventory and
product orders. Yunique PLM
YuniquePLM is a product lifecycle management tool for apparel and retail businesses, It is
developed to help companies to manage both creative teams and supply chains effectively and
deliver the products on time and at the right costs. The platform is cloud-based and has
integrated design tools. Its main distinctive feature is the pre-positioning phase that allows
accurate preliminary costing. Moreover, YuniquePLM has design suite, product development,
sourcing, tracking, and reports modules.

i.Level

i.Level is a modular system built for clothing and fashion

management. It offers a wide range of solutions that helps
to maintain broad control over stocks from production to
delivery items to stores, vendors, and customers. i.Level
also helps to manage multiple sales channels with a unified
stock control management tool

CHAPTER 10: FUTURE OF ERP

CLOUD ERP

Cloud computing technology is

getting its foothold in every
industry, and fashion segment is not
an exception. Today's knowledge
based technological service
systems allow organizations to save
time, and money. It also enables
organizations to achieve better,
reliable and fully documented
decisions resulting in a quantum
improvement.

Cloud computing has made its increasingly powerful presence in the fashion industry. Most
audacious patterns and prints are being created by computers. The requirements for the fashion
industry are more demanding in the world of manufacturing. Fashion retailers need to ensure
that right assortment is available in store at the right time. In the fashion industry on time
delivery is more critical for business success. ERP software is designed to link every aspect of
the supply chain, and deliver transparency and visibility for the industry. It also enables better
forecasting, planning and management of inventory.
Cloud-based computing (also called Software as a Service, or SaaS) allows users access to
software applications that run on shared computing resources (for example, processing power,
memory, and disk storage) via the Internet. These computing resources are maintained in
remote data centers dedicated to hosting various applications on multiple platforms.

Cloud ERP is Software as a Service that allows users to access Enterprise Resource Planning
(ERP) software over the Internet. Cloud ERP generally has much lower upfront costs, because
computing resources are leased by the month rather than purchased outright and maintained on
premises. Cloud ERP also gives companies access to their business-critical applications at any
time from any location.

While technically the only difference between Cloud ERP and on-premises ERP is where the
software is physically located, there are other significant differences. The Cloud is particularly
valuable to small and medium-size businesses (SMB’s) because it provides access to full-
function applications at a reasonable price without a substantial upfront expenditure for
hardware and software. Using the right cloud provider, a company can rapidly scale their
business productivity software as their business grows or a new company is added.

TYPES OF CLOUDS

· Private cloud is privately owned and maintained by the company or a hosting provider.
Based on business requirements or regulations, sometimes this may be the only option.
· Public cloud is owned by a service company, such as Microsoft, IBM or Amazon. The
service provides all the hardware, load balancing, backup and security.
· Hybrid cloud is a blended approach with a mix of on-premises, private cloud and third-
party, public cloud services.
ADVANTAGES AND DISADVANTAGES:

Cloud ERP has been proven to reduce costs in many ways because it:

● Avoids upfront costs for all

computing infrastructure such as
hardware and data servers
● Reduces IT support
services because IT support is
provided by the data centre.
● Eliminates paying upfront
for application software licenses
in favour of a monthly fee
● Shrinks the cost of
maintaining and supporting those
applications since the cloud
vendoR handles the updates and
upgrades
● The most important
benefits of Cloud ERP go beyond
cost-savings and include:
● Paying only for the
computing resources needed
● A fixed monthly rate so
companies can use their cash on other business initiatives
● Taking advantage of Cloud ERP applications faster since installation of hardware and
software on servers or user devices is not required
● The ability to adjust the amount of cloud service as a company’s computing or storage
needs fluctuate
● Enjoying the confidence that the data has been backed up and there is a disaster recovery
plan
● Avoiding attacks on the company’s server because the data is not stored locally, but in
the cloud
 ● Accessing the system from anywhere makes it easy for a company to expand
geographically since the Internet is everywhere and there is no need to implement
hardware and software at remote locations.
●

ARTIFICIAL INTELLIGENCE

Artificial intelligence is an area of computer

science that emphasizes the creation of
intelligent machines that work and react like
humans. Despite its relative infancy, artificial
intelligence is making serious waves in the
software market. Gartner predicts that by 2020,
almost every new piece of software on the
market will leverage AI technology in some form or fashion. By 2021, 80 percent of all
emerging technologies will rely on AI as the centrepiece of its infrastructure.

ERP software, which boasts operational efficiency as a defining characteristic, is a particularly

pertinent case study, proving to be a breeding ground for the implementation of such future-
forward technologies. Recent advancements in AI and machine learning have shown limitless
potential for ERP vendors—but with that comes a lot of uncertainty.

If businesses optimize their ERP systems and data for the practical applications of AI in the
present, they will be better positioned to leverage the technology as it matures and becomes
nearly universal within the software market. AI ERP systems can recognize patterns and
automate routine tasks, and they do all of it in the blink of an eye, giving businesses an
unprecedented level of efficiency, functionality and insight into their data.

ADVANTAGES:

1. Offers Deeper Insights into Your Data

Within a given data set—such as the massive data sets found in an ERP—patterns and
correlations exist that aren’t always visible to the human eye. With AI, SMBs can identify these
less obvious trends and make insightful inferences about specific business operations, which in
turn allows for more accurate forecasting and informed decision-making.
For instance, an AI-based system could pinpoint the correlation between a rise or dip in
production and a specific business function in, say, supply chain management—insights that
would take a human significantly more time to extract.

2. Automates Routine Processes

When a human performs a given task within their ERP system, they’re following a set of rules—
consciously or subconsciously—that governs their actions and methodology. Such behavioural
tasks can often be expressed in mathematical terms and programmed into software, which can
then apply this set of rules to a specified data set and make intelligent decisions more quickly
than any human could.

This can make routine responsibilities such as accounting and payroll administration as
effortless as the click of a button. It is, in a sense, an advanced form of efficiency optimization,
freeing up valuable human brainpower to focus on more high-level tasks and processes that no
machine can reliably handle.

3. Improves User Experience through Interaction

This element of AI makes intelligent decisions based on human input, which in turn make the
application faster and more useful to the individual user.

Huffman gives the example of searching for information in NetSuite and consistently
interacting with a certain set of record types, such as customer data or product catalogue data.

The software can then prioritize those search results based on a user’s interaction history, in a
way that personalizes the user experience and makes it easier to find what you’re looking for.
In a system that employs vast amounts of data, like an ERP, this is crucial.

The benefits to utilizing AI within an ERP framework are clear. That said, there are risks to
implementing such ambitious, far-reaching technology. And contrary to much of science
fiction, they don’t involve robots supplanting the human race (at least not in the foreseeable
future).

DISADVANTAGES:

1. Integration Can Fail Without Adequate Resources

For vendors, having the resources to unleash the power of AI is essential to realizing its full
potential. But even those that do have the means are at risk without exhaustive research and
preparation. You need data scientists and developers who understand how to analyse the data
that you’ve got and run it through these algorithms, to make your application into a self-learning
system.

Buyers, especially those who prefer the postmodern approach to ERP, should exercise caution
when updating to an AI-based platform. The more complexity you infuse to your system, the
more breakage points become a concern, so all integrations and external connections should be
airtight.

This is true of all ERP upgrades, including those devoid of artificial intelligence. But automated
tasks can have significant unintended consequences without thorough planning, and introducing
AI to the mix enhances these risks.

2. Minor Mishaps Can Quickly Turn Into Serious Issues

The nuts-and-bolts argument is that the sheer power and scalability of AI presents businesses
with the responsibility to consider the impact their technology can have when things don’t go
as planned.

Systems designed for humans require a certain level of user training and control, and when non-
human intelligence is added to the mix, the probability of unintended consequences increases.
Again, this doesn’t mean killer robots taking over the planet, but it could disrupt the user
experience. When selecting an ERP system, SMBs should ask the vendor the extent to which
they plan to leverage AI technology in their platform

BLOCK CHAIN

A block in a block chain is a collection of data.

The data is added to the block in block chain,
by connecting it with other blocks in
chronological others creating a chain of blocks
linked together. The first block in the Block
chain is called Genesis Block.
Block chain is a distributed ledger, which simply means that a ledger is spread across the
network among all peers in the network, and each peer holds a copy of the complete ledger.

1. A node starts a transaction by first creating and then digitally signing it with its private
key (created via cryptography) . A transaction can represent various actions in a block
chain. Most commonly this is a data structure that represents transfer of value between
users on the block chain network. Transaction data structure usually consists of some
logic of transfer of value, relevant rules, source and destination addresses, and other
validation information.

2. A transaction is propagated (flooded) by using a flooding protocol, called Gossip

protocol, to peers that validate the transaction based on pre-set criteria. Usually, more
than one node is required to verify the transaction.

3. Once the transaction is validated, it is included in a block, which is then propagated

onto the network. At this point, the transaction is considered confirmed.

4. The newly-created block now becomes part of the ledger, and the next block links itself
cryptographically back to this block. This link is a hash pointer. At this stage, the
transaction gets its second confirmation and the block gets its first confirmation.

5. Transactions are then reconfirmed every time a new block is created. Usually, six
confirmations in a network are required to consider the transaction final.

ADVANTAGES:

1. Greater Transparency:

Transaction histories are becoming more transparent through the use of blockchain
technology. Because blockchain is a type of distributed ledger, all network participants
share the same documentation as opposed to individual copies. That shared version can only
be updated through consensus, which means everyone must agree on it. To change a single
transaction record would require the alteration of all subsequent records and the collusion
of the entire network.
The decentralized nature of the blockchain is what makes them immune to takeovers or
corruption by centralized entities such as banks and governments. It goes further while
distributing this data across a wide network of unrelated computers and systems also means
the blockchain’s ledger is available for anyone to access, verify & audit data and
transactions.

2. Accounting:

Blockchain allows you to record transactions that virtually eliminates human error and
protects data from tampering. The data is verified every single time they are passed on from
one blockchain node to the next. In addition to the guaranteed accuracy of your records,
such a process will also leave a highly traceable audit trail.

3. Supply Chain Management:

This revolutionary technology offers the benefit of traceability and cost-effectiveness.

Blockchain allows for the tracking of goods, their origin, quantity and more. This simplifies
processes like ownership transfers, production process assurance, and payments.

4. Peer to peer global transactions:

Bitcoin which uses blockchain technology allows for the fast, secure and cheap transfer of
funds across the globes. While there are already services like PayPal that processes
international payments, they usually have specific limitations

5. Process Integrity:

Users can trust that transactions will execute exactly as the protocol commands and removes
the need for a trusted third party. Due to the security reasons, this program was made in
such a way that any block or even a transaction that adds to the chain cannot be edited which
ultimately provides a very high range of security

6. Lower Transaction Costs:

The elimination of exchanging assets through third-party intermediaries allows blockchain

to greatly reduced transaction fees.

7. Traceability:
 The format of Blockchain designs in such a way that it can easily locate any problem and
correct if there is any. It also creates an irreversible audit trail.

8. Security:

Blockchain technology is highly secure because of the reason each and every individual
who enters into the Blockchain network is provided with a unique identity which is linked
to his account. This ensures that the owner of the account himself is operating the
transactions. The block encryption in the chain makes it tougher for any hacker to disturb
the traditional setup of the chain.

9. Faster processing:

Before the invention of the blockchain, the traditional banking organization take a lot of
time in processing and initiating the transaction but after the blockchain technology speed
of the transaction increased to a very high extent. Before this, the overall banking process
takes around three days to settle but after the introduction of Blockchain, the time reduced
to nearly minutes or even seconds.

DISADVANTAGES:

1. Large energy consum-ption:

The consumption of power in the Blockchain is comparatively high as in a particular year

the power consumption of Bitcoin miners was alone more than the per capita power
consumption of 159 individual countries.

Keeping a real-time ledger is one of the reasons for this consumption because every time it
creates a new node, it communicates with each and every other node at the same time.

2. Maintenance Cost:

An average cost of the Bitcoin transaction is $75-$160 by the energy consumption. The
storage problem might be covered by the energy issues cannot be resolved. Every bitcoin
network client stores the entire transaction history, it became as large as 100GB. The more
transactions processed on the network, the faster the size grows.

3. Uncertain regulatory status:

In each and every part of world modern money has been created and controlled by the
central government. Blockchain becomes a hurdle for Bitcoin to get accepted by the
preexisting financial institutions.

4. Volatility:

Many of the cryptocurrencies that use decentralized blockchains are extremely volatile. For
example, it is not uncommon for Bitcoin prices to fluctuate 20% or more in a single day.
The governments, investors, businesses, and other groups of people are trying to decide
whether or not they want to adopt them which can cause a lot of volatility.

5. Transaction delays:

One of the biggest drawbacks of the major blockchains that have been created so far is that
they usually take a fairly long time — typically a few hours — to register transactions.
There are ways to work around this limitation, such as using “off-chain” transactions. Still,
in most cases writing data to a blockchain is not instantaneous.

6. Unavoidable security flaw:

There is one notable security flaw in bitcoin and other blockchains: if more than half of the
computers working as nodes to service the network tell a lie, the lie will become the truth.
This is called a ‘51% attack’ and was highlighted by Satoshi Nakamoto when he launched
bitcoin.

For this reason, bitcoin mining pools are monitored closely by the community, ensuring no
one unknowingly gains such network influence.

7. Doesn’t Guarantee full transparency:

Moving data to a blockchain can be one way to help make your software project or company
more transparent. But it doesn’t suddenly make everything about “open.” You could have
a closed-source application that stores data on a blockchain, for example. In that case, no
one except you would know exactly how your software operates, despite the fact that its
data lives on a blockchain.

8. Performance, Redundancy, Indestructible:

The blockchain has many nodes whereas centralized databases process transactions once or
twice, the blockchain must process independently by every node in the network for the same
end result.

The blockchain is stored on each network node, then special services or authorities cannot
shut down Bitcoin because it’s decentralized and has no centralized server.

9. Signature Verification:

All transactions made on the blockchain network needs to be signed using a public-private
cryptography scheme called Elliptic Curve Digital Signature Algorithm (ECDSA) This is
necessary because transactions propagate between nodes in a peer-to-peer fashion. The
generation and verification of these signatures are computationally complex.

Thank you