Program Semester MI0038 Subject Name "nit Number "nit $it!e %ecture Number %ecture $it!

: MBA : IV Subject Code : Enterprise :# : Introduction to E P :# : Introduction to E P esource P!anning :

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"nit*# Introduction to E P

Introduction to E P

'bjecti)es :
To discuss evolution of ERP To identify reasons for the growth of ERP market To trace the benefits and failure of ERP implementation To discuss about the selection of an ERP package

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%ecture 'ut!ine

Introduction E)o!ution o+ E P About E P easons +or t,e -ro.t, o+ E P Mar/et Bene+its o+ E P 0ai!ure o+ E P Imp!ementation * E P Pac/ages Summar1 C,ec/ 2our %earning Acti)it1 easons

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"nit*# Introduction to E P

Introduction

Information Technology (IT) has revolutionised the way we live and work !ith advancements in IT" it is possible for organisations and its departments to work as a unified unit !orking as a unified unit helps to meet the ob#ectives and goals of organisations IT plays a crucial role" at the organisational and departmental levels by helping them to share data Enterprise Resource Planning or ERP is a method of effective planning of all the resources in an organisation ERP systems helps to optimally plan and manage all the resources of the organisation It also facilitates faultless flow of information across departmental barriers
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E)o!ution o+ E P
In the Pre$ERP scenario departments worked in isolation $ Resulted in fragmentation of information Information was shared between departments only at the top level %RP became the fundamental concept of production management and control in the mid &'()s The prevailing trend at this time was *ill of %aterials (*+%) This concept unfolded from order inventory management of materials to plant %RP$II was carved out of %RP" consisted human resource planning and distribution planning ,ater ERP was developed that included financial accounting" human resource management functions" distribution management functions" and management accounting functions
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About E P
ERP covers the techni-ues and concepts employed for the overall integration of business processes It is designed to model and automate the basic functions of a company It establishes effective link between the top level and bottom level of the hierarchy

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easons +or t,e -ro.t, o+ E P Mar/et

To enable improved business performance To support business growth re-uirements

To eliminate limitation in legacy systems

To take advantage of the untapped mid$market

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Bene+its o+ E P

3irect Bene+its: *usiness Integration .le/ibility

*etter 0nalysis and Planning 1apabilities

2se of ,atest Technology

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0ai!ure o+ E P Imp!ementation* easons

3election of a !rong Product

Incompetent and hapha4ard implementation

Inefficient method or ineffective usage of the system

Improper training to the employees

.ear of unemployment

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E P Pac/ages
Package selection is important phase in ERP implementation 5ey things to be considered before choosing an ERP package are6 The package should6 7 3upport multi$language and multi$currency 7 8ave installations in countries where companies have offices 7 .acilitate companies to initially purchase the core modules and later opt for additional modules 7 8ave the fle/ibility of interfacing with other systems 7 *e customisable The vendor should6 7 Provide support during implementation and also post implementation 7 3hould give a commitment on training the company employees 7 9ive verification on policy and practices related to updates" version" and so on This has to be acceptable as per the company norms
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Summar1
Enterprise Resource Planning (ERP) is one of the means to integrate the data and processes of an organisation into one single system Earlier companies were using technologies like %RP" *+%" %RP$II to automate most of their business processes Presently" companies are implementing ERP" as it helps in unifying its processes and helps in easy access of information The benefits of ERP system are in business integration" fle/ibility" better analysis and planning capabilities and use of latest technology ERP implementation fails due to selection of wrong product" fear of unemployment" improper training" improper usage and so on ERP package selection is an important stage in ERP implementation
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C,ec/ 2our %earning

& !hat are the direct benefits of an ERP system: 0ns The direct benefits of an ERP system are6 ; *usiness integration .le/ibility *etter analysis and planning capabilities 2se of latest technology

<ame any four reasons for the failure of ERP implementation

0ns The four reasons for the failure of ERP implementation are6 3election of a wrong product Improper training to the employees Incomplete or hapha4ard implementation .ear of unemployment
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Acti)it1

1onduct a survey and gather information how ERP system can prove to be effective in an unorganised sectors and in small scale industries ,ist the reasons why they prefer or don=t prefer an ERP system

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