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PLANNING
AGENDA
• Introduction to ERP
• Components/Modules of ERP
• Implementation of ERP
• Advantages,Disadvantages
• Various Players
• Future Growth
• Business Case
DEMANDS ON THE
INDUSTRY
• Better products at lower costs
• Tough competition
• Need to analyze costs /
revenues on a product or
customer basis
• Flexibility to respond to
changing business
requirements
• More informed management 3
WHAT ARE THE
PROBLEMS??
4
Solving these Problems will
Keep You Ahead Of
Competition!!
5
E R P - T h e E n a b le r
6
WHAT IS ERP?
ERP is a solution which
– facilitates company-wide
integrated information systems,
covering all functional areas
of an
organization to meet the
organizational goals
and integrate all the functions of the
Enterprise.
8
BRIEF HISTORY OF ERP
WHY ERP??
•
• For Management – to know what is
happening in the company
• One solution for better Management
• For cycle time reduction
• To achieve cost control & low
working capital
• To marry latest technologies
• To shun the geographical gaps
• To satisfy the customers with high
expectations
• To be Competitive & for survival 10
•
GOAL OF ERP
To im p ro ve a n d
stre a m lin e
in te rn a lb u sin e ss
p ro ce sse s, w h ich
typ ica lly
re q u ire s
re e n g in e e rin g o f
cu rre n t b u sin e ss
p ro ce sse s
ERP OPTIONS
•
• OPTION 1 – MAKE [Using Internal
resources]
• OPTION 2 – BUY
• Extensive Planning
ERP IMPLEMENTATION
• ERP vendors
– Selection of suitable vendor
– Track record, staff, global presence
ERP IMPLEMENTATION
• Employees selection
– Internal experts aware of company’s
processes and industry practices
–
• Employee morale
– Concerns are long working hours and
stress
– Support and motivation from top
management
required
ERP IMPLEMENTATION
STAGES
• Analysis
– Discussion with functional experts and
preparing Project Scope document
• Design
– Prepare Functional report, Design document,
Test scripts, Interface plan
• Build
– System configuration
• Transition
– Training users, Acceptance testing, Live
system replication,
• Production
– Data migration, Official handholding
–
ADVANTAGES OF ERP
DISADVANTAGES OF ERP
DISADVANTAGES OF ERP
ERP Vendor
Classification
Tier I Tier II Tier III
SOURCE :http://panorama-consulting.com/resource-center/2010-erp-vendor-a
SAP
• German for "Systems, Applications and
Products"
• Largest ERP provider
• Targets large organizations
• Significant presence in midsize
organizations
• Integrated industry centricity of its ERP
offering is key to SAP success in ERP
• Two brands, one with the deepest
functionality available
• Priced at higher end
SAP
Oracle
• World's second largest business
applications maker
• Over 37,000 application customers
• Four primary brands, two with deep
functionality
• Different platform under each brand
• A lot of standalone, unintegrated
industry-centric point products
• Priced at the high end
•
Microsoft
• ERP darling for SMB (small and
midsize business) organizations
• Multiple ERP products
• Partners heavily with Microsoft
developer community
• Covers breadth of the industry
• MS/.Net/SQL technology
• Low to moderately priced
•
Infor
• 3rd largest global ERP maker
• Over 70,000 customers
• Several different ERP systems
• Strong distribution
• SCM is a speciality
• Partners heavily with IBM and IBM
distributors
• Low to moderately priced
•
Epicor
• Long history of reputable products
• Over 20,000 customers, 140 countries,
30 languages
• Several strong industry solutions
• Good after sales support
• MS/SQL/SOA technology
• Lowest TCO (Total Cost of Ownership)
and total per user cost of software,
services and maintenance for mid-
size companies
•
Advantage ERP
Advantages of ERP
• Use of Spreadsheets made Obsolete
• Real Time data made accessible
• Allows quick decision making
• Provides automated & up-to-date
business functionalities
• Provides easy integration of legacy &
upgraded Business applications
• Streamlines business operations
•
GHCL : ERP success story
Business Process :
Complicated that required co-
ordinated planning, scheduling &
monitoring each stage of production
Objective to incorporate ERP :
To integrate various businesses &
provide support for decision making
across all levels
To automate & streamline
transactional systems & material
resource planning, manufacturing &
dispatch
P ro b le m s F a ce d b y G H C L
S u cce ss S to rie s
Secant Technologies
• A 4-crore Ludhiana company
deployed ERP in 2005
• Local vendor, Disha Informatics
implemented ERP
• Time taken : 8 months
• Cost involved : Rs. 8.5 lakh
• Impact: 50% y-o-y
SOURCE :http://www.channelbusiness.in
Veeras Infotek
• Based in Chennai, deployed
Navision(ERP)
• Helped evaluate employee
performance
• Cost involved: Rs. 10 lakh
• Growth: Almost double in 3 years
time
•
Source : http://www.channelbusiness.in
Analyzing SAP-ERP's
success in TISCO
TISCO profile
• Founded in 1907
• Business process was divided into
two main segments
– Core functions were denoted to be
major ones
– Supporting functions were named
minor ones
• A plan of action on the proposed
ERP's impact was drafted
• All efforts to ensure that the change
did not produce any sort of
resentment
The Outcome
• Produced in terms of financial
technical and managerial
parameters
• Effective handling and speed delivery
resulted in greater sales
• Drastic fall in the amount owned to
creditors
• Increased the productivity
FUTURE MOVES
• Determined not to stop ERP or attain
a saturation point
• Working on to improve and increase
the scopes of ERP software
THANK YOU