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Background of ERP
Overview
Merits & Demerits
ERP Market
Implementation
Example: Tata Power
ERP Trends
An ERP solution aims to provide a single
software which will integrate all the
divisions in an organization—
manufacturing, sales, marketing, finance,
HR—and yet fulfill each division’s
information and planning needs.
Time Consuming
Security Issues
# Vendor Revenue (mn Market share (%)
$)
1 SAP 4726 28.7
2 Oracle Applications 1674 10.2
3 The Sage Group 1221 7.4
4 Microsoft Dynamics 616 3.7
5 SSA Global 464 2.8
Technologies
HELP!!
Source: http://link.unm.edu
Source: http://link.unm.edu
The Tata Power Company Founded in 1868 by Jamshedji Tata
Limited is India's largest private
Headquarter
sector power utility with an Mumbai, Maharastra, India
s
installed generation capacity of
over 2300 MW. Key people Prasad Menon, MD
The Company has emerged as
a pioneer in the Indian power Electricity generation
sector, with a track record of Industry Electricity transmission
performance, customer care Electricity distribution
and sustained growth.
The thermal power stations of Revenue INR 21.9 billion (FY 2005)
the company are located at
Trombay in Mumbai, Jojobera in
Jharkhand and Belgaum in Net income INR 7.5 billion (FY 2005)
Karnataka.
Source: www.tatapower.com
Tata Power tied up with Tata Technologies for the ERP
implementation. It begun early 2001 and the entire
process is completed by May 2003.
The implementation of SAP R/3 covered
Project management
Source : www.ciol.com
Benefits happened in four major areas - cycle
time reduction, inventory reduction, manpower
reduction, and provided better quality
information.
Processes Before After
Procurement cycle times (material) 41 days 17 days
Capital Procurement 90 days 14 days
Accounts closing cycle time 38 days 8 days
Billing integrity index 3% 1.83 %
Billing complaints response index 90 % 99 %
Source : www.ciol.com
Small to midsize companies are targeted.