48 48 only erp presentation
TRANSCRIPT
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Enterprise
Resource
Planning
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What is ERP
ERP is a solution, which f acilitates company-wide integrated
inf ormation systems, covering allf unctional areas
per f orms core Corporate activities and
increases customer service augmentingCorporate Image
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In tegratio n is Key to ERP
ERP is a way to integrate the data andprocesses o f an organization into onesingle system
ERP systems is the use o f a uni f ieddatabase to store data f or the varioussystem modules.
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Inf ormatio n Isla nd s
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ERP Structure
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Why ERP?
F or Management to know what ishappening in the company
One solution f or better Management F or cycle time reduction To achieve cost control & low working capital To marry latest technologies To satis f y the customers with high
expectations
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Evolutio n o f ERP 1960 s - Systems Just f or Inventory Control
1970 s - MRP Material Requirement Planning(Inventory with material planning & procurement)
1980 s - MRP II Manu f acturing Resources Planning(Extended MRP to shop f loor & distribution Mgnt.)
Mid 1990 s - ERP Enterprise Resource Planning(Covering all the activities o f an Enterprise)
2000 onwards ERP II Collaborative Commerce(Extending ERP to external business entities)
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ERP Expectatio n s Integrating all the f unctions
Integrating the systems running in all thelocations
Transparency o f inf ormation using a singledata source across the organization
So f tware must be responsiveModular F lexibleEasy to add f unctionalitiesProvide growth path
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ERP Optio n s OPTION 1 MAKE [Using Internal resources]
Developing a custom-built ERP package, speci f ic to therequirements o f the organization, with the help o f the
in-house IT department OPTION 2 BUY Readymade)
G oing f or Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSo f t etc.
OPTION 3 MAKE [using External resources]
Developing a custom-built ERP package, speci f ic to therequirements o f the organization, with the help o f aso f tware solution provider
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ERP System Cost Compo n e n t
So f tware Consulting Hardware Implementation
Team Training
Other
30 .2%24. 1 %17 .8 %1 3.5%
10 .9 %
3.3%
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Impleme n tatio n Phase(SDLC)
.
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Commercial ERP PackageImpleme
nte
d
SAP ORACLE BAAN J.D.Edwards People So f t Other Packages
25%1 4.2%8 .8 %7 .4%2.5%27 .3%
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The Id eal ERP System Manu f acturing :Engineering,
Management, Quality Control, CostManagement, Manu f acturing Process,Manu f acturing Projects
Supply Chain Management :Inventory,Order Entry, Purchasing, Supply ChainPlanning etc.
F inancials :G eneral Ledger, CashManagement, Accounts Payable, AccountsReceivable, F ixed Assets etc.
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ERP Ve nd ors
SAP (SD,MM,HRM, F I/CO,CRM,SCM,PP,QM,WMS)
Inf or G lobal Solution :BAAN (manu f acturing, f inancial, projectestimating and management )
Oracle : 89 % SMB Customer .People so f t
(HRM,CRM,Manu f acturing, F inancial)
JD Edward(HRM)
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Compariso n :
SAP :1 )Only 66 % SMB Customer Recommendation2)Average Vendor Support 3.4 f or SMB.
3)Deployment time 69 % o f the SAP were on time.
Oracle :
1 )Only 89 % SMB Customer Recommendation2)Average Vendor Support 4. 0 f or SMB.3)Deployment time 78 % o f the Oracle were on
time.
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ERP Selectio n
Check whether all f unction aspect o f thebusiness are dully covered.
Check whether all the business f unctionand processes are f ully integrated .
Check whether all latest IT trends arecovered.
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ERP Markets
India Malaysia
Singapore South Korea Australia
Europe Japan
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ERP Cost
Based on the ERP survey conducted byMeta G roup in 2 00 2, the average cost o f ERP ownership was $ 1 5 millionsranging f rom hal f millions to $3 00 millions. The average cost per user per year could be as high as $2 0 ,000 .
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Ad va n tages o f ERP Systems
A totally integrated system Only Customization Required The ability to easily share data across
various departments in an organization Improved e ff iciency and productivity levels Better tracking and f orecasting Lower costs Improved customer service
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Disa d va n tages o f ERP Systems
Customization in many situations islimited
The need to reengineer businessprocesses
ERP systems can be cost prohibitive toinstall and run Technical support can be shoddy
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.
Thank You