Enterprise Enterprise Resource Resource PlanningPlanning (ERP) (ERP)

SURYA SHANKARSURYA SHANKAR

PRESENTED BY

What is Enterprise What is Enterprise Resource Planning (ERP)?Resource Planning (ERP)?

ERP is an enterprise-wide information ERP is an enterprise-wide information system designed to coordinate all thesystem designed to coordinate all the resourceresources,s, information, information, activities needed activities needed

to complete business processes such asto complete business processes such as;; orderorder fulfillmentfulfillment billing.billing.

Evolution of ERPEvolution of ERP 1960’s - Systems Just for Inventory Control1960’s - Systems Just for Inventory Control

1970’s - MRP – Material Requirement Planning 1970’s - MRP – Material Requirement Planning

(Inventory with material planning &procurement)(Inventory with material planning &procurement)

1980’s - MRP II – Manufacturing Resources1980’s - MRP II – Manufacturing ResourcesPlanning(Extended MRP to shop floor & Planning(Extended MRP to shop floor & distribution Mgt.)distribution Mgt.)

Mid 1990’s - ERP – Enterprise Resource Mid 1990’s - ERP – Enterprise Resource Planning(Covering all the activities of an Planning(Covering all the activities of an Enterprise)Enterprise)

How ERP Systems How ERP Systems Works?Works?

A typical ERP system use multiple A typical ERP system use multiple component of computer software and component of computer software and hardware to achieve integrationhardware to achieve integration

ERP delivers a ERP delivers a single databasesingle database that that contains all data for the software modulecontains all data for the software module

HIERARCHY OF ERP:HIERARCHY OF ERP:

How ERP systems are How ERP systems are implemented within implemented within companies?companies?

ERP Software Companies start analysing ERP Software Companies start analysing the prospective company(s), identifing the prospective company(s), identifing their individual needs. their individual needs.

Setup of ERP systemsSetup of ERP systems For Mid-size companies 5-12 months For Mid-size companies 5-12 months Large Companies 6-18 monthsLarge Companies 6-18 months

Companies before ERP Companies before ERP SystemsSystems

Companies after ERP Companies after ERP SystemsSystems

Online Data Flow decreases the process Online Data Flow decreases the process timetime

Fast & Online ConfirmationFast & Online Confirmation Less PaperworkLess Paperwork No need for folder storageNo need for folder storage Database SecurityDatabase Security Less Employee needed Less Employee needed Easy Financial ManagementEasy Financial Management Better Inventory ManagementBetter Inventory Management

Benefits of the ERP systems

Features of an ERP systemFeatures of an ERP system

Architecture of ERP system facilitates transparent Architecture of ERP system facilitates transparent integration of modules providing flow of integration of modules providing flow of

information between all function within enterprise information between all function within enterprise in real time.in real time.

Many different software are replaced by one Many different software are replaced by one integrated system.integrated system.

Reliable information access through common DBMSReliable information access through common DBMS

Eliminates data and operational redundancies (no Eliminates data and operational redundancies (no duplication of work or data entries etc.)duplication of work or data entries etc.)

AdvantageAdvantage

ERP delivers a single database that contains ERP delivers a single database that contains all data for the software modules across an all data for the software modules across an entire company. People in different entire company. People in different departments all see the same information and departments all see the same information and can update it.can update it.

Computer security is included within an ERP Computer security is included within an ERP system to protect against both outsider and system to protect against both outsider and insider crimeinsider crime

AdvantageAdvantage ERP systems allow companies to replace ERP systems allow companies to replace

multiple complex computer applications multiple complex computer applications with a single integrated systemwith a single integrated system

It standardized and reduced the number It standardized and reduced the number of software specialties previously required.of software specialties previously required.

DisadvantageDisadvantage Implementing ERP is very expensive, price range, Implementing ERP is very expensive, price range,

can depend on the size of the company.can depend on the size of the company.

ERP vendors can charge a license renewal fee ERP vendors can charge a license renewal fee annually which can also be costly for any businessannually which can also be costly for any business

Employees may need to be trained in ERP so they Employees may need to be trained in ERP so they can fully utilize the system. Training times takes can fully utilize the system. Training times takes away from work time and can also cost additional away from work time and can also cost additional funds.funds.

DisadvantageDisadvantage

ERP implements take ERP implements take 1-3 years to get 1-3 years to get completed and fully functional. completed and fully functional.

Migration of existing data to the new ERP Migration of existing data to the new ERP systems is always difficult to achievesystems is always difficult to achieve

Challenges of Enterprise Systems Challenges of Enterprise Systems

Difficult to build:Difficult to build: Require fundamental Require fundamental changes in the way the business changes in the way the business operatesoperates

Technology:Technology: Require complex pieces Require complex pieces of software and large investments of of software and large investments of time, money, and expertisetime, money, and expertise

Centralized organizational Centralized organizational coordination and decision making:coordination and decision making: Not the best way for the firms to Not the best way for the firms to operateoperate

Vendors of ERP SoftwareVendors of ERP Software SAPSAP BAANBAAN People softPeople soft OracleOracle J.D. Edwards J.D. Edwards

SAP33%

BAAN12%

ORACLE 18%

J.D.E5%

OTHER31%

BIBLIOGRAPHYBIBLIOGRAPHY

WIKIPEDIAWIKIPEDIA INTERNETINTERNET VARIOUS BOOKS ON ERPVARIOUS BOOKS ON ERP

THANK YOU!THANK YOU!