ENTERPRISE RESOURCE ENTERPRISE RESOURCE PLANNINGPLANNING

OUTLINEOUTLINE

IntroductionsIntroductions

Steps To Successful ERP ImplementationSteps To Successful ERP Implementation

Challenges In ImplementationChallenges In Implementation

Role of a CA In Implementing an ERPRole of a CA In Implementing an ERP

WHAT WHAT IS AN IS AN ERP?ERP?

ERP systems is a software solution that ERP systems is a software solution that addresses the enterprise needs.addresses the enterprise needs.

To meet the organizational goalsTo meet the organizational goals

Tightly integrates all functions in that Tightly integrates all functions in that organization.organization.

Departments

Customers

Suppliers

ERP systemServer

Network(data

exchange)

ERP Working Theory

Example: Secretary’s New printer application

Transfer to Finance

Departmen

Transfer to Accounting Office

Transfer to Manager

Transfer to Accounting Office

BEFORE ERP BEFORE ERP SYSTEMSSYSTEMS

AFTER ERP SYSTEMSAFTER ERP SYSTEMS

ERP SOFTWARE COMPANİESERP SOFTWARE COMPANİES& MARKETSHARES& MARKETSHARES

SAP; 15,6

Peoplesoft; 4,9

Oracle ; 4,8

Baan; 3

CA; 3

JDE; 2,2

SSA; 2,1

GEAC; 2

IBM; 1,8

JBA; 1,7

Others ; 59

Software Market Share

SAP 15.6

Peoplesoft 4.9

Oracle 4.8

Baan 3.0

CA 3.0

JDE 2.2

SSA 2.1

GEAC 2.0

IBM 1.8

JBA 1.7

Others 59.0

WHAT DOES AN ERP DO??WHAT DOES AN ERP DO??

EgEg: IBM Storage Systems Division: IBM Storage Systems Division

Reduced time– 5 days to 5 minutesReduced time– 5 days to 5 minutes

Time to ship a replacement part – 22 to 3 daysTime to ship a replacement part – 22 to 3 days

Time to complete a credit check – 20 minutes to 3 Time to complete a credit check – 20 minutes to 3 seconds seconds

5 STEPS TO SUCCESSFUL ERP 5 STEPS TO SUCCESSFUL ERP IMPLEMENTATIONIMPLEMENTATION1. STRATEGIC PLANNING1. STRATEGIC PLANNING

2. PROCEDURE REVIEW2. PROCEDURE REVIEW

3. DATA COLLECTION & CLEAN-UP3. DATA COLLECTION & CLEAN-UP

4. TRAINING AND TESTING4. TRAINING AND TESTING

5. GO LIVE AND EVALUATION5. GO LIVE AND EVALUATION

In Summary:In Summary:

• • Set reasonable goals Set reasonable goals and objectives.and objectives.

• • Make project team Make project team members accountable members accountable for implementation.for implementation.

• • Test software across Test software across departments.departments.

• • Constantly evaluate to Constantly evaluate to maximize ROI.maximize ROI.

CHALLENGES IN CHALLENGES IN IMPLEMENTING IMPLEMENTING 

Appropriate training is very essential Appropriate training is very essential

Lack of proper analysis of requirements Lack of proper analysis of requirements

Lack of Support from Senior Management Lack of Support from Senior Management

Compatibility Issues with ERP Modules Compatibility Issues with ERP Modules

Cost Overheads Cost Overheads

ROLE OF A CA..ROLE OF A CA..

ERP solutions is one of the largest drivers ERP solutions is one of the largest drivers of growth for businesses.of growth for businesses.ERP Integrates various dept.ERP Integrates various dept.CAs play a major role in implementation CAs play a major role in implementation of an ERP solution.of an ERP solution.

ROLE OF A CA IN IMPLEMENTING ROLE OF A CA IN IMPLEMENTING AN ERPAN ERP

CA plays a critical role in selection CA plays a critical role in selection and implementation of an ERP.and implementation of an ERP.Involves:Involves:

1) Business Process Understanding 1) Business Process Understanding & Configuring& Configuring

• Understanding the existing Understanding the existing practicespractices

• Simplifying the Processes andSimplifying the Processes and

• Automate the ProcessAutomate the Process

2) Selection of an ERP:2) Selection of an ERP:

IfIf all functional aspects-all functional aspects-

-duly covered-duly covered-fully integrated-fully integrated

-can absorb the cost -can absorb the cost -Implementation-Implementation

-latest IT trends are covered-latest IT trends are covered

CA as a domain expert acts as a bridge between CA as a domain expert acts as a bridge between the customer & software experts.the customer & software experts.

CA AS A CONSULTANTCA AS A CONSULTANT

Ensure compliance of Statutory Accounting Ensure compliance of Statutory Accounting RequirementsRequirements

Maintenance of the Chart of AccountsMaintenance of the Chart of Accounts

Define control points to reduceDefine control points to reduce

erroneous transactionserroneous transactions

KEY ROLE PROVIDING THESE KEY ROLE PROVIDING THESE SERVICES TO THE ERP..SERVICES TO THE ERP..

ImplementationImplementation

UpgradesUpgrades

SupportSupport

TestingTesting

Product DevelopmentProduct Development

Functional consultants expertise inFunctional consultants expertise in

Accounts and Finance. Accounts and Finance.

CA AS AN AUDITORCA AS AN AUDITOR

ERP emphasizes the ERP emphasizes the focus on process focus on process controls, to perform controls, to perform analytical & analytical & compliance testing compliance testing and assisted audit and assisted audit steps.steps.

Complince to tax Complince to tax laws, AS, FRF, IC etc.laws, AS, FRF, IC etc.

Other Audit Software Other Audit Software Tools:Tools:

>>External Analysis Tool-External Analysis Tool-IDEAIDEA

>Balance Sheet >Balance Sheet Evaluation-BPA BaetgeEvaluation-BPA Baetge

CHARTERED ACCOUNTANTS' AUDIT CHARTERED ACCOUNTANTS' AUDIT TOOLSTOOLS

The new ERPs provide The new ERPs provide remote capability to remote capability to access clients data access clients data from wherever you from wherever you are.are.

Eg. Tally.ERP 9 - Auditors' Eg. Tally.ERP 9 - Auditors' EditionEdition

CA AS A BUSINESS CA AS A BUSINESS ADVISORADVISOR

CA as an Advisor:CA as an Advisor:

• Perform effective planning Perform effective planning

• Budget & Variance AnalysisBudget & Variance Analysis

• Timely decision makingTimely decision making

CA AS A CFO CA AS A CFO 

Achieve their targets and goals by Achieve their targets and goals by

proper implementation of ERP system proper implementation of ERP system

in their organization.in their organization.

Managers as representatives of the organisation Managers as representatives of the organisation have to coordinate with ERP stakeholders' viz., have to coordinate with ERP stakeholders' viz., Vendors, Consultants, Auditors etc., for a proper Vendors, Consultants, Auditors etc., for a proper implementation of ERP package.implementation of ERP package.

CLASSIFICATION OF CLASSIFICATION OF IMPLEMENTATION OF ERPIMPLEMENTATION OF ERP

Compliance (various L&R)Compliance (various L&R)

Process(process re-engineering, Process(process re-engineering, IC redesigned)IC redesigned)

Access(min, adequate IC, Access(min, adequate IC, segregation of duties)segregation of duties)

ERP AS A CAREER ERP AS A CAREER 

New wave for a challenging career in the high-New wave for a challenging career in the high-tech industry.tech industry. ERP is also a highly remunerating career as a ERP is also a highly remunerating career as a consultant.consultant.Gives you technical edge over others. It also Gives you technical edge over others. It also improves the overall business understanding of improves the overall business understanding of various industries.various industries.Career in ERP is a global career as there is large Career in ERP is a global career as there is large demand for ERP professionals all over the world demand for ERP professionals all over the world & is expected to increase.& is expected to increase.In summary, a dream career is perhaps possible In summary, a dream career is perhaps possible for all hard-working individuals, but when it for all hard-working individuals, but when it comes to success, there are no short cuts.comes to success, there are no short cuts.

Thank YouThank You

Slide 25

SAP -SAP -Honda, IBM, Bank of Canada, P&G (System Honda, IBM, Bank of Canada, P&G (System Application & Products)Application & Products)Peoplesoft -Peoplesoft -Adidas, Anderson Consulting, Hilton HotelsAdidas, Anderson Consulting, Hilton HotelsOracle -Oracle -CBS, Nike, Kodak, Toronto Dominion BankCBS, Nike, Kodak, Toronto Dominion BankBaan -Baan -MercedezMercedezCA CA (Winman CA ERP)(Winman CA ERP)

JDE-JDE-Harley Davidson (JD Edwards)Harley Davidson (JD Edwards)SSA SSA ((SSA Global)SSA Global)GEAC GEAC ((Geac Computer Corporation)Geac Computer Corporation)IBM IBM ((International Business Machines )International Business Machines )JBA (JBA (global supplier of ERP)global supplier of ERP)