Management IT on Erp

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7/2/12

ENTERPRISE RESOURCE

PLANNING

PRESENTED BYAPURVA

SAURAV

BITHI

PREETHI

GAOUS

SATYA

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What is ERP?v Enterprise resource planning (ERP) is an Integrated computer-based system used to

manage internal and external resources including tangible assets, financial resources,

materials, and human resources.

vIts purpose is to facilitate the flow of information between all business functions inside the

boundaries of the organization and manage the connections to outside stakeholders.

vAn ERP system can either reside on a centralized server or be distributed across modular

hardware and software units that provide "services" and communicate on a

local area network . The distributed design allows a business to assemble modules from

different vendors without the need for the placement of multiple copies of complex and

expensive computer systems in areas which will not use their full capacity.

2

http://en.wikipedia.org/wiki/Local_area_network

http://en.wikipedia.org/wiki/Local_area_network



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Implementation of ERP

v Implementing ERP software is typically too complex for "in-house" skill, so it isdesirable and highly advised to hire outside consultants who are professionallytrained.

v This is typically the most cost effective way.

v There are three types of services that may be employed for - Consulting,Customization and Support.

v The length of time to implement an ERP system depends on the size of the business, the number of modules, the extent of customization, the scope of thechange and the willingness of the customer to take ownership for the project.

v ERP systems are modular, so they don't all need be implemented at once and can be divided into various stages.

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BeforeERP

Sales

Production

Logistics

Billing

Order

Problems:Delays, lost orders, keying into different computer systems inviteserrors

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With ERPData

Analysis

Service

E R P

Sales

Huma

nResour-ce

s

Finance

Man

u-facturing

Inventor

y&Supply

Front-OfficeFunctions

Back-OfficeFunctions

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Advantages of ERP

v Integration among different functional areas to ensure proper communication,

productivity and efficiency.

v Order tracking, from acceptance through fulfillment.

v ERP systems connect the necessary software in order for accurate forecasting to bedone. This allows inventory levels to be kept at maximum efficiency and thecompany to be more profitable.

v Eliminates the problem of synchronizing changes between multiple systems -consolidation of finance, marketing and sales, human resource, and manufacturing

applications

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Disadvantages of ERP

v Customization of the ERP software is limited.

v Re-engineering of business processes to fit the "industry standard" prescribed by theERP system may lead to a loss of competitive advantage.

v ERP systems can be very expensive.

v Once a system is established, switching costs are very high for any one of the partners(reducing flexibility and strategic control at the corporate level).

v Resistance in sharing sensitive internal information between departments can reducethe effectiveness of the software.

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Commercial Applications

v Manufacturing: Engineering, bills of material, work orders,scheduling, capacity, workflow management, quality control, costmanagement.

v Supply chain management: Order to cash , inventory, order entry, purchasing, product configurator, supply chain planning, supplier

scheduling, inspection of goods, claim processing.v Financials :General ledger, cash management, accounts payable,

accounts receivable, fixed assets.

v Project management : Costing, billing, time and expense, performance units, activity management.

v Human resource: Payroll, training, time and attendance, rostering, benefits.

v Customer relationship management Sales and marketing,commissions, service, customer contact, call-center support.

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MODULES

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Comparison: ERP vs.

ERP II

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ERP VENDORS

Vendor Revenue(million $)

Market Share (%)

SAP 1949 30.33

Oracle Applications 1374 21.38

The Sage Group 1121 17.44

Microsoft Dynamics 916 14.25

SSA GlobalTechnologies

464 7.22

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THANK YOU

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Management IT on Erp