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Enterprise Management Systems

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ERP Definition

ERP is a networked system of functional processes

designed to meet customer expectations using all

resources effectively & efficiently. Focus on Resource

ERP is a integrated system of business applications & 

has open system architecture independent of OS and DBpromising seamless flow of data & information. Focus on

Integration

ERP is a IT enabled resource management system

Helping resource mobilization and deployment to

achieve business goals. Focus on management of  

enterprise

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Enterprise Resource Planning(ERP ) system

ERP systems are designed to make a effective use of resources ( Men, Machines & Materials ) through its

planning and control for achieving designated business

goals.

ERP is an integrated resource management system where

business processes are managed seamlessly across the

business functions.

ERP is capable of data acquisition & processing, transaction

processing, application and systems processing and offers

best practices of running the business.

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Features of ERP

1. Focus on process

2. Offers best process practices for implementation

3. Process automation through embedding the rules

and DSSs.reducing processing cycle

4. Status updating , automatic across the process

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Features of ERP (Contd…)

5.  Analytics and Decision making combined

6. Flexible to configure for specific business

requirement

7. Capable of interfacing to other technologies

saving processing time

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Additional features

Work group & Work flow processing

Efficient use of Human resource & fasterprocessing

Ease of access to empowered & authorizedpersonnel from any where

Faster decision making due to access

Business rules embedded in the system

 Automation of operational decisions

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ERP design features

Integrity of information & same status to all

Same understanding and response across organization

Multiple & simultaneous update across

functions. Same base view to all who access

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ERP design features (Contd…)

Consistent look & feel of all applications

Ease in understanding the change and learning

Provision of best practices making ease of 

change. Efficient use of investment in ERP

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ERP Benefits: Operational

1. Operational

Reduction in processing cycle

Empowerment of decision makers due to

access to information

 Automated decision making eliminates delays

Reduction in overheads due to HR saving

Resource productivity increased

Business operations more efficient & effective

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ERP Benefits: Business

2. Business benefits

Higher profits due to better efficient use of 

resources

Less working capital due to reduced inventory

& receivables, and better credit management

Reduction in managerial overheads

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ERP Benefits: Management

3. Management benefits

Lean flat organization

Same information status to all

Collaborative working in network 

environment

Improved strategic management of business

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Outcome of ERP

Single Information resource

Improved Information accuracy

No information redundancy

Lower transaction processing cost

Integrated price, cost, sales information

Integration of information, applications, systems

 Automated decision at operations level

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ERP impact

Working capital: Reduced

Fixed assets: Improved utilization

Organization: Lean ,flat & learning

Larger market reach: Growth in business

Distributed operations & working: Quicker

access & availability

Learning organization: Able to face competition

Performance: Shows radical change