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ERP is a software package developed for optimum use of resources of an enterprise in a planned manner.
Resource management
Order management
Manufacturing/operations planning and implementation
Integrating management information
Parties Involved:
Vendor
Consultant and
Firm
Leading ERP software vendors:
SAP: (SAP R/3) Baan: (Baan IV) People soft Oracle ID Edwards Gartner ScalaRamco Marshal SSA (Systems Software Associates) QAD (MFG/PRO) etc.
Example- SAP Founded in 1972 SAP is both the name of the company and
the computer system SAP is a German company 28 subsidiaries six partner companies offices in 40 countries. Developed to meet the increasing needs of
commercial and other organizations
Raw materials, mining and agriculture Oil and gas Chemical Pharmaceuticals Transportation services and tourism Wood and paper Furniture etc
Better Customer SatisfactionImproved Vendor PerformanceIncreased FlexibilityReduced Quality CostImproved Information Accuracy & IntegrityImproved Decision Making CapabilityBest Business Practices in the World
Lack of integration with non-ERP systems
System inputs lack logic and are complex at times
The reporting systems are not adequate
After the project is over the vendor is no more associated with the project
Future growth- depends on the SMEs
Example-The Business Process
Outsourcing (BPO) industry
License cost of a SYSTEM ANALYSIS AND PROGRAMME DEVELOPMENT (SAP) R/3 - $1-5 mn.
The total cost required to implement ERP- $14.5 mn.
The percentage of tangible and non-tangible benefits could be 50-50%.
Implementation cost
Personnel Cost
ERP is a result of modern organizations attitude
The areas of ERP deals with manufacturing
as well as with finance.
ERP packages are mostly built on the Objective Oriented Programming (OOP) approach
Sara ERP- Mumbai based Sara InfoTech.
Established to create software products that would compete globally in terms of quality, functionality and cost.
Sara Intelligent Enterprise Management System (Sara IEMS).
Sara started developing its ERP package in 1995 and it was ready by 1999.
Sara ERP has been successfully implemented India, Thailand, Indonesia, Malaysia, and other countries.
Criteria for ERP system
14%
11%
22%
21%
18%
14%
Services
Cost
Function
Technicalarchitecture
Ability to execute
Vision
ERP is a software package developed for optimum use of resource.
Process of implementation involves the vendor, a consultant and the firm.
Leading ERP software vendors- SAP, BaaN, Oracle, QAD etc
ERP is not a total solution to operational and strategic concerns.
THANK YOU