Understanding Enterprise Resource Planning (ERP)

ENTERPRISE RESOURCE PLANNING

ABSTRACT ERP is a Enterprise Resource Planning, used by company to help them to store and manage dataevery stage of business and it is an intergrated real-time view of caore business process software. The implementation itself is to analyze what kind of ERP that suits the business process first then the ERP system can be implemented. about the function of ERP in a company, how it works and integrates all the information and data from all line of business. Also the needs of each company for ERP system will affect the implementation.

INTRODUCTION ERP is used for completing the company s process to be more effective and efficient, specifically making the process integrated and naturally reducing time cost for contacting other related division to make clear if the requirement data for processing is done and reducing human error because all counting process are generated inside the system. In some company, they don t using all modules provided by the ERP, the used modules are the related modules to company s core business process like finance, accounting, sales, etc. In implementing, there are some steps that must be done, just like completing a project, the developer team must proceed the planning , analyzing, designing and then implementing.

SCOPE Introduction of ERP Implementing ERP process Example of ERP implementation

OBJECTIVE & BENEFIT Understand what ERP system is Get the knowledge about implementing ERP Get the knowledge about how to implementing ERP in the proper way

ADVANTAGES OF ADVANTAGES OF ERP ERP MAIN BENEFITS OF ERP: The elimination of sub-organizational silos that focus on their own problems rather than serving the interests of the overall organization. Data can be entered once, at the most accurate source, and after that shared to all users, in others words it offers a proper data integration.

ADVANTAGES OF ERP ADVANTAGES OF ERP Complete visibility into all the important processes, across various departments of an organization (especially for senior management personnel) Automatic and coherent workflow from one department/function to another, to ensure a smooth transition and quicker completion of processes. Also to ensure that all inter-departmental activities are properly tracked A unified and single reporting system to analyze the statistics/status in real time, across all functions/departments Individual departments no longer have to buy and maintain their own software systems since the same software is used across all the departments Certain ERP vendors can extend their ERP systems to provide Business Intelligence functionalities, that can give overall insights on business processes and identify potential areas of problems/improvements Advanced e-commerce integration is possible with ERP systems There are various modules in an ERP system

ADVANTAGES OF ERP Since ERP is a modular software system, its possible to implement either a few modules (or) many modules based on the requirements of an organization. If more modules implemented, the integration between various departments may be better Since a database system is implemented on the backend to store all the information required by the ERP system, it enables centralized storage/back-up of all enterprise data ERP systems are more secure as centralized security policies can be applied to them. All the transactions happening via the ERP systems can be tracked ERP systems provide better company-wide visibility and hence enable better/faster collaboration across all the departments It is possible to integrate other systems to the ERP system through an API ERP systems make it easier for order tracking, inventory tracking, revenue tracking, sales forecasting and related activities ERP systems are especially helpful for better management globally dispersed enterprise companies

DISADVANTAGES OF ERP DISADVANTAGES OF ERP The cost of ERP Software, planning, customization, configuration, testing, implementation, etc. is too high. ERP deployments are highly time-consuming projects may take 1-3 years (or more) to get completed and fully functional. Too little customization may not integrate the ERP system with the business process & too much customization may slow down the project and make it difficult to upgrade. The cost savings/payback may not be realized immediately after the ERP implementation & it is quite difficult to measure the same. The participation of users is very important for successful implementation of ERP projects hence, exhaustive user training and simple user interface might be critical. But ERP systems are generally difficult to learn (and use).

DISADVANTAGES OF ERP There maybe additional indirect costs due to ERP implementation like new IT infrastructure, upgrading the WAN links, etc. Migration of existing data to the new ERP systems is difficult (or impossible) to achieve. Integrating ERP systems with other stand alone software systems is equally difficult (if possible). These activities may consume a lot of time, money & resources, if attempted. ERP implementations are difficult to achieve in decentralized organizations with disparate business processes and systems. Once an ERP systems is implemented it becomes a single vendor lock- in for further upgrades, customizations etc. Companies are at the discretion of a single vendor and may not be able to negotiate effectively for their services. Evaluation prior to implementation of ERP system is critical. If this step is not done properly and experienced technical/business resources are not available while evaluating, ERP implementations can (and have) become a failure.

ERP TOOL ERP TOOL ERP Tool ERP Tool Vendor Vendor SAP R/3 SAP Oracle e-Business Suite Oracle Corporation JD Edwards EnterpriseOne & JD Edwards World Oracle Corporation PeopleSoft Oracle Corporation Microsoft Dynamics Microsoft Corporation Lawson Financials Lawson Software Sage MAS 500 Sage Group NetERP NetSuite Visual Enterprise Infor Global Solutions Agresso Business World Unit 4 Agresso Epicor Enterprise Epicor IFS Applications Industrial and Financial Systems MFG/PRO QAD Ramco e-Applications Ramco

EFFECTIVENESS OF USING EFFECTIVENESS OF USING ERP ERP Improving visibility Reducing operating costs Standardizing business process Improving compliance

FINANCIAL ADVANTAGES OF ERP FINANCIAL ADVANTAGES OF ERP Uses ERP to do cost cutting in their departmental budgets, and also to compare between cost-savings and revenue gains.