Enterprise Resource Planning

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E nterprise R esource P lanning By :- WWW.Offer2day.biz

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Table of Contents What is ERP? The Current Scenario Definition Why ERP? Evolution Relevant Issues Expectations Product selection Phase Product Selection – Parameters Pitfalls & Points of concern Critical Success Factors for ERP Building ERP using Ext. sources

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What is ERP? facilitates company-wide integrated information systems, covering all functional areas performs core Corporate activities and increases customer service augmenting Corporate Image ERP is a solution, which

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The Current Scenario Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software platforms & practices Poor connectivity between different organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop integrated software

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ERP - Definition “Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform”

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Why ERP? For Management – to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival

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Evolution of ERP 1960’s - Systems Just for Inventory Control 1970’s - MRP – Material Requirement Planning (Inventory with material planning & procurement) 1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.) Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise) 2000 onwards – ERP II – Collaborative Commerce (Extending ERP to external business entities)

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Relevant Issues Need based application Expenditure Reduction in implementation Wireless Technologies (Web Enabled)

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ERP – Expectations Integrating all the functions Integrating the systems running in all the locations Transparency of information using a single data source across the organization Software must be responsive Modular Flexible Easy to add functionalities Provide growth path

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ERP Product selection Phase ERP Team formation for selection Appointment of Consultants [if needed] Scoping study Product selection Implementation partners selection Hardware/Communication cost estimation

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Product Selection - Parameters Reputation of the ERP product No.of installations in the geographical vicinity % of the overall functional availability Customization possibilities After sales support Your investment plan & budget Implementation partner’s track record

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Technology Support Costs 5 Strategic Requirement Levels Functionality Goal: To select the Most Suitable Software Package Solution Vendor ERP Product selection Criteria

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Preparation Phase Framing ERP Implementation Strategies Formation of Apex & Steering committees Functional & IT team formation Training on ERP functions & features Scope finalization Action plan to resolve the gaps

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Pitfalls & Points of concern Costly comparing to custom-built options Lot of hidden costs Chances of cost & time overrun are high Compulsion to pay for redundant modules/features Vigorous involvement of all during implementation Non-availability of special practices like Customer Complaint, Logistics Linking historical data – offline & painful The requirement of Change Management is a must Dependency on outsiders is high IT department – Poor grip on the Implemented systems

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Critical Success Factors for ERP The firm & optimistic approach of the Management on adapting the ERP product driven methodologies on customization on monetary commitments The dedicated Team Good Training Strict adherence to the Project schedules Right technical infra-structure Change Management

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Building ERP using Ext. sources - Steps Software vendor selection Detailed study by the vendor Scope & platform finalization Freezing the commercials Development Hardware addition/upgradation Old master/transaction data migration Parallel run with Integration & connectivity check Implementation Maintenance

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The following traits should be considered while selecting the software vendor for building the ERP application Technical expertise Domain knowledge Adequate manpower Project management skills Long existence in the field Extra skills [e-biz & workflow] ERP Software - Vendor Selection

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Enterprise Connectivity Key Process Integration via ERP Planning Collaborative Product Lifecycle Management Supply Chain Management Customer Management Supplier Collaboration Design Partners Consumers and Channels Beyond ERP

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