Enterprise Resource
Planning
(ERP)
Submitted by:-
Vineet Kumar Singh
Presentation - Flow
ERP – General Concepts
Building ERP solutions
Pitfalls and points of concern
Critical success factors
ERP
General Concepts
ERP – General Concepts
Enterprise Resource Planning
What is ERP?
The Current Scenario
Why ERP?
Definition
Evolution
Expectations
What is ERP?
Enterprise Resource Planning
ERP is a solution, which
facilitates company-wide integrated
information systems, covering all
functional areas
performs core Corporate activities and
increases customer service augmenting
Corporate Image
The Current Scenario
Enterprise Resource Planning
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
Information Islands
B
Why ERP?
Enterprise Resource Planning
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
ERP - Definition
Enterprise Resource Planning
“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”
Evolution of ERP
Enterprise Resource Planning
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)
ERP – Expectations
Enterprise Resource Planning
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
Building ERP solutions
ERP – facts that should be
concerned while building
Lack of adequate & qualified manpower
Not driven with clear focus on expectations,
time & cost
Poor software project management
Lack of seriousness with the Management & the
IT Team
High employee turnover
Lot of schedule gaps during Project execution
Normally project life is more
Frequent change in the scope with the approval
of the Management
Execution phases
ERP product selection
Tailor-made ERP solutions
Preparations
Production
Implementation
Post-Implementation
ERP Product selection Criteria
Goal:
Functionality
To select the
Most Suitable Software 5 Strategic
Package Solution Requirement
Levels Technology
Vendor
Support
Costs
Preparation Phase
Framing ERP Implementation Strategies
Tailor-made ERP solutions
Formation of Apex & Steering committees
Functional & IT team formation
Training on ERP functions & features
Scope finalization
GAP analysis
Action plan to resolve the gaps
ERP product acceptance - options
1. Adapting directly, all the functions available in
Tailor-made ERP solutions
the ERP Product [Applicable for startup companies]
2. Change the way the firm does the business to fit
the product [Compromising]
3. Customize the ERP product to suit the business
Processes. [Customization]
GAP Analysis
This is the process to identity the gaps by mapping
Tailor-made ERP solutions
the expectations of the company with the
capabilities of the ERP product
Results of Gap Analysis
Directly Supported
Workaround suggested
Extension required
Change in business process – suggested
Not full supported
Manual – not under the scope of ERP
Production Phase
Installing the software & hardware
Tailor-made ERP solutions
Tuning the software to meet the
customization needs
Master & Control data arrival as per
the Product data structures
Location & people specific roles & rights
allocation for module access & security
Implementation Phase
Conference Room Pilot [Parallel run]
Tailor-made ERP solutions
Resolving the Parallel run issues
Training the end users
Live run
Post-Implementation Phase
Regular monitoring
Tailor-made ERP solutions
Tuning [hardware/software] for patching
the performance issues
Maintenance
Pitfalls & Points of concern
Costly comparing to custom-built options
Tailor-made ERP solutions
Lot of hidden costs
Chances of cost & time overrun are high
The Level of customization/Indianization
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
Critical Success Factors
The firm & optimistic approach of the Management
Tailor-made ERP solutions
- 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
Thank You
