A Project Report

On

Awareness of ERP among SSI in Pune

for

iota technologies ltd., Pune

By

NILESH SUDAM PATIL

Under the guidance of

Prof. Mahesh Halale

Submitted to

University of Pune

In partial fulfillment of the requirement for the award of the degree

of Master of Business Administration (MBA)

Through

Vishwakarma Institute Of Management

Pune-48.

1

ACKNOWLEDGEMENT

The project at iota technologies ltd. Pune was a great experience to me as far

as industry interface is concerned. I had to study the market potential for iota’s ERP

software ‘SIXTH SENSE’ in Pimpri-Chinchwad, Sinhagad Road & Hinjewadi

Industrial Area. I met many Senior Personnel of the companies while conducting the

market research, and tried to understand how Information technology has helped

them to conduct their businesses more efficiently.

I would like to thank my Company Guides Mr. Shailesh Ghatpande, Sr.

Manager Business Solutions and Mr. Milind Patil, Marketing Executive, without

whose support and guidance the project would not have been possible. They shared

their knowledge and expertise with me and advised me on the direction of the project

In addition, I would also like to thank my Institute Project Guide Prof..

Mahesh Halale, whose experience and guidance helped me in understanding how

market research should be conducted and in knowing the nuances of presenting the

project report.

.

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INDEX

Sr.

NO

Chapter Page no

1 Executive Summary 1-3

2 Company Profile 4-29

3 Objective of the study 30-32

4 Research Methodology 33-38

5 Project work undertaken 39-40

6 Analysis and data interpretation 41-49

7 Conclusion and suggesttions 51-55

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EXECUTIVE SUMMARY

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Chapter One

EXECUTIVE SUMMARY

This project titled as Awareness of ERP among the manufacturing units in Pune for

iota technology. This company is providing ERP solution that is known as six Sense.

Enterprise resource planning software, It attempts to integrate all departments and

functions across a company onto a single computer system that can serve all those

different departments' particular needs. Sixth Sense Enterprise software suite is a

family of information technology based solutions designed with a comprehensive

understanding of best business practices, business requirements, regional policies, tax

regimes & inputs from business gurus. Each module provides total control over

business function.

I had chosen this company because it was challenging job to do the study of

the product and to find awareness in Pune. Iota technology is mainly concentrating in

Pune. They have their office in Pune. They are interested to start their new branch in

mumbai. I prepared one questionnaire. I had targeted manufacturing units, in each

unit I

met to their Information technologies department’s head. I was collecting

information

about their turnover, software, etc.

The marketing research has to solve the problem to manage the day-to-day

business of the firm, which is applied and related to present and potential markets &

other areas of management. Marketing Research doesn’t implement decisions but

helps to take decision on the basis of research findings. It’s not restricted to specific

types of problems, but it’s extended to any phase of marketing activities.

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Here while doing research I have gathered information of 160

manufacturing companies. Iota technologies limited is a Pune-based company which

is in the development of innovative software solutions and has established its

reputation as an intelligent business solutions company in a cross section of

industries. Iota is a leading provider of Enterprise Resource Planning (ERP) system

for the built-up, sales and distribution industries.

Meaning of important terms

Enterprise Resource Planning

Enterprise Resource Planning (ERP) is a software system that integrates various

departments of an organization. This concept is with manufacturing industry. It is a

management-oriented concept and thus concentrates on the management rather than

the whole enterprise. ERP combines the different departments’ software systems into

a single integrated software program that runs off a single database so that the

various departments can more easily share information and communicate with each

other. Such integrated approach can have a tremendous payback if companies install

the software correctly.

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Chapter Two

COMPANY PROFILE

COMPANY: -

iota technologies limited is a company involved in development of intelligent

business solutions for a cross section of industries including manufacturing, sales,

distribution and service sector.

iota has a strong customer base in the Indian manufacturing industry with its flagship

solution “Sixth Sense ERP System”. Sixth Sense enterprise product line has been

designed specifically for businesses in manufacturing, sales and distribution. The

system gives an organization complete insight to the sales, production, inventory and

financial data and makes it easy to identify the opportunities for cost savings and

efficiency improvements.

Setup: -

iota’s software development center and corporate office is located at Pune. A

Hundred member team possessing skills in diverse technologies and platforms works

under stringent quality requirements set by us.

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Internet based project & quality management software handles the complete

process of project planning, work distribution, task monitoring, timesheets, quality

assurance, release management and defect tracking.

Windows, Linux networks, web servers hosted with various ISPs and dedicated

high-speed internet connection cater to application development and testing

requirements of various project groups.

iota’s support centers at Mumbai, New Delhi, Nagpur and Chennai understand

customer requirements and provide implementation, customization and customer

support.

Functional Skills: -

Providing end-to-end solutions for manufacturing, sales, distribution and

logistics functions has been iota’s core business since inception.

Many electronics, engineering, automobile, components, chemical, garments,

transport, warehousing, retailing, food, pharmaceutical sector companies have been

serviced by iota.

iota technologies ltd .is founded with a vision of developing innovative software

solutions that enhance the productivity and effectiveness of an organization and keep

people working for it. It offers software solutions in ERP, SCM, distribution,

logistics and industrial automation.

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iota offers technology solutions in three areas; offshore, industrial and business

intelligence. At the spearhead is the Business Intelligence Group, which services a

wide range of customers both in India and abroad.

CUSTOMERS: -

Name of the Company Area of Operations

Sansui Electronics Pvt. Limited Weighing Scales

Schenectady Beck India Limited Chemicals

Vanaz Engineering Gas dispensing Machines/ Kit

Ador powetron Lte HCR/HVR

MRC India Limited Transport

Kishor Pumps Pumps

Syngenta India Limited (Novartis Group) Seed Division

Foods on Net Pvt. Limited Application Service Provider

Rajratan Gustav Wolf Limited Special Steel Wires

Proline Exports Limited Garments

Shamrock B. V. (Netherlands) Garment Manufacturer for FILA

SAR Silicon Systems Pvt. Ltd. Sales and Distribution

DGP Hinoday Auto Components

Luminous India Limited Home power appliances

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History of ERP

The concept of ERP has been around since the 1960's. Until 1972 ERP was just a

concept without a name or classification. It was concept that companies had to

integrate all departments and functions to increase revenues and strengthen the

business.

- In 1972, five (5) managers left their positions at IBM to start a company to realize

this vision of ERP. That company they started is what is known today as SAP.

- SAP eventually became the first company to develop and implement ERP specific

software and applications. Today SAP is the world’s leader in ERP software.

ERP systems aim to integrate all the departments and functions across a company on

a unified computer system and serve different needs of the various departments in the

enterprise.

ERP software primarily allows an organization to:

Automate and integrate the majority of its business processes

Share common data and practices across the entire enterprise

Produce and access information in a real-time environment

A major way in which the ERP systems are applied to business methods is to

allow them to automatically carry out the routine tasks involved in running the day-

to-day operation of the organization. This “Business Process Automation”

considerably frees the human resources of the enterprise to carry out more creative

tasks and offers smoother running of the processes.

The benefits and resulting efficiencies through this automation alone are

immense. However the true objective of any capital investment made by the

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organization is to see its effect on the bottom line, only then the investment will be

truly justified.

Fig. 1 – ERP System

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ERP System

Strategic & Operational Planning

Quality Management

Manufacturing

Materials Management

Maintenance Management

Logistics Management

Human Resources

Finance

Sales & Distribution

Key Players in the ERP market

SAP is the world leader in ERP Software. They hold 33% of the market share. Oracle

is a very up coming ERP Solutions provider that has not been in the market very long.

However because of its strong database software, it was able to develop an ERP

software utilizing its strong database. Oracle holds 15% of the market share. JD

Edwards is a fast and up coming ERP software developer. Its has a main focus in

customer relations, thus it decided to enter the ERP market and develop a ERP

Software with a strong CRM module. JD Edwards hold 5% of the market share. The

last key player holding 8% of the market share is People Soft. People soft has a

relative small market share compared to SAP however it a big contender in providing

solutions for smaller companies. SAP and Oracle have mostly marketed and

developed their software for large corporations. It has only been recently that ERP

solutions providers have looked into try to develop software for smaller companies.

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ERP Evaluation Tool

Purpose:

This tool provides a comparison between packaged and customized solutions based on

various project-critical characteristics. When an organization talks about Enterprise

Resource Planning (ERP), they are talking about a top-to-bottom transformation of the

way it operates, does business and faces the future. Changes are set in motion in how the

organization is managed, how it serves customers and how it reacts to the market

environment. Add in the fundamental ingredients of success that are directly involved:

greater customer satisfaction, reduced cycle time, and increased productivity. ERP

packaged software covers the primary back office of a business. ERP solutions

encompass the ERP software plus hardware, database, integration software, technical

processes and people.

Directions: Review and compare packaged and customized designs to determine what

offers the best fit for your organization

.

13

Business Value

Business Value

(cont’d)

ERP packages frequently offer

“industry best practices” which

means that the processes and

solutions provided in their

package have been tested and

validated as the most efficient

and cost-effective method of

doing business. ERP packages

have focused their efforts and

extensively validated their

solutions in some industries,

while not in others.

A client may find that they do

not share similar requirements

with the industries that have had

the most focus and therefore

“best practices” may not be as

meaningful or provide as great a

business value.

Great care must be taken to

A customized design can offer the

greatest business value because

careful attention has been taken to

ensure the future business system

design incorporates the client’s

specific business requirements. A

caveat however is that if a client

does not support innovation or

encourage change, a customized

design may simply automate the

“old” method of doing things,

without offering much business

value.

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understand one’s own business

requirements and match them

with those provided in the

package.

If a client feels that the package

does not meet it’s requirements,

it may be tempted to adapt parts

of the solution to its own

requirements, thereby

eliminating most of the

efficiencies and benefits offered

by the package.

Cost Depends on the size and scope

of project. Costs include:

Software licenses (usually on a

per user basis)

Integration with existing legacy

systems

Implementation

Ongoing maintenance (usually

included with software updates)

Depends on the size and scope of

project. Costs include:

Requirements assessment

Design of future systems

Integration with existing legacy

systems

Implementation

Ongoing maintenance

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Staff

Training

Staff

Training

Time to

implement

Depends on the size and scope

of the project. Packaged

solutions generally take less

time to implement because

requirements gathering is not

usually as extensive.

Depends on the size and scope of

the project. Customized solutions

generally take more time to

implement in order to assess

requirements and build a future

design.

Organizational

Fit

Packaged solutions usually

require a client to abandon its

traditional methods and accept

those offered by the package.

Organizations that are not

readily willing or able to make

sweeping changes in their

current processes may not be

comfortable implementing a

packaged solution.

Frequently a client believes it is

ready to adopt the processes in

As long as business requirements

have been carefully gathered and the

future design incorporates them, the

customized design will generally

provide a good organizational fit.

However all transformation efforts,

whether packaged or customized,

usually encounter organizational

resistance. This resistance needs to

be managed with change

management techniques.

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the packaged solution, but once

it has entered implementation it

discovers that the package is

really not a good fit and

encounters strong organizational

resistance.

Look at interrelationships and

whether all processes are owned by

the organization.

Standardization Given the client accepts the

processes and solutions offered

by the package, an ERP could

provide the ability to quickly

standardize solutions across

multi-functional areas, gaining

efficiencies for the entire

organization.

Does not provide an easy way to

standardize across the organization.

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Sixth Sense Introduction

Iota Technologies Limited is a company involved in development of intelligent business

solutions for a cross section of industries including manufacturing, sales, distribution and

service sector.

Iota has a strong customer base in the Indian manufacturing industry with its flagship

solution “Sixth Sense ERP System”. Sixth Sense enterprise product line has been

designed specifically for businesses in manufacturing, sales and distribution. The system

gives an organization complete insight to the sales, production, inventory and financial

data and makes it easy to identify the opportunities for cost savings and efficiency

improvements.

Sixth Sense ERP System

Sixth Sense suite of Business Solutions is a family of Information Technology based

solutions designed with a comprehensive understanding of India specific operations,

business requirements, regional policies, regulations and tax regimes.

The ERP System is built to accommodate the needs of small and large manufacturing,

sales and distribution organizations. Offered in two versions, Premium and Standard,

Sixth Sense editions are focused on the functional requirements of companies which

differ in size and scale of operations and match there IT budgets.

Small enterprises can run their core functions on the Standard Business Edition at a basic

license cost of Rs. 5 lakhs. For Medium and large enterprises, Premium edition is offered

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at Rs 10 lakhs with core modules. In both premium and standard edition add on modules

are provided at and extra cost as per the requirement.

Sixth Sense ERP is a fully integrated suite of modules, which can be implemented as

whole or as individual modules and gives everyone in the company, complete control

over their work area. Complete functionality of the sixth sense is provided in the

following systems:

CORE ERP MODULES: -

1) Sales Management (SMS)

2) Inventory (INV)

3) Production Planning and Management (PPM)

4) Purchase (PUR)

5) Financial accounting (FAS)

EXTENDED ERP MODULES:-

6) Engineering (ENG)

7) Shop Floor Control (SFC)

8) Sub-Contracting (SUB)

9) Plant Maintenance

10) Quality Management (QMS)

11) Calibration (CAL)

12) Project Management (PMS)

13) Complaints Management (CMS)

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14) Facilities and Administration Management (FAM)

15) Human Resource Management (HRM)

16) Time Office and Payroll (TOP)

17) Finance Planning (FPM)

18) Costing (COS)

19) Enterprise Management (EMS)

COUNTRY SPECIFIC MODULES – INDIA: -

20) Export Documentation and Management (EDM)

21) Excise (EXC)

22) Imports Management (IMP)

23) Sales Tax

24) TDS (TDS)

25) Payroll related statutory compliance

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EXTENDED ENTERPRISE APPLICATIONS:-

26) Marketing Management (MMS)

27) Sales Force Automation (SFA)

28) Servicing Management (SRM)

29) Servicing force automation (SRF)

30) Advanced Planning and Scheduling (APS)

31) Supply Chain Tracking (SCM)

32) Distribution Chain Management (DCM)

System Architecture

Sixth Sense is a client server application designed with a focus to take full advantage of a

variety of technologies. Through a flexible and platform independent infrastructure Sixth

Sense facilitates the flow of information across any platform.

Sixth Sense has been developed using Microsoft Visual Basic and leverages the

capabilities of crystal reporting tool for building intelligent reports. All the business data

is stored securely on a central server using robust RDBMS like Microsoft SQL Server

2000 designed for speed, power and precision in mission critical heavy operations.

Technology

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Operating Systems Windows, Linux

Database Systems SQL Server, My SQL

Front End VB

COM, DCOM is the underlying software architecture that forms the foundation for

higher level software services like custom controls, automation and data transfer. This

provides a distinctly different functionality to the user. The model provides the ease to

add new business applications by reusing the existing business components.

ERP Implementation Lifecycle: -

Like any other project, the ERP implementation project has to go through

different phases. There are no clear separating lines between these phases and in many

cases, one phase will start before the previous one is completed. But, the logical order is

followed.

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Fig 2 – Steps in ERP

Pre-Selection Screening

Project Planning

Package Evaluation

GAP Analysis

Project Team Training

Re-Engineering

Testing End-User Training

Configuration

Post-Implementation

Going Live

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Pre-Evaluation Screening: Once the company has decided to go in for the ERP System,

the search for the perfect package starts. It is always better to do a through and detailed

evaluation of a small number of packages, than doing a superficial analysis of dozens of

packages. Hence, the company should do a pre-evaluation screening to limit the number

of packages that are to be evaluated by the committee.

1. Package Evaluation: The selection process is one of the most imp steps of the ERP

implementation, because the package that you select will decide the success or failure of

the project.

2. Project Planning Phase: This is the phase that designs the implementation process. It is

in this phase that the details of how to go about the implementation are decided. Time

Schedules, Project Plan, Roles are assigned. A committee constituted by the team leaders

of each implementation group usually does the project planning.

3. Gap Analysis: This is the most crucial phase for the success of the ERP implementation.

This is the process through which companies create a complete model of where there are

now, and in which direction they want to head in the future. The solution is to design a

model, which both anticipates and covers any functional gaps.

4. Re-Engineering: In this phase the human factors are taken into account.

5. Configuration: This is the main functional area of the ERP implementation. In this

phase existing company practices are synchronized with the ERP package.

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6. Implementation Team Training: In this phase company trains its employees to

implement and later, run the system.

7. Testing: This is phase where versatility, flexibility, robustness of the system is being

tested.

8. Going Live: Before this stage technical side work is almost complete – data conversion

is done, databases are up and running, and on functional side prototype is fully tested and

ready to go operational.

9. End-User Training: This is the stage where the actual users of the system will be given

training on how to use the system.

10. Post-Implementation: This is maintenance mode of the system. The system must be

upgraded as and when new versions or new technologies are introduced.

Benefits of ERP: -

Implementing an ERP System has many advantages – both direct and

indirect. The direct advantages include improved efficiency, information integrations for

better decision making, faster response time to customer queries, etc. The indirect

benefits include better corporate image, improved Customer goodwill, customer

satisfaction, and so on. The following are some of the direct benefits of an ERP System.

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1. Business Integration: The first and most important advantage lies in the

promotion of integration. The reason why ERP packages are considered to be integrated

is the automatic data up gradation that is possible among the related business

components.

2. Flexibility: Different languages, currencies, accounting standards and so on can

be covered in one system, and functions that comprehensively manage multiple locations

of a company can be packaged and implemented automatically. To cope with company

globalization and system unification, this flexibility is essential, and one can say that it

has major advantages, not simply for development and maintenance, but also in terms of

management.

3. Better Analysis and Planning Capabilities: ERP makes the boost to the

planning functions. By enabling the comprehensive and unified management of related

business and its data, it becomes possible to fully utilize much type of decision support

systems.

4. Use of latest Technology: The fourth advantage is the utilization of the latest of

the information Technology (IT).

26

Some of other benefits are,

1. Reduction of Lead Time

2. On-Time Shipment

3. Reduction in Cycle Time

4. Better Customer Satisfaction

5. Improved Supplier Performance

6. Increased Flexibility

7. Reduction in Quality Costs

8. Improved Resource Utility

ERP Scenario in India: -

According to IDC, the ERP market in India

has been witnessing a CAGR of 20-30 percent

consistently over the last 5-6 years. As a result,

the market was already at Rs 250 crore in 1999-

2000, leapfrogging from Rs 12 crore in 1995-96,

Rs 27 crore in 1996-97, Rs 62 crore in 1997-98 and Rs134 crore in 1998-99. Therefore,

the Indian ERP market touching Rs 460 crore or $54 million, this year, accounting for

27

nearly 8.4 percent of the total Asia-Pacific market for ERP solutions. Growing at this

rate, it is expected to reach Rs 650 crore or $120.7 million in 2001-02.

Vendor Major clients

SAP BPCL, IOCL, ONGC, Reliance, Coca-Cola, Pepsi, ITC, Colgate-

Palmolive, Procter& Gamble, Larsen & Toubro, Mahindra, TELCO,

TISCO, Marico, Tuff

QAD HLL, Godrej Soaps, Bacardi, Fosters, Haldiram, Nicholas Piramal, Knoll,

Pharmaceuticals, Tata, Johnson Controls, Lear Setting, Raychem RPG,

Lucent Technologies, Tata Liebert, KRONE

Ramco Amararaja Batteries Limited, Numarligarh Refineries Limited, Jindal Iron

& Steel Company, Carborundum, Universal Limited, Chennai Petroleum

Corporation Limited, Indian Air Force-Nasik, Northern Coal Fields

Limited, JK Ansell, Madras Cements Limited, Madura Industrial Textiles,

Madura Fabrics

BaanGodrej & Boyce, Kirloskar Copeland, Vam Organics, Larsen & Toubro

OracleBNP, Oracle, TCS, AFL, Tata, HP, Compaq, Boeing, GE, KOEL, Sony

India

People softAllianz Insurance, Citibank, Ford, Merrill Lynch, Coca-Cola, VISA

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JD EdwardsSmithkline Beecham, Hoechst, Lexmark

Sixth sense ERP & their modules in detail

Sales Management (SMS)

Sales contracts.

Contract approval and acceptance.

Orders received.

Order approval and acceptance.

Price list, discount, tax structure and sales commission management.

Order fulfillment scheduling – dispatch plan. [Linked to a FG Stores]

Order status tracking. [from manufacturing module]

Dispatch clearance / instructions.

Invoicing. [In conjunction with the stores module]

Sales return / debits.

Receipt of payment and matching with invoices.

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Receivables management.

Commercial guarantees, deposits issue and return.

Inventory Management (INV)

Request for Items from Stores for production

Receipt of Items From Vendors & Subcontractors

Issue of Items to Production / Customers as per FIFO/Batch No.

Receipt/ Issue of Items from/to QC Dept.

Issue / Receipt of Items as per Goods-On-Loan

Transfer of Items from one Stores Location to Another i.e. Stock Transfer

Stock Adjustment for Items marked as Bad/Pilferage/Expired

Stock Reconciliation

Maintaining Safety Level of Stock

Re-Inspection of Items

Tracking of Item Stock as per Serial No./Batch No wise

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Purchase Management (PUR)

Definition of inventory levels.

Procurement plan based on forecasted requirements and BOM explosion

Changes in FG requirements would cause the changes in material requirements.

Supplier selection.

Purchase contracts.

Purchase plans based on procurement plan, requisitions.

Purchase orders.

Follow-up and progress tracking.

Evaluation of suppliers

Production Management (PPM)

Master production plan.

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Sub assembly plan / Detailed production plan.

MRP I and MRP II

Issue of product level work/job orders.

Financial Accounting (FAS)

Receipts

Payments

Vouchers

Financial Reports

Reconciliation

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OBJECTIVES OF THE STUDY

33

OBJECTIVES OF THE STUDY: -

The present study is conducted to fulfill the following objectives through market research

for identifying the business opportunities for iota Technologies in Pimpri-Chinchwad

MIDC Area in Pune. It also stresses on the searching of the business opportunities for the

ERP package in manufacturing units in this area.

This research project for ‘iota technologies limited’ is related to the market research

of discrete manufacturing companies for Enterprise Resource Planning (ERP) software.

Enterprise Resource Planning is a software used for inventory. It integrates all the

34

different departments of a company and increases its operational efficiency. A market

research was conducted in discrete manufacturing organizations. The managers of the

concerned organization were approached and they were asked information about their

company’s IT infrastructure, software needs, general information about the company etc.

Discrete manufacturing organization implies organizations engaged in manufacturing of

physically different and countable items. The companies targeted had a turnover

minimum of Rs. 2 crore.

This market research was designed to provide information to iota technologies about

which companies they can target and which companies can be their potential customers.

It also provided information about which companies were already using an ERP software

and which were in the search of an ERP. The basic objectives of this research are listed as

follows:

To find out awareness of ERP in Pune.

1) To find out current soft wares are used by manufacturing units.

2) To find out how many organizations are aware about ERP and out of them how

many organizations are using ERP and of which companies.

3) To trace the future requirements for ERP package.

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4) Now a days ERP is necessary in each and every organization. As I mentioned

above main objective is to find out awareness of ERP. An iota technology has six

sense as their product.

5) Basically iota technologies wanted to start their unit in Pune, simultaneously they

wanted create brand name for their product.

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research is any systematic activity carried out in the pursuit of truth. It is a purposive

investigation. It is an endeavour to arrive at answers to intellectual and practical problems

37

by the application of scientific method. It is an organized inquiry, designed and carried

out to provide information for solving significant and pertinent problems.

According to Cundiff & Still, “Marketing Research is the systematic gathering,

recording and analysis of data about marketing problems to facilitate decision making.”

Methodology of research

A certain pre-determined method was used for the collection of data. Various techniques

were used for data collection. Various facts, figures and other relevant material about the

companies were collected. In any kind of research, there are two types of data viz.

primary data and secondary data.

Primary Data

Data that is collected for the specific purpose at hand is called as primary data. It is

customized according to the needs of the researcher and focuses exclusively on the

current research problem.

Here the primary data collection method that was used was the ‘questionnaire

method’. A certain set of questions were formulated and the company officials were the

respondents. The data was collected by visiting the various companies and asking the

38

company officials the questions contained in the questionnaire. The questions aimed at

finding out the IT infrastructure of the company, the decision-maker at the company, the

software packages used by them, an idea about their company’s turnover, etc.

Secondary Data

Secondary data refers to any data that is already available for example the data collected

using newspapers, journals, etc. Any data that is available prior to the commencement of

the research project is secondary data, and therefore secondary data is also called as

historical data.

PROCESS OF MARKETING RESEARCH: -

Effective Marketing Research involves the five steps which are as follows: -

1. Defining the problem and research objectives.

2. Developing the research plan.

3. Collecting the information.

4. Analyzing the information.

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5. Presenting the findings.

Designing a research plan calls for decisions on the following: -

1. Data Sources.

2. Research Approaches.

3. Research Instruments.

4. Sampling Plan.

5. Contact Methods.

Research Instruments: -

Primary data can be collected with the help of two main research instruments:-

1) Questionnaires: - The questionnaire is the most common instrument in collecting

primary data. A questionnaire consists of a set of relevant questions sent to respondents

for their answers. Questionnaires need to be carefully developed, tested & prepared

40

before hand & before administrating on large scale. The form of questions can influence

the response. Questions are generally of two types: -

A) Closed- end Questions: Which have all possible answers & respondents make

choice among them.

B) Open-end Questions: Which allows the respondents to answer in their words. Those

questions get better response and useful exploratory stage.

2) Mechanical Instruments: - Mechanical Instruments are frequently used in marketing

research. These are used to study the approach, impact or sequence of questions. For exa.

Galvanometer measures subject interest and emotions. Audiometer detects the tuning of

the voice.

Sampling plans: -

Meaning of sampling plan is essential to take three important decisions:-

Sampling Units: - This answers, “ who is to be surveyed?” The marketing

researcher must define the target population that will be sampled.

Sampling Size: - This answers, “ How many people should be surveyed?” A

large sample gives more reliable results than small samples. Samples size of less than 1

41

% of the entire population can provide good reliable results.

Sampling Procedure: - This answers, “ How should respondent to be chosen?”

Contact Methods: -

This answers the question, “ How should the subject be contacted?” The choices are: -

The mail questionnaires: - This is the best way to reach individuals who would

not give personal interviews. Response rate is usually low or slow.

Telephone interviewing: - This is the best way of gathering information quickly.

Response rate is high.

Personal interviewing: - It is the most versatile of the three methods. The

interviewer can ask more questions and is very expensive method and requires planning.

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PROJECT WORK UNDERTAKEN

Project Work Undertaken

This project of market research involves the collection of data from various discrete

manufacturing organizations. The data collected involves the present IT infrastructure of

the concerned company, its turnover, whether the decision-makers of the company are

aware about Iota Technologies, whether they are satisfied with their existing software etc.

Advantages of ERP

The advantages of ERP can be explained as follows:

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1. Establishment of good practices:

In many companies that use multiple applications and systems, good practices

are not established because in many cases there are several ways to access

information. With ERP some good practices are established because there is one

access point and only one way to access the information and the same reporting tool

for all. It is critical for companies to establish best practices because it allows for

effective and efficient business practices.

2. Easy access to information:

One of the most important benefits of ERP is regarding how and when

information can be accessed and who can access it. ERP allows all the company

information to be accessed, given that you have the authority to view it. Earlier, ERP

information was difficult to access. Many a times the manager had to jump through or use

several applications to get the information and analyze it. With ERP this can be done

using one application and increase efficiency.

44

ANALYSE AND DATA INTERPRETATION

Analyses and Data Interpretation

Analyses & Data Interpretation

The analysis is based on the general Questionnaire, the data that was collected from

different I.T. departments of manufacturing units.

The following Graph shows link between turnover and industrial verticals.

45

Turnover in Rs.(crores) * Industrial Verticals Crosstabulation.

46

Above 2510-255-10Below 5

Turnover in Rs.(crores)

80

60

40

20

0

Co

un

t

5

0

0

4

0

6

0

10

05

24

0

00

46

0

00

10

50

Others

EquipmentManufacturing

Project Works

Electrical / Electronics

Auto ComponentsIndustrial Verticals

Data Interpretation:

47

1) Auto components, equipments manufacturing and others, these type of companies

come under category of turnover below 5 crores. Out of that 60 companies are of auto

components. 10 companies are of equipments manufacturing and other are 4.

2) Now the companies between 5-10 crores. In this category 46 companies are

electronics/electrical. 25 companies are project works companies & 10 are

autocomponents.

3) In 10-25 crores only project work & equipments manufacturing companies are there.

4) Only 5 companies are above 25 crores.

Conclusion:

While collecting information I found maximum companies are in the group of 5-10

crores. The manufacturers of auto components are maximum that is 60.

48

Above 2510-255-10Below 5

Turnover in Rs.(crores)

80

60

40

20

0

Co

un

t

5

8

0

14

03

80

50

Yes

NoERP Implementation

This graph shows relation between turnover and implementation of ERP.

1) Below 5 crores 14 companies are aware ERP.

2) In 10-25 crores 8 companies are using ERP.

3) Above 25 crores 5 companies are using ERP.

49

Conclusion

From this analysis we come to know that, above 25 crores turnover all the companies are

using ERP, but in the group of 5-10 crores not a single company is using ERP.

50

16.88%

69.38%

13.75%

Aware about ERP&using

Aware but not using

Not AwareAwareness of ERP

This pie chart shows awareness of ERP

After analyzing the data I found that only 13.5% manufacturers are not aware about the

ERP.

69.5% manufacturers are aware about ERP but still they are not using ERP.

16.88% Manufacturers are aware about the ERP & they are using it.

Conclusion.

This is the graph which shows awareness of ERP. Almost 87% manufacturers are aware

about ERP

51

.

OthersEquipmentManufacturing

Project WorksElectrical /Electronics

AutoComponents

Industrial Verticals

60

50

40

30

20

10

0

Co

un

t

9

16

2

0

0

00

27

46

60

Yes

NoERP Implementation

This graph shows vertical wise awareness of ERP

After analyzing the data I found only Equipment manufacturing companies are mainly

using ERP software & other manufacturers are also using ERP.

52

Aw

are abo

ut E

RP

&u

sing

Aw

are bu

t no

tu

sing

No

t Aw

are

Aw

areness o

f ER

P

OthersEquipmentManufacturing

Project WorksElectrical /Electronics

AutoComponents

Industrial Verticals

50

40

30

20

10

0

Co

un

t

50

40

30

20

10

0

Co

un

t

50

40

30

20

10

0

Co

un

t

916

29

46

11

22

27

This graph shows overall awareness of ERP software.

53

SUGGESTIONS AND CONCLUSION

54

SUGGESTIONS:

1) I had visited MIDC i.e. Pimpri-Chinchwad, Sinhagad Road, Hinjewadi & Bhosri

area, in that are many organizations are not using ERP that is 69%. That figure

shows that these organizations are aware about ERP but not using ERP. For that

they have to make proper advertisement about iota’s sixth sense .

2) As majority of the companies considered for the purpose of the survey belong to

the Manufacturing unit, other units and foundries, the company can identify its

market segments for its products by using a “ Product Oriented Market

Segmentation Approach”. This would help the company to examine how the

consumers perceive different brands of ERP packages with regard to different

attributes they possess.

3) As majority of the companies having the low turnover slab i.e. 5 lacs to 1 crores,

so that the company have to reduce the price of ERP package or it can develop

another low price package for this class organization.

4) Most of the companies have low employees strength between 0 to 100. Therefore

they can go for office automation. So, the company can develop the software

package according to their requirement.

5) The company can develop relationship with that 69.38 % companies as future

clients. Since they felt necessity of the ERP package in near future.

55

6) As many companies under survey are currently using various software packages,

there is a business opportunity for the ERP package of the iota technologies.

7) According to companies turnover & industry verticals there are 51 companies

who are eligible for the ERP package, thus iota should concentrate on them as

prospect customers.

8) Company should create the awareness between the industrialist and the

entrepreneurs about the implementation benefits and cost of their ERP package.

56

CONCLUSION

iota technologies ltd. are a leading provider of Enterprise Resource Planning (ERP)

system for the manufacturing, sales, and distribution industries. It offers software

solutions in ERP, SCM, logistics and industrial automation. Internet based project and

quality management software handles. The complete process of project planning, work

distribution, task monitoring, time sheets, quality assurance, release management and

defect tracking. Windows, Linux networks, Web servers hosted with various IPS’s and

dedicated high-speed Internet connection cater to application development and testing

requirement of various project groups in the company.

The overall geographical area of Pune (MIDC) Industrial Estate is supposed

to have a large number of companies which is an indicated of good business prospects

for the company.

As per the study the availability of ERP in the market is known to every

organization but majority of them are not aware of the ERP concept, it’s uses and

benefits. Only few companies are using the ERP and some are ready to shift from their

old software packages to this new one. The product is supposed to be quite technically

sound in nature; therefore it needs technical support from the company before and after

the implementation. The company should concentrate on those companies, which are

eligible for ERP package as their prospect customer. Which will be helpful for the

company in the near future, for their growth and development.

57

APPENDIX - 1

Suspect Information Form SIF

Prepared By : Date:

Name of Company/

Attach visiting Card:

Address:

Telephone & Fax

Email id & Website:

Contact Person:

Designation:

Mobile No:

Email ID:

Business Segment:

Product & Services:

58

Annual Turnover:

Number of Employees:

CEO / Director Name:

Email ID:

Name:

Email ID:

Current software used:

Future Requirement: Yes/No

Source Of information:

Qualify to Prospect

stage:

Yes/ No

59