A STUDY ON ORGANISATIONAL BUYING BEHAVIOUR FOR ERP SOFTWARES IN PUNE CITY

8/13/2019 A STUDY ON ORGANISATIONAL BUYING BEHAVIOUR FOR ERP SOFTWARES IN PUNE CITY

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A

Project Report

On

A STUDY ON ORGANISATIONAL BUYING BEHAVIOUR FOR

ERP SOFTWARES IN PUNE CITY

Submitted to

University of Pune

In Partial Fulfillment of the Requirements for Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

By

MOHAMMAD FAROOQ

Under the Guidance of

Prof. MEENU S. PRIYA

SINHGAD INSTITUTE OF TECHNOLOGY, LONAVALA

(2012-2014)


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DECLARATION

I hereby declare that the project entitle Organizational Buying Behavior for ERP

Softwares in Pune City Submitted to PuneUniversity in partial fulfillment of the

requirements for award of the degree of MBA under the guidance of Prof.

Meenu S. Priya at Sinhgad Institute of Technology affiliated to Pune University, is

an authentic and original work and the conclusion drawn therein are based on the

material collected by myself and has not been submitted to any other

University/Institute for award of any degree/diploma.

Place:

Date: MOHAMMAD

FAROOQ


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CONTENTS

CONTENT Page no.

ACKNOWLEDGEMENT

LIST OF TABLES

LIST OF FIGURES

CHAPTER I: Introduction

CHAPTER II: Company Profile

CHAPTER III: Research methodology

CHAPTER IV: Data Analysis and Interpretation

CHAPTER V: Findings and Suggestions

CHAPTER VI: Conclusion

BIBLIOGRAPHY

ANNEXURES


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ACKNOWLEDGEMENT

I take this opportunity and privilege to express my deep sense of gratitude to

Professor M.N. Navale, Honorable Founder President, Dr. (Mrs.) S.M. Navale,

Founder Secretary, The Sinhgad Technical Education Society, Pune and Dr. Parag

Kalkar, Director SIBACA. They have been a source of inspiration to me and I am

indebted to them for initiating me in the field of research.

I am deeply indebted to Faculty Member, SIBACA, Prof. Meenu S. Priya, my

research guide at Sinhgad Institute of Technology, Lonavala without whose help

completion of the project was highly impossible.

I take this opportunity and privilege to articulate my deep sense of gratefulness to the

Managing Director, Mr. Mrutunjay Kumar and the staff of the Revenir Development

System Pvt Ltd. for their timely help and positive encouragement.

I wish to express a special thanks to all teaching and non-teaching staff members of

Sinhgad Institute of Technology, Lonavala for their continuous support. I would like

to acknowledge all my family members, relatives and friends for their help and

encouragement.

Place: SIT, LONAVALA

Date: MOHAMMAD

FAROOQ


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LIST OF TABLES

Table No. Title of the Table Page No.

Table No.

Table No.

Table No.

Table No.

Table No.

Table No.

LIST OF FIGURES

Figure No. Title of the Figure Page No.

Table No.

Table No.

Table No.

Table No.

Table No.

Table No.


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EXECUTIVE SUMMERY

Summer training of management student plays an important role to develop one

into a well groomed professional. It gives theoretical concepts and practical shape

in a field of applications. It gives an idea of dynamic & versatile professional

world as well as an exposure to the intricacies & complexities of corporate world.

This research was carried out for 2 months for Revenir development system in

Pune. This was a research which was mainly conducted to tap the potential market

for ERP solutions in manufacturing and retail sector. As a part of this research a

thorough study was done to first understand what is ERP solutions and how is it

beneficial to the this sector so that the target market could be made aware of this.

The use of ERP has been growing with a high speed. All the other sectors like IT,

construction, telecommunication etc have been using this software. Retail sector

is one of the few sectors which is not well acquainted with this concept. So this

research included to know how many people are aware of this concept in this

sector and for those who are not aware, to make them aware of this concept and

tell them ERPs advantages, also to find customers who want install or replace

existing ERP as potential customer for company.

REVENIR DEVELOPMENT SYSTEM is Punebased company. It wanted to know

how potential does Pune market has. So this research was conducted in order to

understand the

understanding of manufacturing and retail sector towards ERP, to explain them the

meaning and advantages of ERP and in knowing their needs. With all this Revenir

development system Pvt Ltd could decide the potential market in Pune and also what

are their needs so that they can provide an ERP as per the needs.


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CHAPTER-I

INTRODUCTION


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What is Organizational Buying Behaviour:

Organization buying is the decision-making process by which formal organizations

establish the need for purchased products and services and identify, evaluate, and

choose among alternative brands and suppliers.

Some of the characteristics of organizational buyers are:

1. Consumer market is a huge market in millions of consumers where organizational

buyers are limited in number for most of the products.

2. The purchases are in large quantities.

3. Close relationships and service are required.

4. Demand is derived from the production and sales of buyers.

5. Demand fluctuations are high as purchases from business buyers magnify

fluctuation in demand for their products.

6. The organizational buyers are trained professionals in purchasing.

7. Several persons in organization influence purchase.

8. Lot of buying occurs in direct dealing with manufacturers.

Participants in the Business Buying Process:

Buying Center Concept

Webster and Wind in the model they proposed to describe organizational buying

process, identified the organizational buying process as a team process and called the

team or the buying decision-making unit of the organization as buying center. The

buying center consists of all persons of the organizations who are involved in the

buying process playing one or the other seven roles: Initiators, Users, Influencers,

Deciders, Approvers, Buyers, and Gatekeepers.


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Users

The persons who use the item. Say for safety gloves the operators.

Initiators

The persons who request the purchase. The safety officer may initiate the request for

the purchase.

Influencers

Persons who held define specifications. In this case of safety gloves, the safety officer

may himself define specifications. If an industrial engineer is in the organization, hemay also be consulted. There can a different gloves for different working situations

and industrial engineer may be more aware of specific requirements due to his special

nature of work - human effort engineering.

Buyers

They are the person who actually do the buying transaction.

Gatekeepers

They control access to personnel in a company. The receptionist, the secretaries etc.

Deciders

People who decide on product requireements and suppliers. It is the final approval for

product specfications and suppliers' list.

Approvers

Persons who approve the purchase. In the case of safety gloves, the personal manager

may have the power to approve.


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Major Influences on Business Buyers:

Environmental factors

Expected demand for the product that the buying organization is selling, expected

shortages for the item, expected changes in technology related to the item etc. are the

environmental factors that will have an effect.

Organizational factors

Changes in purchasing department organization like centralized purchasing,

decentralized purchasing and changes in purchasing practices like long-term

contracts, relationship purchasing, zero-based pricing, vendor-performance evaluation

are the organization factors of importance to marketers.

Interpersonal factors

These factors are the relationship between buyers and sales representatives of variouscompetitor companies.

Individual factors

These factors related to the buyer. What sort of ways of interacting and service are

appreciated by the buyers and what ways are considered as irritants? Marketers have

to understand the reactions of buyers.

Organizational Buying Process:

Steps in the Process Problem recognition General need description Product specification Supplier search Proposal solicitation


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LITERATUREREVIEW

The literature review takes a look at some useful publications relating to state-of-art in

medical software and associated features of the systems. Evidently, management

software is an innovation that is still emerging. As such, it has not yet been adequately

covered in literature and empirical studies on it are hard to find. Presently, it appears

existing paucity in publications embracing this innovative technology, will take a

while to change. For the moment however, we will suffice with the few available

literature associated with electronic ticketing.

The pharmacy business is no longer just about prescriptions. Today you depend on

front-of-store retail operations to maintain margins, fuel growth, and meet the

growing expectations of your customers. Now days customers expect more. They

shop where they find the products they want, when they want them, at competitive

prices. Where they receive fast, knowledgeable service. And where they feel their

patronage is valued and rewarded.

Business Retail Software Helps Grow the Company Bottom Line By:

Optimizing front-end inventory managementfor improved loyalty, greater

sales, lower costs and a better return on assets

Automating purchasing and helping you buy smarter

Enabling a profitable and targeted loyalty program

Improving financial control throughout your operation with integrated

accounting and analytics

Enhancing the customer experienceat the point of sale and throughout the

business

Extending business everywhere with powerful mobile tools and online

solutions.


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NEED FOR STUDY

In order to conduct any study it has to be seen whether it is going to solve any of

the problems related to the product, service or the organisation as a whole.

Similarly this study of Organisational Buying Behaviour for ERP Softwares in

Manufacturing companies, Hospitals, is quite an important thing for REVENIR

DEVELOPMENT SYSTEM LTD because it will help organisation to grow the

business in manufacturing and retail sector.

The study will also benefit the customers as the researcher is providing all the

information about ERP to them. They will come to know how an ERP solution can

integrate all their business activities and help them to easily coordinate all these

activities.

STATEMEENT OF PROBLEM

A project report on

Study of Organisational Buying Behaviour for ERP Softwares for REVENIR

DEVELOPMENT SYSTEM PVT LTD PUNE.

The main objective was to tap the potential market for ERP solutions in the

manufactruing and retail industry. The need for study arose to know how many

organizations are aware of standard ERPs and what are the various factors which

affect the buying decision of ERP Software.

Also To know what other software are being used in manufacturing and retail

industries and to analyze what support competitors offerings in market.


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OBJECTIVES OF THE STUDY

To know the awareness regarding ERP Softwares.

To determine the factors which influence the buying of

ERP Softwares by the Organizations.


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SCOPE

Scope management is an essential part of any project. When scope management

of a project is not properly done, the success of that project can easily be in

jeopardy. In other words, managing scope is one of the most critical aspects of

managing a project. More, scope management can be more important to project

success than any of the other individual knowledge area

As this is generic software it can be used by a wide variety of outlets (Retailers

and Wholesalers) to automate the process of manually maintaining the records

related to the subject of maintaining the stock and cash flows. The study is

intended to develop an understanding of trust toward adoption of medical

software in market It focuses on the current demand and perception of chemist

while using these software.


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CHAPTER-II

COMPANY PROFILE


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COMPANY PROFILE

REVENIR DEVELOPMENT SYSTEM PVT LTD

Revenir means to return and that is exactly what we do. We help you return to doing

what you should be doing ... growing your business. Whether you are the CFO or the

CIO, telecommunications probably isnt one of your core competencies. It is,

however, ours! We can take telecom costs, among a companys highest non personnel

expenses, and find huge opportunities to increase efficiency, service and reduce

expenses. We help you control the costs of mobile technologies, work with each of

your carriers to ensure you are getting the very lowest rates and audit all your telecom

expenses. Then we automate the whole process. Ultimately we save you time,

confusion, effort and money

We collborate with our customers from project conceptualization and throughout thelife cycle, covering technical and administrative aspects. We select and mantain our

development and testing tools, using industry best practices to achieve the best ROI.

Designing interventions that reflect the best validated current research, so we are

constantly aware of our own development needs.We runs IT smarter, faster and

stronger. Thats why the most demanding IT organizations in the world rely on RDS

Software across distributed, mainframe, virtual and cloud environments. Recognized

as the leader in Business Service Management, RDS offers a comprehensive approach

and unified platform that helps IT organizations cut cost, reduce risk and drive
http://www.revenirglobal.com/index.php/


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business profit.We are a company of diverse, talented people with a passion for

pursuing excellence in all that we do.

To deliver the greatest results for our clientsand our stakeholderswe remain

dedicated to staying at the forefront of business and technology trends. Our values are

grounded in strong ethics, transparency and openness.

Clients trust us, and we generally form longlasting relationships that make us

integral contributors to their organizations. In fact, 90+% of our clients return to us

when they begin new initiatives. Youll find a global, inclusive and a richly diverse

workforce. Our employees represent almost every nationality on earth so youre sure

to fit in. Ours is a vibrant, energetic environment, achievement oriented and filled

with opportunity. It is a community of the best and brightest professionals, working as

close, collaborative teams, but also empowered individually to act in the best interests

of clients. Under strong leadership, we expect continuing growth and global

expansion.

Flexibility and adaptability is built into our model. We have an advanced global

delivery platformwith a full complement of technology and consulting services

across most major industry segments, and a model that positions us well into the

future.

Our mandate is to introduce people to the new world of Information Technology. Our

goal is to make a positive impact on all involved and to be effective role models as

technologists. Our vision is to emerge as a dynamic, tech savvy, customer centric and

progressive world of Information Technology. We hope to introduce new technology

to the world. Our vision statement can be encapsulated in our corporate philosophy

and motto of `building quality with economy. To envision, design and construct the

most magnificent landmarks and edifices; to contribute tangibly in regional and

national development by way of key infrastructure projects, and to protect and

preserve the environment we live in that too with economy. At the end of the day, our

vision is about making the world a better place to live in; to transform and uplift

quality of living and lifestyles of each and every individual that comes in contact with

us.


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Clients Of Company


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PRODUCTS PROVIDED BY COMPANY

APPLICATION MANAGEMENT

Out IT professionals responsible for controlling coast, delivery of products with the quality,

Responding the ever continues changing need of the busi

ATTENDACE MANAGEMENT

Organizations of all sizes use time and attendance systems to record when employees start and

stop work, and the department where the work is performe
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BANKING SYSTEM

Banking Software is rapidly increasing its relevance in today's global society.

Typically Banking Software refers to Core Banking Software and inte

CRM SOFTWARE

Customer relationship management (CRM) is all about managing the relationships you have with

your customers - We provide innovative, budge

E-LEARNING

E-learning includes all forms of electronically supported learning and teaching, including Edtech.

The information and communication systems, whether

ONLINE HOTEL MANAGEMENT
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Online hotel reservations are becoming a very popular method for booking hotel rooms. Travelers

can book rooms from home by using online

PAYROLL SOFTWARE

Payroll Software , is an integrated accounting system which takes care of all business needs. It

incorporates powerful features for maint

OFFICE MANAGEMENT

Office Management Softwareis described as software which can manage a Small Medium

Business Office. Currently there aren't many solutions whic

INVENTRY MANAGEMENT
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Inventrymanagment is primarily about specifing the size and placement of stocked goods.

Inventrymanagment is required at different locations within

MATRIMONY PORTAL

Online Matrimony is an organized web based Matrimonial/Marriage service facilitating wishful

young men and women to find their suitable l

MOBILE SECURITY

Mobile security or mobile phone security has become increasingly important in mobile

computing. It is of particular concern as it relates to the secur

ONLINE EDUCATION
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Online Educationincludes all forms of electronically supported learning and teaching, including

Edtech. The information and communication syst

HOSTEL MANAGEMENT SYSTEM

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been the industry's standard dummy text

INTERNET MARKETING & SEO

RDS has dedicated team of technical Internet Marketing & SEO experts for Internet Marketing

and SEO Services Our experts provide effe
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ERP SYSTEM

Enterprise resource planning (ERP)systems integrate internal and external management

information across an entire organization, embracing fina

CONCEPT

ERP

Enterprise Resource Planning (ERP) is an integrated computer-based system used

to manage internal and external resources, includingtangible assets,financial

resources, materials, andhuman resources.Its purpose is to facilitate the flow of

information between all business functions inside the boundaries of the

organization and manage the connections to outside stakeholders. Built on a

centralized database and normally utilizing a common computing platform, ERP

systems consolidate all business operations into a uniform and enterprise-wide

system environment.

Software solution that addresses enterprise needs taking the process view of an

organization to meet the organizational goals by tightly integrating all functions of

an enterprise.

Facilitates company-wide integrated information systems covering all functional

areas.

Performs core corporate activities and increases customer service augmenting

corporate image

An ERP system can either reside on a centralized server or be distributed acrossmodular hardware and software units that provide "services" and communicate on
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alocal area network.The distributed design allows a business to assemble

modules from different vendors without the need for the placement of multiple

copies of complex and expensive computer systems in areas which will not use

their full capacity

Components/ modules

Transactional Backbone

o Financials

o Distribution

o Human Resources

o Product lifecycle management

Advanced Applications

o Customer Relationship Management (CRM)

o Supply chain management software

Purchasing

Manufacturing

Distribution

o Warehouse Management System

Management Portal/Dashboard

o Decision Support System

These modules can exist in a system or utilized in an ad-hoc fashion.

Many organizations do not have sufficient internal skills to implement an ERP

project. This results in many organizations offering consulting services for ERP

implementation. Typically, a consulting team is responsible for the entire ERP

implementation including.

1. selecting

2. planning

3. training

4. testing5. implementation
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6. delivery

of any customized modules. Examples of customization includes creating processes

and reports for compliance, additional product training; creation of process triggers

and workflow; specialist advice to improve how the ERP is used in the business;

system optimization; and assistance writing reports, complex data extracts or

implementing Business Intelligence.

For most mid-sized companies, the cost of the implementation will range from around

the list price of the ERP user licenses to up to twice this amount (depending on the

level of customization required). Large companies, and especially those with multiple

sites or countries, will often spend considerably more on the implementation than thecost of the user licensesthree to five times more is not uncommon for a multi-site

implementation.

Unlike most single-purpose applications, ERP packages have historically included full

source code and shipped with vendor-supportedteam IDEs for customizing and

extending the delivered code. During the early years of ERP the guarantee of mature

tools and support for extensive customization was an important sales argument when

a potential customer was considering developing their own unique solution in-house,

or assembling a cross-functional solution by integrating multiple "best of breed"

applications

ERPs best hope for demonstrating value is as a sort of battering ram for improving

the way your company takes a customer order and processes it into an invoice and

revenueotherwise known as the order fulfillment process. That is why ERP is often

referred to as back-office software. It doesnt handle the up-front selling process(although most ERP vendors have developed CRM software or acquired pure-play

CRM providers that can do this); rather, ERP takes a customer order and provides a

software road map for automating the different steps along the path to fulfilling it.

When a customer service representative enters a customer order into an ERP system,

he has all the information necessary to complete the order (the customers credit

rating and order history from the finance module, the companys inventory levels

from the warehouse module and the shipping docks trucking schedule from the

logistics module, for example).
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People in these different departments all see the same information and can update it.

When one department finishes with the order it is automatically routed via the ERP

system to the next department. To find out where the order is at any point, you need

only log in to the ERP system and track it down. With luck, the order process moves

like a bolt of lightning through the organization, and customers get their orders faster

and with fewer errors than before. ERP can apply that same magic to the other major

business processes, such as employee benefits or financial reporting

ERP with e-commerce

ERP vendors were not prepared for the onslaught of e-commerce. ERP is complex

and not intended for public consumption. It assumes that the only people handlingorder information will be your employees, who are highly trained and comfortable

with the tech jargon embedded in the software. But now customers and suppliers are

demanding access to the same information your employees get through the ERP

systemthings like order status, inventory levels and invoice reconciliationexcept

they want to get all this information simply, without all the ERP software jargon,

through your website.

E-commerce means IT departments need to build two new channels of access in to

ERP systemsone for customers (otherwise known as business-to-consumer) and

one for suppliers and partners (business-to-business). These two audiences want two

different types of information from your ERP system. Consumers want order status

and billing information, and suppliers and partners want just about everything else.

Traditional ERP vendors are having a hard time building the links between the Web

and their software, though they certainly all realize that they must do it and have been

hard at work at it for years. The bottom line, however, is that companies with e-

commerce ambitions face a lot of hard integration work to make their ERP systems

available over the Web. For those companies that were smartor luckyenough to

have bought their ERP systems from a vendor experienced in developing e-commerce

wares, adding easily integrated applications from that same vendor can be a money-

saving option. For those companies whose ERP systems came from vendors that are

less experienced with e-commerce development, the bestand possibly onlyoption


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might be to have a combination of internal staff and consultants hack through a

custom integration.

But no matter what the details are, solving the difficult problem of integrating ERP

and e-commerce requires careful planning, which is key to getting integration off on

the right track.

One of the most difficult aspects of ERP and e-commerce integration is that the

Internet never stops. ERP applications are big and complex and require maintenance.

The choice is stark if ERP is linked directly to the Webtake down your ERP system

for maintenance and you take down your website. Most e-commerce veterans will

build flexibility into the ERP and e-commerce links so that they can keep the new e-

commerce applications running on the Web while they shut down ERP for upgrades

and fixes

Package Led Services

Today, enterprises need to invest in technology to keep pace with the market changes

and also to survive in an intensely competitive world. Some of the necessary

investments include those impact operations and ultimately the business such as ERP,SCM, CRM, HRM and so on.

Enterprises will have to start with evaluating packages based on their unique business

challenges and develop a roadmap to implement these packages. This requires not

only an understanding of your business context but also a deep knowledge of

prevailing packaged application software in the market and industry best practices.

At RDS, we have an established service where we can help you evaluate the various

packages available and arrive at a decision that is most likely to work for your

requirements. In addition, we can implement, customize the packaged software and

maintain it, ensuring your bandwidth is freed up to focus on your core competencies.

We have a proven track record in helping enterprises establish and maintain ERP

implementation, MS Dynamics implementation and Oracle e-business

implementation.


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Collaboration & Content Management

Enterprises today recognize the significance of a rich, easy-to-use, collaborative and

personalized user experience for collecting, managing, and exchanging information.

With large volumes of content in various forms and formats, you realize the need for

effective Enterprise Content Management solutions that help in improving

customer service.

RDSs content management andcollaboration solutionsprovide enterprises with

services in design, development and implementation in combination with industry

best practices across a multitude of sectors. We effectively capture, store, manage

and distribute content using robust, modern and cost-effective solutions.

Our solutions and services include:

Collaboration and Knowledge Management

Enterprise Portal or Web Content Management solutions

Records and Document Management

Design and development of portals, intranet sites, knowledge management

portals & websites

Maintenance & Support

Functional & Non-functional testing

We leverage our partnerships with leading content management solution providers

such as Microsoft, Sitecore and Kentico to realize ROI for IT investment through

better collaboration and higher business process efficiencies. Our in-house

accelerators such as frameworks, integration bridges, web-parts and other reusablecomponents reduce the total cost of ownership by 40%-60% while reducing post-

deployment maintenance and support costs.

RDSs solutions help you improve efficiency in corporate operations by effective

knowledge management and improved enterprise processes. Our customized

solutions will:

Help users collaborate effectively and act as a knowledge repository


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Provide an aggregated view of various projects and portfolios for improved

decision making

Help knowledge architects build a visual enterprise model that captures

the attributes of various entities

Proposal Management Solution

Proposal Management Solution

A well crafted sales proposal can reap multi-fold benefits for an organization.

However, writing proposals is often time-consuming as well as error-prone.

Proposals fail due to a number of reasons such as a mismatch between the offerings

and requirements, poor substantiation for claims, lack of front-end planning or

marketing intelligence, or the simple failure to give the buyer what he asked for.

Most often this critical task does not get the attention it requires in corporate

environments in terms of defining the governing process and providing the right

infrastructure. It invariably results in loss of efficiency in addition to frustration

amongst the people involved in this largely manual process. As the result, the ability

to respond effectively to the client and win new business is significantly impaired.

The answer to this issue is a well laid proposal management system which addresses

the following

Managing the team working environment

Managing reviews and versions

Securely archiving past proposals for future search and referencing

Allowing the implementation and enforcing approval processes

Tracking and removing any non-compliance as well as be able to access other

applications.


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ERP for Engineering, Construction & Operations

Business Processes

ERP for Engineering, Construction & Operations (ERP for EC&O) enables you toperform a wide range of critical activities, including:

Business developmentERP solutions help you develop strategic new

businessgoing beyond standard practices to use new strategies that deliver

better results. With ERP for EC&O, you can conduct intensive market and risk

analysis and plan the timelines and budgets for projects. You can also manage

the bid process, taking into account competitive and customer information.

Project managementERP solutions support robust project planning and

management. You can create accurate baseline budgets and schedules and

manage downstream variations in definition, scope, costs, and other variables.

ERP for EC&O addresses end-to-end project management, from planning,

scheduling, and project execution to contract management and project

controlling.

Design and engineeringERP solutions enable effective management of the

entire design and engineering phase, including both basic design and detailed

design and engineering. With ERP for EC&O, you can integrate CAD systems

to enable ERP-supported computer-aided facility management (CAFM),

develop and manage documents, and collaborate easily with subcontractors,

vendors, and clients.

BuildingERP solutions support key activities in the build phase, including

site materials management, workforce management, equipment and tools

management, prefabrication and assembly, and commissioning, start-up, and

handover. You can interact with strategic partners, manage documents, and

track the shipment and quality of materials.

ProcurementERP solutions help you evaluate potential business partners and

relevant quotations, build valuable relationships with subcontractors and

suppliers, and measure performance over time. You can give suppliers and


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subcontractors secure access to internal functionality for processing orders,

managing invoices, and updating specifications to maximize the efficiency of

purchasing activities. And, during project execution, you can monitor and

analyze available resources and ensure prompt delivery of good-quality

materials and services.

Facility and plant operationsWith ERP solutions, you can manage the entire

life cycle of operating buildings and plants. ERP for EC&O provides full

support for marketing and sales, property structure management, facility and

plant maintenance, real estate management, and service operations.

NEED OF ERP

To achieve clarity and transparency, best-run businesses are using SAP solutions to

help close the gap between strategy and executionoptimizing the performance of

the business as well as the business network. SAP solutions, along with services and

a wealth of extended value from the SAP customer-focused ecosystem, help

customers become clear enterprises by providing insight for improved performance,

efficiency for optimized operations, and flexibility to quickly adapt to changing

circumstances.

With broader insight, improved efficiency, and greater flexibility, companies can

become more:

Transparent and accountable

Lean and agile

Customer centric and collaborative

The clarity provided by the SAP portfolio and the ecosystem can help companies

preserve profitability by addressing challenges such as cash management, risk

mitigation, customer loyalty, streamlining of operations, sustainability, and talent

management


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Advantages

In the absence of an ERP system, a large manufacturer may find itself with many

software applications that cannot communicate or interface effectively with one

another. Tasks that need to interface with one another may involve. ERP systems

connect the necessary software in order for accurate forecasting to be done. This

allows inventory levels to be kept at maximum efficiency and the company to be more

profitable.

Integration among different functional areas to ensure proper communication,

productivity and efficiency

Designengineering (how to best make the product)

Order tracking, from acceptance through fulfillment

The revenue cycle, frominvoice through cash receipt

Managing inter-dependencies of complex processesbill of materials

Tracking the three-way match betweenpurchase orders (what was ordered),

inventory receipts (what arrived), andcosting (what the vendor invoiced)

Theaccounting for all of these tasks: tracking therevenue,cost andprofit at a

granular level.

ERP Systems centralize the data in one place. Benefits of this include:

Eliminates the problem of synchronizing changes between multiple systems -

consolidation of finance, marketing and sales, human resource, and

manufacturing applications

Permits control of business processes that cross functional boundaries

Provides top-down view of the enterprise (no "islands of information"), real

time information is available to management anywhere, anytime to make

proper decisions.

Reduces the risk of loss of sensitive data by consolidating multiple

permissions and security models into a single structure.

Shorten production leadtime and delivery time

Facilitating business learning, empowering, and building common visions
http://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Bill_of_materialshttp://en.wikipedia.org/wiki/Purchase_orderhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Purchase_orderhttp://en.wikipedia.org/wiki/Bill_of_materialshttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Engineering


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Somesecurity features are included within an ERP system to protect against both

outsider crime, such asindustrial espionage,and insider crime, such as

embezzlement.A data-tampering scenario, for example, might involve a disgruntled

employee intentionally modifying prices to below-the-breakeven point in order to

attempt to interfere with the company's profit or other sabotage. ERP systems

typically provide functionality for implementinginternal controls to prevent actions of

this kind. ERP vendors are also moving toward better integration with other kinds of

information security tools.

ebuildis a Comprehensive, Integrated, Modularized and User-friendly Construction

ERP System for the Real Estate and Construction industry. It is a ready to use system,

which is useful in quick implementation and thus reducing the lead-time. The

implementation is modularized type and the each module can be linked at any time as

per customer's requirement. The system will run both at site as well as at head office

independently. The head office is linked with the site office through web server/data

transfer protocols and thus enables one to know the status of each site, which

increases the effectiveness in monitoring and executing of site work.

Helps in plan layout and structural design of a project

Budget control for each process in the project

Tender management and bid analysis

Project scheduling in stages, with costs and allocation of resources

Remote project monitoring with generation of various timely reports from

multiple work sites and head office

Total system control and data security

Reports generated within all modules are viewable on screen as well as

exportable to MS Word or Acrobat PDF Files

Critical factors for successful ERP implementation
http://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Industrial_espionagehttp://en.wikipedia.org/wiki/Embezzlementhttp://en.wikipedia.org/wiki/Internal_controlhttp://en.wikipedia.org/wiki/Internal_controlhttp://en.wikipedia.org/wiki/Embezzlementhttp://en.wikipedia.org/wiki/Industrial_espionagehttp://en.wikipedia.org/wiki/Security


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3)Create a software candidate list.

4)Narrow the field to four to six serious candidates.

5)Create the request for proposal (RFP).

6)Review the proposals.

Benefits of ERP implementation:

Deloitte Consulting (1998), and discussed in OLeary (2000), that investigated the

rationales and benefits for why firms choose to implement ERP. That study broke

benefits into two broad categories: Tangible Benefits (Table 1) and Intangible

Benefits (Table 2). Deloitte Consultants (1998) study was based on interviews

with 62 client firms of theFortune500. As part of a large- scale project, client

firms were asked which tangible and intangible benefits had been realized. The

results in Tables 1 and 2 present the percentage of the firms that indicated which

benefits would be realized, allowing for multiple responses for each firm.


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CHAPTER-III

RESEARCHMETHODOLOGY


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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems it may

be understood as a science of studying how research is done scientifically. In it, the

various steps that are generally adopted by a research in studying this research

problem along with the logic behind them are studied.

Marketing research is the systematic design, collection, analysis and reporting of data

and finding to a specific marketing situation facing the company.

Effective marketing study involves five steps:

Define the problem and study objectives

Develop the study objectives

Collect appropriate information

Analyze the information

Present the findings

Research definition:

Research is a systematic and scientific search of pertinent information on a

specific topic

The manipulation of things, concepts or symbols for purpose of generalizing

to extend, correct or verify knowledge, whether that knowledge aids in

construction of theory or in the practice of an art by D.Sleinger and

M.Stephnson.

Definition of Research Methodology: Research methodology is a tool to

systematically solve the research problem. It may be understood as a science of

studying how research is done scientifically.


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Types of Research:

The research involved both qualitative dimension of work and knowledge. The

quantities approach involved generation of large chunk of data, which are analyzed on

various parameters, while the qualitative approach was to analyze the data, take the

information out and discard the unnecessary details.

The target was to contact the respondents and analyze their requirements. The survey

is concerned with the subjective assessment of attitude, opinion of the people about

the service provider.

Descriptive research, also known asstatisticalresearch, describes data and

characteristics about thepopulationor phenomenon being studied. Descriptive

research answers the questions who, what, where, whenand how...

Although the data description is factual, accurate and systematic, the research cannot

describe what caused a situation. Thus, Descriptive research cannot be used to create

acausal relationship,where one variable affects another. In other words, descriptive

research can be said to have a low requirement forinternal validity.

The description is used forfrequencies,averagesand other statistical calculations.

Often the best approach, prior to writing descriptive research, is to conduct a survey

investigation.Qualitative researchoften has the aim of descriptionand researchers

may follow-up with examinations of why the observations exist and what the

implications of the findings are.

In short descriptive research deals with everything that can be counted and studied.

But there are always restrictions to that. Your research must have an impact to the

lives of the people around you. For example, finding the most frequent disease that

affects the children of a town. The reader of the research will know what to do to

prevent that disease thus, more people will live a healthy life.

In this research, Descriptive and Exploratory Researchmethods have been used.
http://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statistics


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6. Interpret the report

Sampling Plan

All the items under consideration in any field of enquiry constitute a universe or

population. A complete enumeration of all the items in the population is known as

census enquiry. But it was not possible at all to cover each and every potential

customer on a pan India basis. The number of all potential customers inclusive of all

big and small manufacturer or retailers was really high so it was pragmatically

impossible to generate the complete data. Since the process of collecting data from the

elements of large population may be expensive, time consuming and difficult. It will

be cheaper and quicker to collect information from a sample plan of the population. A

sample is a fraction of a subset of population through a valid statistical procedure so it

can be regarded as representative of the entire population. The valid statistical

procedure of drawing sample from the population is called sampling.

.SAMPLING DESIGN

A sampling design is a definite plan for obtaining a sample from a given population. It

refers to the technique or procedure the researcher would adopt in selecting for the

samples. Sample design is determined before the data is collected.

The Universe:

The universe consists of the all themanufacturing and retail sectorin Pune: hence the

universe can be geographical area of Pune.

Sampling unit:

Sampling unit is the customer who is already using ERP system andalso who would

like to install ERP system in his company.

Sampling Size:


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The sample size consisted of 59 respondents. It included the manufacturing firm,

hospitals and retailers in Pune city only.

Sampling instrument:

Questionnaire was used as an instrument for primary data collection.

Sampling Method:

Before using the sample size calculator, there are two terms that one needs to know. These

are: confidenceintervaland confidence level

Determine Sample Size

Confidence Level: 95% 99%

Confidence Interval: 10

Population: 150

Sample size needed: 59

The confidence interval(also called margin of error) is the plus-or-minus figure usually

reported in newspaper or television opinion poll results. For example, if you use a confidence

interval of 4 and 47% percent of your sample picks an answer you can be "sure" that if you

had asked the question ofthe entire relevant population between 43% (47-4) and 51% (47+4)

would have picked that answer.

The confidence leveltells how sure one can be. It is expressed as a percentage and

represents how often the true percentage of the population who would pick an answer lies

within the confidence interval. The 95% confidence level means one can be 95% certain; the

99% confidence level means one can be 99% certain. Most researchers use the 95%

confidence level.


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When one put the confidence level and the confidence interval together, one can say that one

is 95% sure that the true percentage of the population is between 43% and 51%. The wider

the confidence interval you are willing to accept, the more certain one can be that the whole

population answers would be within that range.

Reference:http://www.surveysystem.com/sscalc.htm

Sampling technique:

Simple random sampling

In a simple random sampling ('SRS') of a given size, all such subsets of the frame are

given an equal probability. Each element of the frame thus has an equal probability of

selection: the frame is not subdivided or partitioned. Furthermore, any givenpairof

elements has the same chance of selection as any other such pair (and similarly for

triples, and so on). This minimises bias and simplifies analysis of results. In

particular, the variance between individual results within the sample is a good

indicator of variance in the overall population, which makes it relatively easy to

estimate the accuracy of results.

SOURCES AND METHODS OF DATA COLLECTION

Sources of data collection

The research for the study had been collected from field research. Thus the data

mostly consists of primary data. Data obtained from the first hand researcher is called

primary data. In this method trainee personally collect the data through questionnaire

and interview. The primary data was collected through the various respondents I

interviewed.

The secondary data is readily available from internet and complies data from

Statistical statements reports etc, the data can be obtained through published or non

published sources

To achieve the objective the researcher was required to identify the sources of data

from where the data are to be collected. As researchers objective was to find the
http://www.surveysystem.com/sscalc.htmhttp://www.surveysystem.com/sscalc.htmhttp://www.surveysystem.com/sscalc.htmhttp://www.surveysystem.com/sscalc.htm


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potential customer for ERP solutions REVENIR DEVELOPMENT SYSTEM LTD

PUNE, the research demanded primary data mostly, however to start with researcher

needed the customer database out of which we can select the potential customers so

secondary data were also utilised. Before dealing with the research methodology the

researcher emphasises to discuss primary and secondary data.

Primary Data

These are data obtained from first hand research. In this researcher personally collects

the data through personal interviews, discussions, interaction or by questionnaire (a

Performa containing a set of questions method).

Primary data has been collected directly from the field. Primary data was gathered by

the means of interviewing the respondents with the use of questionnaire that the

researcher prepared. Survey is the research approach using this research project.

Surveys are the best source of descriptive research. The research instrument chosen

was a questionnaire for the collecting the primary data. Questionnaire was the most

popular and useful method for surveying. It helps in collecting the information from

the framed question, to get maximum necessary data required for the research.

Questionnaire contained 11 no of questions, which included open and close ended

questions. The questions are subjective and objective in nature. Thus, the questions

helped in various ways.

Secondary Data

Secondary data was mainly collected from company records and website. The data

was then categorized into various groups and then researcher deduced the pattern of

relationship that existed among the data groups.

Websites:


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Official website of Maharashtra state directory

Websites of yellow pages.

Google.

Official site of http://www.revenirglobal.com

LIMITATIONS OF THE STUDY

The data gathered is valid for few months.

All data is based on responses of respondents.

In some of the organization responsible person to answer questions were not

available.

There was a financial problem.

Duration of research was limited to 2 months only.

The research was done in the summer period, so temperature was hot while

going outside to collect the data.
http://www.revenirglobal.com/http://www.revenirglobal.com/http://www.revenirglobal.com/


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CHAPTER-IV

DATA ANALYSISAND

INTERPRETATION


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DATA ANALYSIS AND INTERPRETATION

Data analysis is a process of gathering, modelling and transforming data with the goal

of highlighting useful information, suggesting conclusions and supporting decision

making. Data analysis has multiple facets and approaches encompassing diverse

techniques under a variety of names in different businesses science and social science

domain.

Marketing study and research focuses on understanding the behaviours, preferences,

whims of consumers in the market place. Businesses cannot be successful if they

cannot meet the demands of customers. To meet the needs, finding out what

customers want from your products will be the most crucial marketing study and

research activities.

Analyzing survey data is an important and exciting step in the survey process. It is the

time that you may reveal important facts about your customers, uncover trends that

you might not otherwise have known existed, or provide irrefutable facts to support

your plans. By doing in-depth data comparisons, you can begin to identify

relationships between various data that will help you understand more about your

respondents, and guide you towards better decisions.


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1.Are you using ERP software?

Table No :

50

9

Users Of ERP

Yes

No

SR NO PARTICULAR COUNT


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Interpretation:

50 organizations were using ERP Software. While 9

organizations were not using ERP Software.

2.Which ERP are you using?

0

2

4

6

8

10

12

14

16

18

20

SAP NEWTON TALLY ERP TALLY

MICROSOFT

ANY OTHER

12

4

20

13

1

ERP USERS

ERP USERS

1 YES 50

2 NO 9


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Table No

Interpretation:

The maximum Organizations were using Tally ERP i.e. 20. While 13 were

users of Tally Microsoft and 12 were users of SAP. 4 were using Newton and

1 organization was using other ERP.

3.Which factor do you consider most important while

purchasing an ERP software? (more than one option is

possible).

35

50

10

45

0

10

20

30

40

50

60

0 1 2 3 4 5

Factors Affecting Buying Decision

Support & Services

User Friendly

Price

Speed


1 SAP 12

2 Newton 4

3 Tally ERP 20

4 Tally Microsoft 13

5 Other 1


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Table No

Interpretation:

70% of the respondents were of the opinion that Support & Services factor is

important while purchasing ERP Software. 100% of the respondents said that

User Friendly Factor is important while purchasing ERP Software. 20%

organizations consider Price factor while 90% consider Speed factor while

purchasing ERP Software.

4. Rate the factors starting from Most Affective to Not at all

Affective, which affect your decision of selecting an ERP software

for your organization.

The CRM Factor Consideration


1 Support & Services 35

2 User Friendly 50

3 Price 10

4 Speed 45


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CRM Factor Consideration

Ratings No. of Respondents

Most Affective 9

Affective 14

Some What Affective 7

Least Affective 10

Not at all Affective 10

Interpretation:

The CRM factor is considered as Most Affective by 9 respondents while purchasing

ERP Software and 14 considered as Affective. 7 customers considered it is as

Somewhat Affective. While purchasing ERP System 10 customers suggested that

CRM is Least Affective and 10 have suggested as Not at all Affective.

The Cost of Implementation Factor Consideration

0

2

4

6

8

10

12

14

16

Most Affective Affective Some What

Affective

Least Affective Not at all

Affective




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Cost of Implementation Factor Consideration


Most Affective 18

Affective 7


Least Affective 9


Interpretation:

The Cost of Implementation factor is considered as Most Affective by 18 customers

while purchasing ERP Software and 7 consider as Affective. While purchasing ERP

System 11 customers suggested that it is somewhat Affective while 9 suggested as

Least Affective and 5 have suggested as Not at all Affective.

The Customization Factor Consideration

0

2

4

6

8

10

12

14

16

18

20

Most

Affective

Affective Some What

Affective

Least

Affective

Not at all

Affective

The Cost of Implementation Factor Consideration

The Cost of Implementation

Factor Consideration


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Customization Factor Consideration


Most Affective 9

Affective 6


Least Affective 8


Interpretation:





The E-Commerce Factor Consideration

0

2

4

6

8

10

12

14

16

Most

Affective

Affective Some What

Affective

Least

Affective

Not at all

Affective

The Customization Factor Consideration

The Customization Factor

Consideration


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E-Commerce Factor Consideration


Most Affective 7

Affective 12


Least Affective 9


Interpretation:





The Maintenance Factor Consideration

0

2

4

6

8

10

12

14

Most

Affective

Affective Some What

Affective

Least

Affective

Not at all

Affective

The E-Commerce Factor Consideration

The E-Commerce Factor

Consideration


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Maintenance Factor Consideration


Most Affective 6

Affective 12


Least Affective 12


Interpretation:





5. What is the satisfaction level of current ERP implemented in your

firm?

0

2

4

6

8

10

12

14

Most

Affective

Affective Some What

Affective

Least

Affective

Not at all

Affective

The Maintenance Factor Consideration

The Maintenance Factor

Consideration


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6. Are you looking forward to install new ERP system?

Table

No

Interpretation:

46 companies were willing to install new ERP. 13 companies were not willing to

install ERP System, because of their existing system and their negative opinion about

installing ERP System.

0

5

1015

20

25

30

35

40

45

50

Yes

No

46

13

Looking For New ERP

Yes

No


1 YES 46

2 NO 13


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7. If an ERP software has an additional feature of Enterprise Portal or

Web Content Management solution, would you purchase the

software?

Table No

Interpretation:

40 organizations were ready to buy the ERP Software if it has additional

features of Enterprise Portal or Web Content Management. While 19 were not

ready for this.

0

5

10

15

20

25

30

35

40

Yes No

40

19

Series 1

Yes

No


1 YES 40

2 NO 19


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8. If an ERP software has an additional feature of Design and

Development of Portals, Internet sites, would you purchase the

software?

Table No

Interpretation:32 organizations were ready to buy the ERP Software if it has additional features

32

27

Sales

Yes

No


1 YES 32

2 NO 27


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Design and Development of Portals. While 27 were not ready for this.

9. Are you aware of ERP Software offered by RDS?

Table No

Interpretation:

54% organizations were not aware about the Softwares which are offered by

Revenir Development Systems Pvt Ltd. While 46% were not aware about the

0

5

10

15

20

25

30

35

Yes NO

25

34

Awareness about RDS Softwares

Yes

NO


1 YES 25

2 NO 34


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same.

CHAPTER-V

FINDINGS

AND

SUGGESTIONS


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FINDINGS

While conducting the survey it was found that maximum companies whether

residential or commercial are unaware of the concept of ERP, so everything

from the basic had to be educated to them.

Majority of the clients were using either Tally/MS or locally developed

software solution. And are also resistant about getting a new ERP installed.

Very few clients were using standard ERP.

Most of the companies are not satisfied with existing software. And some of

them wanted to buy new ERP System.

It was find that ERP is supposed to be very costly.

Support and Services, User Friendly are the most affective factors which are

taken into consideration by the organizations while purchasing a ERP

Software.


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SUGGESTIONS

Even though many companies have opted not to install ERPs for there is a

potential market for ERPs here in PUNE as it would be the next big thing that

would be required by the companies.

Not many companies are of this concept so there should be more emphasis to

commercialize the product. There should advertisements put on the related

websites.

The unique selling proposition for ERP is that the configuration can be

provided as per the requirements of the company. So the prospective

companies should be made aware of this.

The ERP software providers should provide the additional features with ERP

Software package, which will turned into more demand of the Software.


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CHAPTER-VI

CONCLUSION


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CONCLUSION

From the samples surveyed it seems that, those Companies which are not using

ERP Software in present, will probably use these softwares in future.Software development system is a favorable system for both Company as well as

Customers.

The organizations go through some requirements from the software which they are

going to buy.

From the survey conducted, it can be concluded that use of software reduces the

cost of company and time of customers. By having an effective ERP System, any

organization can high profits by providing timely services to the customers.


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BIBLIOGRAPHY

Books :

Kotler Philip, Kevin Lane Keller, Marketing Management 12e, Pearson Hall

G.C. Beri, Marketing Research, Tata McGraw hill.

Company credentials.

Websites:

http://www.revenirglobal.com

wwww.wikipedia.com

www.samplesurvey.com
http://www.revenirglobal.com/http://www.revenirglobal.com/


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ANNEXURE

QUESTIONNAIRE

Name of the organization: ________________ Contact No. __________________

Address of the organization:

________________________________________________

Name of the Person: ________________ Email ID: ___________________

1. Are you using ERP software?

a. YES b. NO

2. Which ERP are you using?

a. SAP b. Newton

c. Tally ERP d. Tally/Microsoft

e. Any other (specify)___________


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3. Which factor do you consider most important while purchasing an ERP software ?

(more than one option is possible).

a. Support & Services

b. Price

c. User Friendly

d.. Speed

4. Rate the factors starting from Most Affective to Not at all Affective, which affect

your decision of selecting an ERP software for your organization.

CRM

COST OF IMPLEMENTATION

CUSTAMIZATON

E-COMMERCE

MAINTAINENCE SUPPORT

5. What is the satisfaction level of current ERP implemented in your firm?

a. Not satisfied b. Satisfied c. Highly satisfied

6. . Are you looking forward to install new ERP system?

a. YES b. NO

7. if an ERP software has an additional feature of Enterprise Portal or Web Content

Management solution, would you purchase the software?

a. YES b. NO


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8. if an ERP software has an additional feature of Design and Development of Portals,

Internet sites, would you purchase the software ?

a. YES b. NO

9. Are you aware of ERP Software offered by RDS?

a. YES b. NO

10. After getting information about ERP Software from RDS, do you recommend any

changes or additions to the product?

A STUDY ON ORGANISATIONAL BUYING BEHAVIOUR FOR ERP SOFTWARES IN PUNE CITY

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