ENTERPRISE RESOURCE PLANNING

ERP is a Enterprise Resource Planning, used by company to help them to store and manage dataevery stage of business and it is an intergrated real-time view of caore business process software.

The implementation itself is to analyze what kind of ERP that suits the business process fi rst then the ERP system can be implemented.

about the function of ERP in a company, how it works and integrates all the information and data from all line of business. Also the needs of each company for ERP system will aff ect the implementation.

ABSTRACT

ERP is used for completing the company’s process to be more eff ective and effi cient, specifically making the process integrated and naturally reducing time cost for contacting other related division to make clear if the requirement data for processing is done and reducing human error because all counting process are generated inside the system.

In some company, they don’t using all modules provided by the ERP, the used modules are the related modules to company’s core business process like finance, accounting, sales, etc.

In implementing, there are some steps that must be done, just like completing a project, the developer team must proceed the planning , analyzing, designing and then implementing.

INTRODUCTION

Introduction of ERP

Implementing ERP process

Example of ERP implementation

SCOPE

Understand what ERP system is

Get the knowledge about implementing ERP

Get the knowledge about how to implementing ERP in the proper way

OBJECTIVE & BENEFIT

MAIN BENEFITS OF ERP:

The elimination of sub-organizational silos that focus on their own problems rather than serving the interests of the overall organization.

Data can be entered once, at the most accurate source, and after that shared to all users, in others words it offers a proper data integration.

ADVANTAGES OF ERP

Complete visibil ity into all the important processes, across various departments of an organization (especially for senior management personnel)

Automatic and coherent workfl ow from one department/function to another, to ensure a smooth transit ion and quicker completion of processes. Also to ensure that all inter-departmental activit ies are properly tracked

A unifi ed and single reporting system to analyze the statistics/status in real t ime, across all functions/departments

Individual departments no longer have to buy and maintain their own software systems since the same software is used across all the departments

Certain ERP vendors can extend their ERP systems to provide Business Intell igence functionalit ies, that can give overall insights on business processes and identify potential areas of problems/improvements

Advanced e-commerce integration is possible with ERP systems There are various modules in an ERP system

ADVANTAGES OF ERP

Since ERP is a modular software system, its possible to implement either a few modules (or) many modules based on the requirements of an organization. If more modules implemented, the integration between various departments may be better

Since a database system is implemented on the backend to store all the information required by the ERP system, it enables centralized storage/back-up of all enterprise data

ERP systems are more secure as centralized security policies can be applied to them. All the transactions happening via the ERP systems can be tracked

ERP systems provide better company-wide visibil ity and hence enable better/faster collaboration across all the departments

It is possible to integrate other systems to the ERP system through an API

ERP systems make it easier for order tracking, inventory tracking, revenue tracking, sales forecasting and related activities

ERP systems are especially helpful for better management globally dispersed enterprise companies

ADVANTAGES OF ERP

The cost of ERP Software, planning, customization, confi guration, testing, implementation, etc. is too high.

ERP deployments are highly time-consuming – projects may take 1-3 years (or more) to get completed and fully functional.

Too little customization may not integrate the ERP system with the business process & too much customization may slow down the project and make it diffi cult to upgrade.

The cost savings/payback may not be realized immediately after the ERP implementation & it is quite diffi cult to measure the same.

The participation of users is very important for successful implementation of ERP projects – hence, exhaustive user training and simple user interface might be critical. But ERP systems are generally diffi cult to learn (and use).

DISADVANTAGES OF ERP

There maybe additional indirect costs due to ERP implementation – l ike new IT infrastructure, upgrading the WAN links, etc.

Migration of existing data to the new ERP systems is diffi cult (or impossible) to achieve.   Integrating ERP systems with other stand alone software systems is equally diffi cult (if possible). These activities may consume a lot of t ime, money & resources, if attempted.

ERP implementations are diffi cult to achieve in decentralized organizations with disparate business processes and systems.

Once an ERP systems is implemented it becomes a single vendor lock-in for further upgrades, customizations etc. Companies are at the discretion of a single vendor and may not be able to negotiate eff ectively for their services.

Evaluation prior to implementation of ERP system is crit ical. If this step is not done properly and experienced technical/business resources are not available while evaluating, ERP implementations can (and have) become a failure.

DISADVANTAGES OF ERP

ERP Tool Vendor

SAP R/3 SAP

Oracle e-Business Suite Oracle Corporation

JD Edwards EnterpriseOne & JD Edwards

World

Oracle Corporation

PeopleSoft Oracle Corporation

Microsoft Dynamics Microsoft Corporation

Lawson Financials Lawson Software

Sage MAS 500 Sage Group

NetERP NetSuite

Visual Enterprise Infor Global Solutions

Agresso Business World Unit 4 Agresso

Epicor Enterprise Epicor

IFS Applications Industrial and Financial Systems

MFG/PRO QAD

Ramco e-Applications Ramco

ERP TOOL

Improving visibility

Reducing operating costs

Standardizing business process

Improving compliance

EFFECTIVENESS OF USING ERP

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

FINANCIAL ADVANTAGES OF ERP