ERP In Relational Networking-A Walkthrough-Abhisek Paul

8/8/2019 ERP In Relational Networking-A Walkthrough-Abhisek Paul

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Name: Abhisek Paul Enrollment No: 09BS0000056

Mobile No: 9716389370 E-mail ID: [email protected]

MANAGEMENT RESEARCH PROJECT

INTERIM REPORT

Introduction:

Overview of ERP Industry-

Bad Economy is a Good Selling Point for the ERP Industry

In the economic slowdown organizations are racing to carve out the fat from their IT spendingbudgets and the ERP industry is jumping through hoops to meet the demands of special requests,decreasing licensing and yearly maintenance fees and offering special financing arrangementsfor new and existing consumers. More importantly, the ERP industry is publicizing more thanever the cost saving benefits and ROI on their products.

In these get down to basics market environment, new product offerings are being developed withthe focus on features that are adding very visible, tangible benefits to a company's bottom line ortop line. This emphasis is also on restructuring the software pricing models for the ERP industryaround the globe. The ERP industry in general have always focused on offering applications thatdeliver valuable solutions to organizations, however, in today 's market economy, organizationsneed to see direct, quantifiable benefits immediately.

ERP vendors that do not show clear short term returns on capital expenditures, or positive

impacts to the P&L are feeling the strong pressure to lower pricing or offering creative financingoptions face losing valuable market share and customers. Collaboration software is an exampleof and enterprise solution that may make it easier for employees to communicate with each otherand in the long run positively impact the company's profitability. However, the difficultly indetailing and articulating what the short term benefits to profitability are is making it difficult inthis business climate close the deal.

The marketing and sales campaigns the ERP industry is touting today are showing organizationsin clear detail how, where and when their ERP applications will into where to save money,optimize resources to do more for less and bring in incremental revenues by focusing salesresources on the highest return customers and products. Cool features that were hot only a year

ago are just nice extras this year such as a more user friendly email apps or ERP systems thatmakes things go a little faster won't be enough to meet current business requirements.

This environment is driving the ERP industry, particularly the large ERP vendors, to offersolutions that are more flexible, modular or pay as you go pricing models to ease the stickershock of an expensive full scale ERP enterprise application. Many of the large on-premise ERPgiants are offering the "pay as you go" model with many of their modular solutions and with webbased, SaaS or software as a service, applications that have been getting incredible demand overthe last five years.


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THE INDIAN ERP INDUSTRY

In the last decade, ERP software has exploded into the global business landscape. With the

opening up of the Indian economy, there has been a turnaround growth in different industryverticals thereby helping them reach a level of maturity that demands advanced technology toefficiently manage and streamline their processes. This growth and along with the associatedcompetition and quest for enhancing market share has led the organizations to re-look at itsprocesses and procedures and put in place proper processes enablers and solutions to make itsbusiness more efficient and effective. Many Indian industries already have realized the needfor ERP solutions, and the industry-related market growth should match the expansion of thesector as a whole.

According to a research report, The Indian ERP market experienced compounded annual growthrate of 25.2 per cent during the period 2004-2009. The market was $83 million in 2004, and is

projected to be around $160-180 million in 2010. Some of the potential target segments whichhave shown high penetration are Automotive, Steel, Consumer Durables, Engineering, Retail,Communications and Textiles thereby making it attractive for the ERP vendors

An ERP package can streamline and automate different important functions of an organizationsuch as accounts payable, accounts receivable, activity management, benefits administration, andbilling, invoicing and cost tracking (for project-based businesses), payroll, Sales and Marketing.With ERP, companies can also improve cash management, while manufacturing firms canpractice more effective capacity planning and cost containment.

Major Benefits

A primary benefit of ERP is easier access to reliable, integrated information, elimination ofredundant data and the rationalization of processes, which results in substantial cost savings.

It enables decision-makers to have an enterprise-wide view of the information they need in atimely, reliable and consistent fashion. The system provides consistency, visibility andtransparency across the entire enterprise.

The integration among business functions facilitates communication and informationsharing, leading to dramatic gains in productivity and speed.

Market Trends in the Indian ERP Market

SMBs as a potential market for ERP Vendors: Most of the mid sized organizations areworking with applications which are non-integrated and on disparate technology architectures,built in-house. This has resulted redundant technology, loss of support, non availability of criticalinformation at the right time resulting in overall business loss. ERP vendors in India will have agreat opportunity when they explore into the untapped areas of the SME segment with innovativepractices tuned to mid size organizations processes and business needs. Companies like Sage


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Software has focused on this segment in a major way, which we can see their various productofferings for SMBs on http://www.sagesoftware.co.in

Adoption of ERP as a Service (SaaS)-SaaS (Software-as-a-Service)-based EnterpriseResource Planning (ERP) is an on-demand deployment of ERP software, where the user can

access the software through license as a Web-based service. It provides an alternative toimplementation or maintaining ERP software. SaaS - based ERP includes finance, ordermanagement, inventory control, purchasing and manufacturing functionality. The increasingpopularity of the SaaS-based applications account for the growth of ERP, as the enterpriseresources are maintained by a service provider.

There needs to be no doubt in the promising opportunities and prospects of ERP in the future inboth software and non software sectors. Whether your growth plans include buying and selling inthe global marketplace, adding more talent to your team, or expanding your services, ERP hasthe tools and the flexibility to successfully accelerate your business expansion and streamlineexisting business and operational processes thereby improving efficiency and productivity.


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THE AWARDS AND RECOGNITIONS OF COX AND KINGS"Most admired tour operator 2010" awarded by SATTE (2010)"Best Domestic Tour Operator" awarded by the Abacus TAFI TravelBiz Monitor Awards(2009)."Best Inbound Tour Operator" awarded by the Abacus TAFI TravelBiz Monitor Awards

(2009)."Most Innovative Product Launch" awarded by the Abacus TAFI TravelBiz Monitor Awards(2009)."India's Top Rated Tour Operator - Outbound 2009" awarded by The Economic Times,India's largest business daily."Most Innovative Travel Company of 2009" awarded by Today's Traveller Platinum Award."The Number One Brand in India" based on a survey conducted by research agency, TNSand co-funded by Media magazine, ranking it 152 amongst the top 1,000 brands in the AsiaPacific region - Australia, China, India, Japan, Hong Kong, Korea, Malaysia, Singapore,Taiwan and Thailand."Best Domestic Tour Operator" awarded by Galileo Express Travel World Awards (2008)"Best Visual Advertising Campaign" awarded by Galileo Express Travel World Awards(2008)"WTM Global Award" to Mr. Peter Kerkar, Global CEO, Cox and Kings for his remarkablecontribution to the travel and tourism industry (2008)"One of the top 15 travel companies in the world" by Conde Nast Traveller Awards (2008)"One of the top 15 travel companies in the world" by Conde Nast Traveller Awards (2003)"Best Self Drive Brochure" by Tourism New Zealand Asia Awards (2008)"Most Preferred Tour Operator Award" by CNBC Travel Awards (2007)TAFI-Abacus Award for the "Best Outbound Tour Operator" (2007)TAFI-Abacus Award for the "Best Domestic Tour Operator" (2007)

3 Awards for being the "Best Domestic Tour Operator" awarded by Galileo Express TravelWorld Awards (2005 - 2006, 2004 - 2005, 2003 - 2004)"Best Technology" Award By Galileo Express Travel Awards (2005 - 2006)"Best Outbound Tour Operator" by Galileo Express Travel (2003 - 2004)3 National Tourism Awards for being the "Best Domestic Tour Operator" awarded byGovernment of India, Department of Tourism (2005 - 2006, 2004 - 2005, 2003 - 2004)7 National Tourism Awards for being the "Best Conference Agency" awarded byGovernment of India, Department of Tourism (2004 - 2005, 2003 - 2004, 2002 - 2003, 2001- 2002, 2000 - 2001) 1999 - 2000, 1998 - 1999, 1995 -


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PROJECT OVERVIEW

What is ERP

ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications toimprove the performance of organizations' resource planning, management control andoperational control. ERP software is multi-module application software that integrates activitiesacross functional departments, from product planning, parts purchasing, inventory control,product distribution, to order tracking. ERP software may include application modules for thefinance, accounting and human resources aspects of a business.

ERP vs. CRM and SCM

CRM (Customer Relationship Management) and SCM (Supply Chain Management) are two

other categories of enterprise software that are widely implemented in corporations and non-profit organizations. While the primary goal of ERP is to improve and streamline internalbusiness processes, CRM attempts to enhance the relationship with customers and SCM aims tofacilitate the collaboration between the organization, its suppliers, the manufacturers, thedistributors and the partners.

ERP Definition - A Systems Perspective

ERP, often like other IT and business concepts, are defined in many different ways. A sound

definition should several purposes:

It answers the question of "what is ... ?".

It provides a base for defining more detailed concepts in the field - ERP software, ERP systems,

ERP implementation etc.

It provides a common ground for comparison with related concepts - CRM, SCM etc.

It helps answer the basic questions in the field - benefits of ERP, the causes of ERP failure etc.

A definition of ERP based on Systems Theory can server those purposes.

ERP is a system which has its goal, components, and boundary.

The Goal of an ERP System - The goal of ERP is to improve and streamline internal business

processes, which typically requires reengineering of current business processes.

The Components of an ERP System - The components of an ERP system are the common

components of a Management Information System (MIS).


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CRM Software - The core of an CRM system is module-based CRM softwareapplication. Each software module automates business activities pertinent to onefunctional area of customer relationship management. Common modules in CRMsoftware system includes customer contact management, direct marketing, salesautomation, call center applications and helpdesk module.

Business Processes - Business processes within an organization falls into three levels- strategic planning, management control and operational control. While ERP hasbeen promoted as solutions for supporting or streamlining business processes at alllevels, CRM systems are clearly designed to enhance management control andoperational control in the chain of customer relationship management.

Users - The primary users of CRM systems are workers that perform managementcontrol and operational control. In an extended enterprise environment, the CRMusers may include customers and business partners.

Hardware and Operating Systems - UNIX is the most common operating systemfor running CRM software. Windows NT and Linux are other popular operatingsystems to run CRM software. Most larger CRM systems are UNIX based. UNIX isa computer operating system designed to be used by many people at the same timeand has TCP/IP built-in. There are many reasons to host your CRM software onUNIX.

Boundary of an CRM System

The boundary of an CRM system is the boundary of extended enterprise thatimplements the CRM system. The boundary of supply chain systems and ecommerce

systems extends to the organization's suppliers, partners and customers.


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Introduction of the Project

What Is ERP?

An Enterprise Resource Planning (ERP) system is an integrated computer-based application usedto manage internal and external resources, including tangible assets, financial resources,materials, and human resources. Its purpose is to facilitate the flow of information between allbusiness functions inside the boundaries of the organization and manage the connections tooutside stakeholders. Built on a centralized database and normally utilizing a commoncomputing platform, ERP systems consolidate all business operations into a uniform andenterprise-wide system environment

An ERP system can either reside on a centralized server or be distributed across modularhardware and software units that provide "services" and communicate on a local area network.The distributed design allows a business to assemble modules from different vendors without theneed for the placement of multiple copies of complex and expensive computer systems in areaswhich will not use their full capacity.

The initialism ERP was first employed by research and analysis firm Gartner Group in 1990 asan extension of MRP (Material Requirements Planning; later manufacturing resource planning

and CIM (Computer Integrated Manufacturing), and whilst not supplanting these terms, it hascome to represent a larger whole. It came into use, as the creators of MRP software started todevelop software applications beyond the manufacturing arena. However, this does not mean that

ERP packages have typically been developed from a manufacturing core. Many of the majorplayers started their development of an integrated package from other directions, such asaccounting, maintenance and human resources management. ERP systems now attempt to coverall core functions of an enterprise, regardless of the organization's business or charter. Thesesystems can now be found in non-manufacturing businesses, non-profit organizations andgovernments.To be considered as an ERP system, a software package should have the following traits:An integrated system that operates in (next to) real time, without relying on periodic batchupdates.A common database, that is accessed by all applications, preventing redundant data and multipledata definitions.

A consistent look and feel throughout each module (sales, manufacturing, accounting etc.).The ability to access the system without specialist integration by the Information System (or IT)department.


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Components / ModulesTransactional BackboneFinancialsDistributionHuman Resources

Product lifecycle managementAdvanced ApplicationsCustomer Relationship Management (CRM)Supply chain management softwarePurchasingManufacturingDistributionWarehouse Management System.Management Portal/DashboardDecision Support SystemThese modules can exist in a system or can be utilized in an ad-hoc fashion.

Commercial applications:

ManufacturingEngineering, bills of material, work orders, scheduling, capacity, workflow management, qualitycontrol, cost management, manufacturing process, manufacturing projects, manufacturing flowSupply chain managementOrder to cash, inventory, order entry, purchasing, product configurator, supply chain planning,supplier scheduling, inspection of goods, claim processing, commission calculationFinancialsGeneral ledger, cash management, accounts payable, accounts receivable, fixed assets

Project managementCosting, billing, time and expense, performance units, activity managementHuman resourcesHuman resources, payroll, training, time and attendance, rostering, benefitsCustomer relationship managementSales and marketing, commissions, service, customer contact, call-center supportData servicesVarious "self-service" interfaces for customers, suppliers and/or employeesAccess controlManagement of user privileges for various processes

HistoryThe term "Enterprise resource planning" originally derived from manufacturing resourceplanning (MRP II) that followed material requirements planning (MRP). MRP evolved into ERPwhen "routings" became a major part of the software architecture and a company's capacityplanning activity also became a part of the standard software activity ERP systems typicallyhandle the manufacturing, logistics, distribution, inventory, shipping, invoicing,and accounting for a company. ERP software can aid in the control of many business activities,


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including sales, marketing, delivery, billing, production, inventory management, qualitymanagement, and human resource managementERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem intheir legacy systems. Many companies took this opportunity to replace such information systemswith ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time

most companies had already implemented their Y2K solution.ERP systems are often incorrectly called back office systems, indicating that customers and thegeneral public are not directly involved. This is contrasted with front office systems likecustomer relationship management (CRM) systems that deal directly with the customers, orthe business systems such as eCommerce, eGovernment, eTelecom, and eFinance, or supplierrelationship management (SRM) systemsERP systems are cross-functional and enterprise-wide. All functional departments that areinvolved in operations or production are integrated in one system. In addition to areas such asmanufacturing, warehousing, logistics, and information technology, this typicallyincludes accounting, human resources, marketing and strategic management.ERP II, a term coined in the early 2000s, is often used to describe what would be the next

generation of ERP software. This new generation of software is web-based and allows bothemployees and external resources (such as suppliers and customers) real-time access to thesystem's data.EAS Enterprise Application Suite is a new name for formerly developed ERP systems whichinclude (almost) all segments of business using ordinary Internet browsers as thin clientsThoughtraditionally ERP packages have been on-premise installations, ERP systems are now alsoavailable as Software as a Service.Best practices are incorporated into most ERP vendor's software packages. When implementingan ERP system, organizations can choose between customizing the software or modifying theirbusiness processes to the "best practice" function delivered in the "out-of-the-box" version of thesoftwarePrior to ERP, software was developed to fit individual processes of an individual business. Dueto the complexities of most ERP systems and the negative consequences of a failed ERPimplementation, most vendors have included "Best Practices" into their software. These "BestPractices" are what the Vendor deems as the most efficient way to carry out a particular businessprocess in an Integrated Enterprise-Wide systemA study conducted by Ludwigshafen Universityof Applied Science surveyed 192 companies and concluded that companies which implementedindustry best practices decreased mission-critical project tasks such as configuration,documentation, testing and training. In addition, the use of best practices reduced over risk by71% when compared to other software implementations.[The use of best practices can make complying with requirements such as IFRS, Sarbanes-Oxley,or Basel II easier. They can also help where the process is a commodity such as electronic fundstransfer. This is because the procedure of capturing and reporting legislative or commoditycontent can be readily codified within the ERP software, and then replicated with confidenceacross multiple businesses who have the same business requirementImplementationBusinesses have a wide scope of applications and processes throughout their functional units,producing ERP software systems that are typically complex and usually impose significantchanges on staff work practices. Implementing ERP software is typically too complex for in-house developers, lacking the required skills, so it is desirable and advisable to hire outside


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consultants who are professionally trained to implement these systems.[1] This is typically themost cost-effective way There are three types of services that may be employed - Consulting,Customization, and Support. The length of time to implement an ERP system depends on thesize of the business, the number of modules, the extent of customization, the scope of the change,and the willingness of the customer to take ownership for the project. ERP systems are modular,

so they don't all need be implemented at once. Implementation can be divided into variousstages, or phase-ins. The typical project is about 14 months and requires around 150consultants. A small project (e.g. a company of less than 100 staff) can be planned and deliveredwithin 39 months; however, a large, multi-site or multi-country implementation can take years.The length of the implementations is closely tied to the amount of customization desired.To implement ERP systems, companies often seek the help of an ERP vendor or a third-party consulting company. Consulting firms typically provide three areas of professionalservices: consulting, customization, and support. The client organization can also employindependent program management, business analysis, change management, and UAT specialiststo ensure their business requirements remain a priority during implementation.Data Migration

Data migration is one of the most important activities in determining the success of an ERPimplementation. Since many decisions must be made before migration, a significant amount ofplanning must occur. Unfortunately, data migration is the last activity before the productionphase of an ERP implementation, and therefore receives minimal attention due to timeconstraints. The following are steps of a data migration strategy that can help with the success ofan ERP implementationIdentify the data to be migratedDetermine the timing of data migrationGenerate the data templatesFreeze the tools for data migrationDecide on migration-related setupsDecide on data archivingProcess preparation

ERP vendors have designed their systems around standard business processes, based upon bestbusiness practices. Different vendor(s) have different types of processes but they are all of astandard, modular nature. Firms that want to implement ERP systems are consequently forced toadapt their organizations to standardized processes as opposed to adapting the ERP package tothe existing processes. Neglecting to map current business processes prior to starting ERPimplementation is a main reason for failure of ERP projects.] It is therefore crucial thatorganizations perform a thorough business process analysis before selecting an ERP vendor andsetting off on the implementation track. This analysis should map out all present operationalprocesses, enabling selection of an ERP vendor whose standard modules are most closely alignedwith the established organization. Redesign can then be implemented to achieve further processcongruence. Research indicates that the risk of business process mismatch is decreased by:Linking each current organizational process to the organization's strategy;Analyzing the effectiveness of each process in light of its current related business capability;Understanding the automated solutions currently implemented.ERP implementation is considerably more difficult (and politically charged) in organizationsstructured into nearly independent business units, each responsible for their own profit and loss,


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because they will each have different processes, business rules, data semantics, authorizationhierarchies and decision centers. Solutions include requirements coordination negotiated bylocal change management professionals or, if this is not possible, federated implementation usingloosely integrated instances (e.g. linked via Master data management) specifically configuredand/or customized to meet local needs

A disadvantage usually attributed to ERP is that business process redesign to fit the standardizedERP modules can lead to a loss of competitive advantage. While documented cases exist wherethis has indeed materialized, other cases show that, following thorough process preparation, ERPsystems can actually increase sustainable competitive advantage.

]ConfigurationConfiguring an ERP system is largely a matter of balancing the way you want the system towork with the way the system lets you work. Begin by deciding which modules to install, thenadjust the system using configuration tables to achieve the best possible fit in working with yourcompanys processesModules Most systems are modular simply for the flexibility of implementing some functions

but not others. Some common modules, such as finance and accounting are adopted by nearly allcompanies implementing enterprise systems; others however such as human resourcemanagement are not needed by some companies and therefore not adopted. A service companyfor example will not likely need a module for manufacturing. Other times companies will notadopt a module because they already have their own proprietary system they believe to besuperior. Generally speaking, the greater the number of modules selected, the greater theintegration benefits, but also the increase in costs, risks and changes involved

]

Configuration Tables A configuration table enables a company to tailor a particular aspect ofthe system to the way it chooses to do business. For example, an organization can select the typeof inventory accounting FIFO or LIFO it will employ, or whether it wants to recognizerevenue by geographical unit, product line, or distribution channel.So what happens when the options the system allows just aren't good enough? At this point acompany has two choices, both of which are not ideal. It can re-write some of the enterprisesystems code, or it can continue to use an existing system and build interfaces between it andthe new enterprise system. Both options will add time and cost to the implementation process.Additionally they can dilute the systems integration benefits. The more customized the systembecomes the less possible seamless communication between suppliers and customersConnectivity to Plant Floor InformationERP systems connect to real-time data and transaction data (data accumulated into collections todeliver sets of information) in a variety of ways. These systems are typically configuredby System Integrators, able to bring their unique knowledge on process, equipment and vendorsolutions.Direct Integration ERP systems connectivity (communications to plant floor equipment) as partof their product offering. This requires the ERP system developers to offer specific support forthe variety of plant floor equipment that they want to interface with. ERP Vendors must beexpert in their own products, and connectivity to other vendor products, often those offered bycompetitors.Relational Database (RDB) Integration ERP systems connect to plant floor data sourcesthrough a Relational Database Staging Table. Plant floor systems will deposit the necessaryinformation into a Relational Data Base. The ERP system will remove and use the information


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from the RDB Table. The benefit of RDB Staging is that ERP vendors do not need to getinvolved in the complexities of plant floor equipment integration. Connectivity becomes theresponsibility of the System Integrator.EATM (Enterprise Transaction Modules) These devices have the ability to communicatedirectly with plant floor equipment and will transact data with the ERP system in methods best

supported by the ERP system. Again, this can be through a staging table, Web Services, orthrough system specific business system APIs. The benefit of an EATM is that it offers acomplete, off the shelf solution, minimizing long term costs and customization.Custom Integrated Solutions Many system integrators designs offer custom crafted solutions,created on a per instance basis to meet site and system requirements. There are a wide variety ofcommunications available for plant floor equipment and there are separate products that have theability to log data to relational database tables. Standards exist within the industry to supportinteroperability between software products, the most widely known being OPC, managed bythe OPC Foundation. Custom Integrated Solutions typically run on workstation or server classcomputers. These systems tend to have the highest level of initial integration cost, and can have ahigher long term cost in terms on maintenance and reliability. Long term costs can be minimized

through careful system testing and thorough documentation.Consulting servicesMany organizations do not have sufficient internal skills to implement an ERP project. Thisresults in many organizations offering consulting services for ERP implementation. Typically, aconsulting team is responsible for the entire ERP implementation including:SelectingPlanningTrainingTestingImplementationDeliveryof any customized modules.

Core system" customization vs configurationIncreasingly, ERP vendors have tried to reduce the need for customization by providing built-in"configuration" tools to address most customers' needs for changing how the out-of-the-box coresystem works. Key differences between customization and configuration include:Customization is always optional, whereas some degree of configuration (e.g., setting upcost/profit centre structures, organizational trees, purchase approval rules, etc.) may be neededbefore the software will work at all.Configuration is available to all customers, whereas customization allows an individual customerto implement proprietary "market-beating" processes.Configuration changes tend to be recorded as entries in vendor-supplied data tables, whereascustomization usually requires some element of programming and/or changes to table structuresor views.The effect of configuration changes on the performance of the system is relatively predictableand is largely the responsibility of the ERP vendor. The effect of customization is unpredictableand may require time-consuming stress testing by the implementation team.Configuration changes are almost always guaranteed to survive upgrades to new softwareversions. Some customizations (e.g. code that uses pre-defined "hooks" that are called


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before/after displaying data screens) will survive upgrades, though they will still need to beretested. More extensive customizations (e.g. those involving changes to fundamental datastructures) will be overwritten during upgrades and must be re-implemented manually.By this analysis, customizing an ERP package can be unexpectedly expensive and complicated,and tends to delay delivery of the obvious benefits of an integrated system. Nevertheless,

customizing an ERP suite gives the scope to implement secret recipes for excellence in specificareas while ensuring that industry best practices are achieved in less sensitive areas.ExtensionsIn this context, "Extensions" refers to ways that an ERP environment can be "extended"(supplemented) with third-party programs. It is technically easy to expose most ERP transactionsto outside programs that do other things, e.gArchiving, reporting and republishing (these are easiest to achieve, because they mainly addressstatic data);performing transactional data captures, e.g. using scanners, tills or RFIDs (also relatively easybecause they touch existing data).However, because ERP applications typically contain sophisticated rules that control how data

can be created or changed, such functions can be very difficult to implement.AdvantagesIn the absence of an ERP system, a large manufacturer may find itself with many softwareapplications that cannot communicate or interface effectively with one another. Tasks that needto interface with one another may involve.ERP systems connect the necessary software in orderfor accurate forecasting to be done. This allows inventory levels to be kept at maximumefficiency and the company to be more profitable.Integration among different functional areas to ensure proper communication, productivity andefficiencyDesign engineering (how to best make the product)Order tracking, from acceptance through fulfillmentThe revenue cycle, from invoice through cash receiptManaging inter-dependencies of complex processes bill of materialsTracking the three-way match between purchase orders (what was ordered), inventory receipts(what arrived), and costing (what the vendor invoiced)The accounting for all of these tasks: tracking the revenue, cost and profit 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 offinance, marketing and sales, human resource, and manufacturing applicationsPermits control of business processes that cross functional boundariesProvides top-down view of the enterprise (no "islands of information"), real time information isavailable to management anywhere, anytime to make proper decisions.Reduces the risk of loss of sensitive data by consolidating multiple permissions and securitymodels into a single structure.Shorten production lead time and delivery timeFacilitating business learning, empowering, and building common visionsSome security features are included within an ERP system to protect against both outsider crime,such as industrial espionage, and insider crime, such as embezzlement. A data-tamperingscenario, for example, might involve a disgruntled employee intentionally modifying prices tobelow-the-break-even point in order to attempt to interfere with the company's profit or other


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sabotage. ERP systems typically provide functionality for implementing internal controls toprevent actions of this kind. ERP vendors are also moving toward better integration with otherkinds of information security tools.

Disadvantages

Problems with ERP systems are mainly due to inadequate investment in ongoing training for theinvolved IT personnel - including those implementing and testing changes - as well as a lack ofcorporate policy protecting the integrity of the data in the ERP systems and the ways in which itis used.DisadvantagesCustomization of the ERP software is limited.Re-engineering of business processes to fit the "industry standard" prescribed by the ERP systemmay lead to a loss of competitive advantage.ERP systems can be very expensive. (This has led to a new category of "ERP light" solutions.)ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and businessprocess of some companiesthis is cited as one of the main causes of their failure.

Many of the integrated links need high accuracy in other applications to work effectively. Acompany can achieve minimum standards, then over time "dirty data" will reduce the reliabilityof some applications.Once a system is established, switching costs are very high for any partner (reducing flexibilityand strategic control at the corporate level).The blurring of company boundaries can cause problems in accountability, lines ofresponsibility, and employee morale.Resistance in sharing sensitive internal information between departments can reduce theeffectiveness of the software.Some large organizations may have multiple departments with separate, independent resources,missions, chains-of-command, etc., and consolidation into a single enterprise may yield limitedbenefits.

Methodology & Schedule: The various methodologies that will be used in order to collect thedata for this project Customer client relationship of Cox and Kings India ltd in context topurchase and post purchase period.

Primary data:The primary data will be directly collected from the technical support team and networkadministrator of Cox and kings.Survey through Questionnaire, Attending live sessions and ERP analysis of Cox & Kings.Responses obtained through Live problem situations and error recovery and management

Secondary data:By interviewing the Technical team of Cox and Kings.Data obtained by attending the day to day working of Cox & kings .By studying the various criterias that led to various awards won by Cox and Kings at nationallevel.


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Phase 1:

Extensive study:Study of various process and departments to find out the situations and problems handled.Observing closely by looking in to the techniques of ERP management of Cox and Kings.

Secondary information through internet surfing and company data.Phase2:Direct Verification :

Attending SessionsObserving Workstations (If permitted)Simulation

Data Collected - Through Questionnaire and Feedback formsType of Data - Primary DataMode of Data Collection - One-to-one SurveySource of Data - Cox & Kings

Respondents - Senior Administration and Technical support teamPhase 3:Analysis:

Analysis Tools; CRM and Other Utility tools ,SPSS Tools-(Factor Analysis)Data Organizing and Mining-(MS-EXCEL)

Limitation of the study:

Non-Availability of specific information about the exact process involved because of privacypolicy of Cox & Kings.Unavailability of some confidential data of Cox & Kings.Mislead and Ignorance of technical support team members .Organization lack of will to provide access to exact data and process.


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Main Text:

PHASE-I: Understanding the ERP Concept

An Enterprise Resource Planning (ERP) system is an integrated computer-based application usedto manage internal and external resources, including tangible assets, financial resources,materials, and human resources. Its purpose is to facilitate the flow of information between allbusiness functions inside the boundaries of the organization and manage the connections tooutside stakeholders. Built on a centralized database and normally utilizing a commoncomputing platform, ERP systems consolidate all business operations into a uniform andenterprise-wide system environment

An ERP system can either reside on a centralized server or be distributed across modularhardware and software units that provide "services" and communicate on a local area network.

The distributed design allows a business to assemble modules from different vendors without theneed for the placement of multiple copies of complex and expensive computer systems in areaswhich will not use their full capacity.

PHASE 2: Survey through Questionnaire(Direct Method)

Preparation of the Questionnaire . Data collection through questionnaire. Systems Analysis

The Phase 2 comprises of collection of data by the use of questionnaire (Direct

Survey method) .The significance of this phase is to collect data, enhance

technical know how and extensive systems analysis .


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QUESTIONNAIRE

FOR

|RELATIONAL NETWORKING AND NETWORK MARKETING

IN TOURISM INDUSTRY}

I would like to take few moments of your precious time with your permission tofind out few details that are considered to be a requirement for the survey process.

Question 1-6 are to be ticked, questions 7 & 8 are to be rated on a scale of 1-10

based on your preferences and the questions 9 & 10 are brief descriptive type

feedback questions.

Requesting your valuable observation and thanking for not being biased.

Your participation is praiseworthy. Before proceeding can I request you to fill up

the contact details for future references????

CUSTOMER DETAILS:

Name: __________ Occupation: ___________

Contact No:_______ Email id: _____________

Sex: M F

Contact details: +91-___ -____-_____ (India)


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Thank you once again. So can I request you to proceed to the next part of the

questionnaire?

Following questions are to be ticked in the boxes provided

1. When have you implemented the ERP?

Within a month 2-4 months 4-6 months

6-8 months 8-11 months A year ago

2. How much helpful has it been to the workplace?

Very helpful Helpful Optional Not required

3. To what extent has the ERP speeded up the process?

High Medium Low Insignificant

4. What is your comfort level with the ERP?

Very High High Normal

Medium Low Very Low

5. How much is your compatibility with the ERP?

Very High High Normal

Medium Low Very Low

6. What type( High/Low) end is the ERP

High End Low - End Medium

Very Complicated(Requires high technical know-how)


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The following questions are to be rated on a scale of 1-10 based on choice and

preference. Thank you for holding your patience. We would request for just a more

couple of minutes.

7. How satisfied you were with the ERP at work

y With the Comfort Levely With the technical compatibilityy With the template features

8. How satisfied you were with the value added services provided by ERP?

(Rate between 1-10 in the box provided)

9. What kind of assistance and services you expect from the ERP vendor

additionally?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

10.Any added features you would like to be include in the ERP?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________


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We would like to have feedbacks and suggestions if any, on your part.

Thanking you for the wonderful effort provided by you and the precious time you spent,

and looking forward to strengthen our relationship further.

THANK YOU

PHASE 3: Analysis of Collected Data and report generation

The 3rd

phase deals entirely with the analysis of the collected data and using the

available technology to do the same. The analyzed report helps in suggestions and

inferences that are the needful of the project as well as the company.


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References:

Bidgoli, Hossein, (2004). The Internet Encyclopedia, Volume 1, John Wiley & Sons, Inc. p.707.

Khosrow-Puor, Mehdi. (2006). Emerging Trends and Challenges in Information TechnologyManagement. Idea Group, Inc. p. 865.L. Wylie, "A Vision of Next Generation MRP II", Scenario S-300-339, Gartner Group, April 12,

1990"ERP". Retrieved 2009-10-07.Sheilds, Mureell G., E-Business and ERP: Rapid Implementation and Project Planning. (2001)

John Wiley and Sons, Inc. p. 9.Chang, SI; Guy Gable; Errol Smythe; Greg Timbrell (2000). "A Delphi examination of public

sector ERP implementation issues". International Conference on Information Systems.Atlanta: Association for Information Systems. pp. 494500. ISBN ICIS2000-X. RetrievedSeptember 9, 2009.

Sheilds, Mureell G., E-Business and ERP: Rapid Implementation and Project Planning. (2001)John Wiley and Sons, Inc. p. 9-10.Anderegg, Travis. "MRP/MRPII/ERP/ERM Confusing Terms and Definitions for a Murkey

Alphabet Soup". Retrieved 2007-10-25Monk, Ellen; Wagner, Bret (2006). Concepts in Enterprise Resource Planning (Second ed.).

Boston: Thomson Course Technology. ISBN 0619216638Monk, Ellen and Wagner, Brett."Concepts in Enterprise Resource Planning" 3rd.ed.Course

Technology Cengage Learning.Boston, Massachusetts.2009"Enhanced Project Success Through SAP Best Practices International Benchmarking

Study". ISBN 1-59229-031-0.What is ERP?, http://www.tech-faq.com/erp.shtmlCRITICAL ISSUES AFFECTING AN ERP

IMPLEMENTATION, http://carl.sandiego.edu/gba573/critical_issues_affecting_an_erp.htmRamaswamy V K (2007-09-27). "Data Migration Strategy in ERP". Retrieved 2008-04-08.Turban et al. (2008). Information Technology for Management, Transforming Organizations in

the Digital Economy. Massachusetts: John Wiley & Sons, Inc., pp. 300-343. ISBN 978-0-471-78712-9Brown, C., and I. Vessey, "Managing the Next Wave of Enterprise Systems: Leveraging

Lessons from ERP," MIS Quarterly Executive, 2(1), 2003.King. W., "Ensuring ERP implementation success," Information Systems Management, Summer

2005.Yusuf, Y., A. Gunasekaran, and M. Abthorpe, "Enterprise Information Systems ProjectImplementation: A Case Study of ERP in Rolls-Royce," International Journal of ProductionEconomics, 87(3), February 2004."Requirements Engineering for Cross-organizational ERP Implementation: UndocumentedAssumptions and Potential Mismatches" (PDF). University of Twente. Retrieved 2008-07-12.Turban et al. (2008). Information Technology for Management, Transforming Organizations in

the Digital Economy. Massachusetts: John Wiley & Sons, Inc., p. 320. ISBN 978-0-471-78712-9Dehning,B. and T.Stratopoulos, 'Determinants of a Sustainable Competitive Advantage Due to

an IT-enabled Strategy,' Journal of Strategic Information Systems, Vol. 12, 2003

ERP In Relational Networking-A Walkthrough-Abhisek Paul

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