Question 1:- Why are ERP systems said to be flexible? Explain with an example?Answer:- Installing an ERP system has many advantages – both direct and indirect.

The direct advantages include improved efficiency, information integration for better decision making, faster response time to customer queries, etc.The indirect benefits include better corporate image, improved customer goodwill, customer satisfaction, and so on. The following are some of the direct benefits of an ERP system:• Business Integration• Flexibility• Better Analysis and Planning Capabilities• Use of Latest Technology                                    

Business IntegrationThe first and most important advantage lies in the promotion of integration. The reason why ERP packages are considered to be integrated is the automatic data updating (automatic data exchange among applications) that is possible among the related business components. Since conventional company information systems were aimed at the optimization of independent business functions in business units, almost all were weak in terms of the communication and integration of information that transcended the different business functions. In the case of large companies in particular, the timing of system construction and directives differs for each product and department/function and sometimes, they are disconnected. For this reason, it has become an obstacle in the shift to new product and business classification. In the case of ERP packages, the data of related business functions is also automatically updated at the time a transaction occurs. For this reason, one is able to grasp business details in real time, and carry out various types of management decisions in a timely manner, based on that information.

FlexibilityThe second advantage of ERP packages is their flexibility. Different languages, currencies, accounting standards and so on can be covered in one system and functions that comprehensively manage multiple locations of a company can be packaged and implemented automatically.To cope with company globalization and system unification, this flexibility is essential, and one can say that it has major advantages, not simply for development and maintenance, but also in terms of management.

Better Analysis and Planning CapabilitiesYet another advantage is the boost to the planning functions. By enabling the comprehensive and unified management of related business and its data, it becomes possible to fully utilize many types of decision support systems and simulation functions. Furthermore, since it becomes possible to carry out, flexibly and in real time, the filing and analysis of data from a variety of dimensions, one is able to give the decision-makers the information they want; thus enabling them to make better and informed decisions.

Use of Latest TechnologyThe fourth advantage is the utilization of the latest developments in Information Technology (IT). The ERP vendors were very quick to realize that in order to grow and to sustain that growth, they had to embrace the latest developments in the field of Information Technology. Therefore, they quickly adapted their systems to take advantage of the latest technologies like open systems, client/server technology, Internet/Intranet, CALS (Computer-Aided Acquisition and Logistics Support), electronic-commerce, etc. It is this quick adaptation to the latest changes in Information Technology that makes the flexible adaptation to changes in future business environments possible. It is this flexibility that makes the incorporation of the latest technology possible during system customization, maintenance and expansion phases.

As has been stated above, ERP includes many of the functions that will be necessary for future systems. However, undertaking reforms to company structures and business processes, so as to enable the full use of these major features, is the greatest task for companies that will use them. It is necessary to take note that casually proceeding with the implementation of ERP, merely for reasons of system reconstruction or preparation for the year 2000, is likely to result in turning the above mentioned advantages into disadvantages.

ERP packages, if chosen correctly, implemented judiciously and used efficiently, will raise the productivity and profits of companies dramatically.But many a company fails in this because of a wrong product, incompetent and haphazard implementation and inefficient or ineffective usage.

To work successfully, the ERP solutions need a lot of factors to click. There should be good people who know the business. The vendor should be good and his package should be the one best suited for the. company’s needs.

The ERP consultants should be good. The implementation should be planned well and executed perfectly. The end-user training should be done so that the people understand the system, and the effect of their efforts on the overall success of the program.The introduction of the ERP system will dramatically change the job descriptions and functions of many employees. Employees who were earlier doing the work of recording information will, overnight, be transformed into decision-makers. For example, in the past an order entry clerk's job was to enter the orders that came to him. With the implementation of a good ERP system, the order entry clerk becomes an action initiator. As soon as he enters the order into the system, the information is passed on to the sales, distribution and finance modules. The distribution module checks whether the item is in stock and if available, the item is dispatched and the information is sent to the finance module. If the items are not in stock, then the manufacturing module is given the information, so that production can start. The customer is informed about the status of his order. If the items are shipped, the finance module prepares the invoice and sends it to the customer. All these actions take place automatically as soon as the order entry clerk enters the information regarding the order into the system. Thus the order entry clerk is transformed from a data entry operator to a decision maker whose actions can trigger a chain of actions. Many employees find this transformation difficult to

accept. If the employees are not given proper training, well in advance, then the systems will fail.

Another factor is the fear of unemployment. When procedures become automated, the people who were doing those jobs become redundant. So it is quite natural to have resistance from the employees. But the same employees can be trained in the new system and can work in more challenging and stimulating environments. For this also, the employees have to be told, in advance, as to what will happen and should be given ample time and training to make the transformation. Without support from the employees, even the best system will fail. So it is very important that the management should take the necessary steps, well in advance, to alleviate the fears of, and provide necessary training to their employees.

Question 2:- Briefly explain the functionalities of CRM sub modules. List out the benefits of CRM Systems?Answer:- Sub Modules in CRM

We already know that CRM is the process of managing relationships with customers by capturing, analyzing, and storing customer information. The functionality of a CRM system can be studied under three sub modules. They are Marketing, Service and Sales. All these modules are Operational, Collaborative and Analytical.

Marketing moduleThe functionalities of marketing module of CRM comprises short term execution of marketing related activities and long term planning within a company. It also helps in activities like campaign management, lead management, and planning. Marketing module enables your company to run marketing campaigns using different communication channels. This targets potential buyers using a product or a group of products as a message. It generates sales related opportunities which then can be converted into sales.

Service ModuleThe service module of CRM focuses on managing planned and unplanned customer service. This module helps in activities such as Service Order Management, Service Contract Management, Planned Services management, Warranty Management, Installed Base (Equipment) Management, Service-Level Agreement Management, Resource Planning and Scheduling and Knowledge Management

Sales ModuleThe sales module of CRM focuses on managing and executing the presales process of the company by making it more organised. The sales teams in most companies are responsible for capturing opportunities and customer interaction. The CRM helps the sales team in processing this data and following-up it in the future. The CRM also helps in organising all relevant data received and captured for a deal, into one place. Some of the captured data can include expected budget, total spending, prospective customers, key players, products interested in, important dates and expected closing dates of a deal.

Each of these modules can be stand alone applications depending on organisational need. It is important that the right software is selected and implemented correctly. Then only any CRM can be effective.

Benefits of CRMAn excellent CRM is the heart of every business success. With CRM, you can easily understand customer requirements, meet those needs effectively, predict market trends and enhance your business bottom line. A properly implemented CRM system can bring significant benefits to your organisations. System means, the complete consortium of 3 P's, People (employees, culture), Procedures (way of doing business), and Programs (supporting applications and not just an application running on a computer).

The advantages that a CRM can bring are:• Shared or distributed data: Customer relationships are happening at many levels and not just through customer service or a web presence.They start to understand the need for sharing all available data throughout the organisation. A CRM system is an enabler for making decisions and follow-up at levels.

• Better customer service: All data concerning interactions with customers is centralised. The customer service department can greatly benefit from this because they have all the information they need. And through the use of push-technology, customer service representatives can lead the customer towards the information they need. The customer experience is greatly enhanced.

• Increased customer satisfaction: The customer feels that he is more "part of the team" instead of just a subject for sales and marketing.Customer service is better and the needs of the customer are anticipated and addressed. Many companies believe that more satisfied customers means a good predictor for repeat business.

• Better customer retention: If a CRM system can help to fascinate customers, it increases customer loyalty. Customers keep coming back to buy again and again. Hence, higher customer retention is assured

• More business: If you are delivering the ultimate customer experience, this seeds the word-of-mouth buzz, which brings in more new business.

• More profit: More business at lower cost equals more profit. Customer relationship management tools have also been of great help to companies in attaining their business objectives.The CRM systems help in collecting data that help in enhanced customer satisfaction. The types of data CRM systems can collect are:• Responses to campaigns• Shipping and fulfilment dates• Sales and purchase data• Account information• Web registration data• Service and support records

• Demographic data• Web sales data

1 Business Benefits of CRMImplementing a CRM solution might involve considerable time and expense. However, there are many potential benefits. A major benefit can be the development of better relations with your existing customers. This can result in:

a. Increased sales through better timing by anticipating needs based on historic trends

b. Identifying needs more effectively by understanding specific customer requirements

c. Cross-selling of other products by highlighting and suggesting alternatives or enhancements

d. Identifying profitable customer companiese. This in turn can lead to better marketing of your products or services by

focusing on: f. Effective targeted marketing communications aimed specifically at customer

needsg. A more personal approach and the development of new or improved

products and services in order to win more business in the future Ultimately this could lead to:

h. Enhanced customer satisfaction and retention, ensuring that your good reputation in the marketplace continues to grow

i. Increased value from your existing customers and reduced costs associated with supporting and servicing them. This increases your overall efficiency and reduces total cost of sales

j. Improved profitability by focusing on the most profitable customers andk. Dealing with the unprofitable in more cost effective ways Once your

business starts to look after its existing customers effectively, efforts can be concentrated on finding new customers and expanding your market. The more you know about your customers, the easier it is to identify new prospects and expand your customer base.

Customer needs change over time, and technology can make it easier to find out more about customers and ensure that everyone in an organization can exploit this information.

Question 3:- Differentiate between Open Source and Commercial ERP. Briefly explain the key principles to a proper ERP system selection process?

Answer:- Here is the comparison between Commercial and Open Source ERP software systems. This study has been made considering different parameter. Study concludes commercial erp softwares are suitable only for big corporations and open source business software should be the choice of small and medium scale industries.Know what is open source ERP before proceeding with this study. 

Study has been made on following 10 factors while comparing commercial and open source ERP softwares.

1. Pricing2. Flexibility3. Duration4. Dependence5. Results6. Training7. Security8. Visibility9. Ease of integration with current systems10.Longevity

PricingMost open source software is freely distributed with no up-front licensing fees. Further savings come from ease of deployment, training and integration. Companies that implement open source ERP solutions often report a 50% savings over proprietary systems. With free systematic open source ERP training methodology like SOSE! site you can own your software for no cost.

Commercial ERP is an expensive package and suitable only for bigger corporations. The prices do vary significantly but according to the size of the company and volume of business. In any cases they have been found to be extremely costly irrespective of the quantum in which they are purchased. These packages are not subject to flexibility and molding. Their usage modalities are rarely liberal and cause troubles when they are modified. Hence the deployments also turn out to be costly and inconvenient due to the procedures involved, in the future. Another major allegation against the package is that they consist of lot of hidden costs.

FlexibilityWhen you compare commercial and open source ERP, commercial systems are not flexible in nature. They let business with no other choice but to change their way of business. However when it comes to open source ERP everything was decided by the code .Therefore companies can do the necessary modifications in code and without much support from the vendor. Another advantage of open source is that it does not interfere with the regular schedule of the company during the implementation stage. This is a major difference between commercial and open source ERP applications. You should use business software for your needs, you should not change the way of your business to fit into software needs.

DurationWhen you study commercial and open source ERP,The time allotted for implementing open source ERP is very less when compared with commercial ERP. The innumerable number of complexions in commercial ERP calls for longer time span. It consumes a lot of time not only during implementation but in every stage of ERP process due to the nature of work involved. With use of SITE ERP implementation methodology you can reduce time required for open source ERP to the minimum.

DependenceWhen it comes to the question of relying on the vendor the open source ERP

owners enjoys a considerable edge than the commercial ERP. Since open source is license free users have full freedom for taking care of needs by themselves. The productivity is also high in open source ERP systems and the failure rates are very low.

ResultsSuccess rate of open source ERP are considerably more compare to proprietary ERP softwares. Read open source ERP success stories for more details.

TrainingLots of training is required for using commercial ERP. It calls for lots of investments in terms of time and money. If they don’t give the necessary impetus the results will be poor. Similarly validity of training sessions designed and handled exclusively by the ERP vendor is also debatable.

On the other hand Open Source ERP does not require much training. The results are also bound to be effective because the user gets to learn through the process of self training. The company need not spend much on training and makes a minimal utilization of the resources. This is another way of reducing the level of dependence on the ERP vendor. You can get free online ERP training with SOSE!.

SecurityOn comparing commercial and open source ERP applications, Commercial ERP systems are less secure. They are by and large prone to the traps and pitfalls of hackers. Even though open source ERP makes everything transparent and available in the public domain it bring into the notice of user whenever something goes wrong.

visibilityFew end users change the underlying code of an open source application. But when the need arises, open source provides access to the code to make changes to suit each distributor’s unique business needs. Open source customers enjoy a refreshing level of transparency from their vendors around activities such as bug reporting and fixing and road map planning.

Ease of integration with current systemsERP solutions touch every aspect of a company, from warehousing to accounting. As such, a company’s ERP solution should easily integrate with existing IT infrastructure components, such as application servers, directory services and storage arrays. Open source solutions are compatible via standards-based interfaces with multiple technologies, including support for lowest-cost commodity operating systems, databases, utilities and hardware.

LongevityVirtually any ERP solution will work well when initially deployed, but time is the true test of every ERP solution and vendor. Unforeseen opportunities will likely drive changes to a business’ objectives and necessitate changes to its ERP solution. Independently, a vendor’s commitment to supporting a solution could change over time. An open source solution with a flexible foundation addresses today’s needs

and safeguards the solution’s future. Because the user has the source code, a solution can never be bought or merged out of existence, meaning the investment lasts as long as needed. Independent services for ERP implementation support is also available for free with open source ERP.

ConclusionFunctionality is the top consideration when reviewing ERP solutions, but it should be closely linked with evaluating open source and proprietary options. The demonstrable benefits of open source products reach deep into a company’s infrastructure. You can evaluate and select business ERP software which give functionality you need.

The differences between commercial and open source ERP show the Edge enjoyed by open source ERP players. And independent free ERP trainer like SOSE! will help open source ERP to reach people.

Question 4:- What is ATO and how is it different from ETO? List the advantages of CAD/CAM?

Answer:- Assemble-to-Order (ATO)

A business production strategy where products ordered by customers are produced quickly and are customizable to a certain extent. The assemble-to-order (ATO) strategy requires that the basic parts for the product are already manufactured but not yet assembled. Once an order is received, the parts are assembled quickly and sent to the customer. Engineering to Order (ETO) requires precise planning of the many detailed activities involved. A clear project structure is the basis for successful project planning, monitoring and control.

Engineer To Order(ETO)

ETO describes an agreement with a customer for a design project which requires a down payment and billing based on performance of defined milestones.  A project structure is created which triggers the procurement of materials, manufacturing requirements, invoicing plans, and determines the confirmation date to the customer.

An assemble-to-order environment is one in which the product or service is assembled on receipt of the sales order. Key components are planned or stocked in anticipation of the sales order. Receipt of the order initiates assembly of the customized product. Assemble-to-order is useful where a large number of finished products can be assembled from common components 

If you use an assemble-to-order strategy, you can check material and resource availability at the moment when the sales order is created. You can quote your customers reliable delivery dates because you know whether the desired quantity will be available on the desired date. If the complete quantity cannot be

committed, the system tells you when the total quantity will be available and whether you can commit a partial quantity.

Advantages of CAD/CAM:

Can be easily erased and changed Can be zoomed in for more detailed sections Can be copied and pasted many times Depending on skill, can be neater Can be quicker Can be sent to elsewhere quickly Can be stored in a safe place Can be checked for measurements by the computer Can easily mass produce identical products Can work throughout the night so can produce product 24 hours a day

Disadvantages of CAD/CAM:

If computer problem, all data will be lost If not checked properly, the object created can go very wrong Can be very expensive Can be hard to do and handling needs training Since not manual, can be slightly irritating because if not familiar with technology, it is very hard to insure exactly what is wanted by the designer e.g. If wanted something engraved instead of cut, the line colour has to be changed into blue instead of red. Sometimes you can't do everything you want to because the tools aren't available Lots of people lost their jobs when CAD CAM originally came out

Question 5:- Discuss briefly about JD Edward’s and PeopleSoft’s applications and their various modules?Answer:-