INTRODUCTION TO ERP SYSTEMS Background: With the advent of globalization business demanded better connectivity of all functions.

Multinationals were spreading their wings and hence business needed 1 language across the organization. Many of the tasks were conducted manually. Differences due to government regulations led to duplication of many tasks.

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Definition of ERP: Software solution that addresses the Enterprise need by tightly integrating all the functions of an enterprise. In other words, ERP promises 1 database, I application and 1 user interface for the entire organization where previously disparate systems ruled Manufacturing, personnel, Finance and Sales. Enterprise Resource Planning as the name suggests, help in resources management at the enterprise level in an integrated manner. ERP is mainly software which helps to integrate organization working. Evolution of ERP: With the ever growing business dynamics, businesses are always under a threat to survive competition. Following things are required to remain in competition: 1. Aggressive cost cutting 2. Analyze costs / revenue on a product or customer basis

INTRODUCTION TO ERP SYSTEMS 3. Flexibility to respond quickly to enhancing business requirements 4. More informed decision making Technology used in ERP systems: Most of the ERP systems use Client / Server technology which help in distributed business computing. This helps to tightly integrate business resources. Three tier architecture is used where data is stored on backend database server. The application logic / business rules stored on Middleware and the presentation for data entry is kept at the client / workstation.

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ERP Characteristics: 1. Flexibility 2. Modular Architecture 3. Comprehensive 4. Global reach 5. Best business practices 6. Evolving technologies Features of ERP:

INTRODUCTION TO ERP SYSTEMS ERP provides multi platform, multi facility, multi currency, multi lingual facilities in integrated manner. Provide end to end supply chain management solutions Provides comprehensive CRM solutions Bridges information gap across organization Integration of all companies under a single Brand name Better project Management Use of latest technology like EFT, EDI, E-commerce etc Benefits of ERP: ERP systems were originally designed to suit manufacturing organizations. However, the growing business needs of other sectors created the need for ERP systems for all types of businesses. Eg. Aviation, Railways, Software, Banking, Logistics etc. Tangible benefits: 1. Reduction of lead time 2. On time shipment 3. Increased business 4. reduction in transaction processing cycle time 5. reduction in inventory 6. Accurate and updated information at any instance Intangible Benefits: 1. better customer satisfaction 2. improved vendor performance 3. reduced quality control cost 4. increased flexibility 5. improved resource utilization 6. improved decision making capability 7. improved business processes ERP Implementation: 1. Evaluation of As Is situation 2. Formation of ERP team 3. Discussion with the ERP vendors for the best package 4. Actual implementation 5. Training users 6. Test runs 7. Life after ERP implementation Types of ERP: SAP, Oracle, PeopleSoft, Baan, JD Edwards, Finnacle, Flexcube etc..

INTRODUCTION TO ERP SYSTEMS SAP: Systems Applications and Products is the full form of SAP. German concept of system integration. SAP covering almost 55% market share worldwide. Mainly used by manufacturing organizations. Sales and distribution, HR, Material Management and Finance are the various types of modules in the architecture. Functionally very strong but highly complex. ORACLE: Oak Ridge Automatic Computer and Logical Engine is the full form of ORACLE American concept of Integrated system. It covers almost 25-30 % of the world market Mainly used by Service sector Sales and distribution, HR, Material Management and Finance are the various types of modules in the architecture. Functionally not so strong as SAP but very user friendly.