Presented By Purnendu Mishra Dronacharya college of engg.

Introduction to ERP

Agenda
What is an ERP System?

Why implement an ERP system?

How should ERP systems be implemented? Conclusion

Questions and Answers

What is an ERP System -definitions

Simplistic Definition ERP - Enterprise Resource Planning Detailed Definition a business strategy and set of industry-domainspecific applications that build customer and shareholder communities value network system by enabling and optimising enterprise and interenterprise collaborative operational and financial processes(Source: Gartners Research Note SPA-12-0420)

Historical system architectures

Historically, companies created islands of automation. A hodge-podge of various systems that operated or managed various divergent business processes. Sometimes these systems were integrated with each other and sometimes they werent. Sometimes they were loosely interfaced and sometimes they were more tightly interfaced.

Why implement an ERP System?

To support business goals Integrated, on-line, secure, self-service processes for business Eliminate costly mainframe/fragmented technologies Improved Integration of Systems and Processes Lower Costs Empower Employees Enable Partners, Customers and Suppliers

Different phases of ERP Implementation

Pre evaluation Screening Evaluation Package Project Planning GAP analysis Reengineering Team training Testing Post implementation

Pre-selection Process Package Evaluation Project Planning

Gap Analysis

Reengineering

Configuration

Implementation Team Training

Testing

End- user Training

Going Live Post implementation Phase

ERP implementation Life Cycle

Pre evaluation screening

Decision for perfect package Number of ERP vendors

Screening eliminates the packages that are not at

all suitable for the companys business processes.

Selection is done on best few package available.

Package Evaluation
Package is selected on the basis of different

parameter.
Test and certify the package and also check the

coordination with different department

Selected package will determine the success or

failure of the project.

Cont.
Package must be user friendly Regular up gradation should available.

Cost

Project planning
Designs the implementation process. Resources are identified.

Implementation team is selected and task

allocated.
Special arrangement for contegencies.

Gap analysis
Most crucial phase. Process through which company can create a

model of where they are standing now and where they want to go.
Model help the company to cover the functional

gap

Reengineering
Implementation is going to involve a significant

change in number of employees and their job responsibilities.

Process become more automated and efficient.

Team Training
Takes place along with the process of

implementation.

Company trains its employees to implement and later, run the system.

Employee become self sufficient to implement the

software after the vendors and consultant have left.

Testing

This phase is performed to find the weak link so

that it can be rectified before its implementation.

Going Live
The work is complete, data conversion is done,

databases are up and running, the configuration is complete & testing is done.
The system is officially proclaimed.
Once the system is live the old system is removed

End User Training

The employee who is going to use the system are

identified and trained.

Post Implementation
This is the maintenance phase. Employees who are trained enough to handle

problems those crops up time to time.

The post implementation will need a different set

of roles and skills than those with less integrated kind of systems.

Potential Benefits of ERP

Internal Benefits
Integration Common A

of a single source of data

data definition

real-time system operating costs

Increased productivity

Reduced

Improved

internal communication
for future improvement

Foundation

Potential Benefits of ERP

External Benefits
Improved

customer service and order fulfillment

Improved

communication with suppliers and

competitive position sales and profits

customers
Enhanced Increased

Major Challenges to ERP Implementation

Flexibility of software system upgrades
Implementation Cost Availability of internal technical knowledge and

resources
Education and training Implementation strategy and execution

Resistance to change

New Developments In ERP

Availability of web-based and wireless ERP

systems
Adoption of easy-to-install ERP systems

Linkage to other software systems, e.g., supply

chain management system, e-commerce, customer relationship management system

Conclusion
ERP systems provide a mechanism for

implementing systems where a high degree of integration between applications is required The Business Case or Value Proposition for implementation must be outlined To successfully implement a proper mix of people, processes and technology should be maintained

 An organization can get the maximum value of these

inputs if it successfully adopts and effectively uses the system.