Enterprise Resource Planning (ERP)

Chapter 4

Enterprise Resource PlanningManagement Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

IntroductionAfter going through this chapter, you should be able to understand The origin of Enterprise Resource Planning.The need for ERP solutions.In-depth knowledge of implementation issues regarding ERP packages.Characteristics of ERP solution.Roles and Responsibilities of a manager in implementing an ERP package.Various ERP packages available in the market.

Management Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

Enterprise Resource Planning (ERP)Enterprise resource planning helps the organization to have better co-ordination among its functional areas and improves the overall business efficiency of the organization. ERP also enables organizations to have better coordination among different participating firms in the supply chain of the organization.

Enterprise Resource Planning (ERP) is a platform for integrating, standardizing and optimizing the business processes for effective functioning of an organization, and enables the firm to gain competitive advantage.

Management Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

Origin of ERPERP has originated from two concepts:

MRP-I

MRP-I I

Management Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

4Block View of ERP SystemCentralised DatabaseMarketingFinance & AccountingHuman ResourcesOperationsInfoInfoInfoInfoSuppliersEmployeesCustomersInfoInfoInfo Management Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

5Characteristics of an ERP SystemReal time operations

Integration of all business activities

Process view rather than function view

Flow of information

Best practicesManagement Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

6Enterprise Resource Planning ImplementationThe firms can implement ERP using two approaches:

Modify

Redesigning Management Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

Role of Manager in Successful Implementation of ERPCommitment and supportChange managementCost considerationsCommunicationRisk managementTrainingProject team competenceIT infrastructureVendor relationshipManagement Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

Issues in ERP ImplementationPre-Implementation Issues

Complexity of ERP Systems

Hiring and Managing

Consulting Firm

Knowledge ConstraintsManagement Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

9Currently Available PackagesOracle

SAP

Microsoft Dynamics

QADManagement Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.

Thank You.Management Information Systems by Sahil RajCopyright 2013 Dorling Kindersley (India) Pvt. Ltd.