ERP Unit 1 Introduction to ERP Final Review Ppt

8/13/2019 ERP Unit 1 Introduction to ERP Final Review Ppt

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C o n f i d e n t i a l

1

Program : MBA

Semester : IV

Subject Code :

MI0038

Subject Name : Enterprise esource P!anning

"nit Number : #

"nit $it!e : Introduction to EP

%ecture Number : #

%ecture $it!e : Introduction to EP

&'ME NE($


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Introduction to EP

'bjecti)es :

To discuss evolution of ERP

To identify reasons for the growth of ERP market

To trace the benefits and failure of ERP implementation

To discuss about the selection of an ERP package

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"nit*# Introduction to EP


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%ecture 'ut!ine

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Introduction

E)o!ution o+ EP

About EP

easons +or t,e -ro.t, o+ EP Mar/et

Bene+its o+ EP ai!ure o+ EP Imp!ementation * easons

EP Pac/ages

Summar1

C,ec/ 2our %earning

Acti)it1


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Introduction

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Information Technology (IT) has revolutionised the way we live and work

!ith advancements in IT" it is possible for organisations and itsdepartments to work as a unified unit

!orking as a unified unit helps to meet the ob#ectives and goals of

organisations

IT plays a crucial role" at the organisational and departmental levels byhelping them to share data

Enterprise Resource Planning or ERP is a method of effective planning of all

the resources in an organisation

ERP systems helps to optimally plan and manage all the resources of theorganisation

It also facilitates faultless flow of information across departmental barriers


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E)o!ution o+ EP

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In the Pre$ERP scenario departments worked in isolation$ Resulted in fragmentation of information

Information was shared between departments only at the top level

%RP became the fundamental concept of production management andcontrol in the mid &'s

The prevailing trend at this time was *ill of %aterials (*+%)

This concept unfolded from order inventory management of materials toplant

%RP$II was carved out of %RP" consisted human resource planning anddistribution planning

,ater ERP was developed that included financial accounting" humanresource management functions" distribution management functions" andmanagement accounting functions


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About EP

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ERP covers the techni-ues and concepts employed for the overall

integration of business processes

It is designed to model and

automate the basic functions of

a company

It establishes effective link between

the top level and bottom level of

the hierarchy


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easons +or t,e -ro.t, o+ EP Mar/et

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To enable improved business performance

To support business growth re-uirements

To eliminate limitation in legacy systems

To take advantage of the untapped mid$market



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Bene+its o+ EP

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irect Bene+its:

*usiness Integration

.le/ibility

*etter 0nalysis and Planning 1apabilities

2se of ,atest Technology



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ai!ure o+ EP Imp!ementation*easons

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3election of a !rong Product

Incompetent and hapha4ard implementation

Inefficient method or ineffective usage of the system

Improper training to the employees

.ear of unemployment



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EP Pac/ages

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Package selection is important phase in ERP implementation

5ey things to be considered before choosing an ERP package are6

The package should6

7 3upport multi$language and multi$currency

7 8ave installations in countries where companies have offices

7 .acilitate companies to initially purchase the core modules and

later opt for additional modules7 8ave the fle/ibility of interfacing with other systems

7 *e customisable

The vendor should6

7 Provide support during implementation and also postimplementation

7 3hould give a commitment on training the company employees

7 9ive verification on policy and practices related to updates"version" and so on This has to be acceptable as per the companynorms



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Summar1

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Enterprise Resource Planning (ERP) is one of the means to integratethe data and processes of an organisation into one single system

Earlier companies were using technologies like %RP" *+%" %RP$II toautomate most of their business processes

Presently" companies are implementing ERP" as it helps in unifying itsprocesses and helps in easy access of information

The benefits of ERP system are in business integration" fle/ibility"better analysis and planning capabilities and use of latest technology

ERP implementation fails due to selection of wrong product" fear ofunemployment" improper training" improper usage and so on

ERP package selection is an important stage in ERP implementation



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C,ec/ 2our %earning

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& !hat are the direct benefits of an ERP system:

0ns The direct benefits of an ERP system are6

*usiness integration

.le/ibility

*etter analysis and planning capabilities

2se of latest technology

;



13

Acti)it1

&'MEPEVI'"S


1onduct a survey and gather information how ERP system can prove to

be effective in an unorganised sectors and in small scale industries ,ist

the reasons why they prefer or don=t prefer an ERP system

Documents

ERP Unit 1 Introduction to ERP Final Review Ppt