ERP and It’s Implementation
Objective
To know about ERP and its
relevant importance To know about the ERP implementation and its likely outcomes if not implemented properly.
ERP
Serves as a cross-functional
enterprise backbone that integrates & automates many internal business processes and information systems Helps companies gain the efficiency, agility, & responsiveness needed to succeed today
Gives a company an integrated
real-time view of its core
ERP software suites typically
consist of integrated modules of…
Manufacturing Distribution Sales Accounting Human Resource Management
Benefits of ERP
Decision support
Provides cross-functional information on business performance to assist managers in making better decisions Results in more flexible organizational structures, managerial responsibilities, and work roles Helps in integrating resources in an efficient and effective manner.
Enterprise agility
Resource Integration
Processes in ERP Implementation
ERP Packages
On the basis of application
Customized Package Readymade Package On the basis of implementation Big Bang Franchising option Slam dunk
Top 10 ERP Vendors share 2006
2007
Source: AMR Research,
Different Phases of ERP Implementation
Pre evaluation Screening Evaluation Package Project Planning Gap analysis Reengineering Team training Testing Going Live Post implementation
Major ERP Vendors
SAP AG Microsoft Oracle Baan J D Edwards Peoplesoft Infor Exact
Facts about SAP AG
SAP is founded by five former IBM employees in 1972. SAP is situated in Walldorf, Germany. Number one vendor of standard business application
software, with a worldwide market share of 41%. Fourth-largest independent software supplier in the world. Available in more than 14 languages. 10 out of 10 largest US companies with the highest market value use SAP software. 8 out of 10 largest US corporations use SAP software. More than 7500 customers in over 90 countries have chosen SAP.
mySAP Modules
mySAP PLM
Life-Cycle-Data, Project-, Quality- and Asset Management Sales Order Internet Sales
mySAP SRM
mySAP ERP
Analytics Financials Human Resources Corporate Services Operations
Purchase Order Requisitioning
mySAP CRM
Inventory & Warehouse Mgmt. Manufacturing & Transportation
mySAP SCM
1991 1992 1993
1994 1995
1996 1997
1993 - 1995 1998 1999 2000 2001 Interval Description
2002 2003
2004 2005 2006
2007 2008
2009 2010
1990
2010
SAP R/3 Modules
Causes of ERP Failure
Underestimating the complexity of the
planning, development, and training required Failure to involve affected employees in the planning & development phases and change management programs Trying to do too much, too fast Insufficient training Believing everything the software vendors and/or consultants say
SAP ERP Solutions in TISCO
Decided to implement SAP ERP 3 Forecasted for future operations Took a long span of one year Never bogged down by repeated
failures Brought about substantial increase in profits Focus on implementation and timely completion.
Solution and Implementation
Study was conducted related to
functionality, esteem, operability, support & future requirements. Idea is to strengthen its position in market. Challenge is not implementation but to build a conducive environment for it. Identified branches with huge transactions as HUB and smaller branches as SPOKES
In Jan. 1999, “TERM ASSET “ is
devised which is Achieve Success Through SAP enabled Transformation It has two axioms- “go live date- 1st Nov.,1999” and “ there are only 24 hours a day”. Planned a big bang approach of going live with all modules.
Benefits
Spent 40 crores and saved 33 crores
in first two years. Man power cost reduced from $200 per ton to $140 per ton in two years. Inventory cost deflated from Rs. 190 per ton to Rs. 155 per ton in one year.
THANKS