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					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


				
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posted:9/1/2009
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