Erp An Overview

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ERP AN OVERVIEW

K.HARISH(111071059)
What is an ERP System –
definitions
Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
“a business strategy and set of industry-
domain-specific applications that build
customer and shareholder communities value
network system by enabling and optimising
enterprise and inter-enterprise collaborative
operational and financial processes”
CONTD…
• ERP ATTEMPTS TO INTEGRATE ALL
DEPARTMENTS AND FUNCTIONS ACROSS THE
COMPANY ONTO A SINGLE COMPUTER THAT
CAN SERVE ALL THOSE DIFFERENT NEEDS.
• ERP AUTOMATES THE TASK INVOLVED IN
BUSINESS.
• ERP2 EVOLUTION IN 2000’S. VALUE CHAIN,E-
COMERECE,OBJECT ORIENTED STRUCTURE.
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
How should we implement
ERP systems

Obtain the right mix of people,


processes and technology!!
How should we implement ERP
Systems?
• People
– Project Structure
– Should be aligned to processes
• Process
– Implementation Process (outlined in detail)
– Adapt your processes to those of the ERP.
• Technology
– Hardware
– Software
– Integrated Systems
Process
1. Definition and Analysis
• Hold discussions with various functional
personnel to establish the actual number of
systems operating at client site, what they
are used for, why and how often
• Produce the Project Scoping Document
outlining current situation, proposed
solution and budgeted time
Process
2. Design
• Prepare various functional reports - specifies
current scenario and wish list
• Prepare Design document which specifies how
the system is going to work
• Prepare test scripts to be followed on system
testing
• Map out the interface paths to various
modules
Process
3. Build
• Configure system as per set up document
specifications i.e. transfer conceptual model
into reality
• Test system to verify accuracy (preliminary
tests)
Process
4. Transition
• Train users on their specific areas
• Assist in test data compilation and system
testing by users
• Finalise the Live system and captured
opening balances
Process
5. Production
• Official hand holding
• Effectiveness assessment
• Business and Technical Direction
recommendations
Technology
• Technology is an enabler, not the driver (it is
there to assist the organisation to achieve
business goals)
Control Implementation Approach

• To ensure that controls are addressed during the


implementation, ERP control specialists should
be dedicated:
• Internal Audit involvement in
design,implementation and testing
• Project team members design,implement and
test while Internal Audit performs periodic
reviews
• Internal Audit perform pre- &
postimplementation review of control
environment
Top Ten ERP Vendors
SAP - The Company
• Founded in 1972 in Waldorf, Germany
• 4th largest software supplier in the world
• Revenues over $5 billion in 1998
• SAP growing over 40% a year
• 18,330 employees worldwide (9/98)
• 1997 market share was 31% of the worldwide
client/server enterprise application software
• Over 9,000 installations at 6,000 companies with
more than 2,500,000 users in over 50 countries
• An average of 25% of revenue invested in R&D
PeopleSoft - The Company
• Revenues over $1.3 billion in 1998
• 2nd largest ERP supplier in the world
• Growing over 60% a year
• 7,000 employees worldwide
• 2,900 clients worldwide
• 1997 market share was 8.4% of total ERP
software license market
• International growth and expansion will be focus
through 2000
Oracle - The Company
• Founded in 1977
• 2nd largest software supplier in the world
• Revenues over $8 billion in 1998
• 41,000 employees worldwide, 16,000 U.S.
– Reflects total company - not just applications business
• More than 6,000 customers in 76 countries
• 1997 ERP market share was 8.3% of total ERP license
revenue
– 50% of applications revenue comes from services
• Oracle’s applications license revenue is growing
at 18% a year; significantly less than its rivals.
CRM Software

• Customer Relationship Management


• Idea: centralize all processes and data
related to interaction with customers
• Often offered by ERP suppliers
• Sold as “next big thing”, though problems set
• in fast
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
• ERP IS OF GREAT IMPORTANCE TO THE SUCCESS OF
THE ORGANISATION AND ENTREPRENEURS.

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