ERP and It’s Implementation
ObjectiveTo know about ERP and its relevant importance
To know about the ERP implementation and its likely outcomes if not implemented properly.
ERPServes 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 business processes
ERP software suites typically consist of integrated modules of…ManufacturingDistributionSalesAccountingHuman Resource Management
Benefits of ERPDecision support Provides cross-functional information on business
performance to assist managers in making better decisions
Enterprise agility Results in more flexible organizational structures,
managerial responsibilities, and work roles
Resource Integration Helps in integrating resources in an efficient and
effective manner.
Processes in ERP Implementation
ERP PackagesOn the basis of application
Customized PackageReadymade Package
On the basis of implementationBig BangFranchising optionSlam dunk
Top 10 ERP Vendors share 2006
Source: AMR Research, 2007
Different Phases of ERP Implementation Pre evaluation Screening Evaluation Package Project Planning Gap analysis Reengineering Team training TestingGoing Live Post implementation
Major ERP VendorsSAP AGMicrosoftOracleBaanJ D EdwardsPeoplesoftInforExact
Facts about SAP AGSAP 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 SCM
mySAP PLM
mySAP SRM
mySAP CRM
mySAP ERPAnalyticsFinancials
Human ResourcesCorporate Services
Operations
Life-Cycle-Data, Project-, Quality- and Asset Management
Inventory & Warehouse Mgmt.Manufacturing & Transportation
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SAP R/3 Modules
Causes of ERP FailureUnderestimating 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 fastInsufficient trainingBelieving everything the software vendors
and/or consultants say
SAP ERP Solutions in TISCODecided to implement SAP ERP 3Forecasted for future operationsTook a long span of one yearNever bogged down by repeated failuresBrought about substantial increase in
profitsFocus on implementation and timely
completion.
Solution and ImplementationStudy 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.
BenefitsSpent 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