Ramesh Sa Ppresentation2011

Page 1 Zylog Systems limited

Why the Companies make an ERP decision?

Proposal For ERP/SAP – Aspirants*

Ramesh Rao

Senior SAP Consultant

Zylog Systems Limited

Jubilee Hills, Hyderabad, India

[email protected]

[email protected], www.zsl.com

* This is for Academic Interest not Commercial \NO company is

responsible for this



The Company’s current environment consists of independent systems for financial management, human resource management and payroll, sales information and administration, and materials management. The legacy systems are highly customized, lack flexibility and no longer have vendor support.

• Information is not available or easily accessed.

• Service delivery to the Company is ineffective and inefficient.

• Business processes are out-of-date.


Legacy technology environment is obsolete, marked by

• Poor integration of systems;

• Lack of functionality, requiring many shadow systems;

• Manual processing, paper-based processes, and little workflow;

• Difficulty in remaining compliance with

regulations.



What are the gains of implementing ERP?

•The need to deploy an ERP package is, in a way, unique for an organization.

•An organization operating in a matured market looks forward for reducing costs in all fronts, while in a growing market the strategic need would be efficient utilization of resources for enhanced response to customers.

•Typically a company operating in a multi product and multi location would focus on communalizing business processes for standardization and data integrity.


WHY SAP?


SAP: The Smart Choice for Your Global Business!

SAP, which took on its largest acquisition ever when it bought Business Objects in 2007, does not rule out further purchases.

SAP is the recognized leader in providing collaborative business solutions for all types of industries and for every major market.

SAP is the world’s largest interenterprise software company and the world’s third-largest independent software supplier overall.

SAP will continue to provide you with solutions for all future trends to protect your investment.


SAP R&D Investment

R&D Investment (€ Millions)

We must continuously improve our portfolio of products if we wish to maintain and build on our current leading position as a vendor of enterprise application software. In 2010, we increased our research and development (R&D) expense €138 million, or 9 %, to €1,729 million (2009: €1,591 million).We spent 13.9 % of total revenue on R&D in 2010 (2009: 14.9 %). Our R&D expense as a portion of total operating expenses declined from 19.7 % to 17.5 % year over year. Excluding expenses associated with the TomorrowNow litigation, our R&D expense as a portion of total operating expenses was little changed since the previous year.


In Summary

SAP is flexible so it grows with your business:

Allows for increasing market share

Scales to meet your needs

Gives you operational visibility

Helps shorten time to market

Helps improve customer loyalty

SAP is quick to implement with fast, predictable payback:

Phased approach and best practices

SAP is the smart choice for your investment:

Over 30 years in business with 1,500 industrial machinery and component customers

Number one enterprise software vendor in the world with more than $1 billion in annual R&D


Market Forces and Business Needs

Market Forces

Price erosion due to globalization and cyclical capital investment

Customer demands for customized products with short lead times

Decreasing customer loyalty

Increasingly complex customer base and regionally diverse customer base

Trend toward offshore manufacturing

Low market growth

Resulting Key Challenges

• Counter margin pressures

• Speed up time-to-market• Improve visibility• Improve customer loyalty


mySAP ERP

• mySAP ERP is a proven, robust application with extended cross enterprise functionality. It provides critical support for financials, operations, human capital management, corporate services, and other complex business areas associated with enterprise resource planning, customer relationship management, and supply chain management. You can manage IT costs more effectively by protecting and leveraging your existing investments.

• You can also extend the skills and training of your staff, as well as gain access to data locked away in legacy and non-SAP software systems, to further reduce operational costs.

• And, as new business needs and technologies emerge, mySAP ERP helps you position your organization for accelerated change.


KEY BUSINESS ACTIVITIES

- mySAP ERP


Enterprise Management and Support

• No company can expect to succeed for long without core support for financial management and accounting.

• mySAP ERP helps you succeed in this area with support for the following enterprise management and support functions:

• General ledger

• Financial analytics• Operations analytics• Financial accounting• Management accounting


Product Design

• Consistent product structures, clear change managementprocedures, access to up-to-date information, and easy collaboration among engineers, production schedulers, and buyers are core requirements for any IM&C company trying to manage the myriad details involved with the product design process.

• mySAP ERP helps you succeed in this area with support for:• Engineering change management

– Engineering change management– Order change management

• Product structure management– Materials management– Bill of material (BOM) management– Routing management


New Product Development

• Your ability to design and develop innovative new products and bring them to market quicker than the competition is critical to survival. Requirements include a flexible architecture for the integration of the marketing, manufacturing, and the design functions. mySAP ERP helps you succeed in this area with support for:• Program and project management

– Product portfolio management– Evaluation of strategic product developments– Scenario simulation– Life-cycle planning– Life-cycle costing actual

• Engineering change and configuration management– Change notification and claim management– Engineering change management– Order change management– Product configuration management

• Data management– Material management– BOM management– Routing management– Order confirmation


Quote and Sales Cycle Management

Managing the sales cycle for greater efficiency and effectivenesscan help reduce the cost of sales and boost revenues. You mustbe able to quickly determine pricing, create proposals, checkproduct availability, acquire and enter orders, manage contracts,and track and manage orders. mySAP ERP helps you succeed inthis area with support for:• Account and contact management, • Quotation management

– Inquiry processing– Quotation pricing and monitoring

• Sales order management– Sales order processing– Availability checks– Order confirmation


Make-to-Order

• Make-to-order (MTO) manufacturing emphasizes the rapid assembly of complex products from an assortment of premanufactured parts.

• mySAP ERP helps you succeed in this area with support for:

• Sales order management– Inquiry processing– Quotation pricing and monitoring– Sales order processing– Availability checks– Order confirmation

• Production planning and scheduling– Production planning– Order scheduling and sequencing

• Production and procurement execution– Procurement & Manufacturing– Subcontracting– Assembly– Change management

• Shipping and billing


Make to Stock

• Make-to-stock manufacturing emphasizes commodity-based end products that are produced prior to sale based on forecasts.

• mySAP ERP helps you succeed in this area with support for:• Production planning and scheduling

– Production planning– Detailed scheduling– Materials requirements planning

• Production and procurement execution– Procurement– Manufacturing– Subcontracting– Assembly– Order change management

• Sales order management shipping and billing– Quotation and sales order management– Availability checks– Shipping– Fulfillment tracking– Billing


Operational Procurement

• Operational procurement touches on diverse aspects of theenterprise, including direct procurement of materials used inproduction, indirect procurement of services and subcontractors,and self-service procurement where employees can order whatthey need through Web-based catalogs.

• mySAP ERP helps you succeed in this area with support for procurement, including:

• Vendor management• Catalog management• Contract management• Scheduling agreements• Procurement planning• Purchase order processing• Goods receipt and inventory management• Invoice verification• External services


Service Operations Planning and Execution

• To capitalize on potential service revenues, industrial manufacturers must optimize service operations performance. This involves forecasting planned services to ensure the properdistribution and utilization of finite resources, and then managingoperations effectively.

• mySAP ERP helps you succeed in this area with support for:• Service forecasting and optimization

– Strategic service planning and forecasting– Resource planning and optimization– Service activity planning

• Service execution management– Installed base management– Case management– Knowledge management– Service scheduling and optimization– Service billing


Warranty and Returns Management

• When it comes to warranties and returns, you must strike theright balance between squeezing costs out of warranty-relatedservice calls and honoring agreements to maintain customerloyalty. You also need visibility and flexibility to react to customer claims in a timely and efficient manner. Requirements include warranty validation, claims tracking, cost analysis, vendor recovery, inventory management, defective product reporting and product improvement.

• mySAP ERP helps you succeed in this area with support for the management of service execution, including:

• Installed base management• Customer interaction management• Warranty management and entitlement validation• Case management• Complaints management• Knowledge management• Returns and repair management• Escalation management• Service billing


QUICK IMPLEMENTATION


Fast, Predictable Payback

SAP’s phased implementation approach provides the following benefits:

SAP’s phased implementation approach provides the following benefits:

•Addresses key business issues from an industry-specific perspective•Limits business disruption through predefined services focused on industry best practices•Provides real ROI within budget and timeline •Enables customers to buy only the modular functionality they need•Leverages and extends existing investments.Customer decides what to add or replace

•Supports future growth•Delivers business value through theservice providers that best fit customer needs:

– Customers can choose familiarindustry partners

– Customers can choose SAPif needs dictate


ZSL OfferingZSL Offering

ApplicationImplementations Application

EnhancementsApplication Upgrades

Application Re-engineering

Customized Training

Production Support

Data Warehousing

Database Management

Remote DBA Services

Applications Assessment &

Review

Enterprise Service offerings


Value Proposition

Deep competencies in technology and experienced lead team

Ability to attract, retain and motivate skilled manpower

Capability to work with large global customers and leverage partnerships

Shorter development cycles through Global delivery model

World class quality

Best-cost service commitment is just the tip of the iceberg…

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