Term Paper of Om

8/8/2019 Term Paper of Om

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TERM PAPER

ON

SUBMITTED TO- SUBMITTED BY-

MS.NEHA TIKOO PRIYANKA SHARDA

ROLL NO-B28


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10903380

ACKNOWLEDGEMENT

Making this term paper was a fantastic journey. Let me

begin my acknowledgement by thanking my teacher Ms.

NEHA TIKOO for providing suggestions on how to proceed

with the term paper and clearing the doubts whenever

they accumulated in my mind. She has been a guideline

throughout the process. I am extremely thankful to her as

she has been a source of inspiration for me.

I am equally thankful to my friends who have been very

helping and supportive throughout the process. I also take

this opportunity to thank my roommate who is very co-

operative and also helped me to complete this term paper.

At last big thank you to LOVELY PROFESSIONAL

UNIVERSITY for making me a small part of it. I was blessed

as after coming here only I was able to understand themain aim of my life. I am highly obliged to be a part of

Indias largest university.

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INDEX

1. ABSTRACT pg no. 4

2. INTRODUCTION pg no. 5-7

3. ORIGIN OF THE TERM pg no. 8

4. REVIEW OF LITERATURE pg no. 9

5. THE IDEAL ERP SYSTEM pg no. 10- 12

6. ADVANTAGES pg no. 12

7. DISADVANTAGES pg no 13

8. ERP IMPLEMENTATION pg no. 14

9. LATEST TRENDS IN ERP pg no. 15-1710. LEADING ERP GIANTS- pg no. 18-19

11. ERPS SCOPE IN INDIA pg no. 20-22

12. CONCLUSION- pg no. 23

13. REFERENCES pg no. 24

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ABSTRACT

ERP, which is an abbreviation for Enterprise Resource Planning, is principally an

integration of business management practices and modern technology. Information

Technology (IT) integrates with the core business processes of a corporate house to

streamline and accomplish specific business objectives. Consequently, ERP is an

amalgamation of three most important components; Business Management Practices,

Information Technology and Specific Business Objectives. The term ERP originally

referred to the way a large organization planned to use its organizational wide

resources. Formerly, ERP systems were used in larger and more industrial types of

companies. However, the use of ERP has changed radically over a period of few

years. Today the term can be applied to any type of company, operating in any kind of

field and of any magnitude. The key objective of an ERP system is to integrate

information and processes from all functional divisions of an organization and merge

it for effortless access and structured workflow. The integration is typically

accomplished by constructing a single database repository that communicates with

multiple software applications providing different divisions of an organization with

various business statistics and information. Organizations generally use ERP vendors

or consulting companies to implement their customized ERP system.

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INTRODUCTION

According to Webopedia, Enterprise Resource Planning or ERP is a business

management system that incorporates into a cohesive whole all the components of the

business endeavor such as planning, manufacturing, sales, and marketing. This

business management system helps business managers in such stages as inventory,

order, audit, billing, customer service, finance, and human resources. In other words,

ERP is an information system that covers the entire enterprise and is designed to

coordinate, relay, and complete the business processes of the business enterprise.

Most of these business solutions come in the form of computer program software that

has a common database and modular design. The ERP system is maintained in a

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single database which is ideally integrated and interactive for purposes of data input,

storage, processing, consulting, referencing, and retrieval. The information should be

authentic, verifiable, and accessible. A third-party consulting company is usually

hired to implement the ERP system for the company. This consulting company

provides professional services in business solutions consulting, customization of the

modular software, and support services.

Data transfer and data exchange are what happen in ERP systems. The ERP systems

thrive well if data migration is successful. Good data transfer and exchange strategies

spell the success of the ERP implementation. These strategies include identifying the

data to be migrated, determining the timing of data migration, and deciding on data

archiving,

Enterprise resource planning (ERP) is an integrated computer-based system used to

manage internal and external resources including tangible assets, financial resources,

materials, and human resources. It is a software architecture whose purpose is to

facilitate the flow of information between all business functions inside the boundaries

of the organization and manage the connections to outside stakeholders. Built on a

centralized database and normally utilizing a common computing platform, ERP

systems consolidate all business operations into a uniform and enterprise wide system

environment.

An ERP system can either reside on a centralized server or be distributed across

modular hardware and software units that provide "services" and communicate on a

local area network. The distributed design allows a business to assemble modules

from different vendors without the need for the placement of multiple copies of

complex, expensive computer systems in areas which will not use their full capacity[2]

In simpler words, an ERP is a massive software architecture that supports the

streaming and distribution of geographically scattered enterprise wide information

across all the functional units of a business house. It provides the business

management executives with a comprehensive overview of the complete business

execution which in turn influences their decisions in a productive way.

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http://en.wikipedia.org/wiki/Local_area_networkhttp://en.wikipedia.org/wiki/Enterprise_resource_planning#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Local_area_networkhttp://en.wikipedia.org/wiki/Enterprise_resource_planning#cite_note-1%23cite_note-1


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At the core of ERP is a well managed centralized data repository which acquires

information from and supply information into the fragmented applications operating

on a universal computing platform.

Information in large business organizations is accumulated on various servers across

many functional units and sometimes separated by geographical boundaries. Such

information islands can possibly service individual organizational units but fail to

enhance enterprise wide performance, speed and competence.

The term ERP originally referred to the way a large organization planned to use its

organizational wide resources. Formerly, ERP systems were used in larger and more

industrial types of companies. However, the use of ERP has changed radically over a

period of few years. Today the term can be applied to any type of company, operating

in any kind of field and of any magnitude.

Today's ERP software architecture can possibly envelop a broad range of enterprise

wide functions and integrate them into a single unified database repository. For

instance, functions such as Human Resources, Supply Chain Management, Customer

Relationship Management, Finance, Manufacturing Warehouse Management and

Logistics were all previously stand alone software applications, generally housed with

their own applications, database and network, but today, they can all work under a

single umbrella - the ERP architecture.

In order for a software system to be considered ERP, it must provide a business with

wide collection of functionalities supported by features like flexibility, modularity &

openness, widespread, finest business processes and global focus.

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Origin of the term

The initials ERP was first employed by research and analysis firm Gartner Group in

1990 as an extension of MRP (Material Requirements Planning; later manufacturing

resource planning) and CIM (Computer Integrated Manufacturing), and while not

supplanting these terms, it has come to represent a larger whole. It came into use as

makers of MRP software started to develop software applications beyond the

manufacturing arena. ERP systems now attempt to cover all core functions of an

enterprise, regardless of the organization's business or charter. These systems can now

be found in non-manufacturing businesses, non-profit organizations and governments.

To be considered an ERP system, a software package should have the following traits:

It should be integrated and operate in real-time with no periodic batch updates. All

applications should access one database to prevent redundant data and multiple data

definitions. All modules should have the same look and feel. Users should be able to

access any information in the system without needed integration work on the part of

the IS departments.

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REVIEW OF LITERATURE

ERP systems have become vital strategic tools in todays competitive business

environment. The research study presents a review of recent research work in ERP

systems. It attempts to identify the main benefits of ERP systems, the drawbacks and

the critical success factors for implementation discussed in the relevant literature. The

findings revealed that despite some organizations have faced challenges undertaking

ERP implementations, many others have enjoyed the benefits that the systems have

brought to the organizations. ERP system facilitates the smooth flow of common

functional information and practices across the entire organization. In addition, it

improves the performance of the supply chain and reduces the cycle times. However,

without top management support, having appropriate business plan and vision, re-

engineering business process, effective project management, user involvement and

education and training, organizations can not embrace the full benefits of such

complex system and the risk of failure might be at high level.

Today's century is the era of a speeding of information we need is like the Enterprise

Resource Integration System (Corporate Resource Integration System, CRIS) an

effective tool for tackling key problems, CRIS can be integrated functional levels of

the elements, resulting in cross-functional information flow. In the modern business

environment, the Indian, Between enterprises is becoming increasingly fierce

competitive environment, in order to be able to quickly respond to customer needs,

and can be compared with the other competitors have a competitive advantage,

allowing companies are increasingly dependent on information technology; also to

competitors in a market in order to survive, and due to stress Intense competitiveconditions and therefore would like to help in the information technology of the

following can be integrated within the enterprise information and Limited resources in

order to achieve a competitive advantage and thus to achieve business goals,

enterprise resource planning (Enterprise Resource Planning, ERP) system, which

came into being. Because ERP is based on industry best-practice benchmark for the

Indian Business Process designed a set of computer software packages, can be

integrated throughout the enterprise arising from the information, so that Business

operations and circulation of information through timely operations, providing an

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authorized user as a decision-making. ERP system all current CRIS system integration

is the centre of the mainstream products, which is the ERP era is all about.

The Ideal ERP System or Commercial Applications

An ERP system would qualify as the best model for enterprise wide solution

architecture, if it chains all the below organizational processes together with a central

database repository and a fused computing platform.

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Manufacturing

Engineering, resource & capacity planning, material planning, workflow

management, shop floor management, quality control, bills of material, manufacturingprocess, etc.

Financials

Accounts payable, accounts receivable, fixed assets, general ledger, cash

management, and billing (contract/service)

Human Resource

Recruitment, benefits, compensations, training, payroll, time and attendance, labour

rules, people management

Supply Chain Management

Inventory management, supply chain planning, supplier scheduling, claim processing,

sales order administration, procurement planning, transportation and distribution

ProjectsCosting, billing, activity management, time and expense

Customer Relationship Management

Sales and marketing, service, commissions, customer contact and after sales support

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Data Warehouse

Generally, this is an information storehouse that can be accessed by organizations,

customers, suppliers and employees for their learning and orientation.

Advantages of ERP Systems

There are many advantages of implementing an EPR system. A few of them are listed

below:

A perfectly integrated system chaining all the functional areas together

The capability to streamline different organizational processes and workflows

The ability to effortlessly communicate information across various

departments

Improved efficiency, performance and productivity levels

Enhanced tracking and forecasting

Improved customer service and satisfaction

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Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations

implementing an ERP system, here are some of the most common obstacles

experienced:

The scope of customization is limited in several circumstances

The present business processes have to be rethought to make them

synchronize with the ERP

ERP systems can be extremely expensive to implement

There could be lack of continuous technical support

ERP systems may be too rigid for specific organizations that are either new or

want to move in a new direction in the near future

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ERP IMPLEMENTATION

ERP implementation is a very important task for every company. First every companystudy on weather their company implement an enterprise system. How to link

enterprise systems to strategy and organization. Every company must know what the

ERP implementation life cycle is. There are many implementation methodologies.

There are many hidden costs in implementation. Very good organizing required for

the implementation. There is very important role of vendors, consultants and user role

in the ERP implementation. There must be very good project management and

monitoring system for the implementation otherwise there will be many issues come

in the time of implementation. Most organizations create implementation projectoffices and appoint project managers with the assumption that the project will end and

life will go back to normal. It will not. What the organizations need is not a project

office, but a new organizational structure that" reflects the ongoing need for ERP

related activity. 'Sponsorship' is one example of the need. Many companies appoint

senior one solution is to create a hybrid role that oversees change in processes,

systems and information. There are not many of these around, but they are not

unprecedented. Another solution is that CIOs can oversee long term ERP change, but

the problem here is that the CIO should be ready to take on responsibilities that are far

behind his normal technology related issues.

Of course, there are other organizational implications of these systems. A substantial

support capability will have to be created; injecting more people into the existing

EDP/IS/IT departments can do this. More important, the long-term use of ERP could

change the broader organization in terms of its structure and function. For example,

the employees who are involved in the business of recording, analyzing and

producing reports may no longer be needed, or the number of managers needed can

go down after the ERP implementation, or the organization can become flatter. Theorganizational restructuring at that level is any way the responsibility of the top

management and not that of the ERP chief.

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LATEST TRENDS IN ERP

ERP calls for constant modifications and up gradations. ERP developers

are facing tremendous pressure both from vendors and companies. In this

context it becomes important to analyze the ERP's trends and modalities.

Some of the relevant issues are as follows:

Need based applications

Organizations had to implement ERP through outt their systems

irrespective of the fact whether they help in all the functions or in one

particular function. This was proving to be a big hurdle to the firms. In

addition this remained as the main disadvantage or setback of ERP. They

had to purchase the whole applications even if it meant that most of them

would be idle except for the core function.

The latest ERP software programs have overcome this menace. They

offer need based applications. The firms need not be worried even if these

Software Programs were not available. They were given the liberty to

purchase and install Software Programs pertaining to that particular

function. This advantage has helped to increase the scope of ERP not

only among large firms but also small and medium business as well.

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Expenditures

ERP was a very costly affair. Thanks to the intrusion of internet and open

source applications. This has helped S.M.E.'S to enter the market of

prospective buyers. This has not only widened the horizon of S.M.E.'s but

also increased the usage among large firms.

These large firms were not able to invest huge money in spite of adequate

funds. Now that the spending on ERP gets reduced there are no

hesitations to show the green signal for fear of heavy monetary outlay. It

is encouraging to notice the improving IT ERP trends.

Reduction in implementation time

ERP was discouraged by companies because they took such a long time

to get installed and set the whole process into action. Since this resource

was spent excessively there were chances for reduction in potential

business and losing man-hours.

The current day ERP applications are less complex to install and train.

This has reduced the amount of time spent on ERP. Companies are

thereby assured of spending lesser time for ERP.

Open Source, Web enabled and wireless technologies

These are three important elements that have rejuvenated the functioning

of ERP. Open Source ERP has done away with the hassles of paying

license fees not only during installation but also whenever a modification

is made. The company is relieved from depending even for mince

matters.

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Web enabled ERP helps in making the enterprise operations go online.

Any stakeholder or third party can access the required information very

easily and that too by sitting anywhere in the world. This proves to be of

great help especially during emergencies when the details are to be

sourced with immediate effect.

Wireless ERP has helped organizations to make use of the

communication channels effectively and efficiently. It has made it

possible for many elements to operate in ERP which were otherwise not

possible. Wireless ERP is nothing but sharing enterprise information

through devices like internet and other devices making it possible for

outsiders to access the same.

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Leading ERP giants

This is a niche market where only the best gets to thrive. Needless to mention the

money involved and other factors ensure a tug of war between the players.

Some of the leading ERP giants are as follows:

Microsoft

This software major holds a promising segment in the Small and medium enterprises

market. They have been constantly upgrading the versions and are expert in

manufacturing the products from the vendor's point of view (who knows all the

practical difficulties of the stakeholders). They have been taking a very liberal stand

when it comes to the market and competitors so as to be more compatible to the users.

More innovations will take the company to great heights in the market around the

globe. The biggest advantage of this software is that many companies will prefer them

for one reason that they can be easily run in Microsoft application and platforms.

Oracle

They have been in the limelight ever since they have purchased People soft ERP

software. Another encouraging fact for them is the mass campaign carried by UNDP

(United Nations Development Program) to create an awareness of their products.

They have also satisfies the customers (of both people soft and oracle) by offering

many competitive features.

SAP ERP

A specialized ERP product meant to solve technical and managerial issues SAP ERP

continues to be the choice of many companies around the world. It helps companies to

redefine their business operations. Some of the features and advantages of this

software program are at par with industry standards though some others require to be

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improved in order to make it compatible to the end user.

People soft ERPPeople soft ERP software program helps the companies to streamline their H.R.

functions in an easy and effective manner. This software continues to be the

undisputed leader in the market when it comes to H.R. operations anywhere in the

globe. Oracles recent takeover of People soft has only been a boon to its customers

who are now fable to access the eservices of Oracle also as a result of this merger.

UPS ERPThis ERP software has an important feature. They can work in combination with other

applications like S.A. P. oracle .This will enable them to get the best features from

each software and put them in use as may be demanded. This has also hogged the

limelight due to this advantage.

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ERP's Scope, penetration future opportunities and

challenges in India

India is a well known player in the ERP market. India occupies a promising position

in the whole of IT market .The governments, educational institutions and companies

are constantly working towards promoting and expanding the IT market. In this

context ERP holds lot of promises both in terms of supply and demand. There are

some issues to worry about and some others which deserve appreciation.

Some of the issues concerning ERP in Indian Market are as follows:

How did ERP penetrate on a vast scale in India?

The Y2K problem and other diminishing opportunities of IT professionals were seen

as a big challenge to the IT market. This was not only the case in India but else

elsewhere in the globe. This proved to be a biggest challenge to the nation who were

banking (and are still) on IT skills for development aspects (individual, economical

and overall). The slump of the IT sector would add drudgery and smash the hopes of

so many individuals and companies.

This problem in itself helped to get another important solution. Firstly this paved way

for more prospects in ERP market. The demand and supply gradually transformed

from general to enterprise resource market. Once this got stabilized there was no

looking back. It was well evident that ERP market could boom and give the necessary

impetus to stakeholders. However this did not mean that mediocre could survive in

the market. There was demand only for top notch services and professionals. This

naturally led to improvement in the quality of services offered. Such an improvement

increased the competition among various players. The end user was getting assured

that he would be receiving the best services for the money invested. Case ERP in

India got more and more competitive. The ERP implementation in India demanded

more than the custom ERP India module.

ERP software programs were initially used only for back office functions. They were

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not given the due importance and treated just like another supporting function.

Reasons like lack of awareness formed one part while other reasons were costs and

technical difficulties. As explained earlier the gradual demand for ERP increased with

a slump in the software market. Since this led companies to go in for ERP they

automatically started to learn more about it either by force or felt need as they were

left with no alternative. This indirectly created the awareness among companies. They

learned more on ERP and realized its diverse applications. Finally they resorted to use

ERP for the whole of the company and stopped the idea of restricting it to mere back

office functions.

Pressures mount on the industry

The industry is facing two major challenges when it comes to dealing with ERP in the

current context:

Sudden change

Firstly they are bound to increase the scope of ERP in enterprise operations. As

discussed earlier ERP was initially restricted to back office functions and later spread

its wings to all the operations in the enterprise. This naturally meant that the ERP

manufacturers and vendors had to increase the functionalities and scope of the

application. There are practical difficulties when it comes to this issue. The ERP

experts will definitely be able to restructure the ERP systems with the help of

resources and expertise available with them. However doing it all on sudden is a

difficult task. They must have been working with different requirements till then.

Compelling them to suddenly change will land things in a mess because there will be

lot of confusions for the vendors, manufacturers and end-users. The unrealistic

deadlines and time pressures further add agony to this menace.

Technical factors

Secondly ERP in the nation calls for a restructuring in the technical aspects. This is

definitely appreciable. The fate of the businesses that have already implemented and

deployed ERP remains a big question mark. No doubt change is inevitable and an

element for growth. However it would be next only to impossible to change even

before the current change has stabilized in the market. This is advantageous for the

companies that go for ERP at the first instance .But when it comes to companies that

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already run successful ERP systems they have to stick on to the technical changes or

ship out from the market. They can decide to stick on to change but it will cost them

heavily. They can work on to find some replacement technology rather than going for

an all round change. The effectiveness of the replacement is an important issue .

Finance

This is another important determinant of ERP market in India. Some bigger

companies still hesitate to invest in ERP due to the exorbitant costs. It is indeed

encouraging to find that a vast majority of them have realized its benefits and have

determined to go for it. However some of them are keeping quiet due to the risks

involved besides the unforeseen expenses and losses.

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REFERENCES

Murray, M., & Coffin, G. (2001). A case study analysis of factors for success in ERP

system implementations.Proceedings of the Seventh Americas Conference on

Information Systems, Boston, 10121018.

Al-Mashari M, Ghani S,W Al-Rashid W. 2006. A study of the Critical Success

Factors of ERP implementation in developing countries.Internet and Enterprise

Management, 4(1): 68-95.

http://en.wikipedia.org/wiki/Enterprise_resource_planning

http://www.topbits.com/erp.html

http://www.matthewlefevre.com/wiki/article.php/Companies_that_use_SAP_

ERP_Software

http://www.webopedia.com/TERM/E/erp.html

https://www.serviza.com/bizbook/SoftwareIsFree_html_m3b669ed0.png
http://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://www.topbits.com/erp.htmlhttp://www.matthewlefevre.com/wiki/article.php/Companies_that_use_SAP_ERP_Softwarehttp://www.matthewlefevre.com/wiki/article.php/Companies_that_use_SAP_ERP_Softwarehttp://www.webopedia.com/TERM/E/erp.htmlhttps://www.serviza.com/bizbook/SoftwareIsFree_html_m3b669ed0.pnghttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://www.topbits.com/erp.htmlhttp://www.matthewlefevre.com/wiki/article.php/Companies_that_use_SAP_ERP_Softwarehttp://www.matthewlefevre.com/wiki/article.php/Companies_that_use_SAP_ERP_Softwarehttp://www.webopedia.com/TERM/E/erp.htmlhttps://www.serviza.com/bizbook/SoftwareIsFree_html_m3b669ed0.png

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