1) ERP DOMAIN-Enterprise resource planning (ERP) tools combine all

business processes into one unified system. The purpose of these tools is
to make the best possible use of all resources of the business to give the
company a competitive edge.

Main Purpose

The main objective of an ERP domain is to combine information and processes

from all divisions of an organization and merge them to create a structured
working system. It can either reside on a centrally placed server or on
individual servers that are combined on a separate server.

2.Advantages and disadvantages of Enterprise Resource

Planning (ERP)
Advantages:
1.Better organizational control, especially in large companies, where the
volume of information is more than in a small company.
2.Duplication of information is avoided.
3.Improved communication, both internally and externally.
4.Company profitability analysis can be carried out to analyse where costs
are higher and where there are more sales.
5.Improved decision-making process within the company.
6.The company is able to react better to any unforeseen problem or
situation.
7.Better use of time.
Disadvantages:
1.The high cost of implementation and maintenance. (High initial
investment)
2.Adaptation to the hardware in the company.
3.It is necessary to train all employees in the company so that the system is
used efficiently. This is a cost for the company as well as the time and effort
needed for it.
4.Integration with other applications in the enterprise needed.
5.Inflexibility of the system, because this is a generic system.
6.There are few experts in this system.
7.If the system is not applied correctly, it can be very detrimental to the
company.
3. ERP GLOBAL SCENARIO

Emergence of cloud technology in the market would lead to a paradigm shift in the deployment
methods from on premise to cloud-enabled ERP. Cloud ERP software considerably reduces the
investments required in alternative IT resources and offers greater flexibility.

ERP software comprises of several ERP modules such as finance, sales, marketing, HR, etc. .
Among the various functions, finance function would drive the ERP software market significantly
by the year 2020, and would contribute to near about 30% of the overall market revenue.

Aerospace and Defense verticals would grow at a relatively higher CAGR of 8.86% from 2014-
2020 compared with other verticals

Global ERP vendors in the market like Oracle, SAP and Microsoft are launching ERP products,
which can be easily accessed via mobile devices like smartphones and tablets. These players are
putting efforts to develop ERP system that could be easily delivered from third-party vendor's
platform. The market is increasingly witnessing a shift towards Software as a Service (SaaS) model.

4. INDIAN SCENARIO

What Caused the Initial Negligence toward ERP solutions?

The initial leisurely attitude experienced toward ERPs can be blamed on factors
like ignorance, technical difficulties and most importantly financial burdens. And
even though many were up taking the ERP route, small or medium sized
organizations were still hesitant just because of the initial investment.

ERP and Current Scenario in India

But some ERP developers were paying attention to the crisis of this market and
are now ready to provide affordable ERP solutions for these smaller companies.
Currently, the SME segment in India has become the most assertive adapters for
ERP solutions. Nearly 60% of the SME sector have already integrated ERP
solutions into their business.

Thanks to web-based ERP solutions or other affordable ERP modules developed

by some benevolent developers, these SME companies can now sustain the
financial needs to integrate ERPs into their business.
ERP and its influence in the Indian Market

As discussed earlier automobile and steel industries show great interest in

adopting ERP modules and Automobile, Steel, Engineering modules are some that
show great potential market in the days to come.
Experts have estimated that overall the ERP market has experienced a growth of
nearly 70% in the last decade alone while the market too has galloped to
astoundingly high levels of monetary gains.

5. ERP MILESTONES

Here we take a brief look at three milestones of the last 10 years:

Going Lean
In a difficult economy, companies are looking to do more with less, and as a
result have turned to ERP and Lean methodologies. This pairing was a natural
development as both are concerned with improving the efficiency of processes
and procedures and reducing redundancies.

The processes at the core of ERP's workflows enable companies to identify

multiple points of inefficiencies. Once these areas are identified, business
managers can adopt and put into place Lean methods to reduce these
inefficiencies. As a result of these combined processes, operations are
streamlined, waste is reduced and profits are maximized.

ERP Adopts Web 2.0 and Thrives

The internet is here to stay and so is web 2.0. While some ERP providers were
reluctant to adopt it, most have chosen to embrace web 2.0 and leverage its
capabilities for the greater good of their business. With web 2.0, ERP companies
are able to tune in to what their customers are saying about functionality, design,
ease of use and more. As such, ERP companies are able to respond faster to
suggestions and criticisms.

These companies are also able to adapt collaborative strategies and learn from
social contributors. Prior to web 2.0, it was typically costly and difficult for ERP
companies to gain actual feedback from customers. Web 2.0 methodologies
make it easier to interact with customers so companies can solve usability
issues more quickly.
ERP Moves to the Cloud
ERP has been criticized for being too expensive to implement. As such, only
large organizations with deep pockets were able to afford ERP systems.
With ERP cloud computing, however, companies needn't invest in large
infrastructures. By relying on the cloud, ERP investment is significantly lower. As
a result small- to mid-sized companies that previously couldn't take advantage
of ERP are now able to do so.

Cloud ERP solutions let companies be more agile by allowing them to quickly
respond to demand. Pay-as-you-go models allows for greater operating
efficiencies and therefore greater savings - across many functional areas.

Cloud ERP is still a nascent business model for most ERP vendors and it
remains to be seen if it will reach into the enterprise space.

6. ERP PITFALLS

1. Vodafone: The long arm of the law

When British telecom provider Vodafone consolidated its CRM systems onto a

Siebel platform, they ran into problems: not all the customer accounts migrated

properly. The company didn't go out of its way to advertise this, of course, but

people started to notice when their accounts weren't properly credited for

payments made.

The upshot: a 4.6 million fine from the British telecom regulator.

2. Washington community college system:

When third parties flop
But that litigation can go both ways. For instance, students at Washington

State's community colleges have been paying a portion of their tuition every
year to help the schools upgrade to a PeopleSoft ERP system that was

supposed to go live in 2012. Instead, the project is still limping along. One

cause of delay was internal: the 34 campuses in the system had widely varying

business processes that needed to be standardized, which wasn't clear until

well into the rollout.

->Hershey's ghastly problems with its SAP ERP, Siebel CRM and
Manugistics supply chain applications prevented it from delivering
$100 million worth of Kisses for Halloween that year and caused the
stock to dip 8 percent.

->The epic tale of HP's centralization of its disparate North American

ERP systems onto one SAP system proves that one can never be too
pessimistic when it comes to ERP project management. You see, in
2004, HP's project managers knew all of the things that could go
wrong with their ERP rollout. But they just didn't plan for so many of
them to happen at once.
7. FUTURE TRENDS
Cloud Deployment Cloud adoption will continue to rise and become generally
accepted with most ERP systems. Reduced costs in capital expenditures and IT
resources, improved maintenance and flexibility, as well as improved security and
disaster recovery will make the cloud attractable to all businesses.

Adoption by small and midsize companies - ERP is no longer just for large companies.
With increased usability and previously mentioned cloud deployment options, smaller
companies will seek the added value of an ERP system. Reduced costs to implement
and deploy this technology will make it a viable resource for companies of all sizes.

Increased Security With recent security breaches and the growth of IoT and
production of more shared data, ERP systems will develop tighter controls to protect
data. Security audits and risk management procedures will be adapted to ensure data
is secure.

Social Media Integration Many ERP vendors have seen the value and growth of social
media and have incorporated it into their systems. They even have made their user
interface similar to the popular Social Media channels. Sales, Customer Service and
Marketing can connect with customers and be in alignment with their needs, pains
and requirements, allowing for purposeful marketing activities and increased brand
loyalty.

Mobile With the increased use of mobile devices in the workplace and a growing
remote workforce, the need for Mobile accessibility will also increase. Employees
spend less time behind a desk and need continuous access to the companys systems.
Decisions are made quicker and based on visibility into the entire supply chain.

8.MAJOR ERP MARKET PLAYERS

Microsoft is a relatively new comer to the ERP market compared to Oracle and
SAP. SAP has been inthe Enterprise Resource Planning market for over
thirty years. Microsoft gained momentum in theEnterprise Resource
Planning market by purchasing some existing solutions and adding
them to theircurrent repertoire of offerings. Oracle also gained momentum in
the ERP market with their purchaseor PeopleSoft, J.D. Edwards and Siebel.

SAP at Glance
More than 35,000 customers, 120 countries

Claim #1 CRM market share leader

Built the client/server ERP market

Definite #1 ERP market share leader

Very impressive distribution/SCM

Several industry solutions

Netweaver, SQL and a chasm of technologies

Priced at the high end

ORACLE at Glance

Over 37,000 application customers

Claim #1 CRM market share leader

#2 ERP market share leader



30 year proven credibility

New SOA architecture

Deep software functionality

Outrageous flexibility

Technology is the Oracle stack

Priced at the high end

MICROSOFT at Glance

Over 83,000 ERP customers

Strong SMB/mid-market solution

Very strong partner channel

Only sold through VAR channel

Multiple ERP products

ERP road map questionable

Solutions often vary by global region

MS/.Net/SQL technology

Low to moderately price

Enterprise Medium-Sized Small Business

SAP Netsuite Deltek
Oracle Sage Work(etc)
Microsoft Dynamics Infor Syspro

9.ERP Selection Criteria: 5 Main Points to Consider

These 5 top points of consideration include:

Company

Technology

Function fit

Support

Cost of ownership

Once a long list of vendors has been identified in the enterprise software selection process, the
team should go about a process of evaluating these ERP selection criteria. Here is a definition of
each criterion:

Company
Company size, including annual revenues and number of employees, is very important in your
evaluation because it helps answer the following questions:

Who will make the best partner?

Who knows my industry the best and has the most impressive track record with companies
like mine?
Are they committed to serving my industry?

Who will be able to keep my company abreast of important technology changes for the next
20 years?
Who will make the best vendor partner?

Technology
We find that most companies have developed a technology strategy favored by top management
and IT. You will also find that ERP software vendors have their own technology strategy. Even
though most vendors profess they are open systems, in truth, each vendor has their technology
sweet spot.

It is important to understand the vendors technology platform and architecture and measure it
against your strategy.
Function Fit
Even though there are dozens of vendors that have a good function fit, you will find there are only
about three or four that are the best fit for your business. The key in your evaluation is to quickly
find those vendors that best address business best practices for your industry.

ERP Support
ERP vendors have a number of ways to support their client. The larger firms have significant
support ecosystems to support their market. Buyers should evaluate all of their support
systems, including the following:

ERP consulting firm

ERP selection methodology

ERP education

ERP implementation methodology

Maintenance and phone support

User groups

Partner network

Cost of Ownership
It is important to learn from previous customers about each vendors cost of ownership. We find
at the end of the day after negotiation, most software vendors all offer the same price for their
software.

There are several other factors that differentiate vendors in addition to cost of ownership.
Annual support fees vary, implementation rates and fees vary, and the ongoing need for support
varies from vendor to vendor. To make the most informed decision, look to understand and
confirm the total cost of ownership over a five-year period.

We guide our clients in the development of an ERP selection criteria table that documents all the
facts gathered in the evaluation phase organized by the above criterion.
10.ERP Implementation Life Cycle
ERP lifecycle is in which highlights the different stages in implementation of An ERP. The process of
ERP implementation is referred to as ERP Implementation Life Cycle. There are different stages
of the ERP implementation that are as give below:

1. Adoptiondecision,
2. Acquisition,
3. Implementation,
4. Use and maintenance,
5. Evolution and Retirement phases

Let us brief all the phases of ERP Life Cycle from the following paragraphs.

Block Diagram of Phases

of ERP Life Cycle

1. Adoption Decision

Once the company has decided to go for the ERP system, the search for the package must start as
there are hundreds of packages it is always better to do a through and detailed evaluation of a
small number of packages, than doing analysis of dozens of packages. This stage will be useful in
eliminating those packages that are not suitable for the business process.

This stage is considered an important phases of the ERP implementation, as the package that one
selects will decide the success or failure of the package that one selects will decide the success or
failure of the project. Implementation of an ERP involves huge investments and it is not easy to
switch between different packages, so the right thing is do it right the first time. Once the
packages to be evaluated are identified, the company needs to develop selection criteria that
permit the evaluation of all the available packages on the same scale.

2. Acquisition

This is the phase that designs the implementation process. It is in this phase that the details of
how to go about the implementation are decided. Time schedules deadlines, etc for the project
are arrived at. The plan is developed, roles are identified and responsibilities are assigned. it will
also decide when to begin the project, how to do it and it completion. A committee by the team
leaders of each implementation group usually does such a planning.

This is considered the most crucial phase for the success of ERP implementation. This is the
process through which the companies create a complete model of where they are now, and in
which direction will they opt in the future. It has been estimated that even the best packages will
only meet 80% of the companys requirements. The remaining 20% presents problematic issues
for the companys reengineering.

It is in this phase that human factors are taken into consideration. While every implementation is
going to involve a significant change in number of employees and their job responsibilities, as the
process becomes more automated and efficient, it is best to treat ERP as an investment as well as
cost cutting measure.

Training is also an important phase in the implementation, which takes place along with the
process of implementation. This is the phase where the company trains its employees to
implement and later, run the system. Thus, it is vital for the company to choose the right employee
who has the right attitude-people who are willing to change, learn new things and are not afraid of
technology and a good functional knowledge.

3. Implementation

This is the main functional area of ERP implementation. There is a bit of mystique around the
customization process and for good reason: the Holy Grail of ERP implementation is synchronizing
existing company practices with the package. In order to do so, business processes have to be
understood and mapped in such a way that the arrived-at solutions match up with the overall
goals of the company. But, companies cannot just shut down their operations while the mapping
processes take place. Hence the prototype-a simulation of the actual business processes of the
company will be used. The prototype allows for through testing of the to be model in a
controlled environment. As the ERP consultants configure and test the prototype, they attempt to
solve any logistical problems inherent in the BPR before the actual go-live implementation.

This is the phase where one tries to break the system. One has reached a point where the
company is testing the real case scenarios. The system is configured and now you must come up
with extreme cases like system overloads, multiple users logging on at the same time, users
entering invalid data, hackers trying to access restricted areas and so on. This phase is performed
to find the weak link so that it can be rectified before its implementation.

4. Use and Maintenance

This is the phase where ERP is made available to the entire organization. On the technical side the
work is almost complete: data conversion is done, databases are up and running and on the
functional side, the prototype is fully configured and tested and ready to go operational. The
system is officially proclaimed operational even thorough the implementation team must have
been testing it and running it successfully for some time. But once the system is live the old
system is removed and the new system is used for doing business.

This is the phase where the actual users of the system will be given training on how to use the
system. This phase starts much before the system goes live. The employees who are going to use
the new system are identified. Their current skills are noted and they are divided into groups
bases on the current skill levels. Then each group is given traning ont eh new system. This training
is very important as the success of the ERP system is in the hands of the end-user. So, these
training sessions should give the participants an overall view of the systems and how each
persons actions affect the entire system.

5. Evaluation and Retirement Phase

Once the implementation is over, the vendor and the hired consultants will go. To reap the fruit of
the implementation it is very important that the system has wide acceptance. There should be
enough employees who are trained to handle problems those crops up time to time. The systems
must be updated with the change in technology. The post implementation will need a different set
of roles and skills than those with less integrated kind of systems. At a minimum, everyone who
uses these systems needs to be trained on how they work, how they relate to business process
and how a transaction ripples through the entire company whenever they press a key.

11. ERP MODULES

Human Resource
Inventory

Sales & Marketing

Purchase

Finance & Accounting

 Customer Relationship Management(CRM)

Engineering/ Production

Supply Chain Management (SCM)

Each component mentioned above is specialized to handle defined business processes of

organization. Let us go through the introduction of the various modules.

Human Resource Module(HR):

Human Resource module helps to HR team for efficient management of human resources.
HR module helps to manage employee information, track employee records like
performance reviews, designations, job descriptions, skill matrix, time & attendance
tracking. One of the important sub module in HR module is Payroll System which helps to
manage salaries, payment repots etc. It can also includes Travel Expenses &
Reimbursement tracking. Employee Training tracking can also managed by ERP.

Inventory Module:
Inventory module can be used to track the stock of items. Items can be identified by
unique serial numbers. Using that unique numbers inventory system can keep track of
item and trace its current location in organization.
e.g. you have purchased 100 hard disk , so using inventory system you can track how
many hard disks are installed , where they are installed, how many hard disks are
remaining etc.

Inventory module includes functionalities like inventory control, master units , stock
utilization reporting etc.

There may be integration of inventory module with purchase module of ERP.

Sales Module :
Typical sales process includes processes like Sales queries & enquiry analysis & handling,
quotation drafting, accepting sales orders, drafting sales invoices with proper taxation,
dispatch/Shipment of material or service, tracking pending sales order . All these sales
transactions are managed by sales module of ERP. CRM module can take help of Sales
module for future opportunity creation & lead generation.

Purchase Module:

As name indicates, purchase modules take care of all the processes that are part of
procurement of items or raw materials that are required for organization. Purchase
module consist of functionalities like supplier/vendor listing, supplier & item linking,
sending quotation request to vendors, receiving & recording quotations, analysis of
quotations, preparing purchase orders, tracking the purchase items, preparing GRNs(Good
Receipt Notes) & updating stocks & various reports . Purchase module is integrated with
Inventory module & Engineering/production module for updating of stocks.

Finance & Accounting module:

Whole inflow & outflow of money/capital is managed by finance module. This module
keeps track of all account related transactions like expenditures, Balance sheet, account
ledgers, budgeting, bank statements ,payment receipts, tax management etc. Financial
reporting is easy task for this module of ERP. Any Financial data that is required for running
business is available on one click in Finance module.

Customer Relationship Management (CRM) module:

CRM department is helps to boost the sales performance through better customer service
& establishing the healthy relationship with customers. All the stored details of customer is
available in CRM module.
CRM module helps to manage & track detailed information of the customer like
communication history ,calls, meetings, details of purchases made by customer, contract
duration etc. CRM module can be integrated with Sales module to enhance sales
opportunities.

Engineering / Production module:

Production module is great help for manufacturing industry for delivering product.

This module consist of functionalities like production planning, machine scheduling, raw
material usage,(Bill of material)preparation, track daily production progress production
forecasting & actual production reporting.

Supply Chain Management (SCM):

SCM module manages the flow of product items from manufacturer to consumer &
consumer to manufacturer.

Common roles involved are manufacturer, Super Stockiest, Stockiest, distributors, retailers
etc. SCM involves demand & supply management , sales returns & replacing process,
shipping & transportation tracking etc.

Today many SMBs face challenges in their process automation. ERP is the great help for
such organizations. ERP can efficiently streamline the business operations of organization.
Above introduction of modules can help you to choose & customize the ERP modules
depending on your organizations requirements.