What is ERP?
ERP is a solution, which facilitates company-wide integrated information systems, covering all functional
areas performs core corporate activities and increases customer service augmenting Corporate Image.
ERP System
Enterprise Resource Planning Serves as the information backbone for your entire business Addresses
standard business functions finance, manufacturing, logistics, accounting, human resources, etc.
Includes business management software that enables finance and human resources in a completely
integrated fashion
Timeliness, Purpose, Mode and Format, Rate, Frequency, Completeness, Reliability, Cost Benefit
Analysis, Validity, Quality, Value of Information, Management Oriented, Management Directed, Integrated,
Common Data Flows, Heavy Planning Element – 3 to 5 years, Sub-System Concept, Common Data Base,
Modular and Open, Flexibility, Comprehensive, Beyond the company, & Best Business Practices.
1. Islands of Information
2. Difficult to get timely & accurate information
3. Heterogeneous Hardware & Software platforms & practices
4. Poor connectivity between different organizational locations
5. Sticking with obsolete technology
6. Resist to change
7. Lack of proven man-power to develop integrated software
Why ERP?
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ERP and SAP - Overview
One time
At one place
At the source.
For use
In many places
At many times.
Features of ERP
1. ERP Provides Multiplatform, Multi-facility, multi mode manufacturing, multi- currency, multi tax
structure, multi lingual facilities…International Support
2. Integrated flow of data
3. Has end to end Supply Chain Management to optimize the overall demand and supply data
4. Integration of various functionalities
5. Increases customer service and thereby company’s image
6. Bridges the information gaps across organizations
7. Integrates departments and organizations too - Consolidation
8. Better Project Management
9. ERP Implementation Benefits
10. Streamlines or eliminates inefficient manual processes
13. Establishes a backbone structure that can be leveraged to handle all operational processes
14. Integrates and increases control of budgeting, planning and financial management processes
28. Presents opportunity for re-engineering with industry best practices and templates
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ERP and SAP - Overview
ERP – Expectations
Just automating the existing business practices will not help ERP to achieve the anticipated results
Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup
BPR and ERP will give way to implement new systems and the long pending improvements in the
existing systems. BPR may be time consuming but the scope can be restricted & controlled by the
Management
ERP – Options
Developing a custom-built ERP package, specific to the requirements of the organization, with the help of
the in-house IT department
OPTION 2 - BUY
Developing a custom-built ERP package, specific to the requirements of the organization, with the help of a
Software solution provider
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ERP and SAP - Overview
Leadership commitment
Communication
Full-time staff
Professional project management
Phased implementation approach
Scope management
Business transformation and change management
Job-specific end-user training
Focused issue resolution
Post implementation support
Execution phases
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ERP and SAP - Overview
1. Adapting directly, all the functions available in the ERP Product [Applicable for startup
companies]
2. Change the way the firm does the business to fit the product [Compromising]
GAP Analysis
This is the process to identity the gaps by mapping the expectations of the company with the
Capabilities of the ERP product
Directly Supported
Workaround suggested
Extension required
Change in business process – suggested
Not full supported
Manual – not under the scope of ERP
Production Phase
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ERP and SAP - Overview
Master & Control data arrival as per the Product data structures
Location & people specific roles & rights allocation for module access & security
Implementation Phase
Live run
Post-Implementation Phase
Regular monitoring
The firm & optimistic approach of the Management on adapting the ERP product driven methodologies
on customization on monetary commitments. The dedicated Team Good Training, Strict adherence to the
Project schedules, Right technical infra-structure & Change Management
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ERP and SAP - Overview
Here the whole package is designed & built by keeping a specific enterprise & its business Practices in
mind by incorporating the improvements/additions with due integration without compromising or changing
the current way of doing the business and providing flexibility to accommodate your business fluctuations
The Principle!
The best as seen elsewhere need not be the best for you. What is your best is what can be successfully
implemented
The Steps
Why?
Very economical while comparing the cost of implementing tailor-made ERP solutions
Less prone for hidden-cost hits
The company can opt for its choice of Hardware, Software & communication platforms based on
the skill availability
The company and the software vendor have the direct relationship during the project execution.
The proximity would be high & convenient.
IT department has good control over the Project
What is required only would be considered under the scope – No redundancy
The requisite flavor of E-Biz & work-flow components can be embraced towards value edition
The existing practices & applications can be tuned and linked with the proposed package
Maintenance & improvements are easy & less costly.
Even IT team can maintain the setup after getting the source code
Points of Concern
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ERP and SAP - Overview
Keys to success
SAP AG
SAP
Oracle
People soft
J.D. Edwards
Baan
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ERP and SAP - Overview
Relational Database
Defines and links thousands of tables of information.
Advantages
Consistent data
Controls data redundancy
Client/Server Software
Client
Software that can make a request
Server
Software that can that can fill a request
Three Tier
SAP Modules
1. FI Financial Acctg
2. CO Controlling
3. AM Asset Mgmt
4. PS Project System
5. WF Workflow
6. IS Industry Solutions
7. HR Human Resources
8. PM Plant Maintenance
9. QM Quality Management
10. PP Production Planning
11. MM Materials Mgmt
12. SD Sales & Distribution
ASAP METHODOLOGY
Accelerated SAP methodology is proven, repeatable and successful approach to implement SAP solutions
across industries and customer environments.
It provides content, tools and expertise from thousands of successful implementations.
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ERP and SAP - Overview
Phase 3: Realization:
The purpose of this phase is to implement all the business process requirements based on the Business
Blueprint. The system configuration methodology is provided in two work packages: Baseline (major
scope); and Final configuration (remaining scope). Other key focal areas of this phase are conducting
integration tests and drawing up end user documentation.
1. CRM
2. SCM
3. SRM
4. BIW
5. Net Weaver
6. SEM….
Build a strong cross-disciplinary team at project start-up and foster them through project completion
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