Submitted To: Sir Afzal

Ahmed Enterprise
Resource
Planning (ERP)

Submitted by:
SHAYAN JAN
1747141
INTRODUCTION
Enterprise Resource Planning (ERP) is business process management software that
allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services
and human resources.
ERP software typically integrates all facets of an operation, including product
planning, development, manufacturing and sales and marketing, in a single
database, application and user interface. ERP software is considered to be a type
of enterprise application, that is software designed to be used by larger businesses
and often requires dedicated teams to customize and analyze the data and to
handle upgrades and deployment. In contrast, Small business ERP applications are
lightweight business management software solutions, often customized for a
specific business industry or vertical.
Enterprise Resource Planning (ERP) is an integrated system of Development
applications that supports and controls the internal activities of a business
enterprise. This customized system provides a well-established system of planning
resources, control of management, and control of equipment to an organization.
This unique system has provided a user friendly transaction processing models that
are co-coordinated with other activities of the enterprise and align various complex
operations of different natures to perform well.

The main function of ERP systems is its flexibility to integrate the activities of an
entire organization. This special system simplifies the hurdles of uneven flow of
information in organizations by providing information integration in each and every
department and section of the company. By using this system, a user can easily
seek information of any kind at the shortest possible time. It also facilitates end to
end business processes to communicate freely and effectively through a common
database.
HISTORY OF ERP
ERP software has its roots in the Nineties manufacturing industry, where earlier
forms of the applications were used for manufacturing resource planning (MRP)
and computer integrated manufacturing (CIM). However, ERP has grown to cover
all core functions of a business, regardless of its industry sector. As a result, both
private and public sector organizations now use ERP systems in some form or
other.

ERP IN TODAY’S WORLD

In today's world, ERP has been considered as valuable software that brings more
transparency and work efficiency in the work system. You can easily check the exact
status of everything through this system.

This system of enterprise resource planning, a user can easily carried out the
transaction and calculates its possible impact on the organization. A company into
manufacturing can really gain from this system. Through this system, proper record
maintenance of manufacturing, inventory, procurement, invoicing, and booking of
the actual sale can be recorded accurately and chances of frauds lowers down to a
great extent.
Currently, ERP systems connect all functions and areas within an enterprise, with
the sole aim being to aid managers and leaders better comprehend all animated
facets of their business, carry of effective decisions, identify opportunities with will
have a positive impact on the future viability and success of their organization.
Regardless of the usage of enterprise in its name. ERP systems are currently utilized
by companies of all sizes, small and large. Today, there are two basic kinds of ERP
systems which are used by businesses: Cloud-Based and On Premises.
On-Premise ERP - This is an ERP system installed locally into your servers and
hardware and is monitored and managed by employees in your IT department.
Cloud-Based ERP - The Cloud-Based ERP is a system that is monitored and managed
from a different location by a provider.
The Future of ERP systems
A lot of organizations are handling an increased variety of services, customer
interactions, marketing activities, and goods currently. This is going to initiate ERP
systems to get more transactions and result in businesses demanding for new ERP
systems that are cloud-oriented. Not ERP systems that are cloud-based but ERP
systems that are capable of handling cloud-based enterprises.
Also, new ERP systems will be developed increasingly on architecture featuring
innovated could design from scratch to handle the numerous computational
challenges of transacting global organizational data minute by minute. Such
platforms will consist of these traits:
1. Open APIs and micro-services for effortless extensions and integrations
2. AI engines that make up the foundation of ERP systems, enabling intelligent and
predictive solutions
3. Quick in-memory computing comprising of the capacity of processing huge
volumes of data in seconds
4. Domain models with adaptable and flexible rules that control modules
interaction and manage workflows
5. United data architecture that erases the need for individual data warehouses
and enables easy analytics access for all users.
Users of ERP systems have traditionally wasted a lot of time on resource heavy and
time-consuming operations like transaction processing in batch, periodic audits
and the process of claiming accounts. Examples of such use could be AI bots
spotting transactions which appear irregular, ones that could interest users,
transactions with incorrect values etc.
These bots could also be asked to perform certain tasks or to give information we
“What is the enterprises Quick Ratio?” this will unit site the bot to show reports
and performance cards to divulge the insights. The AI bot will also aid users to grow
their product. By learning and monitoring user’s usage of ERP software, it can easily
adjust what a user sees on his/her screen to showcase their behaviors and
preferences and make daily tasks simple. This is the future of ERP systems.
What does ERP software do?
ERP systems typically carry out financial and business planning functions, which
might formerly have been carried out by many smaller standalone applications.

Why use ERP software?

One major benefit of having a single modular ERP system is that it can unite and
link together multiple processes and parts of the business, making the business run
more efficiently. By automating various functions, you can also benefit from having,
for example, good order tracking, from acceptance through to fulfilment. In terms
of the revenue cycle, you can track invoices through to cash receipts. ERP systems
also centralize the data in one place, which can eliminate the problem of
synchronizing changes between multiple systems, and allows business managers to
get a more accurate view of the business’s information. Having a single data
repository can also lower the risk of losing sensitive data, if you use appropriate
data security and authorization.
Enterprise Resource Planning provides many benefits to business such as:
1. Enhance productivity, flexibility and customer responsiveness
By integrated core business processes together in one single application, it helps
Company maximize the efficiency of business process across the entire
organization. Plant manufacturing can produces product faster. Increase on time
delivery, Increase productivity, Increase ability to forecast demand to supplies,
Increase order capacity, and improve customer service (Customer Relationship
Management (CRM)).
2. Eliminate costs and inefficiencies
Using an ERP system to standardize business processes can dramatically improve
company’s operation. ERP enable company to manage relationship with vendor
results in lower cost for purchased items. Better resource management results in
more inventory turns and decrease the level of inefficiencies.
3. Data consistency
Because an ERP system integrates all business management functions, it decreases
level of inconsistency information from different systems. Thus, by using ERP
system, managers can gather correct information and make a right decision.
4. Extend your business using the Internet
By integrating all business functions together in one system, it increases ability of
a company to use internet as part of the business strategy. Web-enabled
technology allows you to access information, sell product, run business processes,
and communicate with customers and partners at any time and from anywhere in
the world.

Benefits of Enterprise Resource Planning.

In practical, ERP software is of great importance. This unique system helps people
to manage all the operations and activities of different departments starting from
production, distribution and accounting in just single integrated system. Also,
maintenance of single system is effective in lowering the operating costs, managing
daily management and formulating strategic planning.
There are many advantages to implementing an Enterprise Resource Planning (ERP)
software solution. Among countless other advantages, implementing ERP software
can improve productivity, increase efficiencies, decrease costs and streamline
processes, some of the benefits are:
1. Competition. It’s true that ERP software requires a major investment, but
there’s also an even bigger cost in not making the investment. While some
manufacturers choose to stick to the tried and true methods of the past,
others seek technology solutions. Manufacturers cannot afford to put off an
ERP implementation while their competition invests in ERP and starts
reaping the many benefits we’ll touch on below.
2. Efficiency. An ERP solution eliminates repetitive processes and greatly
reduces the need to manually enter information. The system will also
streamline business processes and make it easier and more efficient for
companies to collect data, no matter what department they’re working in.
3. Forecasting. Enterprise resource planning software gives your users, and
especially managers, the tools they need to create more accurate forecasts.
Since the information within ERP is as accurate as possible, businesses can
make realistic estimates and more effective forecasts.
4. Collaboration. Nobody wants to run a soloed business with each department
functioning separate from the other. Collaboration between departments is
a crucial and often necessary part of the business. With the data entered into
ERP systems being centralized and consistent, there’s no reason why
departments can’t work together. The software also touches on almost every
aspect of a business, thus naturally encouraging collaborative,
interdepartmental efforts.
5. Scalability. Did you know? Structured ERP systems allow the addition of new
users and functions to grow the initially implemented solution over time.
When your business is ready to grow or needs more resources, enterprise
resource planning software should be able to facilitate that growth.
6. Mobility. An advantage of ERP solutions like Workwise ERP software is
having access to a centralized database from anywhere you work. Home,
office, wherever, through our mobile-friendly solution and application.
7. Integrated Information. No more issues with data spread across separate
databases; all information will be housed in a single location. This means you
can integrate platforms like your CRM software with the ERP system, keeping
data consistent, accurate, and unique. Know your customer, their orders,
and your inventory, all in one place.
8. Cost Savings. With one source of accurate, real-time information, ERP
software reduces administrative and operations costs. It allows
manufacturers to proactively manage operations, prevents disruptions and
delays, breaks up information logjams and helps users make decisions more
quickly. If you’ve chosen the right solution for your business, and the right
vendor who meets your needs, you’re bound to see a powerful ROI.
9. Streamlined Processes. Manufacturing software automates business
operations cross-departmentally, providing accurate, real-time information
to everyone utilizing the solution. ERP increases efficiency and productivity
by helping users navigate complex processes, preventing data re-entry, and
improving functions such as production, order completion and delivery.
Streamlined, efficient processes throughout.
10.Reporting. ERP software helps make reporting easier and more
customizable. With improved reporting capabilities, your company can
respond to complex data requests more easily. Users can also run their own
reports without relying on help from IT, saving your users time to use toward
other projects.
11.Productivity. Save time and increase productivity levels. Sound too good to
be true? It’s not with ERP software. By having redundant processes
automated, users have more time to work on other pressing projects and
tasks. They’ll also be able to work easier since the solution was designed for
ease-of-use.
12.Regulatory Compliance. A benefit of ERP software which sometimes goes
unnoticed is how it ties well into regulatory compliance in the manufacturing
industry. Powerful ERP solutions will keep track of regulations within the
industry and monitor changes in compliance.
13.Flexibility. Modern ERP software systems are robust, flexible, and
configurable. They are not a one-size-fits-all proposition but can be tailored
to the unique needs of a business. ERP systems also can adapt to the ever-
changing needs of a growing business, ensuring you won’t have to buy a new
solution once your needs change or your business grows.
14.Customer Service. It’s easier to provide high-quality customer service using
an enterprise solution, especially when you’re using one as well-equipped as
workwise ERP. Sales and customer service people can interact with
customers better and improve relationships with them through faster, more
accurate access to customers’ information and history. You’ll also have
access to marketing automation and contact center software, ensuring your
customers are being interacted with consistently.
15.Security. Data security isn’t a worry when you have an enterprise resource
planning solution in place. A new system will improve the accuracy,
consistency, and security of data, all through built-in resources and firewalls.
Restrictions to data can also be enhanced by managers of the solution, so
you can make your own software as secure as you’d like.
The Real Role of the IT Department in an ERP
Implementation
An ERP execution isn't an IT activity. At the point when an association trusts that it
is, and tasks the IT division including programming determination to usage to
preparing to inward correspondence, it is setting itself up for ERP disappointment.
Without a doubt, the framework may get ready for action. Also, staff may really
utilize it to play out some fundamental capacities. Be that as it may, it will likely
never give the genuine operational advantages it could have and ought to have.
Also, that, my companions, is ERP System Implementation disappointment — plain
and basic.
There is no contending — nor ought to there be — that the IT office assumes an
essential job in ERP executions. These are the people who are the experts of the
specialized side of the framework, taking care of setup, customization and the
various convoluted stuff that the corporate suits have inconceivably little to do with
— and that the framework can't keep running without. Yet, an IT staff, skilled and
learned as they seem to be, ordinarily are not the operational specialists that need
to drive an ERP venture. Talking in all inclusive statements, they don't will in general
have the wide, sweeping vision of the business that a COO has. Further, they don't
will in general have the specialist to make the huge number of top-level choices
(about business process the board, about institutionalization, about streamlining)
that should be made so as to get ROI from a venture programming arrangement.
However they are very much of the time given the duties of a gigantic (and possibly
unpleasant) work: pick, execute and direct the selection of an altogether better
approach for working together. Goodness and deal with the assistance work area
too . . . you know, amid "available time."
So how the abilities of an IT division ought to be used in an ERP execution? The
following is a fractional rundown, featuring a few territories that the IT division may
almost certainly give precious knowledge into.
1. participating in ERP programming determination, including audit of the business
procedure the executives and outline documentation
2. Working with an outsider master to outline "to be" business forms against the
product to decide regions of customization
3. Helping to figure out what the association will do about the holes between its
needs and the framework's capacities
4. Working with an outsider master to execute and test the picked framework
5. Creating an arrangement to decide how the association will deal with client and
framework issues after the cutover
6. participating in the assurance of a heritage framework eliminate approach
7. Contracting with an outsider to decide a preparation technique, materials, and
so forth.
8. Determining a multi-site preparing plan
Obviously, every association is run in an unexpected way — and has distinctive
individuals, with various aptitudes, in its positions. Some IT faculty are crackerjack
stars at tasks. Furthermore, some wouldn't know an ERP framework on the off
chance that it sat on their lap. So see the above through the viewpoint of what you
think about your organization and its kin yet recall: in spite of the fact that IT
workers likely are utilitarian specialists in a significant part of the framework, they
ought not responsible for the task. That is an occupation for the official dimension,
and to imagine generally is completing a grave damage to both the gifts of the IT
division and the eventual fate of the business.
Role of Project Management in ERP.
Because ERP project generally is a big and complexity project. It requires a lot of
resource such as time, human resource, budget etc. Even though, a company has
all of the resource to implement the project, there are many factors that can lead
to project failure such as corporate culture, user resistant to change commitment
from top management etc. From “The Robbins-Giola Survey (2001)” 51 % of
surveyed companies viewed their implementation as unsuccessful. [10] An
example of company failure was Nestle. Nestle spent $200 million contact with SAP
and an additional $80 million for consulting and maintenance, but at last the
implementation was fail. Consequently, by having good project management can
help to minimize risk for project to fail and may help to reduce the chance for
delaying and over budget which are big problems in ERP project implementation.

Conceptual Components of ERP

The ERP model is consists of four components which are implemented through a
methodology. All four components are
1. The software component is the component that is most visible part and seen as
the ERP Product which is not true. It consists of several modules such as Finance,
Human resource, Supply chain management, supplier relationship management,
customer relationship, and business intelligent.
2. Process Flow is the model that illustrates the way how information flows among
the different modules within an ERP system. By creating this model makes it easier
to understand how ERP work. (See example of Process Flow diagram Appendix 1)
3. Customer mindset by implementing ERP system, the old ways for working which
user understand and comfortable with have to be changed and may lead to users’
resistance. Employee-raised facts, beliefs, and values are good indicators of what
may cause their resistance to change. For example, some users may say that they
have spent many years doing an excellence job without help from ERP system. This
is the value and belief that users have toward new ERP system. In order to lead ERP
implementation to succeed, the company need to eliminate this kind of negative
value or belief that users have toward new system. At Pratt & Whitney Canada, top
management not only provide the resource, but they also formulated a clear vision
of goals that they wished to achieve from the project. By doing so, it helped to guide
employee expectations the benefits of new system.
4. Change Management In ERP implementation, Change needs to be managed at
several levels
4.1 User attitude Resistance to change is a big problem that can lead to
project failure. If the company need to success in implementing new system, users
need to be understand what the new system is and give a commitment to new
system. By doing so, a company need to have a good management plan and
implementation.
4.2 Business process changes when new system is implements, the business
processes are also changed (Legacy systems are removed). Thus, a company should
have a plan for these changes
Customer Relationship Management (CRM)
CRM at its simplest is systems and processes for managing a company’s interactions
with current and potential customers. When we talk about CRM we usually are
talking about CRM Software. CRM software is used to organize, automate and
synchronize sales, marketing and customer service. CRM has developed to include
all areas of the customer experience, keeping the customer happy and in turn
keeping them loyal and more valuable to your business. It is the process of
identifying potential leads/prospects, nurturing them and guiding them through
the sales process to close the business. Once they are a customer it is ensuring that
you maintain that relationship and encourage repeat business either more
frequent orders or higher value.

What is the difference between ERP and CRM?

Enterprise Resource Planning (ERP) and Customer Relationship Management
(CRM) are similar in many ways, as they are both used to increase the overall
profitability of a business.
These systems overlap in some areas, and can be completely integrated in others.
However, as their core functionalities are completely different, it’s best for a
business to first look at them as separate, stand-alone systems. When viewed
separately, it’s easier to see how ERP and CRM each play a role in improving
efficiency and increasing sales.
Disadvantages of Enterprise Resource Planning.
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
o Training
o Integration
o Data analysis and conversion
 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
 Takes time to implement
 Security issues
What Is MIS?
MIS, a management information system, is a centralized database that stores
information about the company’s departments and allows managers to use this
information for managing workflow, making data-driven decisions, and generating
reports. The basic concept of MIS is to process data from an organization and
present it in form of a report in regular intervals.
The main objective of information systems implementation is to raise the
business’s income and enhance its profitability. The decisions of MIS
implementation are usually taken by chief technology/information officers. Below
are the main functions of MIS:
 Data storage. All data is collected in a database or in data files. This data is
also stored in various storage media (DVD, hard drives, etc.). Cloud-based
applications store data on virtual servers.
 Data processing. Converting all data into meaningful information is what is
called data processing. This is an important function of MIS.
 Information and data distribution. As information is the core necessity, for
achieving competitive advantage, distribution of the right information to the
right person in the right time is information distribution. The information
could be in the form of report, image, message, file, video or audio. To
facilitate comparison, information is presented in the form of charts or tables
or graphs.
 Prediction and forecasting. With the help of modern statistics, MIS can
predict business using historical data as a base.
 Planning. Reports are generated based on the enterprise’s needs. These
reports help management to plan in advance.
 Control. MIS helps in monitoring and tracking operations against
organizational plans. The deviation between the operations and the
organization plans is analyzed for exercising control.
A Relationship between ERP and MIS
Having characterized the terms of the two frameworks, we can without much of a
stretch comprehend the job of MIS in ERP. As talked about over, a venture asset
arranging arrangement is a piece of an administration data framework. The
principle contrast between the two frameworks is as per the following:
ERP is about automation of the work process and bookkeeping forms. ERP is
arranging. It dissects business and gauges improvement choices.
MIS is tied in with announcing. MIS is data. It gathers, spares, and arranges the data
from various offices in a solitary database.
MIS (Management Information System) is related directly to producing the reports
relevant to an organization at any level. Data are fed into the system by numerous
end users as compared to limited no of users in ERP. Information shared by an
individual are accessed only to the concerned person who are not authorized to
edit or change them. They can just use it to view/print in prescribed formats.
 CONCLUSION
Enterprise Resource Planning, is a cutting edge and propelled framework which
encourages huge associations to run their organization easily and proficiently. ERP
actualizes in various divisions of an association to upgrade the ability of
representatives. In the cutting edge innovation time, manual work is getting less
step by step, ERP is most fitting framework programming for working associations
in the present time. Having perceived how fundamental and urgent this business
programming is to the achievement and the executive’s limit of a venture. It is
important to recognize what ERP programming to use, that would be powerful to
the development of your business. There are an assortment of alternatives yet a
standout amongst the best business the board applications is the Sage 300 ERP. It
is an ERP framework that works adequately for medium and little size organizations
in the open part, proficient administrations, money related administrations and
fluctuating markets, for example, discount and conveyance. The ERP programming
is picked by clients because of its multi-layered and cloud-based framework which
take into account both helpful and simple access to information.