Regarding ERP, implementation process, role of a CA in an ERP environment.

1. ENTERPRISE RESOURCEENTERPRISE RESOURCE
PLANNINGPLANNING

2. OUTLINEOUTLINE
IntroductionsIntroductions
Steps To Successful ERP ImplementationSteps To Successful ERP Implementation
Challenges In ImplementationChallenges In Implementation
Role of a CA In Implementing an ERPRole of a CA In Implementing an ERP

3. WHATWHAT IS ANIS AN ERP?ERP?
ERP systems is a software solution thatERP systems is a software solution that
addresses the enterprise needs.addresses the enterprise needs.
To meet the organizational goalsTo meet the organizational goals
Tightly integrates all functions in thatTightly integrates all functions in that
organization.organization.

4. Departments
Customers
Suppliers
ERP
system
Server
Network
(data
exchange)
ERP Working Theory

5. Example: Secretary’s New
printer application
Transfer to Finance
Departmen
Transfer to Accounting
Office
Transfer to Manager
Transfer to
Accounting Office
BEFORE ERPBEFORE ERP
SYSTEMSSYSTEMS

6. AFTER ERP SYSTEMSAFTER ERP SYSTEMS

7. ERP SOFTWARE COMPANİESERP SOFTWARE COMPANİES
& MARKETSHARES& MARKETSHARES
SAP; 15,6
Peoplesoft;
4,9
Oracle ; 4,8
Baan; 3
CA; 3
JDE; 2,2
SSA; 2,1
GEAC; 2
IBM; 1,8
JBA; 1,7
Others ; 59
Software Market Share
SAP 15.6
Peoplesoft 4.9
Oracle 4.8
Baan 3.0
CA 3.0
JDE 2.2
SSA 2.1
GEAC 2.0
IBM 1.8
JBA 1.7
Others 59.0

8. WHAT DOES AN ERP DO??WHAT DOES AN ERP DO??
EgEg: IBM Storage Systems Division: IBM Storage Systems Division
Reduced time– 5 days to 5 minutesReduced time– 5 days to 5 minutes
Time to ship a replacement part – 22 to 3 daysTime to ship a replacement part – 22 to 3 days
Time to complete a credit check – 20 minutes to 3Time to complete a credit check – 20 minutes to 3
secondsseconds

9. 5 STEPS TO SUCCESSFUL ERP5 STEPS TO SUCCESSFUL ERP
IMPLEMENTATIONIMPLEMENTATION
1. STRATEGIC PLANNING1. STRATEGIC PLANNING
2. PROCEDURE REVIEW2. PROCEDURE REVIEW
3. DATA COLLECTION & CLEAN-UP3. DATA COLLECTION & CLEAN-UP
4. TRAINING AND TESTING4. TRAINING AND TESTING
5. GO LIVE AND EVALUATION5. GO LIVE AND EVALUATION

10. In Summary:In Summary:
•• Set reasonable goalsSet reasonable goals
and objectives.and objectives.
•• Make project teamMake project team
members accountablemembers accountable
for implementation.for implementation.
•• Test software acrossTest software across
departments.departments.
•• Constantly evaluate toConstantly evaluate to
maximize ROI.maximize ROI.

12. CHALLENGES INCHALLENGES IN
IMPLEMENTING IMPLEMENTING
Appropriate training is very essentialAppropriate training is very essential
Lack of proper analysis of requirementsLack of proper analysis of requirements
Lack of Support from Senior ManagementLack of Support from Senior Management
Compatibility Issues with ERP ModulesCompatibility Issues with ERP Modules
Cost OverheadsCost Overheads

13. ROLE OF A CA..ROLE OF A CA..
ERP solutions is one of the largest driversERP solutions is one of the largest drivers
of growth for businesses.of growth for businesses.
ERP Integrates various dept.ERP Integrates various dept.
CAs play a major role in implementationCAs play a major role in implementation
of an ERP solution.of an ERP solution.

14. ROLE OF A CA IN IMPLEMENTINGROLE OF A CA IN IMPLEMENTING
AN ERPAN ERP
CA plays a critical role in selectionCA plays a critical role in selection
and implementation of an ERP.and implementation of an ERP.
Involves:Involves:
1) Business Process Understanding1) Business Process Understanding
& Configuring& Configuring
• Understanding the existingUnderstanding the existing
practicespractices
• Simplifying the Processes andSimplifying the Processes and
• Automate the ProcessAutomate the Process

15. 2) Selection of an ERP:2) Selection of an ERP:
IfIf all functional aspects-all functional aspects-
-duly covered-duly covered
-fully integrated-fully integrated
-can absorb the cost-can absorb the cost
-Implementation-Implementation
-latest IT trends are covered-latest IT trends are covered
CA as a domain expert acts as a bridge betweenCA as a domain expert acts as a bridge between
the customer & software experts.the customer & software experts.

16. CA AS A CONSULTANTCA AS A CONSULTANT
Ensure compliance of Statutory AccountingEnsure compliance of Statutory Accounting
RequirementsRequirements
Maintenance of the Chart of AccountsMaintenance of the Chart of Accounts
Define control points to reduceDefine control points to reduce
erroneous transactionserroneous transactions

17. KEY ROLE PROVIDING THESEKEY ROLE PROVIDING THESE
SERVICES TO THE ERP..SERVICES TO THE ERP..
ImplementationImplementation
UpgradesUpgrades
SupportSupport
TestingTesting
Product DevelopmentProduct Development
Functional consultants expertise inFunctional consultants expertise in
Accounts and Finance.Accounts and Finance.

18. CA AS AN AUDITORCA AS AN AUDITOR
ERP emphasizes theERP emphasizes the
focus on processfocus on process
controls, to performcontrols, to perform
analytical &analytical &
compliance testingcompliance testing
and assisted auditand assisted audit
steps.steps.
Complince to taxComplince to tax
laws, AS, FRF, IC etc.laws, AS, FRF, IC etc.
Other Audit SoftwareOther Audit Software
Tools:Tools:
>>External Analysis Tool-External Analysis Tool-
IDEAIDEA
>Balance Sheet>Balance Sheet
Evaluation-BPA BaetgeEvaluation-BPA Baetge

19. CHARTERED ACCOUNTANTS' AUDITCHARTERED ACCOUNTANTS' AUDIT
TOOLSTOOLS
The new ERPs provideThe new ERPs provide
remote capability toremote capability to
access clients dataaccess clients data
from wherever youfrom wherever you
are.are.
Eg. Tally.ERP 9 - Auditors'Eg. Tally.ERP 9 - Auditors'
EditionEdition

20. CA AS A BUSINESSCA AS A BUSINESS
ADVISORADVISOR
CA as an Advisor:CA as an Advisor:
• Perform effective planningPerform effective planning
• Budget & Variance AnalysisBudget & Variance Analysis
• Timely decision makingTimely decision making

21. CA AS A CFO CA AS A CFO
Achieve their targets and goals byAchieve their targets and goals by
proper implementation of ERP systemproper implementation of ERP system
in their organization.in their organization.
Managers as representatives of the organisationManagers as representatives of the organisation
have to coordinate with ERP stakeholders' viz.,have to coordinate with ERP stakeholders' viz.,
Vendors, Consultants, Auditors etc., for a properVendors, Consultants, Auditors etc., for a proper
implementation of ERP package.implementation of ERP package.

23. CLASSIFICATION OFCLASSIFICATION OF
IMPLEMENTATION OF ERPIMPLEMENTATION OF ERP
Compliance (various L&R)Compliance (various L&R)
Process(process re-engineering,Process(process re-engineering,
IC redesigned)IC redesigned)
Access(min, adequate IC,Access(min, adequate IC,
segregation of duties)segregation of duties)

24. ERP AS A CAREER ERP AS A CAREER
New wave for a challenging career in the high-New wave for a challenging career in the high-
tech industry.tech industry.
ERP is also a highly remunerating career as aERP is also a highly remunerating career as a
consultant.consultant.
Gives you technical edge over others. It alsoGives you technical edge over others. It also
improves the overall business understanding ofimproves the overall business understanding of
various industries.various industries.
Career in ERP is a global career as there is largeCareer in ERP is a global career as there is large
demand for ERP professionals all over the worlddemand for ERP professionals all over the world
& is expected to increase.& is expected to increase.
In summary, a dream career is perhaps possibleIn summary, a dream career is perhaps possible
for all hard-working individuals, but when itfor all hard-working individuals, but when it
comes to success, there are no short cuts.comes to success, there are no short cuts.

25. Thank YouThank You
Slide 25

26. SAP -SAP -Honda, IBM, Bank of Canada, P&G (SystemHonda, IBM, Bank of Canada, P&G (System
Application & Products)Application & Products)
Peoplesoft -Peoplesoft -Adidas, Anderson Consulting, Hilton HotelsAdidas, Anderson Consulting, Hilton Hotels
Oracle -Oracle -CBS, Nike, Kodak, Toronto Dominion BankCBS, Nike, Kodak, Toronto Dominion Bank
Baan -Baan -MercedezMercedez
CACA (Winman CA ERP)(Winman CA ERP)
JDE-JDE-Harley Davidson (JD Edwards)Harley Davidson (JD Edwards)
SSASSA ((SSA Global)SSA Global)
GEACGEAC ((Geac Computer Corporation)Geac Computer Corporation)
IBMIBM ((International Business Machines )International Business Machines )
JBA (JBA (global supplier of ERP)global supplier of ERP)