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PROJECT REPORT
                            ON
                    ERP SUCCESS




SUBMITTED BY: -                       SUBMITTED TO:-


SURAJEET SINGH                    Prof- Kapil Mohan Garg




                      SESSION: 2011-2013

              INSTITUTE OF TECHNOLOGY &SCIENCES

                       GHAZIABAD U.P.



                              1
Abstract
ERP (Enterprise Resource Planning ) comprises of a commercial software package that promises
the seamless integration of all the information flowing through the company–financial,
accounting, human resources, supply chain and customer information” (Davenport, 1998). Much
has been written on implementation of Enterprise Resource Planning (ERP) in organizations of
various sizes. The literature is replete with many cases studies of both successful and
unsuccessful ERP implementations. Research on the implementation of ERP in certain European
countries shows that, the job of implementing an ERP is a riskier business for Small and
medium-size enterprises (SMEs) than for Large Enterprises (LEs), still SMEs have been
receiving lesser focus from the software vendors and consultants than LEs (Shanks et al.,2000).
There have been very few empirical studies that attempt to delineate the critical success and
failure factors that drive the success and failure of ERP implementation at Indian SMEs. Much of
the time, ERP software vendors and consultants are the targets for blame when anticipated
results do not materialize. Are the ERP vendors and consultants that sold the software the real
culprits for the lack of business performance improvement


Enterprise solutions provide a centralized framework for all data and processes of an
organization. It integrates all aspects of a business from planning to inventory control,
manufacturing, sales, marketing, finance, customer service and human resources. A significant
part of our service portfolio is our customized ERP solutions. The SAP business and MS
dynamics NAV services provided by us include: software licensing, data migration,
implementation, support, consultancy and training. We deploy resources on integrated teams that
work with our clients to undertake complex enterprise transformation efforts. Selection of the
three organizations is based on the need to collect detailed data about the ERP implementation
process in each organization. In all the three industries, questionnaires were sent to 600 end-
users. A total of 202 questionnaires taken for analysis have shown that the first three dominant
success factors of TI InfoTech, BPCL and ITTI are related to the quality dimensions, suggesting
that the success of implementing ERP system is largely determined by the quality dimensions.
Thus the technological newness was the most important factor in determining the quality of the
system.




                                               2
Introduction

Enterprise resource planning (ERP), client/server applications for managing accounting,
manufacturing, distribution, and human resources, are the de facto backbone of business
intelligence. However, while many organizations consider the introduction or enhancement of an
ERP solution, the significant and well publicized challenges associated with ERP
implementations often daunt them. According to Gartner Group, "…for 40 percent of enterprises
deploying ERP or ERP II systems through 2004, the actual time and money they spend on these
implementations will exceed their original estimates by at least 50 percent (.07 probability).
Many enterprises have suffered spectacular project failures due to unplanned or under planned
implementation projects."

Reliably predicting implementation costs and the time required for implementation are two key
outcomes of successfully planning an ERP initiative. Organizations must be able to accurately
predict costs, resources, and requirements, and develop a plan of attack both before the
implementation begins and throughout the project.

While ERP implementation horror stories highlight serious business consequences and criticize
leading ERP vendors for botched deployments, often the software giants are not to blame.
Companies must realize that ERP systems are not a standalone solution, but instead an enabling
technology to support a broad corporate change and the key to a successful deployment is in the
process.

Organizations must broaden their perspective in order to put their ERP efforts back on a
successful path. Too many overlook a critical stage: New business processes must be established,
thought through, and implemented before the selection, purchase, and deployment of a software
solution. As more organizations worldwide choose to build their corporate knowledge base
around complex infrastructure solutions, the need to understand how to successfully implement
an ERP system has become increasingly important.

Organizations today are constantly in search for ways to achieve better business performance and
sustain competitive advantages through effective deployment of resources and business
processes. To improve business performance, organizations require an efficient planning and



                                               3
control system that synchronizes planning of all processes across the organization. The key to
competitiveness lies in a solid information system (IS) infrastructure seamlessly aligned with
core business processes developed for the delivery of high quality products and services to
customers within the optimal time. These demands have prompted more firms to shift their IS
strategies from developing in-house information systems to purchasing application software,
such as ERP systems, to generate synergies and enhance operating efficiency (Hong & Kim,
2002). However, scarce work exists on measuring success for an ERP system. Although it is very
important to evaluate the success offer implementation projects since a lot of financial and
human resources are invested (Bradford andSandy,2002) reported that 57% of the interviewed
companies launched no assessments on the performance of ERP systems owing to lack of
empirically effective evaluation models. Information systems (IS) success is one of the most
widely used dependent variables in information systems research. Not surprisingly, much
attention has been given to how best to measure it (De Lone & McLean, 1992). This research
accordingly attempts to propose success model former systems and to empirically investigate the
multidimensional relationships among the success measures. Additionally, three case firms
among the success measures are also empirically tested. Enterprise solutions provide a
centralized framework for all data and processes of an organization. It integrates all aspects of
business from planning to inventory control, manufacturing, sales, marketing, finance, customer
service and human resources. A significant part of our services portfolio is our customized ERP
solutions (Debone & McLean, 2003). At Irion, we provide cost-effective enterprise solutions that
are developed and customized keeping in mind the individual requirements of clients and their
areas of operation. Our process experts will evaluate every detail and thoroughly assess each
option that they draw for your organization. Our enterprise solutions enable the integration of all
business activities of an organization thereby improving operational efficiency. The SAP
business one and MS dynamics NAVservices provided by us include: software licensing, data
migration, implementation, support, consultancy and training. We deploy resources on integrated
teams that work with our clients to undertake complex enterprise transformation efforts.




                                                4
5
ERP market growth in India



ERP market in India steadily growing for the last few years and the main reason for this
enormous growth can be attributed to the inability of order system to manage the conversion to
year 2000. There are also other factors such as industry best practices, easy and faster
implementation and good cost predictions.

Another factor behind the growth is that already existing clients acquire more licenses and
modules. The number of employees using the ERP system is increasing and the ERP clients who
have started with the basic modules are going for subsequent applications. There is also a trend
to replace customized system with standard application packages, like an ERP system.

India is expected to present ERP suppliers an important marketplace as manufacturing
companies are significantly investing in technology solutions to improve their manufacturing
operations.

According to observation made by some experts in the field, the ERP market started showing
solid organic growth since 2004 as IT spending improved.

The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 during the
period of 2004-2009. The market was $83 million in 2004, and is projected to be over $250
million in 2009, according to a research report.

The report further clarifies that manufacturers in India are increasingly implementing ERP
solutions to ensure that decision makers have the required information visibility across the value
chain.

Majority of Indian manufacturers are small by global standards, requiring easy-to-use ERP
solutions to meet their specific process requirements, including localization needs to address the
continually evolving tax and statutory requirements. Small and medium enterprises across
industry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles, are
leveraging ERP solutions to gain sustainable competitive advantages.




                                                   6
BARRIERS TO SUCCESS


Typically, there are three process barriers that prevent many ERP implementations from being
successful. These barriers result in an elongated development cycle with poorly defined and
managed requirements and, as a result, poorly defined measures of success. The implementation
team often is tasked with chasing a series of fluid requirements, no process for managing
changes to the project scope, and a false belief that technology alone will prevail. These
teams are, without fail, disappointed with the results.

Specifically, the three most common mistakes of ERP implementations are the following:


Focusing on technology: The technology "silver bullet" approach is one sometimes sold by
vendors. However, there is no evidence anywhere in the history of IT that software alone will
solve a business problem.

Ignoring the importance of requirements definition: Organizations too often ignore the need
to define an optimal process and then use the technology as an enabler for the process. In too
many instances, organizations either try to adopt a process that is inherent in the ERP
solution, even if it does not fit their business requirements, or they try to shoehorn their
legacy processes into a software package that is not designed to support their processes. In
both cases, they sub optimize the capabilities in the technology and don't take advantage of
the opportunity to streamline their business process the entire point of technology implemen -
tations.

Jumping from the requirements definition to the development phase: Pressed to deliver
systems against predefined timelines that don't take into account all of the necessary
implementation steps, organizations often rush the process, neglecting to build both a solid
implementation plan and solid agreement across the organization as to what it will take to
develop and implement the solution before implementing the technology.




                                               7
THE IMPORTANCE OF ENTERPRISE RESOURCE PLANNING

ERP is a Rising Need of Enterprises. is a strategic tool helping an organization to gain and edge
over its competitors by helping in successfully integrating its key business operations,
synchronizing, planning and optimizing the resources available in the existing extremely
competitive environment.

Its use has a much broader scope in today's world rather than of just planning the use of the
enterprise resources. Organizations (especially those which are borderless) face many difficulties
in quickly making out the information required. The integration of the business processes
improves coordination between bodies, streamlines workflows and processes and benefits them
in terms of retaining and satisfying customers by delivering their orders "just-in-time" and
keeping them well informed about their orders' current status rather than keeping them waiting
for just a small piece of information. ERP has the effect of making an enterprise more time-
sensitive. Another benefit is of better marketing opportunities. ERP penetrates one segment after
the other and addresses solutions to many debacles existing in an enterprise.

Different ERP systems have been made to facilitate organizations in Enterprise Resource
Planning. Leading ERP giants making ERP systems are Microsoft, Oracle, PeopleSoft and JD
Edwards, SAP AG etc. These systems link the order, inventory, sales, purchase, manufacturing,
supply chain and warehouse management modules in an enterprise for better, fast and accurate
information availability to every single person which is its 'primary objective' because every
single operation and action taken at any place by any person depends on consistent and updated
information availability. Whatever a person needs can be immediately accessed by him subject to
the delegated authority. ERP function has thus helped individuals.

They also enhance management decision making by making future projections about sales during
a certain period of a certain product. Management would then be able to make decisions whether
to increase/decrease production of that particular product which in turn would help save
resources from being wasted which could be used for other purposes e.g for making other
products. They also help managers make decisions about introducing some new value added
features to an existing 'hot-demand' product to enhance sales further. This is how product quality




                                                8
is also enhanced. Inventory costs reduction must be given a great importance in every
organization. ERP helps reduce inventory costs by better planning and forecasting of
requirements. ERP system helps getting higher return on investments (ROI) in a fast manner.

While there are absolute benefits, an ERP system also poses significant challenges in the areas of
information security and business continuity planning. Above mentioned things point to a very
critical step, the right choice of an ERP for your enterprise! Off all the ERP systems exiting in
the market, all seem to be performing the same function but the one best suiting your
requirements needs to be picked up in order to achieve required results. The choice depends upon
the structure and type of the organization e.g financial, manufacturing etc. This is why some
organizations experience higher benefits as compared to others because they've made the right
choice and are able to make the right use of their system.

One of the most powerful advantages to ERP is the implementation of software. Even though
Y2K didn't become the disaster that many people expected, it gave rise to the concept of making
sure software was properly implemented. In addition to dealing with software issues, ERP can
also help companies integrate their operations. At the same time, it is important to realize that
there are a number of challenges involved with utilizing ERP. Perhaps one of the greatest of
these challenges is cost. Enterprise Resource Planning tools are outside the price range of many
organizations.

It is important to understand that ERP tools must be customized to meet the needs of the
company. In most cases, it will not be useful when it first purchased. Each company has unique
needs, and ERP tools must be able to meet them. A number of companies run into problems
when they attempt to customize the software.

To summarize, ERP has a great importance and ERP systems have become the biggest need of
today's organizations to survive. They provide tremendous benefits provided the Critical Success
Factors of ERP system implementation are kept in mind.




                                                9
Indian ERP system best suited for Indian industries

Enterprise Resource Planning (ERP) Solution software should address all the needs of an
enterprise within the social context of the country in which the enterprise operates. This would
imply that the local accounting practices, locally applicable taxation laws are fully adhered to in
implementing the various business processes.

Many imported ERP software systems must incorporate India specific features before
implementation as per the specifications of its client, where as an Indian ERP solution has
already been programmed to take care of the national industry's interest.

Another feature of an India-made ERP like resource ERP software system is its design. It has
been designed to cater the need of the Indian users with fully knowing their working
environment and requirements.

Industries also consider easy accessibility to their solution providers while choosing the right
ERP for their enterprises. It also to be noted that eresourceInfotech serves all our customers
equally, unlike some overseas vendors who have a strategy to serve only large clients.

Cost factor also stands as one of the reasons why Indian ERP solution is best suited for Indian
industries. Many a time the huge cost involved in it scares away industries from implementing
ERP solution, depriving the benefits the system could offer. To overcome this precarious
scenario, e-resource ERP has introduced an affordable ERP, keeping in mind the Indian
industries, specially the small and medium scale enterprises.




TI InfoTech: TI InfoTech is an information technology company in Noida, New Delhi, India. It
specializes in Reimplementation for SAP B1 and oracle E-business suite. For tour and travel
companies we have ERP "travel assist" and XML integrated online booking engine. This
industry offer offshore custom software development for websites, portals, SEO activity, IT
infrastructure consultancy and hosting solutions for websites and emails. It has expertise in




                                                10
industry like travel tour, trading, manufacturing, wholesale distributions, logistic service
providers, FMCG, chemical, automotive and pharmaceuticals.



BPCL: In November 2001, Bharat Petroleum Corporation Limited (BPCL), a leading player in
the Indian petroleum industry, successfully implemented an enterprise resource planning (ERP).
Implementation    began    in   April2000   after   the   company decided      to   integrate   all
itsactivitiesthrough the ERP package SAP R/3 the Company hoped to speed up its decision-
making and respond faster to customer needs through ERP. The intention was to show the
differentiation in service, retain customers and help increase the business of its industrial and
commercial (I&C) customers BPCL also wanted to increase its retail thrust by exploiting IT
initiatives to them maximum.


ITTI: (formerly, Innovation Technology Transfer India) is system integrator and software
services company with core competence in the areas of enterprise business solutions (ERP
implementation & support, business intelligence solutions and business integration
projects);application development & maintenance services and infrastructure management
services. ITTI have significant domain expertise in the manufacturing vertical (discrete &process
industries), as well as CPG, retail, automotive, Parma, cement and engineering industry verticals.
ITTI Project teams provide world-class consulting and software services with the objective of
building enduring relationships with our customers. Based on the leading edge CMMI
(Capability maturity model integration)SW model and ISO 9001:2008 standards, our multi-
shore delivery capabilities have further enhanced the value add that our customer’s experience,
in their engagements with ITTI.




                                               11
Exclusive for Indian manufacturers

An affordable ERP for SMEs
In a move to assure small business customer in India implements ERP solution, e-resource ERP
has come out with an ERP exclusively for Indian manufacturers. E-resource ERP iSE, an ERP
for Small and Medium Enterprises is affordable, quick to implement and enabling the SME to
focus on growth and improving their business rather than worrying about software.

E-resource ERP for SME is designed to provide the small and medium enterprises to implement
a suitable resource planning which will guarantee a return on investment, thus making it to grow
their business beyond their expectations and margins.

EresourceInfotech so far implemented ere source ERP for SME module nearly in 25 customer
locations and our client list is growing more and more by day, which indicates the growing
popularity of this software.

The key operational factor for SME is to increase operation efficiency, reduce cost of production,
supply chain management and deliver product to customer. The major obstacle for the SMEs is
the cost element associated with ERP implementation, which are usually very expensive. Ere
source ERP is priced at cheaper and be afforded by even very small industrial units.

Moreover, the differentiating factor is that ere source ERP is modular with regard to pricing.
Resources ERP comprises of modules, such as:

      Sales and Distribution module

      Purchase and Supplier Module

      Inventory and Material Management Module

      Production and Shop Floor Management Module

      Total Quality management

      Excise management

      Accounts and Finance Management

      Human Resource Management



                                               12
Ere source ERP benefits Gain Business Visibility, Get accurate, timely information, Make
better business decisions

   Increase Operational efficiency

   Gain Business Visibility

   Improve Customer Relationship

   Streamline Production and Planning

   Optimize IT Investments

   Comply with Regulations

   Cut Costs

   Bring product to market sooner

   Monitor and control and expenses

   Reduce errors

   Get accurate, timely information

   Support your changing needs

   Get a complete view of your business

   Make better business decisions

   Deliver the right product at the right time

   Keep customer promises

   Ability to modify/configure statutory changes

   Reduced product cost, reduced expediting

   Improved closure rates, Increased market share

   Improved sales and opportunity visibility better customer relationships, lower customer
    service costs

   Global reach, better inventory visibility, reduced distribution costs, higher




                                             13
The 'flexible' attitude of users hampering ERP success in India

Success of ERP performance is directly proportional to the adherence to standard operating
procedures. However, we find that very common complaint against ERP is its rigid structure and
disciplined standard operating procedures. Often there are ridiculous demands and expectations
from users, which are conflicting with standard operating procedures. Hence ERP is either
blamed or made to fail. When the user says he wants flexibility in ERP, actually he wants the
official allowance to deviate from standards set for value generation. The repercussions of such
flexibility are tremendous, including the loss of value.

For example, here goes a typical style of customer negotiations. The sales people of a
manufacturing company arbitrarily fixed unit price and raised sales orders against customers.
After physical material dispatches, suddenly the customer started negotiating with sales and the
rates were changed. The sales person then wanted to pass these entries in ERP. No good system
will support such incongruous requirements. Here, the user wants flexibility in addressing these
issues from ERP and also expected that everything should happen automatically. To settle and
account for such changes, one has to pass a number of reverse entries in ERP.

Unfortunately, some consulting companies charge extra from clients for automating such absurd
provisions. The same thing happened with the above company also and they landed up with 'auto
reverse entry module' supporting the existing system. More ironically, this feature of ERP soon
became so popular that the company asked a similar module for purchase transactions. The
ultimate chaos is always observed in finance and costing modules where multiple figures of
profits, inventory values, sales income, taxes, etc. linked to the same transaction are found.
Nobody could really gather any meaningful information from such sets of data over a period of
time. At the end the user gets flexibility and the organization gets punishment.

There are also some cases where flexibility going to the extent of unethical business practices
and in such cases illegal transactions can also be carried out.

Here is one peculiar requirement that once observed from a user. He asked for various options of
selecting report sizes (A3 or A4) to use with different printers for printing the same reports. ERP
was expected to be flexible enough to accommodate multiple report sizes based on printer



                                                 14
selection. The same user never used in his earlier tenure any computerized output and did not
even know how to load paper into printer.

The major flexibility expected by Indian ERP users can be summarized as "I want to do
transactions any way, later on it should get corrected." Hence we find demand of provisional
entries, temporary databases, notional requirements, etc. The fundamental principle of ERP is
doing right things right at first time is not understood and deviations are expected to be
regularized. We find many of such cases, ultimately making ERP as unused ornament lying in
the bank locker.


Familiar Interfaces
It is important that systems are easy to navigate for people who may use them only occasionally
as well as for power users. Information workers today spend a large portion of their workday
using their e-mail applications, probably the most widely deployed applications in the world.
Messages from co-workers, customers and suppliers constantly flow through e-mail inboxes.
Rather than jump from an ERP system to e-mail, it’s simpler if business applications not only
look and feel like e-mail but are actually integrated with it. A familiar interface enables workers
to feel comfortable with an application immediately. And since industry analysts agree that one
of the biggest costs involved in implementing new ERP systems is training, which often equals
or exceeds the cost of the actual software purchase, eliminating the need for some training can
speed up the implementation time frame dramatically, leading to faster ROI and time to benefit
from the ERP investment.


Confident Decision Making:
One of the lesser-known disadvantages of earlier generations of ERP is that software rarely
communicated information to users about upcoming problems, unless the user was savvy enough
to ask the right question at the right time. If the user was lucky or smart enough to stumble on a
problem, deciding how to solve it was more often a matter of intuition than data analysis. The
tools available were simply too slow and cumbersome, especially as the pace of business got
faster and faster. Data warehouses and other analytical tools usually rely on periodic updates,
forcing users to work with less-than-current data. Disparate systems often yield conflicting




                                                15
information. No wonder most manufacturers ran by the seat of their pants. They simply had no
tools.
Today it’s possible for analytics engines to be embedded in applications or in the IT stack.
Engines can access information from multiple disparate systems instantly and present the user
with up-to-date information in a graphical format. Some engines and search tools can combine
both structured data, like that found in ERP databases, and unstructured data, like that found in
documents like contracts or RFPs (requests for proposal), to present the user with an immediate
and complete picture.




                                               16
ERP systems improve company's business performance

Enterprises Resource Planning (ERP) solution enables the task involved in performing a business
process quickly and efficiently.

With ERP, when a customer service representative takes an order from a customer, he or she has
all the necessary information to complete the order. Everyone else in the company sees the same
computer screen and has access to the single database that holds the customer's new order. As
and when a department completes their work with the order, it is automatically routed via the
ERP system to the next department for the next process.

The order can be tracked any time of point by any department by logging into the system.
The order process moves so quickly through the organization, and customers get their orders
faster and with fewer errors than before. ERP can extent that application to the other major
business process, such as employees' benefits or financial reporting.

The entire gamut of ERP activities are summarized below:

      ERP facilitates a company-wide integrated Information Systems covering all functional
       areas such as manufacturing, sales and distribution, accounts, payables, receivables,
       inventory, human resources. Etc.
      ERP integrates and automates most business processes and share information enterprise-
       wide in real-time, thereby improving customer service and the corporate image.
      ERP provides complete integration of the system not only across departments but also
       across companies under the same management.
      ERP bridges information gaps across a company and focuses on key issues such as
       productivity enhancement, customer service, cash management, inventory, quality control
       and prompt delivery. Etc.
      ERP is the solution for better project management.
      ERP provides business intelligence tools like decision support system, executive
       information system, reporting, data-mining, early-warning system, enabling people to
       make better decisions and improve business processes.




                                                17
   ERP not only addresses the current requirements of the company but also provides an
       opportunity for improvement and refinement in the business process on a continuous
       process




                      BPR plays a critical role in ERP implementation

Processes, organization, structure and information technologies are the key components of BPR,
which automates business processes across the enterprise and provides an organization with a
well-designed and well-managed information system. While implementing ERP, the
organizations have two options to consider.

Either the organization must reengineer business processes before implementing ERP or directly
implement ERP and avoid reengineering.

In the first option of reengineering business processes, before implementing ERP, the
organization needs to analyze current processes, identify non-value adding activities and
redesign the process to create value for the customer, and then develop in-house applications or
modify an ERP system package to suit the organizations requirements. In this case, employees
will develop a good sense of process orientation and ownership.This would also be a customized
solution keeping with line of the organization's structure, culture, existing IT resources,
employee needs and disruption to routine work during the change programmer likely to be the
least. It could have a high probability of implementation. The drawback of this option is that the
reengineered process may not be the best in the class, as the organization may not have access to
world-class release and best practices. Moreover, this may be the only chance to radically
improve in the near future and most attention should be paid while choosing the right ERP. Also,
developing an in-house application or implementing a modified ERP is not advisable.

The second option of implementing ERP package is to adopt ERP with minimum deviation from
the standard settings. All the processes in a company should conform to the ERP model and the
organization has to change its current work practices and switch over to what the ERP system
offers. This approach of implementation offers a world-class efficient and effective process with
built-in measures and controls, and is likely to be quickly installed. But if the employees do not



                                               18
have good understanding of their internal customer needs or current processes, or if these
processes are not well defined and documented, then it is quite possible that while selecting the
standard process from the ERP package, employees may not be able to perceive the difficulties
likely to be encountered during the implementation stage. Employees would lack process
ownership and orientation. Other than technical issues, issues like organization structure, culture,
lack of involvement of people etc. can lead to major implementation difficulties, and full benefits
of standard ERP package may not be achieved. It may lead to a situation where the organization
may have to again reengineer its processes. This could be a very costly mistake.

There is also a third option of reengineering business process during implementation of ERP. But
it does not considered to be a practical option and is likely to cause maximum disruption to
existing work. It should not be forgotten that during BPR and ERP initiatives, routine work is
still to be carried out and customers need to be served.




                                                19
Difference between MRP software and MRP module of ERP

Material Requirement Planning, popularly known as MRP, was developed during 1960s. This
was a proactive manner of inventory management. This technique fundamentally explodes the
end product demand obtained from the 'Master Production Schedule' (MPS) for a specified
product structure (which is taken from Bill of Material) into a detailed schedule of purchase
order or production orders, taking into account the inventory on hand.

MRP is a simple logic but the magnitude of data involved in a realistic situation makes it
computationally cumbersome. If undertaken manually, the entire process is highly time
consuming. It therefore becomes essential to use a computer to carry out the exercise.

MRP successfully demonstrated its effectiveness in reduction of inventory; production and
delivery lead times by improving coordination and avoiding delays, thus making commitment
more realistic. MRP proved to be a very good technique for managing inventory, but it did not
take into account of other resources of an organization. Due to this shortcoming a modified MRP
logic, popularly known as 'closed loop MRP' has been developed. A new module called Capacity
Requirement Planning (CRP) has been incorporated in this. This module manages the capacity of
the organization to produce a particular product. A feedback loop is provided from the CRP
module to MPS if there is not enough capacity available to produce.

Later the need was felt to integrate the financial resource with the manufacturing activities. From
this evolved an integrated manufacturing management system called Manufacturing Resources
Planning (MRP II).

The shortcomings MRP-II and the need to integrate these new techniques, led to the
development of a total integrated solution called Enterprise Resource Planning (ERP), which
attempts to integrate the transactions of suppliers and customers with the manufacturing and
service environment of the organization to produce the best possible plan. Today there are
further development in the ERP concept and evolution of Web-enabled ERP.




                                                20
Why should choose e-resource for ERP solution?

E-resource ERP solutions are designed to seamlessly integrate personnel, processes, applications,
and data across an enterprise, enabling the organization to streamline its operations and support
business growth. Our integration solutions help organizations place information in the hands of
those who need it, ensuring optimal relations with customers, partners, employees, and suppliers.

Ere source offers range of ERP services with respect to enterprise solution to organization.
Irrespective of ERP brand, be it, ere source OR SAP or Oracle or any other ERP brands in the
world, ere source renders services for complete Enterprise implementation life cycle,

      Selection of ERP vendor

      Risk Analysis & Mitigation Plan

      Pre Implementation Approach

      Project Management and Monitoring

      ERP Training and Implementation

      Operational Audit

      Post Implementation Audit

      Measuring Range compatibility and ROI

We work with you jointly to deliver the most favorable ERP solution for your organization, to
help you further maximize your return on the investment.

Ere source ERP, India's leading ERP solution provider offers a centralized framework to
integrate and automate all business processes of an establishment with the aim of increasing
operational efficiency and improving the accessibility and flow of information across all
departments. Availability of timely information combined with a flexible framework enable
organizations to respond and adapt quickly to the changing marketplace and business
environment in a more efficient manner, which obviously results in good ROI (Return on
Investment).




                                               21
Our list of services also includes training of employees on the use of the system and post
implementation support and maintenance services.

The five main reasons to choose ere source ERP solution are:

1. OPERATIONAL EFFICIENCY:

Automates all business and functional processes thereby increasing overall operational
efficiency.

2. CUSTOMER SATISFACTION:

E-resource ERP solution help in enhancing internal business processes and enables organizations
to improve customer satisfaction.

3. EASY ACCESS:

Our web-based ERP solution enables easy accessibility and availability of timely information,
which results in better decision making and forecasting.

4. FLEXIBILITY:

E-resource ERP packages have a flexible and scalable structure thereby enabling organizations to
adapt and cater to future business expansions and requirements.

5. COST-EFFECTIVE:

E-resource ERP for Small and Medium Enterprises is affordable, quick to implement thus
enabling the SMEs to focus on growth and improvement of their business rather than worrying
about software. And over and above, eresourceInfotech work with you jointly to deliver the most
favorable ERP solution for your organization, to help you further maximize your return on the
investment.




                                               22
Business benefit from ere source ERP

We are sure that the impact of implementation of ere source ERP would be visible in your
business within a short period. One of our objectives is to provide the Indians SMEs with a
home-grown ERP solution which they could afford and bring the desired benefit in their business
quickly. ere source ERP software has been designed and developed accordingly.

The added feature of ere source ERP is its quick implementation process. It is race against time
and money for many of Indian SMEs and by fully understanding this situation, ere source ERP
has introduced our Guaranteed On-Time Implementation offer.

Ere source offers a full refund for any implementation fees where the agreed-upon ERP go live
date is delayed, provided the customer meets all defined milestone deliverables on time. Ere
source is the only ERP solution provider that has earned extremely high marks from all their
existing customers for its customer support.




                                               23
Customer Relationship Management

For accomplishing desired success, organizations continuously strive for increased sales
performance, superior customer service and enhanced customer relationship management.

To achieve these objectives you need solutions that provide rapid access to centralized customer
information. You should also be able to access detailed and up-to-date communication history to
foster customer and prospect relationships, close sales and streamline all customer contact
activities.

Ere source ERP offers consistent and readily available customer and prospect data, allowing you
to manage pre-sales activities, perform automated sales processes, deliver consistent customer
service, evaluate sales and service successes and identify trends, problems and opportunities.

Benefits at a glance

       Interaction with other areas of the system, gives you a 'clear' view of the customer

       Maximizing opportunities and retaining high value customers enhances revenue and
        profit.

       Provides value-added services enable you to stay ahead of your competitors.

       Improves product development and service delivery processes

       Prepare your personnel with in-depth knowledge of the customer's needs

       Organizes the customer experience through quick problem resolution

       Easy re-run of customer information over and over again

Successful customer interaction

The ere source ERP CRM module helps you know your customer better and includes many
features such as activities, history, related contacts, addresses of your customers and their
relations with your competitors. The flexible database structures enables you whatever
information you would like to keep on your customer and maintains such information for your
future reference.




                                                24
The e-resource ERP CRM module also facilitates control and organization of entire sales
process, from offer to invoice. It empowers your sales staff by providing details such as
inventory status, estimated costs and delivery time, risk status, habits and special demands, and
previous trades during offer stage.

The e-resource ERP CRM module offers an effective customer complaint management tool
which also includes repairs processing and document management.




                                               25
The key to manufacturing ERP success

The enterprise applications space in India has been in a state of flux since it first made its
presence felt. Over the last only some years there has been a clearer understanding of the critical
business advantage it can provide. A recent Gartner report that delved into the relevance and
utility of enterprise applications stated that such applications can no longer be providing mere
expediency in existing business process, but rather, they need to have an inherent analytic
capability to effect business change. Obviously, USEFULNESS or USABILITY is driving the
adoption of ERP solutions. Today, the Rs 321 crore Indian enterprise solutions market is
undergoing a fundamental change in terms of the value proposition it represents and also in the
vendors’ approach toward selling these solutions. This change is reflected in increasing adoption
not just by large IT savvy companies, but also those in the SMB segment.

To begin to define usability, it is best to start with the anticipated benefits such software
solutions can deliver. A software solution that scores high in usability will shorten
implementation time frames and reduce the amount of training required to go live, in turn
enabling a faster return on investment and delivering benefits more quickly. Such a system will
result in a lower total cost of ownership, is likely to change and grow with your company, allows
for easy upgrades and interoperability, and makes it much less likely that it will need to be
replaced to enable future business processes.

Software vendors are adept at making their ERP look user-friendly. Carefully scripted and well-
prepared demos can mask the more cumbersome aspects of day-to-day business processes.
Selection committees are not usually made up of people who process transactions all day, so
extra screens, background processes or required keystrokes may go unnoticed. And matching up
the software business flows with your in-house business processes doesn’t really tell you
anything about the system’s ability to support your future needs. Even a hands-on session won’t
help you make the right choice in this crucial decision.




                                                26
Conclusion

The first three dominant success factors of TI InfoTech, BPCL and ITTI are related to the quality
dimensions, suggesting that the success of implementing ERP system is largely determined by
the quality dimensions. The results indicated that technological newness was the most important
factor in determining the quality of the system. System quality, such as performance, flexibility
of changes, response time and ease of use, is a technical issue. This result confirmed
conventional wisdom that the pursuit of state of-heart technology is a risky proposition. In
addition, different aspects of system quality, such as response time, ease of use, system
reliability, and flexibility of the system have been examined by IS researchers. Most of these
measures are fairly straightforward, reflecting the more engineering (technical) oriented
performance characteristics of the system. Researchers found that these engineering-oriented
performance measures were significantly related to technical-related issues of the proposed
projects. This paper proposed a success model and empirically tested the relationships between
variables. In summary, this research discovered that system quality and service quality are
important dimensions for measuring post-implementation ERP success. Service quality and
system quality dimensions play more important roles than their information quality counterpart
in terms of influencing ERP benefit of use and user satisfaction.

It’s rare today that a company has no IT systems in place, so it’s important to select applications
that run on industry-standard platforms so that applications can easily interoperate. Investigating
the technology that surrounds required business functionality can be even more important than
the functionality itself. After all, it’s relatively easy to add new features to a system.




                                                  27
Bibliography


   Bradford M and Sandy R (2002) Realizing value in ERP. J. Cost Management. 13–19.
   http://www.indjst.org/8A5EC6EC-FCAE-44AB-AAC3-
    72E488574AC6/Final Download/Downloaded-
    B04D8E3B616BAFF6197566069D4A0896/8A5EC6EC-FCAE-44AB-AAC3-
    72E488574AC6/archive/vol.3.issue.9-10/oct10seetharam-9.pdf
   http://www.eresourceerp.com/ERP-success-in-India.html
   http://www.academictutorials.com/erp/erp-analysis.asp




                                          28

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Project report erp success

  • 1. PROJECT REPORT ON ERP SUCCESS SUBMITTED BY: - SUBMITTED TO:- SURAJEET SINGH Prof- Kapil Mohan Garg SESSION: 2011-2013 INSTITUTE OF TECHNOLOGY &SCIENCES GHAZIABAD U.P. 1
  • 2. Abstract ERP (Enterprise Resource Planning ) comprises of a commercial software package that promises the seamless integration of all the information flowing through the company–financial, accounting, human resources, supply chain and customer information” (Davenport, 1998). Much has been written on implementation of Enterprise Resource Planning (ERP) in organizations of various sizes. The literature is replete with many cases studies of both successful and unsuccessful ERP implementations. Research on the implementation of ERP in certain European countries shows that, the job of implementing an ERP is a riskier business for Small and medium-size enterprises (SMEs) than for Large Enterprises (LEs), still SMEs have been receiving lesser focus from the software vendors and consultants than LEs (Shanks et al.,2000). There have been very few empirical studies that attempt to delineate the critical success and failure factors that drive the success and failure of ERP implementation at Indian SMEs. Much of the time, ERP software vendors and consultants are the targets for blame when anticipated results do not materialize. Are the ERP vendors and consultants that sold the software the real culprits for the lack of business performance improvement Enterprise solutions provide a centralized framework for all data and processes of an organization. It integrates all aspects of a business from planning to inventory control, manufacturing, sales, marketing, finance, customer service and human resources. A significant part of our service portfolio is our customized ERP solutions. The SAP business and MS dynamics NAV services provided by us include: software licensing, data migration, implementation, support, consultancy and training. We deploy resources on integrated teams that work with our clients to undertake complex enterprise transformation efforts. Selection of the three organizations is based on the need to collect detailed data about the ERP implementation process in each organization. In all the three industries, questionnaires were sent to 600 end- users. A total of 202 questionnaires taken for analysis have shown that the first three dominant success factors of TI InfoTech, BPCL and ITTI are related to the quality dimensions, suggesting that the success of implementing ERP system is largely determined by the quality dimensions. Thus the technological newness was the most important factor in determining the quality of the system. 2
  • 3. Introduction Enterprise resource planning (ERP), client/server applications for managing accounting, manufacturing, distribution, and human resources, are the de facto backbone of business intelligence. However, while many organizations consider the introduction or enhancement of an ERP solution, the significant and well publicized challenges associated with ERP implementations often daunt them. According to Gartner Group, "…for 40 percent of enterprises deploying ERP or ERP II systems through 2004, the actual time and money they spend on these implementations will exceed their original estimates by at least 50 percent (.07 probability). Many enterprises have suffered spectacular project failures due to unplanned or under planned implementation projects." Reliably predicting implementation costs and the time required for implementation are two key outcomes of successfully planning an ERP initiative. Organizations must be able to accurately predict costs, resources, and requirements, and develop a plan of attack both before the implementation begins and throughout the project. While ERP implementation horror stories highlight serious business consequences and criticize leading ERP vendors for botched deployments, often the software giants are not to blame. Companies must realize that ERP systems are not a standalone solution, but instead an enabling technology to support a broad corporate change and the key to a successful deployment is in the process. Organizations must broaden their perspective in order to put their ERP efforts back on a successful path. Too many overlook a critical stage: New business processes must be established, thought through, and implemented before the selection, purchase, and deployment of a software solution. As more organizations worldwide choose to build their corporate knowledge base around complex infrastructure solutions, the need to understand how to successfully implement an ERP system has become increasingly important. Organizations today are constantly in search for ways to achieve better business performance and sustain competitive advantages through effective deployment of resources and business processes. To improve business performance, organizations require an efficient planning and 3
  • 4. control system that synchronizes planning of all processes across the organization. The key to competitiveness lies in a solid information system (IS) infrastructure seamlessly aligned with core business processes developed for the delivery of high quality products and services to customers within the optimal time. These demands have prompted more firms to shift their IS strategies from developing in-house information systems to purchasing application software, such as ERP systems, to generate synergies and enhance operating efficiency (Hong & Kim, 2002). However, scarce work exists on measuring success for an ERP system. Although it is very important to evaluate the success offer implementation projects since a lot of financial and human resources are invested (Bradford andSandy,2002) reported that 57% of the interviewed companies launched no assessments on the performance of ERP systems owing to lack of empirically effective evaluation models. Information systems (IS) success is one of the most widely used dependent variables in information systems research. Not surprisingly, much attention has been given to how best to measure it (De Lone & McLean, 1992). This research accordingly attempts to propose success model former systems and to empirically investigate the multidimensional relationships among the success measures. Additionally, three case firms among the success measures are also empirically tested. Enterprise solutions provide a centralized framework for all data and processes of an organization. It integrates all aspects of business from planning to inventory control, manufacturing, sales, marketing, finance, customer service and human resources. A significant part of our services portfolio is our customized ERP solutions (Debone & McLean, 2003). At Irion, we provide cost-effective enterprise solutions that are developed and customized keeping in mind the individual requirements of clients and their areas of operation. Our process experts will evaluate every detail and thoroughly assess each option that they draw for your organization. Our enterprise solutions enable the integration of all business activities of an organization thereby improving operational efficiency. The SAP business one and MS dynamics NAVservices provided by us include: software licensing, data migration, implementation, support, consultancy and training. We deploy resources on integrated teams that work with our clients to undertake complex enterprise transformation efforts. 4
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  • 6. ERP market growth in India ERP market in India steadily growing for the last few years and the main reason for this enormous growth can be attributed to the inability of order system to manage the conversion to year 2000. There are also other factors such as industry best practices, easy and faster implementation and good cost predictions. Another factor behind the growth is that already existing clients acquire more licenses and modules. The number of employees using the ERP system is increasing and the ERP clients who have started with the basic modules are going for subsequent applications. There is also a trend to replace customized system with standard application packages, like an ERP system. India is expected to present ERP suppliers an important marketplace as manufacturing companies are significantly investing in technology solutions to improve their manufacturing operations. According to observation made by some experts in the field, the ERP market started showing solid organic growth since 2004 as IT spending improved. The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 during the period of 2004-2009. The market was $83 million in 2004, and is projected to be over $250 million in 2009, according to a research report. The report further clarifies that manufacturers in India are increasingly implementing ERP solutions to ensure that decision makers have the required information visibility across the value chain. Majority of Indian manufacturers are small by global standards, requiring easy-to-use ERP solutions to meet their specific process requirements, including localization needs to address the continually evolving tax and statutory requirements. Small and medium enterprises across industry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles, are leveraging ERP solutions to gain sustainable competitive advantages. 6
  • 7. BARRIERS TO SUCCESS Typically, there are three process barriers that prevent many ERP implementations from being successful. These barriers result in an elongated development cycle with poorly defined and managed requirements and, as a result, poorly defined measures of success. The implementation team often is tasked with chasing a series of fluid requirements, no process for managing changes to the project scope, and a false belief that technology alone will prevail. These teams are, without fail, disappointed with the results. Specifically, the three most common mistakes of ERP implementations are the following: Focusing on technology: The technology "silver bullet" approach is one sometimes sold by vendors. However, there is no evidence anywhere in the history of IT that software alone will solve a business problem. Ignoring the importance of requirements definition: Organizations too often ignore the need to define an optimal process and then use the technology as an enabler for the process. In too many instances, organizations either try to adopt a process that is inherent in the ERP solution, even if it does not fit their business requirements, or they try to shoehorn their legacy processes into a software package that is not designed to support their processes. In both cases, they sub optimize the capabilities in the technology and don't take advantage of the opportunity to streamline their business process the entire point of technology implemen - tations. Jumping from the requirements definition to the development phase: Pressed to deliver systems against predefined timelines that don't take into account all of the necessary implementation steps, organizations often rush the process, neglecting to build both a solid implementation plan and solid agreement across the organization as to what it will take to develop and implement the solution before implementing the technology. 7
  • 8. THE IMPORTANCE OF ENTERPRISE RESOURCE PLANNING ERP is a Rising Need of Enterprises. is a strategic tool helping an organization to gain and edge over its competitors by helping in successfully integrating its key business operations, synchronizing, planning and optimizing the resources available in the existing extremely competitive environment. Its use has a much broader scope in today's world rather than of just planning the use of the enterprise resources. Organizations (especially those which are borderless) face many difficulties in quickly making out the information required. The integration of the business processes improves coordination between bodies, streamlines workflows and processes and benefits them in terms of retaining and satisfying customers by delivering their orders "just-in-time" and keeping them well informed about their orders' current status rather than keeping them waiting for just a small piece of information. ERP has the effect of making an enterprise more time- sensitive. Another benefit is of better marketing opportunities. ERP penetrates one segment after the other and addresses solutions to many debacles existing in an enterprise. Different ERP systems have been made to facilitate organizations in Enterprise Resource Planning. Leading ERP giants making ERP systems are Microsoft, Oracle, PeopleSoft and JD Edwards, SAP AG etc. These systems link the order, inventory, sales, purchase, manufacturing, supply chain and warehouse management modules in an enterprise for better, fast and accurate information availability to every single person which is its 'primary objective' because every single operation and action taken at any place by any person depends on consistent and updated information availability. Whatever a person needs can be immediately accessed by him subject to the delegated authority. ERP function has thus helped individuals. They also enhance management decision making by making future projections about sales during a certain period of a certain product. Management would then be able to make decisions whether to increase/decrease production of that particular product which in turn would help save resources from being wasted which could be used for other purposes e.g for making other products. They also help managers make decisions about introducing some new value added features to an existing 'hot-demand' product to enhance sales further. This is how product quality 8
  • 9. is also enhanced. Inventory costs reduction must be given a great importance in every organization. ERP helps reduce inventory costs by better planning and forecasting of requirements. ERP system helps getting higher return on investments (ROI) in a fast manner. While there are absolute benefits, an ERP system also poses significant challenges in the areas of information security and business continuity planning. Above mentioned things point to a very critical step, the right choice of an ERP for your enterprise! Off all the ERP systems exiting in the market, all seem to be performing the same function but the one best suiting your requirements needs to be picked up in order to achieve required results. The choice depends upon the structure and type of the organization e.g financial, manufacturing etc. This is why some organizations experience higher benefits as compared to others because they've made the right choice and are able to make the right use of their system. One of the most powerful advantages to ERP is the implementation of software. Even though Y2K didn't become the disaster that many people expected, it gave rise to the concept of making sure software was properly implemented. In addition to dealing with software issues, ERP can also help companies integrate their operations. At the same time, it is important to realize that there are a number of challenges involved with utilizing ERP. Perhaps one of the greatest of these challenges is cost. Enterprise Resource Planning tools are outside the price range of many organizations. It is important to understand that ERP tools must be customized to meet the needs of the company. In most cases, it will not be useful when it first purchased. Each company has unique needs, and ERP tools must be able to meet them. A number of companies run into problems when they attempt to customize the software. To summarize, ERP has a great importance and ERP systems have become the biggest need of today's organizations to survive. They provide tremendous benefits provided the Critical Success Factors of ERP system implementation are kept in mind. 9
  • 10. Indian ERP system best suited for Indian industries Enterprise Resource Planning (ERP) Solution software should address all the needs of an enterprise within the social context of the country in which the enterprise operates. This would imply that the local accounting practices, locally applicable taxation laws are fully adhered to in implementing the various business processes. Many imported ERP software systems must incorporate India specific features before implementation as per the specifications of its client, where as an Indian ERP solution has already been programmed to take care of the national industry's interest. Another feature of an India-made ERP like resource ERP software system is its design. It has been designed to cater the need of the Indian users with fully knowing their working environment and requirements. Industries also consider easy accessibility to their solution providers while choosing the right ERP for their enterprises. It also to be noted that eresourceInfotech serves all our customers equally, unlike some overseas vendors who have a strategy to serve only large clients. Cost factor also stands as one of the reasons why Indian ERP solution is best suited for Indian industries. Many a time the huge cost involved in it scares away industries from implementing ERP solution, depriving the benefits the system could offer. To overcome this precarious scenario, e-resource ERP has introduced an affordable ERP, keeping in mind the Indian industries, specially the small and medium scale enterprises. TI InfoTech: TI InfoTech is an information technology company in Noida, New Delhi, India. It specializes in Reimplementation for SAP B1 and oracle E-business suite. For tour and travel companies we have ERP "travel assist" and XML integrated online booking engine. This industry offer offshore custom software development for websites, portals, SEO activity, IT infrastructure consultancy and hosting solutions for websites and emails. It has expertise in 10
  • 11. industry like travel tour, trading, manufacturing, wholesale distributions, logistic service providers, FMCG, chemical, automotive and pharmaceuticals. BPCL: In November 2001, Bharat Petroleum Corporation Limited (BPCL), a leading player in the Indian petroleum industry, successfully implemented an enterprise resource planning (ERP). Implementation began in April2000 after the company decided to integrate all itsactivitiesthrough the ERP package SAP R/3 the Company hoped to speed up its decision- making and respond faster to customer needs through ERP. The intention was to show the differentiation in service, retain customers and help increase the business of its industrial and commercial (I&C) customers BPCL also wanted to increase its retail thrust by exploiting IT initiatives to them maximum. ITTI: (formerly, Innovation Technology Transfer India) is system integrator and software services company with core competence in the areas of enterprise business solutions (ERP implementation & support, business intelligence solutions and business integration projects);application development & maintenance services and infrastructure management services. ITTI have significant domain expertise in the manufacturing vertical (discrete &process industries), as well as CPG, retail, automotive, Parma, cement and engineering industry verticals. ITTI Project teams provide world-class consulting and software services with the objective of building enduring relationships with our customers. Based on the leading edge CMMI (Capability maturity model integration)SW model and ISO 9001:2008 standards, our multi- shore delivery capabilities have further enhanced the value add that our customer’s experience, in their engagements with ITTI. 11
  • 12. Exclusive for Indian manufacturers An affordable ERP for SMEs In a move to assure small business customer in India implements ERP solution, e-resource ERP has come out with an ERP exclusively for Indian manufacturers. E-resource ERP iSE, an ERP for Small and Medium Enterprises is affordable, quick to implement and enabling the SME to focus on growth and improving their business rather than worrying about software. E-resource ERP for SME is designed to provide the small and medium enterprises to implement a suitable resource planning which will guarantee a return on investment, thus making it to grow their business beyond their expectations and margins. EresourceInfotech so far implemented ere source ERP for SME module nearly in 25 customer locations and our client list is growing more and more by day, which indicates the growing popularity of this software. The key operational factor for SME is to increase operation efficiency, reduce cost of production, supply chain management and deliver product to customer. The major obstacle for the SMEs is the cost element associated with ERP implementation, which are usually very expensive. Ere source ERP is priced at cheaper and be afforded by even very small industrial units. Moreover, the differentiating factor is that ere source ERP is modular with regard to pricing. Resources ERP comprises of modules, such as:  Sales and Distribution module  Purchase and Supplier Module  Inventory and Material Management Module  Production and Shop Floor Management Module  Total Quality management  Excise management  Accounts and Finance Management  Human Resource Management 12
  • 13. Ere source ERP benefits Gain Business Visibility, Get accurate, timely information, Make better business decisions  Increase Operational efficiency  Gain Business Visibility  Improve Customer Relationship  Streamline Production and Planning  Optimize IT Investments  Comply with Regulations  Cut Costs  Bring product to market sooner  Monitor and control and expenses  Reduce errors  Get accurate, timely information  Support your changing needs  Get a complete view of your business  Make better business decisions  Deliver the right product at the right time  Keep customer promises  Ability to modify/configure statutory changes  Reduced product cost, reduced expediting  Improved closure rates, Increased market share  Improved sales and opportunity visibility better customer relationships, lower customer service costs  Global reach, better inventory visibility, reduced distribution costs, higher 13
  • 14. The 'flexible' attitude of users hampering ERP success in India Success of ERP performance is directly proportional to the adherence to standard operating procedures. However, we find that very common complaint against ERP is its rigid structure and disciplined standard operating procedures. Often there are ridiculous demands and expectations from users, which are conflicting with standard operating procedures. Hence ERP is either blamed or made to fail. When the user says he wants flexibility in ERP, actually he wants the official allowance to deviate from standards set for value generation. The repercussions of such flexibility are tremendous, including the loss of value. For example, here goes a typical style of customer negotiations. The sales people of a manufacturing company arbitrarily fixed unit price and raised sales orders against customers. After physical material dispatches, suddenly the customer started negotiating with sales and the rates were changed. The sales person then wanted to pass these entries in ERP. No good system will support such incongruous requirements. Here, the user wants flexibility in addressing these issues from ERP and also expected that everything should happen automatically. To settle and account for such changes, one has to pass a number of reverse entries in ERP. Unfortunately, some consulting companies charge extra from clients for automating such absurd provisions. The same thing happened with the above company also and they landed up with 'auto reverse entry module' supporting the existing system. More ironically, this feature of ERP soon became so popular that the company asked a similar module for purchase transactions. The ultimate chaos is always observed in finance and costing modules where multiple figures of profits, inventory values, sales income, taxes, etc. linked to the same transaction are found. Nobody could really gather any meaningful information from such sets of data over a period of time. At the end the user gets flexibility and the organization gets punishment. There are also some cases where flexibility going to the extent of unethical business practices and in such cases illegal transactions can also be carried out. Here is one peculiar requirement that once observed from a user. He asked for various options of selecting report sizes (A3 or A4) to use with different printers for printing the same reports. ERP was expected to be flexible enough to accommodate multiple report sizes based on printer 14
  • 15. selection. The same user never used in his earlier tenure any computerized output and did not even know how to load paper into printer. The major flexibility expected by Indian ERP users can be summarized as "I want to do transactions any way, later on it should get corrected." Hence we find demand of provisional entries, temporary databases, notional requirements, etc. The fundamental principle of ERP is doing right things right at first time is not understood and deviations are expected to be regularized. We find many of such cases, ultimately making ERP as unused ornament lying in the bank locker. Familiar Interfaces It is important that systems are easy to navigate for people who may use them only occasionally as well as for power users. Information workers today spend a large portion of their workday using their e-mail applications, probably the most widely deployed applications in the world. Messages from co-workers, customers and suppliers constantly flow through e-mail inboxes. Rather than jump from an ERP system to e-mail, it’s simpler if business applications not only look and feel like e-mail but are actually integrated with it. A familiar interface enables workers to feel comfortable with an application immediately. And since industry analysts agree that one of the biggest costs involved in implementing new ERP systems is training, which often equals or exceeds the cost of the actual software purchase, eliminating the need for some training can speed up the implementation time frame dramatically, leading to faster ROI and time to benefit from the ERP investment. Confident Decision Making: One of the lesser-known disadvantages of earlier generations of ERP is that software rarely communicated information to users about upcoming problems, unless the user was savvy enough to ask the right question at the right time. If the user was lucky or smart enough to stumble on a problem, deciding how to solve it was more often a matter of intuition than data analysis. The tools available were simply too slow and cumbersome, especially as the pace of business got faster and faster. Data warehouses and other analytical tools usually rely on periodic updates, forcing users to work with less-than-current data. Disparate systems often yield conflicting 15
  • 16. information. No wonder most manufacturers ran by the seat of their pants. They simply had no tools. Today it’s possible for analytics engines to be embedded in applications or in the IT stack. Engines can access information from multiple disparate systems instantly and present the user with up-to-date information in a graphical format. Some engines and search tools can combine both structured data, like that found in ERP databases, and unstructured data, like that found in documents like contracts or RFPs (requests for proposal), to present the user with an immediate and complete picture. 16
  • 17. ERP systems improve company's business performance Enterprises Resource Planning (ERP) solution enables the task involved in performing a business process quickly and efficiently. With ERP, when a customer service representative takes an order from a customer, he or she has all the necessary information to complete the order. Everyone else in the company sees the same computer screen and has access to the single database that holds the customer's new order. As and when a department completes their work with the order, it is automatically routed via the ERP system to the next department for the next process. The order can be tracked any time of point by any department by logging into the system. The order process moves so quickly through the organization, and customers get their orders faster and with fewer errors than before. ERP can extent that application to the other major business process, such as employees' benefits or financial reporting. The entire gamut of ERP activities are summarized below:  ERP facilitates a company-wide integrated Information Systems covering all functional areas such as manufacturing, sales and distribution, accounts, payables, receivables, inventory, human resources. Etc.  ERP integrates and automates most business processes and share information enterprise- wide in real-time, thereby improving customer service and the corporate image.  ERP provides complete integration of the system not only across departments but also across companies under the same management.  ERP bridges information gaps across a company and focuses on key issues such as productivity enhancement, customer service, cash management, inventory, quality control and prompt delivery. Etc.  ERP is the solution for better project management.  ERP provides business intelligence tools like decision support system, executive information system, reporting, data-mining, early-warning system, enabling people to make better decisions and improve business processes. 17
  • 18. ERP not only addresses the current requirements of the company but also provides an opportunity for improvement and refinement in the business process on a continuous process BPR plays a critical role in ERP implementation Processes, organization, structure and information technologies are the key components of BPR, which automates business processes across the enterprise and provides an organization with a well-designed and well-managed information system. While implementing ERP, the organizations have two options to consider. Either the organization must reengineer business processes before implementing ERP or directly implement ERP and avoid reengineering. In the first option of reengineering business processes, before implementing ERP, the organization needs to analyze current processes, identify non-value adding activities and redesign the process to create value for the customer, and then develop in-house applications or modify an ERP system package to suit the organizations requirements. In this case, employees will develop a good sense of process orientation and ownership.This would also be a customized solution keeping with line of the organization's structure, culture, existing IT resources, employee needs and disruption to routine work during the change programmer likely to be the least. It could have a high probability of implementation. The drawback of this option is that the reengineered process may not be the best in the class, as the organization may not have access to world-class release and best practices. Moreover, this may be the only chance to radically improve in the near future and most attention should be paid while choosing the right ERP. Also, developing an in-house application or implementing a modified ERP is not advisable. The second option of implementing ERP package is to adopt ERP with minimum deviation from the standard settings. All the processes in a company should conform to the ERP model and the organization has to change its current work practices and switch over to what the ERP system offers. This approach of implementation offers a world-class efficient and effective process with built-in measures and controls, and is likely to be quickly installed. But if the employees do not 18
  • 19. have good understanding of their internal customer needs or current processes, or if these processes are not well defined and documented, then it is quite possible that while selecting the standard process from the ERP package, employees may not be able to perceive the difficulties likely to be encountered during the implementation stage. Employees would lack process ownership and orientation. Other than technical issues, issues like organization structure, culture, lack of involvement of people etc. can lead to major implementation difficulties, and full benefits of standard ERP package may not be achieved. It may lead to a situation where the organization may have to again reengineer its processes. This could be a very costly mistake. There is also a third option of reengineering business process during implementation of ERP. But it does not considered to be a practical option and is likely to cause maximum disruption to existing work. It should not be forgotten that during BPR and ERP initiatives, routine work is still to be carried out and customers need to be served. 19
  • 20. Difference between MRP software and MRP module of ERP Material Requirement Planning, popularly known as MRP, was developed during 1960s. This was a proactive manner of inventory management. This technique fundamentally explodes the end product demand obtained from the 'Master Production Schedule' (MPS) for a specified product structure (which is taken from Bill of Material) into a detailed schedule of purchase order or production orders, taking into account the inventory on hand. MRP is a simple logic but the magnitude of data involved in a realistic situation makes it computationally cumbersome. If undertaken manually, the entire process is highly time consuming. It therefore becomes essential to use a computer to carry out the exercise. MRP successfully demonstrated its effectiveness in reduction of inventory; production and delivery lead times by improving coordination and avoiding delays, thus making commitment more realistic. MRP proved to be a very good technique for managing inventory, but it did not take into account of other resources of an organization. Due to this shortcoming a modified MRP logic, popularly known as 'closed loop MRP' has been developed. A new module called Capacity Requirement Planning (CRP) has been incorporated in this. This module manages the capacity of the organization to produce a particular product. A feedback loop is provided from the CRP module to MPS if there is not enough capacity available to produce. Later the need was felt to integrate the financial resource with the manufacturing activities. From this evolved an integrated manufacturing management system called Manufacturing Resources Planning (MRP II). The shortcomings MRP-II and the need to integrate these new techniques, led to the development of a total integrated solution called Enterprise Resource Planning (ERP), which attempts to integrate the transactions of suppliers and customers with the manufacturing and service environment of the organization to produce the best possible plan. Today there are further development in the ERP concept and evolution of Web-enabled ERP. 20
  • 21. Why should choose e-resource for ERP solution? E-resource ERP solutions are designed to seamlessly integrate personnel, processes, applications, and data across an enterprise, enabling the organization to streamline its operations and support business growth. Our integration solutions help organizations place information in the hands of those who need it, ensuring optimal relations with customers, partners, employees, and suppliers. Ere source offers range of ERP services with respect to enterprise solution to organization. Irrespective of ERP brand, be it, ere source OR SAP or Oracle or any other ERP brands in the world, ere source renders services for complete Enterprise implementation life cycle,  Selection of ERP vendor  Risk Analysis & Mitigation Plan  Pre Implementation Approach  Project Management and Monitoring  ERP Training and Implementation  Operational Audit  Post Implementation Audit  Measuring Range compatibility and ROI We work with you jointly to deliver the most favorable ERP solution for your organization, to help you further maximize your return on the investment. Ere source ERP, India's leading ERP solution provider offers a centralized framework to integrate and automate all business processes of an establishment with the aim of increasing operational efficiency and improving the accessibility and flow of information across all departments. Availability of timely information combined with a flexible framework enable organizations to respond and adapt quickly to the changing marketplace and business environment in a more efficient manner, which obviously results in good ROI (Return on Investment). 21
  • 22. Our list of services also includes training of employees on the use of the system and post implementation support and maintenance services. The five main reasons to choose ere source ERP solution are: 1. OPERATIONAL EFFICIENCY: Automates all business and functional processes thereby increasing overall operational efficiency. 2. CUSTOMER SATISFACTION: E-resource ERP solution help in enhancing internal business processes and enables organizations to improve customer satisfaction. 3. EASY ACCESS: Our web-based ERP solution enables easy accessibility and availability of timely information, which results in better decision making and forecasting. 4. FLEXIBILITY: E-resource ERP packages have a flexible and scalable structure thereby enabling organizations to adapt and cater to future business expansions and requirements. 5. COST-EFFECTIVE: E-resource ERP for Small and Medium Enterprises is affordable, quick to implement thus enabling the SMEs to focus on growth and improvement of their business rather than worrying about software. And over and above, eresourceInfotech work with you jointly to deliver the most favorable ERP solution for your organization, to help you further maximize your return on the investment. 22
  • 23. Business benefit from ere source ERP We are sure that the impact of implementation of ere source ERP would be visible in your business within a short period. One of our objectives is to provide the Indians SMEs with a home-grown ERP solution which they could afford and bring the desired benefit in their business quickly. ere source ERP software has been designed and developed accordingly. The added feature of ere source ERP is its quick implementation process. It is race against time and money for many of Indian SMEs and by fully understanding this situation, ere source ERP has introduced our Guaranteed On-Time Implementation offer. Ere source offers a full refund for any implementation fees where the agreed-upon ERP go live date is delayed, provided the customer meets all defined milestone deliverables on time. Ere source is the only ERP solution provider that has earned extremely high marks from all their existing customers for its customer support. 23
  • 24. Customer Relationship Management For accomplishing desired success, organizations continuously strive for increased sales performance, superior customer service and enhanced customer relationship management. To achieve these objectives you need solutions that provide rapid access to centralized customer information. You should also be able to access detailed and up-to-date communication history to foster customer and prospect relationships, close sales and streamline all customer contact activities. Ere source ERP offers consistent and readily available customer and prospect data, allowing you to manage pre-sales activities, perform automated sales processes, deliver consistent customer service, evaluate sales and service successes and identify trends, problems and opportunities. Benefits at a glance  Interaction with other areas of the system, gives you a 'clear' view of the customer  Maximizing opportunities and retaining high value customers enhances revenue and profit.  Provides value-added services enable you to stay ahead of your competitors.  Improves product development and service delivery processes  Prepare your personnel with in-depth knowledge of the customer's needs  Organizes the customer experience through quick problem resolution  Easy re-run of customer information over and over again Successful customer interaction The ere source ERP CRM module helps you know your customer better and includes many features such as activities, history, related contacts, addresses of your customers and their relations with your competitors. The flexible database structures enables you whatever information you would like to keep on your customer and maintains such information for your future reference. 24
  • 25. The e-resource ERP CRM module also facilitates control and organization of entire sales process, from offer to invoice. It empowers your sales staff by providing details such as inventory status, estimated costs and delivery time, risk status, habits and special demands, and previous trades during offer stage. The e-resource ERP CRM module offers an effective customer complaint management tool which also includes repairs processing and document management. 25
  • 26. The key to manufacturing ERP success The enterprise applications space in India has been in a state of flux since it first made its presence felt. Over the last only some years there has been a clearer understanding of the critical business advantage it can provide. A recent Gartner report that delved into the relevance and utility of enterprise applications stated that such applications can no longer be providing mere expediency in existing business process, but rather, they need to have an inherent analytic capability to effect business change. Obviously, USEFULNESS or USABILITY is driving the adoption of ERP solutions. Today, the Rs 321 crore Indian enterprise solutions market is undergoing a fundamental change in terms of the value proposition it represents and also in the vendors’ approach toward selling these solutions. This change is reflected in increasing adoption not just by large IT savvy companies, but also those in the SMB segment. To begin to define usability, it is best to start with the anticipated benefits such software solutions can deliver. A software solution that scores high in usability will shorten implementation time frames and reduce the amount of training required to go live, in turn enabling a faster return on investment and delivering benefits more quickly. Such a system will result in a lower total cost of ownership, is likely to change and grow with your company, allows for easy upgrades and interoperability, and makes it much less likely that it will need to be replaced to enable future business processes. Software vendors are adept at making their ERP look user-friendly. Carefully scripted and well- prepared demos can mask the more cumbersome aspects of day-to-day business processes. Selection committees are not usually made up of people who process transactions all day, so extra screens, background processes or required keystrokes may go unnoticed. And matching up the software business flows with your in-house business processes doesn’t really tell you anything about the system’s ability to support your future needs. Even a hands-on session won’t help you make the right choice in this crucial decision. 26
  • 27. Conclusion The first three dominant success factors of TI InfoTech, BPCL and ITTI are related to the quality dimensions, suggesting that the success of implementing ERP system is largely determined by the quality dimensions. The results indicated that technological newness was the most important factor in determining the quality of the system. System quality, such as performance, flexibility of changes, response time and ease of use, is a technical issue. This result confirmed conventional wisdom that the pursuit of state of-heart technology is a risky proposition. In addition, different aspects of system quality, such as response time, ease of use, system reliability, and flexibility of the system have been examined by IS researchers. Most of these measures are fairly straightforward, reflecting the more engineering (technical) oriented performance characteristics of the system. Researchers found that these engineering-oriented performance measures were significantly related to technical-related issues of the proposed projects. This paper proposed a success model and empirically tested the relationships between variables. In summary, this research discovered that system quality and service quality are important dimensions for measuring post-implementation ERP success. Service quality and system quality dimensions play more important roles than their information quality counterpart in terms of influencing ERP benefit of use and user satisfaction. It’s rare today that a company has no IT systems in place, so it’s important to select applications that run on industry-standard platforms so that applications can easily interoperate. Investigating the technology that surrounds required business functionality can be even more important than the functionality itself. After all, it’s relatively easy to add new features to a system. 27
  • 28. Bibliography  Bradford M and Sandy R (2002) Realizing value in ERP. J. Cost Management. 13–19.  http://www.indjst.org/8A5EC6EC-FCAE-44AB-AAC3- 72E488574AC6/Final Download/Downloaded- B04D8E3B616BAFF6197566069D4A0896/8A5EC6EC-FCAE-44AB-AAC3- 72E488574AC6/archive/vol.3.issue.9-10/oct10seetharam-9.pdf  http://www.eresourceerp.com/ERP-success-in-India.html  http://www.academictutorials.com/erp/erp-analysis.asp 28