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    Enterprise

    Resource

    Planning

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    What is ERP

    ERP is a solution, which f acilitates company-wide integrated

    inf ormation systems, covering allf unctional areas

    per f orms core Corporate activities and

    increases customer service augmentingCorporate Image

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    In tegratio n is Key to ERP

    ERP is a way to integrate the data andprocesses o f an organization into onesingle system

    ERP systems is the use o f a uni f ieddatabase to store data f or the varioussystem modules.

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    Inf ormatio n Isla nd s

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    ERP Structure

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    Why ERP?

    F or Management to know what ishappening in the company

    One solution f or better Management F or cycle time reduction To achieve cost control & low working capital To marry latest technologies To satis f y the customers with high

    expectations

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    Evolutio n o f ERP 1960 s - Systems Just f or Inventory Control

    1970 s - MRP Material Requirement Planning(Inventory with material planning & procurement)

    1980 s - MRP II Manu f acturing Resources Planning(Extended MRP to shop f loor & distribution Mgnt.)

    Mid 1990 s - ERP Enterprise Resource Planning(Covering all the activities o f an Enterprise)

    2000 onwards ERP II Collaborative Commerce(Extending ERP to external business entities)

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    ERP Expectatio n s Integrating all the f unctions

    Integrating the systems running in all thelocations

    Transparency o f inf ormation using a singledata source across the organization

    So f tware must be responsiveModular F lexibleEasy to add f unctionalitiesProvide growth path

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    ERP Optio n s OPTION 1 MAKE [Using Internal resources]

    Developing a custom-built ERP package, speci f ic to therequirements o f the organization, with the help o f the

    in-house IT department OPTION 2 BUY Readymade)

    G oing f or Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSo f t etc.

    OPTION 3 MAKE [using External resources]

    Developing a custom-built ERP package, speci f ic to therequirements o f the organization, with the help o f aso f tware solution provider

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    ERP System Cost Compo n e n t

    So f tware Consulting Hardware Implementation

    Team Training

    Other

    30 .2%24. 1 %17 .8 %1 3.5%

    10 .9 %

    3.3%

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    Impleme n tatio n Phase(SDLC)

    .

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    Commercial ERP PackageImpleme

    nte

    d

    SAP ORACLE BAAN J.D.Edwards People So f t Other Packages

    25%1 4.2%8 .8 %7 .4%2.5%27 .3%

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    The Id eal ERP System Manu f acturing :Engineering,

    Management, Quality Control, CostManagement, Manu f acturing Process,Manu f acturing Projects

    Supply Chain Management :Inventory,Order Entry, Purchasing, Supply ChainPlanning etc.

    F inancials :G eneral Ledger, CashManagement, Accounts Payable, AccountsReceivable, F ixed Assets etc.

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    ERP Ve nd ors

    SAP (SD,MM,HRM, F I/CO,CRM,SCM,PP,QM,WMS)

    Inf or G lobal Solution :BAAN (manu f acturing, f inancial, projectestimating and management )

    Oracle : 89 % SMB Customer .People so f t

    (HRM,CRM,Manu f acturing, F inancial)

    JD Edward(HRM)

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    Compariso n :

    SAP :1 )Only 66 % SMB Customer Recommendation2)Average Vendor Support 3.4 f or SMB.

    3)Deployment time 69 % o f the SAP were on time.

    Oracle :

    1 )Only 89 % SMB Customer Recommendation2)Average Vendor Support 4. 0 f or SMB.3)Deployment time 78 % o f the Oracle were on

    time.

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    ERP Selectio n

    Check whether all f unction aspect o f thebusiness are dully covered.

    Check whether all the business f unctionand processes are f ully integrated .

    Check whether all latest IT trends arecovered.

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    ERP Markets

    India Malaysia

    Singapore South Korea Australia

    Europe Japan

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    ERP Cost

    Based on the ERP survey conducted byMeta G roup in 2 00 2, the average cost o f ERP ownership was $ 1 5 millionsranging f rom hal f millions to $3 00 millions. The average cost per user per year could be as high as $2 0 ,000 .

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    Ad va n tages o f ERP Systems

    A totally integrated system Only Customization Required The ability to easily share data across

    various departments in an organization Improved e ff iciency and productivity levels Better tracking and f orecasting Lower costs Improved customer service

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    Disa d va n tages o f ERP Systems

    Customization in many situations islimited

    The need to reengineer businessprocesses

    ERP systems can be cost prohibitive toinstall and run Technical support can be shoddy

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    .

    Thank You