Hages Business Solutions Pvt. Ltd.

ERP Effectiveness Program

Get Ready To Get Better.
Objectives

The participants will be able to:

Recognize the evolution of ERP solutions.

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Appraise the concept, benefit and use of ERP solution.
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Define the SAP R/3 Overview.
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Agenda
Today¶s
Today¶s Challenge
Challenge

How to re-invent a company and provide

the necessary information systems
support in a timely fashion?
A company losing a rupee a minute with
poor information systems can gain ten
rupees a minute with whiz bang
information systems«..
Current Scenario

Islands of information

Current Situation: Standalone Solutions

Current Scenario

Heterogeneous Hardware & Software platforms & practices

"Floating" Applications
Current Scenario

Difficult to get timely & accurate information

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Poor connectivity between different organizational locations
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Sticking with obsolete technology
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Resist to change
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Lack of proven man-power to develop integrated software
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Current Business Challenge

You may be thinking about your business performance,

and have concerns like:
How quickly is an invoice raised following the dispatch of an order?

Are salaries and bonuses related to sales performance?

Are marketing activities targeted to responsive potential markets?

Are sales people monitored and measured in line with your business goals?
Business Environment

The only thing that¶s constant is CHANGE

Organizations must continually change to:
stay competitive
improve productivity
cut costs
improve customer service
improve quality
reduce time to market
optimize inventories

Take right decision at the right time

Agenda
Agenda
What is ERP?
ERP Evolution

1960-70's MRP
Inventory and process time reduction with new
production planning systems
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1980's MRP II
Greater reductions due to the integration with
accounting and human resource systems
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1990's ERP
Focused on clients. Real time transactions. Asset management
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2000's ERP Extended or ERP II
Focused on clients, optimizing the whole business network;
including suppliers and clients
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ERP Evolution
Functional Evolution
Major players in ERP
Market Share of various ERP Package
Kick ± Start ERP

¾ Adequate funds
¾ Top management support
¾ Identify core project team and manager
¾ Select analysts and specialists from all functional areas
¾ Select appropriate ERP package that meets business requirements
¾ Evaluate implementation partner
¾ Jointly make implementation plan
¾ Employee cooperation and involvement
Implementation Time Frame

¾ Time for implementation depends on:

¾ size of the company
¾ complexity of business processes
¾ number of modules
¾ number of locations
¾Various implementation approaches are:
¾ big bang
¾ module wise
¾ location wise

Average implementation time for a pilot project takes 6 to 8 months

How can ERP improve business
process of companies?

¾ Automatic routing of information to different departments

¾ Good solution for better project management

¾ Automatic introduction of latest technologies

¾ Faster customer order realization, hence better customer service

¾ Flexible to customize software according to the company¶s business
¾ Automatic shipping decisions
¾ Inventory optimization and visibility
¾ Integrated planning
How is ERP received
in Manufacturing Industry
How is ERP received
in Manufacturing Industry
 Factors to make ERP project successful

1. Focus on business processes and requirements first.

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2. Focus on achieving a healthy ERP ROI (Return on Investment), including
post- implementation performance measurement.
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3. Strong project management and resource commitment
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4. Commitment from company executives.
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5. Take time to plan up front.
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6. Ensure adequate training and change management.
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7. Make sure you understand why you're implementing ERP.
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Benefits of a
ERP
ERP

¾ Easy to use
¾ Readymade solution for business processes - only customization
is required
¾ Functional integration
¾ Return on Investment (ROI) earlier than that for in-house
developed software
¾ Reduced dependency on human resources
¾ Online link between suppliers and customers

¾ Guaranteed innovation

¾ Automatic adaptation to new technologies

 Why to Implement ERP During the
Economic Downturn

1. Reduce total cost of ownership.

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2. Increase revenues.
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3. Increase productivity.
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4. Improve business process efficiency.
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5. Ability to choose from multiple ERP delivery options.
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6. Scale for growth and economic recovery.
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7. Leverage available resources.
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8. Prepare for mergers and acquisitions.
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9. Force management to focus on benefits realization.
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10. Increase rationalization of ERP investments.
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Agenda
What is SAP?

SAP Stands for Systems, Application, Products in Data Processing.

‡ German-based software company

‡ Founded in 1972

To track and manage, in real-time, sales, production, finance, accounting and

human resources in an enterprise.
Characteristics of SAP

¾ Incorporates 37 years of experience with international orientation

¾ Rich in functionality and highly configurable
¾ Tight integration across modules

¾ Minimum
¾ Advanced data redundancy,
planning maximum data consistency
and optimization
 SAP Three-Tier Computer Hierarchy
SAP Three-Tier Computer Hierarchy
SAP Application Modules
Integration
1 to 2 months

2 to 3 months

3 to 4 months

1 to 2 months

1 to 2 months
Agenda
Major Customers
Customer ofofSAP
SAP- -Kerala
Kerala
Major PSU Customers of SAP
Hages Business Solutions Pvt. Ltd.

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