Q1. Describe different phases of ERP implementation lifecycle in details?

What are the

critical success factors?

Ans : Different phases of ERP implementation lifecycle ;(did not get this answer)

Ans : critical success factors

1) Clear understanding of strategic goals
-required Ior any IS/IT project
- scope should be clearly deIined

2) Top management commitment
- required Ior any IS/IT project
- Commitment & support required at all times

3) Project Management implementation
- Requires project management skill
- Includes accurate estimate oI Project scope, size & complexity
- Develop achievable schedules
- Convey realistic expectation to management & users

4) Great implementation team
- Relates directly to Project management
- Team needs good people
- Internal people are controllable
- Control vendors & consultants people

5) Cope with technical issues
- Technical side oI project management
- Vendor & consultant can help

6) Organizational commitment to change
- Commitment & support required at all times
- Requires people to change
- 1 or 2 years oI signiIicant change
- Organization must be committed to carry through the project

7) Extensive education & training
- Provide need training to the employees
- Tell the employees what training skill development is required to be productive

8) Data accuracy
- Relates to Internal data
- Bad data will result into major loss

9) Focused performance measures
- Concerns regarding system design
- ERP should provide reports oI all inIormation to all level oI management.

Q2.What is BPR? Different phases of BPR? Critical success factors & challenges for
successful implementation? Need for BPR? Impact of BPR on ERP?

Ans:
II you have ever waited in line at the grocery store, you can appreciate the need Ior process
improvement. In this case, the "process" is called the check-out process, and the purpose oI the
process is to pay Ior and bag your groceries. The process begins with you stepping into line, and
ends with you receiving your receipt and leaving the store. You are the customer (you have the
money and you have come to buy Iood), and the store is the supplier.
The process steps are the activities that you and the store personnel do to complete the
transaction. In this simple example, we have described a business process. Imagine other business
processes: ordering clothes Irom mail order companies, requesting new telephone service Irom
your telephone company, developing new products, administering the social security process,
building a new home, etc.
Business processes are simply a set oI activities that transIorm a set oI inputs into a set oI outputs
(goods or services) Ior another person or process using people and tools. We all do them, and at
one time or another play the role oI customer or supplier.
You may see business processes pictured as a set oI triangles as shown below. The purpose oI this
model is to deIine the supplier and process inputs, your process, and the customer and associated
outputs. Also shown is the Ieedback loop Irom customers.

$o why business process improvement?
Improving business processes is paramount Ior businesses to stay competitive in today's
marketplace. Over the last 10 to 15 years companies have been Iorced to improve their business
processes because we, as customers, are demanding better and better products and services. And
iI we do not receive what we want Irom one supplier, we have many others to choose Irom (hence
the competitive issue Ior businesses). Many companies began business process improvement with
a continuous improvement model. This model attempts to understand and measure the current
process, and make perIormance improvements accordingly.
The Iigure below illustrates the basic steps. You begin by documenting what you do today,
establish some way to measure the process based on what your customers want, do the process,
measure the results, and then identiIy improvement opportunities based on the data you collected.
You then implement process improvements, and measure the perIormance oI the new process.
This loop repeats over and over again, and is called continuous process improvement. You might
also hear it called business process improvement, Iunctional process improvement, etc.

This method Ior improving business processes is eIIective to obtain gradual, incremental
improvement. However, over the last 10 years several Iactors have accelerated the need to
improve business processes. The most obvious is technology. New technologies (like the Internet)
are rapidly bringing new capabilities to businesses, thereby raising the competitive bar and the
need to improve business processes dramatically.
Another apparent trend is the opening oI world markets and increased Iree trade. Such changes
bring more companies into the marketplace, and competing becomes harder and harder. In today's
marketplace, major changes are required to just stay even. It has become a matter oI survival Ior
most companies.
As a result, companies have sought out methods Ior Iaster business process improvement.
Moreover, companies want breakthrough perIormance changes, not just incremental changes, and
they want it now. Because the rate oI change has increased Ior everyone, Iew businesses can
aIIord a slow change process. One approach Ior rapid change and dramatic improvement that has
emerged is Business Process Reengineering (BPR).

Business Process Reengineering (BPR)
BPR relies on a diIIerent school oI thought than continuous process improvement. n the extreme,
reengineering assumes the current process is irrelevant - it doesn't work, it's broke, Iorget it. Start
over. Such a clean slate perspective enables the designers oI business processes to disassociate
themselves Irom today's process, and Iocus on a new process. In a manner oI speaking, it is like
projecting yourselI into the Iuture and asking yourselI: what should the process look like? What
do my customers want it to look like? What do other employees want it to look like? How do
best-in-class companies do it? What might we be able to do with new technology?
Such an approach is pictured below. It begins with deIining the scope and objectives oI your
reengineering project, then going through a learning process (with your customers, your
employees, your competitors and non-competitors, and with new technology). Given this
knowledge base, you can create a vision Ior the Iuture and design new business processes. Given
the deIinition oI the "to be" state, you can then create a plan oI action based on the gap between
your current processes, technologies and structures, and where you want to go. It is then a matter
oI implementing your solution.

In summary, the extreme contrast between continuous process improvement and business process
reengineering lies in where you start (with today's process, or with a clean slate), and with the
magnitude and rate oI resulting changes.
Over time many derivatives oI radical, breakthrough improvement and continuous improvement
have emerged that attempt to address the diIIiculties oI implementing major change in
corporations. It is diIIicult to Iind a single approach exactly matched to a particular company's
needs, and the challenge is to know what method to use when, and how to pull it oII successIully
such that bottom-line business results are achieved.

Impact of BPR on ERP

II poor BPR is conducted, or iI vendor system adopted without consideration oI organizational
requirements:
Will discard processes in which organization has developed competitive advantage
Even when BPR beneIicial, there will be a transition period where employee perIormance
degrades while learning new system

Phases of BPR

Begin Organizational Change
Building the Reengineering Organization
IdentiIying BPR Opportunities
Understanding the Existing Process
Reengineering the Process
Blueprint the New Business System
PerIorm the TransIormation

Phase 1 - Begin Organizational Change
Assess the Current State oI the Orgn.
Explain the need Ior change
Illustrate the desired state
Create a communication campaign Ior change
How are things currently done
What changes may be occurring
What new circumstances exist in the Business Environment
Steps
Look Ior harmIul procedures
Sources oI concern Ior the Organization
Demand is dwindling
Competitors have made signiIicant advancement in Products & Services
Is the Co. able to meet the needs oI the Market it serves
Future direction oI the Organization should be decided
Organization must turn to its people Ior change to happen





Phase 2 - Build the Reengineered Organization
Establish a BPR Organization Structure
Establish the Roles Ior perIorming BPR
Choose the Personnel who will Reengineer
Project Leader Top Level Executive
Process Owner Ior each High Level Process
The Team must be small ( 5 to 10 )
Appoint a reengineering Consultant
Some Organizations have Steering Committee

Phase 3 - Identify BPR Opportunities
IdentiIy Core / High Level Processes
Recognize potential change enablers
Select Processes to be reengineered
Prioritize selected processes
Consult customers to know their desire
Determine Customer`s needs
Establish key process characteristics

Phase 4 - Understand the Existing Process
Understand why the current steps are being perIormed
Model the current process
Understand how technology is currently used
Understand how inIormation is currently used
Understand the current Organizational Structure
Compare current processes with new objectives
Understanding current Processes Questions
Access to InIormation
Processes wasting time & eIIort e.g. Duplication
EIIectiveness oI current processes
Easy to use or not
Technology Advantages or Restrictions


Phase 5 - Reengineer the Process
Ensure the diversity oI the reengineering Team
Question current operating assumptions
Brainstorm using change levers & BPR Principles
Consider the perspective oI stakeholders
Use customer value as Iocal point
Brainstorming to create new ideas
Several jobs are combined into one
Workers make decisions
Checks & controls are reduced
Reconciliation is minimized
Processes have multiple versions
Work is perIormed where it makes most sense
Impact oI New Technologies on the Processes
ERP Systems
Internet Technologies
Distributed computing platIorms
Client / Server architectures
Groupware
WorkIlow automation technologies

Phase 6 - Blueprint the New Business $ystem
DeIine the new Ilow oI work
Model the new process steps
Determine the new Organizational structure
Determine the new technology speciIications
Describe the new values and culture required

Phase 7 - Perform the Transformation
Develop the Migration Strategy
Create the Migration Action Plan
Develop matrix Ior measuring perIormance during Implementation
Involve the impacted staII
Implement in an iterative Iashion
Establish the new orgn. Structures

Challenges in BPR

Process SimpliIication is common
Desire to change not strong enough
Start point the existing process not a Blank slate
Commitment to existing processes too strong
Quick Fix approach
Process under review too big or too small
Reliance on existing process too strong
Cost oI change seems too large
Allocation oI resources
Poor timing & planning
eeping the team & org on target

What is the Relation between BPR & Information Technology?
Hammer (1990) considers inIormation technology (IT) as the key enabler oI BPR which he
considers as "radical change." He prescribes the use oI IT to challenge the assumptions inherent
in the work processes that have existed since long beIore the advent oI modern computer and
communications technology. He argues that at the heart oI reengineering is the notion oI
"discontinuous thinking -- or recognizing and breaking away Irom the outdated rules and
Iundamental assumptions underlying operations... These rules oI work design are based on
assumptions about technology, people, and organizational goals that no longer hold." He suggests
the Iollowing "principles oI reengineering": (a) Organize around outcomes, not tasks; (b) Have
those who use the output oI the process perIorm the process; (c) Subsume inIormation processing
work into the real work that produces the inIormation; (d) Treat geographically dispersed
resources as though they were centralized; (e) Link parallel activities instead oI integrating their
results; (I) Put the decision point where the work is perIormed, and build control into the process;
and (g) Capture inIormation once and at the source.
Davenport & Short (1990) argue that BPR requires taking a broader view oI both IT and business
activity, and oI the relationships between them. IT should be viewed as more than an automating
or mechanizing Iorce: to Iundamentally reshape the way business is done.
Business activities should be viewed as more than a collection oI individual or even Iunctional
tasks: in a process view Ior maximizing eIIectiveness. IT and BPR have recursive relationship. IT
capabilities should support business processes, and business processes should be in terms oI the
capabilities IT can provide. Davenport & Short (1990) reIer to this broadened, recursive view of
% and BPR as the new industrial engineering.
Business processes represent a new approach to coordination across the Iirm; IT's promise -- and
its ultimate impact -- is to be the most powerIul tool Ior reducing the costs oI coordination
(Davenport & Short 1990). Davenport & Short (1990) outline the Iollowing capabilities that
reIlect the roles that IT can play in BPR: Transactional, Geographical, Automatical, Analytical,
InIormational, Sequential, nowledge Management, Tracking, and Disintermediation.
Teng et al. (1994) argue that the way related Iunctions participate in a process - - i.e., the
functional coupling oI a process -- can be diIIerentiated along two dimensions: degree of
mediation and degree of collaboration. They deIine the Degree of Mediation oI the process as the
extent oI sequential Ilow oI input and output among participating Iunctions. They deIine the
Degree oI Collaboration oI the process is the extent oI inIormation exchange and mutual
adjustment among Iunctions when participating in the same process. In their Iramework,
inIormation technology is instrumental in Reducing the Degree oI Mediation and Enhancing the
Degree oI Collaboration. Also, innovative uses oI IT would inevitably lead many Iirms to develop
new, coordination-intensive structures, enabling them to coordinate their activities in ways that
were not possible beIore. Such coordination-intensive structures may raise the organization's
capabilities and responsiveness, leading to potential strategic advantages.

What is the Role of the I$ Function in BPR?
Although, BPR has its roots in IT management, it is primarily a Business Initiative that has broad
consequences in terms oI satisIying the needs oI customers and the Iirm's other constituents
(Davenport & Stoddard 1994). The IS group may need to play a behind-the-scenes advocacy role,
convincing senior management oI the power oIIered by IT and process redesign. It would also
need to incorporate the skills oI process measurement, analysis, and redesign. The CIGNA IS
group had to develop a new set oI basic values that reIlected a change in Iocus Irom technology to
a Iocus on business processes and results (Caron et al. 1994). The speciIic business divisions led
the BPR initiatives; IS groups served as partners in enabling the radical changes.



BPR: All or Nothing?: Insights from CIGNA
At CIGNA BPR meant "breakthrough innovation Iocused on customer needs" (Caron et al.
1994). BPR was essentially driven by the senior management's strategic planning process that had
concluded that the mix oI business in its portIolio needed to change. It was viewed as a vehicle to
realign strategy, operations, and systems to deliver signiIicantly increased Iinancial results. Caron
et al. (1994) argue that the real liIe story oI BPR at CIGNA represents a contrast to the general
prescriptions oI "radical" "all-or-nothing" organizational transIormation. At CIGNA, BPR started
out as an experimental pilot. The knowledge Irom the success oI this initiative was disseminated
Ior implementing other BPR projects. The BPR initiative was sustained "Irom the bottom up,
with learning transIerred "across."" At CIGNA, the prerequisite Ior BPR success was a corporate
environment that promotes learning, especially learning Irom Iailure. Although, the process was
initiated Irom the top, the ownership was moved down to the people who actually had to
implement the changes and were aIIected by those changes. The BPR eIIort took into
consideration the diIIerences in management cultures in diIIerent countries. The BPR initiative
started at the operational levels and was later moved to "higher Iorms" (strategic) oI
reengineering over time.

Why BPR Projects Fail? What Can be Done about it?
70 oI the BPR projects Iail. Biggest obstacles that reengineering Iaces are: (i) Lack oI sustained
management commitment and leadership; (ii) Unrealistic scope and expectations; and (iii)
Resistance to Change.
Based on the BPR consultants' interviews, Bashein et al. (1994) outline the positive preconditions
Ior BPR success as: Senior Management Commitment and Sponsorship; Realistic Expectations;
Empowered and Collaborative Workers; Strategic Context oI Growth and Expansion; Shared
Vision; Sound Management Practices; Appropriate People Participating Full-Time (cI: CIGNA:
BPR as a way oI liIe); and SuIIicient Budget. They also identiIy negative preconditions related to
BPR as: The Wrong Sponsor; A "Do It to Me" Attitude; Cost-Cutting Focus; and, Narrow
Technical Focus. The negative preconditions relating to the Organization include: Unsound
Financial Condition; Too Many Projects Under Way; Fear and Lack oI Optimism; and,
Animosity Toward and By IS and Human Resource (HR) Specialists. To turn around negative
conditions, Iirms should: Do Something Smaller First (CIGNA's pilot); Conduct Personal
TransIormation (CIGNA's change oI mindset); and Get IS and HR Involved (CIGNA's CIO
initiated the change and HR Iactors were given due emphasis).
ing (1994) views the primary reason oI BPR Iailure as overemphasis on the tactical aspects and
the strategic dimensions being compromised. He notes that most Iailures oI reengineering are
attributable to the process being viewed and applied at a tactical, rather than strategic, levels. He
discusses that there are important strategic dimensions to BPR, notably, Developing and
Prioritizing Objectives; DeIining the Process Structure and Assumptions; IdentiIying Trade-OIIs
Between Processes; IdentiIying New Product and Market Opportunities; Coordinating the
Reengineering EIIort; and, Developing a Human Resources Strategy. He concludes that the
ultimate success oI BPR depends on the people who do it and on how well they can be motivated
to be creative and to apply their detailed knowledge to the redesign oI business processes (cI:
Davenport & Stoddard 1994, Markus et al. 1994).

Where is BPR Headed?
Over the last Iew years, the reengineering concept has evolved Irom a "radical change" to account
Ior the contextual realism (Caron et. al 1994, Earl 1994), and to reconcile with more incremental
process change methods such as TQM, towards a broader, yet more comprehensive process
management concept (Davenport 1995).
Implementation Problems
Scott & aindle |2000|: at least 20 oI needed ERP Iunctionality missing Irom vendor practices
Many reports oI missed deadlines, excessive costs, employee Irustration in ERP implementation
Taylor |1998|: need more participative design in implementing ERP
II adopt vendor system in total, can assure timely implementation within budget
Also disregard organizational needs
Training a key part oI ERP implementation


$teps in Implementing BPR strategy

1) $elect the Process and Appoint Process Team

$elect the Process
Review Business Strategy and Customer Requirements
Select Core Processes
Understand Customer Needs
Don`t Assume Anything
Select Correct Path Ior Change
Remember Assumptions can Hide Failures
Competition and Choice to Go Elsewhere
Ask - Questionnaires, Meetings, Focus Groups

Appoint the Process Team

Appoint BPR Champion
IdentiIy Process Owners
Establish Executive Improvement Team
Provide Training to Executive Team

Capacity to view the organization as a whole
Ability to Iocus on end-customers
Ability to challenge Iundamental assumptions
Courage to deliver and venture into unknown areas
Ability to assume individual and collective responsibility
Employ Bridge Builders`
Used to generate internal capacity
Appropriate when a implementation is needed quickly
Ensure that adequate consultation is sought Irom staII so that the initiative is organization-led
and not consultantdriven
Control should never be handed over to the consultant


2) Understand the Current Process..
Develop a Process Overview
Clearly deIine the process
Mission
Scope
Boundaries
Set business and customer measurements
Understand customers expectations Irom the process (staII including process team)
Clearly IdentiIy Improvement Opportunities
Quality
Rework
Document the Process
Cost
Time
Value Data
CareIully resolve any inconsistencies
Existing -- New Process
Ideal -- Realistic Process


3) Develop & Communicate Vision of Improved Process

Communicate with all employees so that they are aware oI the vision oI the Iuture
Always provide inIormation on the progress oI the BPR initiative - good and bad.
Demonstrate assurance that the BPR initiative is both necessary and properly managed
Promote individual development by indicating options that are available
Indicate actions required and those responsible
Tackle any actions that need resolution
Direct communication to reinIorce new patterns oI desired behavior


4) Identify Action Plan
Develop an Improvement Plan
Appoint Process Owners
SimpliIy the Process to Reduce Process Time
Remove any Bureaucracy that may hinder implementation
Remove no-value-added activities
Standardize Process and Automate Where Possible
Up-grade Equipment
Plan/schedule the changes
Construct in-house metrics and targets
Introduce and Iirmly establish a Ieedback system
Audit

5) Execute Plan
QualiIy/certiIy the process
PerIorm periodic qualiIication reviews
DeIine and eliminate process problems
Evaluate the change impact on the business and on customers
Benchmark the process
Provide advanced team training


Q) What is $upply Chain Management ?

What is supply chain management?
Supply chain management (SCM) is the combination oI art and science that goes into improving
the way your company Iinds the raw components it needs to make a product or service and
deliver it to customers.

The following are five basic components of SCM.
1. Plan This is the strategic portion oI SCM. You need a strategy Ior managing all the resources
that go toward meeting customer demand Ior your product or service. A big piece oI planning is
developing a set oI metrics to monitor the supply chain so that it is eIIicient, costs less and
delivers high quality and value to customers.
2. $ource Choose the suppliers that will deliver the goods and services you need to create your
product. Develop a set oI pricing, delivery and payment processes with suppliers and create
metrics Ior monitoring and improving the relationships. And put together processes Ior managing
the inventory oI goods and services you receive Irom suppliers, including receiving shipments,
veriIying them, transIerring them to your manuIacturing Iacilities and authorizing supplier
payments.
3. Make This is the manuIacturing step. Schedule the activities necessary Ior production,
testing, packaging and preparation Ior delivery. As the most metric-intensive portion oI the
supply chain, measure quality levels, production output and worker productivity.
4. Deliver This is the part that many insiders reIer to as logistics. Coordinate the receipt oI
orders Irom customers, develop a network oI warehouses, pick carriers to get products to
customers and set up an invoicing system to receive payments.
5. Return The problem part oI the supply chain. Create a network Ior receiving deIective and
excess products back Irom customers and supporting customers who have problems with
delivered products.

What does supply chain management software do?
Supply chain management soItware is possibly the most Iractured group oI soItware applications
on the planet. Each oI the Iive major supply chain steps previously outlined composes dozens oI
speciIic tasks, many oI which have their own speciIic soItware. Some vendors have assembled
many oI these diIIerent chunks oI soItware together under a single rooI, but no one has a
complete package that is right Ior every company. For example, most companies need to track
demand, supply, manuIacturing status, logistics (i.e. where things are in the supply chain), and
distribution. They also need to share data with supply chain partners at an ever increasing rate.
While products Irom large ERP vendors like SAP`s Advanced Planner and Optimizer (APO) can
perIorm many or all oI these tasks, because each industry`s supply chain has a unique set oI
challenges, many companies decide to go with targeted best oI breed products instead, even iI
some integration is an inevitable consequence.
It`s worth mentioning that the old adage about systems only being as good as the inIormation that
they contain applies doubly to SCM. II the inIormation entered into a demand Iorecasting
application is not accurate then you will get an inaccurate Iorecast. Similarly, iI employees bypass
the supply chain systems and try to manage things manually, then even the most expensive
systems will provide an incomplete picture oI what is happening in a company`s supply chain.

What is the relationship between ERP and $CM?
Many SCM applications are reliant upon the kind oI inIormation that is stored in the most
quantity inside ERP soItware. Theoretically you could assemble the inIormation you need to Ieed
the SCM applications Irom legacy systems (Ior most companies this means Excel spreadsheets
spread out all over the place), but it can be nightmarish to try to get that inIormation Ilowing on a
Iast, reliable basis Irom all the areas oI the company. ERP is the battering ram that integrates all
that inIormation together in a single application, and SCM applications beneIit Irom having a
single major source to go to Ior up-to-date inIormation. Most CIOs who have tried to install SCM
applications say they are glad they did ERP Iirst. They call the ERP projects "putting your
inIormation house in order." OI course, ERP is expensive and diIIicult, so you may want to
explore ways to Ieed your SCM applications the inIormation they need without doing ERP Iirst.
These days, most ERP vendors have SCM modules so doing an ERP project may be a way to kill
two birds with one stone. Companies will need to decide iI these products meet their needs or iI
they need a more specialized system.
Applications that simply automate the logistics aspects oI SCM are less dependent upon gathering
inIormation Irom around the company, so they tend to be independent oI the ERP decision. But
chances are, you'll need to have these applications communicate with ERP in some Iashion. It's
important to pay attention to the soItware's ability to integrate with the Internet and with ERP
applications because the Internet will drive demand Ior integrated inIormation. For example, iI
you want to build a private website Ior communicating with your customers and suppliers, you
will want to pull inIormation Irom ERP and supply chain applications together to present updated
inIormation about orders, payments, manuIacturing status and delivery.

What is the goal of installing supply chain management software?
BeIore the Internet came along, the aspirations oI supply chain soItware devotees were limited to
improving their ability to predict demand Irom customers and make their own supply chains run
more smoothly. But the cheap, ubiquitous nature oI the Internet, along with its simple, universally
accepted communication standards have thrown things wide open. Now, you can connect your
supply chain with the supply chains oI your suppliers and customers together in a single vast
network that optimizes costs and opportunities Ior everyone involved. This was the reason Ior the
B2B explosion; the idea that everyone you do business with could be connected together into one
big happy, cooperative Iamily.
OI course, reality isn`t quite that happy and cooperative, but today most companies share at least
some data with their supply chain partners. The goal oI these projects is greater supply chain
visibility. The supply chain in most industries is like a big card game. The players don't want to
show their cards because they don't trust anyone else with the inIormation. But iI they showed
their hands they could all beneIit. Suppliers wouldn't have to guess how many raw materials to
order, and manuIacturers wouldn't have to order more than they need Irom suppliers to make sure
they have enough on hand iI demand Ior their products unexpectedly goes up. And retailers
would have Iewer empty shelves iI they shared the inIormation they had about sales oI a
manuIacturer's product in all their stores with the manuIacturer. The Internet makes showing your
hand to others possible, but centuries oI distrust and lack oI coordination within industries make it
diIIicult.
Over the last Iew years most companies have gotten over the trust issue. In many cases "gotten
over" is a euphemism Ior "have been bullied into sharing supply chain inIormation Irom a
dominant industry player." Want to sell your goods in Wal-Mart? Better be prepared to share
data.
The payoII oI timely and accurate supply chain inIormation is the ability to make or ship only as
much oI a product as there is a market Ior. This is the practice known as just-in-time
manuIacturing, and it allows companies to reduce the amount oI inventory that they keep. This
can cut costs substantially, since you no longer need to pay to produce and store excess goods.

What is supply chain collaboration?
Let's look at consumer packaged goods Ior an example oI collaboration. II there are two
companies that have made supply chain a household word, they are Wal-Mart and Procter &
Gamble. BeIore these two companies started collaborating back in the '80s, retailers shared very
little inIormation with manuIacturers. But then the two giants built a soItware system that hooked
P&G up to Wal-Mart's distribution centers. When P&G's products run low at the distribution
centers, the system sends an automatic alert to P&G to ship more products. In some cases, the
system goes all the way to the individual Wal-Mart store. It lets P&G monitor the shelves through
real-time satellite link-ups that send messages to the Iactory whenever a P&G item swoops past a
scanner at the register.
With this kind oI minute-to-minute inIormation, P&G knows when to make, ship and display
more products at the Wal-Mart stores. No need to keep products piled up in warehouses awaiting
Wal-Mart's call. Invoicing and payments happen automatically too. The system saves P&G so
much in time, reduced inventory and lower order-processing costs that it can aIIord to give Wal-
Mart "low, everyday prices" without putting itselI out oI business.

What are the roadblocks to installing supply chain software?

Caining trust from your suppliers and partners.
Supply chain automation is uniquely diIIicult because its complexity extends beyond your
company's walls. Your people will need to change the way they work and so will the people Irom
each supplier that you add to your network. Only the largest and most powerIul manuIacturers
can Iorce such radical changes down suppliers' throats. Most companies have to sell outsiders on
the system. Moreover, your goals in installing the system may be threatening to those suppliers,
to say the least. For example, Wal-Mart's collaboration with P&G meant that P&G would assume
more responsibility Ior inventory management, something retailers have traditionally done on
their own. Wal-Mart had the clout to demand this Irom P&G, but it also gave P&G something in
return-better inIormation about Wal-Mart's product demand, which helped P&G manuIacture its
products more eIIiciently. To get your supply chain partners to agree to collaborate with you, you
have to be willing to compromise and help them achieve their own goals.

nternal resistance to change.
II selling supply chain systems is diIIicult on the outside, it isn't much easier inside. Operations
people are accustomed to dealing with phone calls, Iaxes and hunches scrawled on paper, and will
most likely want to keep it that way. II you can't convince people that using the soItware will be
worth their time, they will easily Iind ways to work around it. You cannot disconnect the
telephones and Iax machines just because you have supply chain soItware in place.

Many mistakes at first.
There is a diabolical twist to the quest Ior supply chain soItware acceptance among your
employees. New supply chain systems process data as they are programmed to do, but the
technology cannot absorb a company's history and processes in the Iirst Iew months aIter an
implementation. Forecasters and planners need to understand that the Iirst bits oI inIormation they
get Irom a system might need some tweaking. II they are not warned about the system's initial
naivete, they will think it is useless. In one case, just beIore a large automotive industry supplier
installed a new supply chain Iorecasting application to predict demand Ior a product, an
automaker put in an order Ior an unusually large number oI units. The system responded by
predicting huge demand Ior the product based largely on one unusual order. Blindly Iollowing the
system's numbers could have led to inaccurate orders Ior materials being sent to suppliers within
the chain. The company caught the problem but only aIter a demand Iorecaster threw out the
system's numbers and used his own. That created another problem: Forecasters stopped trusting
the system and worked strictly with their own data. The supplier had to Iine-tune the system
itselI, then work on reestablishing employees' conIidence. Once employees understood that they
would be merging their expertise with the system's increasing accuracy, they began to accept and
use the new technology.

What is the extended supply chain?
The extended supply chain is a clever way oI describing everyone who contributes to a product.
So iI you make text books, then your extended supply chain would include the Iactories where the
books are printed and bound, but also the company that sells you the paper, the mill where that
supplier buys their stock, and so on. It is important to keep track oI what is happening in your
extended supply chain because with a supplier or a supplier`s supplier could end up having an
impact on you (as the old saying goes, a chain is only a strong as its weakest link). For example, a
Iire in a paper mill might cause the text book manuIacturer`s paper supplier to run out oI
inventory. II the text book company knows what is happening in its extended supply chain it can
Iind another paper vendor.


What is the impact of globalization on the $upply Chain?
The extended supply chain is a clever way oI describing everyone who contributes to a product.
So iI you make text books, then your extended supply chain would include the Iactories where the
books are printed and bound, but also the company that sells you the paper, the mill where that
supplier buys their stock, and so on. It is important to keep track oI what is happening in your
extended supply chain because with a supplier or a supplier`s supplier could end up having an
impact on you (as the old saying goes, a chain is only a strong as its weakest link). For example, a
Iire in a paper mill might cause the text book manuIacturer`s paper supplier to run out oI
inventory. II the text book company knows what is happening in its extended supply chain it can
Iind another paper vendor.
What are some emerging technologies that will aIIect the Supply Chain?
The most notable is Radio Frequency IdentiIication, or RFID. RFID tags are essentially barcodes
on steroids. Whereas barcodes only identiIy the product, RFID tags can tell what the product is,
where it has been, when it expires, whatever inIormation someone wishes to program it with.
RFID technology is going to generate mountains oI data about the location oI pallets, cases,
cartons, totes and individual products in the supply chain. It's going to produce oceans oI
inIormation about when and where merchandise is manuIactured, picked, packed and shipped. It's
going to create rivers oI numbers telling retailers about the expiration dates oI their perishable
itemsnumbers that will have to be stored, transmitted in real-time and shared with warehouse
management, inventory management, Iinancial and other enterprise systems. In other words, it is
going to have a really big impact.
Another beneIit oI RFIDs is that, unlike barcodes, RFID tags can be read automatically by
electronic readers. Imagine a truck carrying a container Iull oI widgets entering a shipping
terminal in China. II the container is equipped with an RFID tag, and the terminal has an RFID
sensor network, that container`s whereabouts can be automatically sent to Widget Co. without the
truck ever slowing down. It has the potential to add a substantial amount oI visibility into the
extended supply chain.
Right now the two biggest hurdles to widespread RFID adoption are the cost oI building the
inIrastructure and the lack oI agreed-upon industry standards.

Q) What is CRM?

CRM stands Ior Customer Relationship Management. It is a strategy used to learn more about
customers' needs and behaviors in order to develop stronger relationships with them. Good
customer relationships are at the heart oI business success. There are many technological
components to CRM, but thinking about CRM in primarily technological terms is a mistake. The
more useIul way to think about CRM is as a strategic process that will help you better understand
your customers` needs and how you can meet those needs and enhance your bottom line at the
same time. This strategy depends on bringing together lots oI pieces oI inIormation about
customers and market trends so you can sell and market your products and services more
eIIectively.


What is the goal of CRM?

The idea oI CRM is that it helps businesses use technology and human resources to gain insight
into the behavior oI customers and the value oI those customers. With an eIIective CRM strategy,
a business can increase revenues by: providing services and products that are exactly what your
customers want ,oIIering better customer service ,cross selling products more eIIectively ,helping
sales staII close deals Iaster ,retaining existing customers and discovering new ones.
For CRM to be truly eIIective, an organization must Iirst understand who its customers are and
what their value is over a liIetime. The company must then determine what the needs oI its
customers are and how best to meet those needs. Next, the organization must look into all oI the
diIIerent ways inIormation about customers comes into a business, where and how this data is
stored and how it is currently used.






Are there any indications of the need for a CRM project?

You need CRM when it is clear you don`t have an accurate view oI who your customers are and
what their needs or desires are or will be at any given stage in their lives. II you are losing
customers to a competitor, that`s a clear indication that you should improve your understanding
oI your customers.


How much does CRM cost?

Again it depends. A hosted sales automation application can cost between $65 and $150 a month
Ior a basic sales automation package. II you want more sophisticated Iunctionality and a greater
level oI support, you pay a lot more.
An enterprise on-premise CRM package can cost anywhere between several thousand to several
millions oI dollars, depending again on how many Iunctions you purchase and how many
computers or 'seats have access to the soItware

How long will it take to get CRM in place?

It depends. II you decide to go with a hosted CRM solution Irom an application service provider
and you are planning to use the soItware Ior a speciIic department like sales, the deployment
should be relatively quick perhaps 30-90 days. However, iI you are deploying either a hosted
application or an on-premise package (involving the purchase oI soItware licenses upIront) on an
enterprise-wide basis (that involves diIIerent departments like sales, marketing and operations),
you should expect the implementation and training to take months, iI not years. The time it takes
to put together a well-conceived CRM project depends on the complexity oI the project and its
components and how well you manage the project.



What are the keys to successful CRM implentation?

Develop your customer-Iocused strategy Iirst beIore considering what kind oI technology you
need.
Break your CRM project down into manageable pieces by setting up pilot programs and short-
term milestones. Start with a pilot project that incorporates all the necessary departments but is
small enough and Ilexible enough to allow tinkering along the way.
Make sure your CRM plans include a scalable architecture Iramework. Think careIully about
what is best Ior your enterprise: a solution that ties together 'best oI breed soItware Irom several
vendors via Web Services or an integrated package oI soItware Irom one vendor.
Don't underestimate how much data you might collect (there will be LOTS) and make sure that iI
you need to expand systems you'll be able to.
Be thoughtIul about what data is collected and stored. The impulse will be to grab and then store
EVERY piece oI data you can, but there is oIten no reason to store data. Storing useless data
wastes time and money.

What causes CRM projects to fail?
Many things. From the beginning, lack oI a communication between everyone in the customer
relationship chain can lead to an incomplete picture oI the customer. Poor communication can
lead to technology being implemented without proper support or buy-in Irom users.

CRM Application components(Asked in the paper)

Contract & Accounts Management
Capture & track relevant data about every past & planned contact with prospects & customers as
well as business & liIe cycle events oI customers
$ales
Tracks business & liIe cycle events oI Customers Ior Cross & Up selling

Marketing & Fulfillment
Automate tasks such as QualiIying Leads, Managing responses, Scheduling sales contacts &
Providing InIormation to Prospects & Customers

Customer $ervice & $upport
Help Desk assists Customer Service reps in helping customers who may be having problems
with the Product or Service by providing relevant service data & suggestions Ior resolving
problems. Can quickly create, assign & manage service requests

Retention & Loyalty Programs
Costs six times more to sell to a New Customer than sell to an existing one
A dissatisIied customer will de sell by word oI mouth
A company can boost its proIits by 85 by increasing annual customer retention by 5
70 oI complaining customers will do business with the company again iI it quickly takes care
oI service problems

3 Phases of CRM ( asked in the paper)

Three Phases oI CRM

-Acquire
CRM soItware helps business to acquire its new customers by doing superior job oI Contract
Management, Sales prospecting, Selling, Direct Marketing & FulIillment

-Enhance
Enables to keep the customer happy by supporting superior service
Service Irom responsive networked team oI sales & service specialists & other business partners
SFA & Direct Marketing & FulIillment helps the company to Cross Sell & Up Sell to their
customers
Convenience oI One Stop shopping at attractive prices

Retain
Helps the company proactively identiIy & reward its most loyal & proIitable cusomers to retain
& expand their business via Targeted Marketing & Relationship Marketing programs

CRM failures
Lack oI understanding & preparation

Benefits of CRM (asked in the paper)

By streamlining processes & providing sales, marketing & service personnel with better, more
complete inIormation, CRM enables organizations to establish more proIitable customer
relationships & decrease operating costs
Sales organizations can shorten sales cycle & increase key sales perIormance metrics such as
revenue per sales rep, average order size & revenue per customer

Marketing organizations can increase campaign response rates & marketing driven revenue
while decreasing lead generation & customer acquisition costs
Customer service organizations can increase service agent productivity & customer retention
while decreasing service costs, response times & request resolution times

EIIective CRM is a strategic imperative Ior corporate growth & survival
Companies that create satisIied & loyal customers have more repeat business, lower customer
acquisition costs & stronger brand value all oI which translates into better Iinancial
perIormance

Allows business to identiIy & target their best customers, who are more proIitable to the
company, so that they can be retained as liIelong customers Ior more proIitable services
Enables real time customization & personalization oI Products & Services based on Customer
wants, needs, buying habits & liIe cycles

eeps track oI the when Customer had made contacts with the Company
Enables the company to provide consistent customer experience & superior service & support
across all contact points a customer chooses


Types/ Trends of CRM (Asked in the paper)

Operational CRM
Support customer interaction with greater convenience through variety oI channels
Synchronize customer interaction consistently across all channels
Makes your co easier to do business with

Analytical CRM

Extracts in depth customer history preIerence and proIitability inIormation Irom your DWH &
other database
Allows you to analyze , predict and derive customer value & behaviour & Iorecast demand
Lets you approach your customer with relevant inIormation & oIIers

Collaborative cRM

Enables easy collaboration with customers, supplies & partners
Improves eIIiciency & integration throughout the supply chain
Allows greater responsiveness to customer needs through sourcing oI products & services


Q . Roles of vendor, consultant & end users

Vendors are package developer. They upgrade the product regularly

Role of vendors

Supply the Product with documentation
Fix any soItware related problem
Role oI a trainer
Show how the package works
What are the major components
How data & inIormation Ilows across the system
What is Ilexible & what is not
What can be customized & what cannot be
What are the capabilities & limitations oI the package
Actual customization or modiIications

Consultants

Consultant have good product knowledge. They are good at all the phases oI implementation
cycle . The main problem is that they charge a lot. They are very expensive. SuccessIul
implementation time is between 10 to 24 months
Contract between company & consultants should have all perIormance clauses.

Role of Consultant
Guarantee success oI the project
Should show results to the satisIaction oI the company
QuantiIiable results like Reduction in Cycle time, Faster response to Customer, Improved
productivity
Help the company in saving huge amount oI money, time & eIIort
Analysis & addressing customization issues
Maintaining technical documentation
Should create knowledge base in the company
Should train the Implementation Team to do the Implementation at other sites on their own


End users & their Role

People who will be using ERP system
Old Job Descriptions will change
Nature oI jobs will undergo drastic transIormation
Resistance likely Irom the employees who have to change a lot
Employees Iear that their jobs may be become redundant
Fear oI learning
Fear oI training on a massive scale
People will be Iorced to develop new skill sets
Fears should be addressed well in advance
Creates new jobs with more responsibilities & value addition
Company should succeed in making the employees accept the new & challenging working
environment
Company should assist in transIormation
Major obstacle will be solved
Increases the chances oI successIul implementation








Q. Terms of contract signed with end user, consultants & vendors

Contract is :
Important in ERP Implementation
BeIore, during & aIter Implementation
Contracts should be signed with
Package Vendor
Hardware & peripheral vendors
Networking vendor
Consultants
Implementation Team Employees


Vendors are package developer. They upgrade the product regularly.
Contract with Package Vendor
Issues related to Source code & modiIications
Price oI the SoItware & Payment terms
List oI deliverables ( SoItware, Documentation etc.)
Conditions Ior acquiring complimentary modules in the Iuture or Ior increasing the Number oI
end users
Terms & conditions Ior customization
The proIile oI the Vendor`s team who will be assisting the company in Implementation
Any other speciIic responsibility assigned to the vendor
This is not a comprehensive list
Clauses speciIic to the company should be added

Contract with consultants

Plays a vital role in Implementation
Should make the Project a success by ensuring Implementation without time & cost overruns
Users training should be to everybody`s satisIaction
Train the Implementation Team Ior subsequent Implementation themselves
Include perIormance & penalty clauses
E.g. Agree on a completion date, budget, & projected improvements like x increase in
productivity, y reduction in response times etc.
Hold them accountable
Points to be included in the contract
ProIile oI the Consultant`s team members
Consulting Iee & payment terms
Scope oI work
Time schedule & Implementation Budget
Projected improvements in quantiIiable terms & time required Ior showing the results

Implementation Methodology
List oI deliverables ( Reports, manuals etc.)
Reporting mechanism to the Management
Project monitoring & status reporting systems
Any other speciIic activities that assigned to the consultants


Contract with End users

The end users are the employees

Employees are trained at the company`s expense
Their market value will increase exponentially once they acquire knowledge, complete the
training & participated in Implementation
They should not leave the company without any warning or alternative arrangements
Sign a contract with these employees beIore they are put on the Implementation Team & given
any training
Main Clauses oI the contract should be :
They should give enough notice to the company iI they want to leave
Train another person beIore leaving
They should not leave during Implementation
Chances oI leaving during Iirst Implementation are rare
Better to retain such employees by oIIering competitive salaries, challenging work environment
& stock options rather than enIorcing a contract
Company should trust them, keep them happy & satisIied

Q ) Change management

The change management process in systems engineering is the process oI requesting,
determining attainability, planning, implementing and evaluation oI changes to a system.

Change management is a structured approach to change in individuals, teams, organizations and
societies that enables the transition Irom a current state to a desired Iuture state.

Why change management
Myth: A great solution EIIective Project Management Project Success

Missing piece oI the equation is Change Management

Managing the human side change is the key to meeting objectives


Why change management now?
Why it has become important in recent years
More & Irequent changes
Changes are occurring at an incredible pace
Sheer quantity oI changes are increasing & are happening more Irequently & Iaster than ever
beIore
So, organizations need more structured way to manage the change
Value system oI empowerment
Organizations with empowered workIorces need to manage the human side oI change more
eIIectively
Competitive Advantage
Many sources oI competitive advantage have eroded as inIormation moves more quickly &
across the globe in seconds
In the coming years, speed & agility will be a central diIIerentiator in the market place.
Strong change management competencies within an organization are a key source oI competitive
advantage in the coming years
The more that people are aIIected by a change, the less certain is the ROI
Consequences oI poorly managed change
Productivity loss, Active resistance, passive resistance, loss oI valued employees & work
arounds.

Poor change management results in slower speed oI adoption, lower ultimate utilization & lower
proIiciency .
EIIectively managing human side oI change, can help you accelerate adoption, increase overall
participation & improve the employee beneIits & increase ROI





With reference to change management, we have looking at the checklist prespective

$ponsorship Checklist
Are they aware oI their Importance in making changes successIul
Major reason Ior success is Active & Visible Sponsorship
3 Biggest roles oI Sponsor in supporting Organizational change
Participate actively & visibly throughout the Project
Build a coalition oI sponsorship with managers & peers
Communicate eIIectively with employees
Many sponsors have moderate to poor understanding oI their roles
Two preIerred senders oI Communication
Sponsors need to communicate directly with the employees about the business reasons Ior
change, risk oI not changing & why now
Biggest mistake by sponsors was Iailing to personally engage as the sponsors oI change
Not participating throughout the entire project
Abdicating their role to lower level Managers or the Project Team
Failing to communicate the reasons Ior change with immediate employees
Project Team Iace lot oI diIIiculties when the sponsor does not engage Iully in the change
Is sponsor prepared to manage resistance
Managing resistance is the key role oI Senior Leaders, Managers & Supervisors
Sponsor needs to be prepared & ready to deal with resistance in the organization Irom other
senior & middle level managers
Sponsor need to coach senior leaders on how to identiIy root causes oI resistance & how to
manage resistance when it happens
Setting clear priorities
For all employees to get engaged in the Project, Organization must be committed to change


Planning Checklist
Structured Approach (SA)
Second major reason Ior success
SA is more eIIective & is more likely to achieve Project Objectives
Customizing change management plan
One size Iits all is ineIIective
Plan should be based on two Iactors

The speciIic characteristics oI change i.e. Type, Breadth, Size etc.
Organization that is impacted by change i.e. History, Culture etc.
Have you created an eIIective communication plan
EIIective communication plans are targeted to the audience, use a variety oI channels, provide
Ieedback & capitalize on the preIerred senders oI changed messages
Plan should architect a complete approach to ensure that the receiver understands key messages

Have you engaged managers & supervisors in the change management program ?
M & S plays a crucial role in making changes successIul
They are a preIerred senders oI messages related to how changes impact employees
They play a crucial role in identiIying & managing resistance
A complete change management approach includes a coaching plan Ior getting them involved &
supportive Ior change
Proactive & reactive resistance management strategies & Plan
Resistance management is the central component oI change management

A good change management approach includes both Proactive & Reactive
Systems to gather Ieedback & measure change adoption
SuccessIul C.M. means project meets he objectives & employees adopt the solution
How will you know iI the project is meeting objectives
Gather Ieedback Irom the employees to Iind out their position & iI they have made the personal
change successIully

ReinIorcement Mechanisms
Whether or not the change sticks
Develop ways to reinIorce the change & keep in place
Implement mechanisms to keep change in place throughout the project
Without reinIorcement mechanisms, employees will tend to revert back to the old ways oI doing
things & Iind work-arounds


Communication Checklist
Are preIerred senders used Ior Comm.
Employees preIer to hear Irom two people, the person at the top oI the change Ior business
issues & reasons Ior change & their immediate supervisors Ior personal impact oI the change

Common mistake is to have a project team or the project leader sending all comm.
Face to Iace communication
Most eIIective Iorm oI communication, even though it is more time intensive
Repeating key messages
Important to repeat key messages number oI times
Educating the communicators on how to deliver the key messages
Finding eIIective ways to reach the audience
Use numerous channels to reach employees
E.g. meetings, one on one, newsletters, presentations, brainstorming workshops, lunch & learns,
Intranet Q & A Iorums, CDs, screen saver messages etc.
creative in how you communicate & gather Ieedback Irom the employees
Evaluate the eIIectiveness oI your communication messages
Find ways to ensure that employees are hearing & interpreting your messages correctly
You should continue to correct & reIine your communication based on the Ieedback





Resistance Checklist
Expecting & planning resistance
Human resistance is natural & common
True Ior changes at home & at work
Even the change or solution is Ior the better, do not be surprised iI you experience resistance
Expect & plan resistance & identiIy steps to build buy in & commitment
Where will the resistance come Irom
Think where it will come Irom & how will you deal with it
Resistance will come Irom the groups that are heavily invested in how things are done today
Resistance can come Irom the parts that experience most drastic changes or where changes have
Iailed in the past
Proactively identiIy where it will come Irom
IdentiIy the potential risk to the project related to resistance
Risk is to the project & to the organization
Resistance to change can result in Project delays, Project missing their objectives, ROI being
lower than expected or change being totally scrapped
Document the risks associated with resistance & how you can mitigate these risks
Diagnose the root causes oI resistance
IdentiIy & deal directly with the root causes
IdentiIy the top reasons Ior Employees resistance
Employees are not aware oI the need Ior change
Be sure to address this issue
IdentiIy the top reasons Ior Managers resistance
Loss oI power & control
Overload oI current Responsibilities
Lack oI awareness oI the need Ior change
Have system in place to identiIy & react to resistance when it happens
Prevent & mitigate resistance beIore it impacts the organization
Be prepared to address resistance when it occurs

EIIective managers oI resistance are those who have credibility & respect with the individuals
who are resisting a change

As a Project team member or a change management resource, you should prepare & support
managers throughout the organization in their to task to manage resistance & help employees
through the change process










Q? What is ERP? Evolution of ERP & its benefits to the organization?

Ans ERP is a soItware system that have tremendous impact on organization computing.
ERP is enterprise resource planning as a business solution to integrate all operations through
inIormation.

ERP coverage:
Procurement& Inventory, MIg, Sales, Iinance , HR, Quality, Engineering, Project management.

ERP modules/ ERP evolution

MRP (1960- 1970s)
One oI the most popular computer system supporting mIg beIore ERP was MRP i.e material
requirement planning. MRP began as an inventory reordering tool in operations involving
dependent demand. The capability oI MRP system evolved to support planning oI all company
resources & currently can support business planning, production planning, purchasing, inventory
control, shop Iloor control, cost management, capacity planning & logistics management. The use
oI MRP resulted in better inventory & raw material control, reduced lead times in obtaining
materials & improved communication & better integration oI planning.

MRP II ( Manufacturing resource planning) in 1980s

It is a method to plan all resources Ior a manuIacturer.

Business Iunctions included in MRP were
Order Processing
Business Planning
Sales & Operation Planning
Master production scheduling
Capacity requirement planning

MRP II was integrated with accounting & Iinance sub systems.

APICS deI oI MRP II was

A method Ior eIIective planning & control oI all resources needed to take, make, ship & account
Ior customer orders.

ERP- 1990`s
Focused on clients , real time transactions, asset management

ERP is a soItware system that have tremendous impact on organization computing.

Advantages oI ERP:
1)centralized eIIiciency
2) improved productivity
reduces response times & cycle time
Automation oI various procedures & taks
Data can be entered once at the most accurate source, so that users share the same data

ERP extended or ERP II

ERP ERP II
Role
1) Enterprise optimization 1) e-commerce enablement
Domain
2) MIg & distribution 2) All sector/ segments
Function
3) mIg, sales & distribution &Iinance 3) Cross industry, industry sector
Process
4) Internal, hidden 4) Externally connected
Architecture
5) Web aware, closed 5) web based, open
Data
6) Internally generated & consumed 6) Internally & externally published & subscribed.


Q Business modules of ERP

Ans: Sap reIeres to system , application & products in data. It is a german
Company Iounded in 1972.

$AP R/3
Sap AG is a german soItware development Iirm
SAP R/3 is current ERP system
Logistics
Accounting
Human resources
Business tools

Five master database Ior SAP R/3 are general ledger, vendor, customers, HR, Manual

Functionalities of R/3

1) $ales & Distribution
The turnkey solution Ior integrated handling oI all tasks Ior sales, shipping and billing.

Business Environment governed by
Growing Competition
Shrinking Cycle times
Technological Innovation
Business Processes have to be streamlined
Increased EIIiciency in Sales & Distribution
To retain a competitive advantage

Sales related business transactions

Sales queries like inquiries & quotations
Sales Orders
Sales Contracts
Delivery & Shipments
Invoicing / Billing
AIter Sales Support

Sales Order Processing Iunctions
Inquiry handling
Quotation preparation & processing
Contracts & contracts Management
Monitoring the sales transactions
Checking availability
TransIerring requirements to MRP
Scheduling the delivery
Calculating pricing & taxes
Checking credit limits
Invoicing & Billing
Creating printed or electronically transmitted documents

Sales & Distribution Modules
Master Data Management
Order Management
Warehouse Management
Shipping
Billing
Pricing
Sales Support

Business View - $ales Cycle

Sales order--- Goods issue----- Billing document---- receive payment (all are connected to
credit check)


2) Material Management

The integrated, closed procurement process with system-supported integration oI results
and production planning.


Business View - Procurement Cycle

Purchase Requistion -------~ Request Ior quotation----~ Purchase order---- goods receipt ---
invoice receipt ------ vendor payment

3) Production planning
The PP system suitable Ior all types oI production with system-supported integration oI results
and production planning.

Operations Management
TransIormation
Conversion oI Inputs into Outputs
Conversion oI resources into services
Use oI Human, Physical & Financial Resources to Produce Products or Services

Make to Order
Make to Stock
Assemble to Order
Engineer to Order
All such methods oI ManuIacturing are supported by ERP

ManuIacturing Modules
Materials Requirement Planning (MRP)
Capacity Requirement Planning (CRP)
Shop Floor Control
Quality Management
Engineering Data Management
Engineering Change Control


4) Quality Management (QM)
The systemIor quality assurance in all areas oI the logistic chain.

5) Plant Maintenance
The industry-neutral solution Ior the administration and repair oI technical systems.

Organizations cannot achieve manuIacturing excellence with unreliable equipments
Quick response manuIacturing
JIT reduction oI Work in Process Inventory
Elimination oI wasteIul manuIacturing practices
At one time, Machines breakdown & Idle Time was an accepted practice
Things have changed
Today, when a machine breakdowns, it can shut down the Production Line & Customers entire
plant.
Plant Maintenance system to deIine causes, activities & Maintenance tasks
All Maintenance tasks like Inspection, Servicing & Repair activities data is saved in Historical
Database
Total Productive Maintenance
Risk optimized Maintenance
Plant maintenance module

Preventive Maintenance Control
Equipment Tracking
Component Tracking
Plant Maintenance Tracking
Plant Maintenance warranty claims Tracking

6) Financial Accounting

A wide perIormance spectrum which includes cash management /electronic banking, Iinancial
controlling, cash budget management and consolidation.

Financial Accounting
GL, A/R, A/P, Special Ledger, Fixed Assets Accounting, Legal Consolidation
Investment Management
Investment Planning
Investment Budgeting
Investment Controlling
Depreciation Forecast & Calculations

Controlling
Activity based costing
Product costing
ProIitability Analysis
Overhead Cost Controlling
Treasury
Cash Management
Treasury Management
Enterprise Controlling
Executive InIormation System
Business Planning & Budgeting
ProIit Centre Accounting

7) Asset Management
The complete management oI all Iixed assets, Irom traditional asset accounting and
technical assets management up to investment controlling

8)Controlling

Closed cost accounting Irom cost center accounting and cost element accounting through to
proIitability analysis.

9) Office & Communication : E-mail and workflow.

10) Industry $olutions : Bar coding, shipping, EDI, etc.





Q) ERP Present & Future

Ans: Current Trend

1) Large Organisations:
- Enhancing existing solutions to incorporate Iront oIIice solutions and supply
chain solutions and having the solutions internet enabled to move towards
business
- One vendor cannot solve all business problems hence collaborative solutions will
be the best way Iorward

2) Mid size organization
- 5 Mid sized organization are planning to implement ERP, which when
translated into absolute numbers mean volume business

Future directions in ERP

ERP continues to dominate back OIIice Practices
There is an increasing demand Ior innovative applications like E-Commerce, SCM,
HR/Customer selI services
ERP applications are complex, multi module suites oI Business Management SoItware
New Markets
Vendors are supplementing their direct sales Iorce with reseller channels
Lowering entry price oI the soItware to make it Iinancially viable Ior SMEs
Reduced Functionality
Improving the Implementation methodologies Ior Iaster deployment
Porting the products to platIorms such as MicrosoIt Windows NT

New Channels
SAP AG, Oracle, Baan are building reseller channels both in US & worldwide.
To reach smaller businesses, ERP soItware is made Iinancially more attractive by lowering the
entry price point Ior each module & by ramping up the Total Cost by basing the Price on User
Licenses
Oracle is oIIering soItware Ior middle market Irom companies such as Platinum SoItware &
Great Plains SoItware.

Faster Implementation Methodologies
ERP Implementation is diIIicult
May require complete change oI IS InIrastructure say MainIrame to Unix platIorm
No. oI core business processes are being reengineered simultaneously
Vendors are oIIering lore eIIective tools & methodologies to speed up the process.
Creating elite consulting teams to intensiIy resources when required
Using model based approach
Opening up their systems Ior easier Integration
E.g. SAP has introduced Accelerated SAP (ASAP)
Reduces Implementation time to 6 months
Oracle`s FAST Forward helps speed up the Implementation, nail down the costs up Iront
Despite availability oI New channel partners there is a dearth oI skilled consultants.

New Business $egments
Variants oI ERP to Service vertical markets
Specialized areas such as SCM , CRM etc.
Specialized areas such as Demand Forecasting, Sales Force Automation
PeopleSoIt bought Red Pepper SoItware to enhance its SCM oIIering
Baan acquired Aurum SoItware Ior its CRM tools & also teamed up with Hyperion SoItware to
strengthen its Financial Modules.

Web Enabling
Vendors are Iorced to move Irom Client / Server to Browser / Server architecture to web enable
their soItware
Deliver SelI Service & E-Commerce capabilities
BAAN is working to deliver a JAVA based Web InterIace
Baan is also Iocusing on automation oI Supply Chain relationship via Internet, on E-Commerce
via MicrosoIt Merchant Server (Site Server) & on using Hyperion SoItware Corp.`s Spider man
technology Ior report & alert distribution across Web.
PeopleSoIt is set to deliver its Universal Applications JAVA based selI service applets

Market $napshot
PeopleSoIt has not made wrong move so Iar
Baan has the mentality & result to become one oI the top three player
Oracle has Iocused on middle market clients
JD Edwards seem to be in the most vulnerable position
We may see many more acquisition
Baan Aurum deal an increasing Iocus on the MicrosoIt Back OIIice platIorm
No one wants 'Just ERP anymore
Emerging trend is Integration with cutting edge technologies such as SFA, CRM, E-Commerce
Divergence between Back OIIice & Front OIIice Iunctionalities.

Q) DWH & Data mining from test book i.e Managerial issues of Enterprise resource
planning by David olson.

DWH - Page: 124
Data mining : Page : 130

Or you can also refer to the Ppt attached

Q) Any one functional module in ERP - Manufacturing, marketing, Finance, Hr
(did not get both the answer)






Q) Describe different phases of ERP implementation life cycle ? ( did not get both the
answer)