Agenda

Full definition of ERP system

Goal of ERP
Why ERP?
Steps to implement an ERP system
Difficulty of implementation
Offices before and after ERP
The ERP Modules
Advantages & disadvantages of ERP
Costs of ERP
Conclusion

What is ERP ?
..E..
An Enterprise is a group of people with a common
goal, which has certain resources at its disposal to
achieve that goal.

..R..
Resources included are money, and all other things
that are required to run the enterprise.

..P..
Planning is done to ensure that nothing goes wrong.

In general ERP is :

Enterprise resource planning is a category of

business- management software-typically a suite
integrated applications-that an organization can
use to collect, store, manage and interpret data
from many business activities, including:
Product planning, manufacturing, marketing and
sales, inventory management, shipping and
payment, finance etc.

Goal of ERP
The goal of our enterprise is simply to get, keep, and grow
customers.
GET
Acquire profitable customers
KEEP
Retain profitable customers longer.
Win back profitable customers
Eliminate unprofitable customers
GROW
Up sell additional products in a solution
Cross sell other products to customers
Reduce service and operations cost.

Why ERP?
ERP offers solutions for all
business functions
Packages available for
organizations of all sizes and
types
Global nature (multi
currency)

Steps to implement an ERP

system :

Definiti
on and
analysis

productio
n
transacti
on

design
build

Difficulty of implementation
Very complex
Extremely costly and time intensive
Typical: over $10,000,000 and over a
year to implement
Company may implement only certain
modules of entire ERP system
You will need an outside consultant

Offices before ERP

Offices after ERP

The ERP Modules

Financials
Production Management
HR Management
Sales & Marketing
Asset Management
Quality Management
Material Management
Event Planning

Asset Management

ERP modules

Quality Management

ERP modules

Financials

FINANCIAL ACCOUNTING
CONTROLLING
INVESTMENT MANAGEMENT
CASH MANAGEMENT

ERP modules

Production Management

ERP modules

Sales & Marketing

Developing strategies for market penetration for
new products as well as increasing the share of the
existing products.
Reviewing & interpreting the competition &
market information to fine-tune strategies.
Selecting & deciding the right distribution channel
for the
product& implementing the right pricing &
promotional policies.
Coordinating marketing activities, obtaining leads
ERP modules
for new projects

HR Management

ERP modules

Advantages of ERP

Integration
Efficiency
Cost reduction
Less personnel
Accuracy

Disadvantages
Take time to implement
Security issues

Costs of ERP
Direct costs
..hardware
.. Software
..and people on the project

Indirect costs
..the total cycle life of ERP
..maintenance and upgrades
..increasing salaries and the on going production

Conclusion
To successfully implement; a proper
mix of people, processes and
technology should be maintained
Technology is an enabler, not the
driver (it is there to assist the
organization to achieve business
goals)

r
u
o
Y
r
o
f
s
K
n
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o
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t
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T ten
t
a

Q
Q&
&A

References
ERP Implementation Fundamentals
Richard Byrom
Oracle Consultant, Speaker and Author
http://www.richardbyrom.com
http://projectmanagement.ittoolbox.com/docume
nts/research/
ERP demystified(second edition). Copy right
2008, Alexis leon