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ERP

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Tony Philip

An enterprise resource planning (ERP) system integrates various business functions like finance, production, logistics, and human resources into a unified system. It aims to optimize resource use through integrated information flows and business processes. Key aspects of ERP systems include flexibility, support for best practices, comprehensive functionality, modular design, and connectivity beyond organizational boundaries. ERP systems provide various benefits such as improved information sharing, increased control and accuracy of business processes, and competitive advantages through business optimization. However, implementing ERP also presents challenges relating to costs, rigidity, security, and the need to redesign business processes.

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ERP
An Enterprise resource planning system is a fully integrated business management system covering functional areas of an enterprise like Logistics, Production, Finance, Accounting and Human Resources etc It organizes and integrates operation processes and information flows to make optimum use of resources.
1. Flexibility : An ERP system should be flexible to respond to the changing needs of an enterprise. 2. Best Business Practices : It must have a collection of the best business processes applicable worldwide. 3. Comprehensive : It should be able to support variety of organizational functions and must be suitable for a wide range of business organizations.
4. Beyond The Company : It should not be confined to the organizational boundaries, rather support the on-line connectivity to the other business entities of the organization. 5. Modular & Open :any module can be interfaced or detached whenever required without affecting the other modules.
1. ERP provides multi-functions 2. Functions are effectively integrated and information is immediately updated upon entry of any information. 3. Has end to end Supply Chain Management 4. ERP facilitates company-wide Integrated Information System covering all functional areas. 5. ERP performs core activities and increases customer service, thereby augmenting the corporate image.
6. ERP provides complete integration of systems not only across departments but also across companies under the same management. 7. ERP is the solution for better project management. 8. ERP allows automatic introduction of the latest technologies 9. ERP eliminates most business problems 10.ERP provides intelligent business tools
1. Increased control of invoicing and payment processing 2. Reduce paper documents 3. Improves timeliness of information 4. Greater accuracy of information 5. Faster response and follow-up on customers 6. More efficient cash collection 7. Better monitoring and quicker resolution of queries 8. Helps to achieve competitive advantage by improving its business process 9. Provides a unified customer database usable by all applications
 The scope of customization is limited in several circumstances  The present business processes have to be rethought to make them synchronize with the ERP  ERP systems can be extremely expensive to implement › Training › Integration › Data analysis and conversion  There could be lack of continuous technical support  ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future  Takes time to implement  Security issues
1. Standardized and speed up Manufacturing processes 2. Standardized HR information 3. Reduce Inventory 4. Integrate Customer order information 5. Integrate Financial Information
ï‚ž Finance module ï‚ž Human resources Module ï‚ž Production Module ï‚ž Purchasing Module ï‚ž Inventory Module ï‚ž Sales and Marketing Module
ERP
ERP
1 • Identifying the needs 2 • Evaluating the ‘As Is’ situation 3 • Deciding the ‘Would Be’ situation 4 • Reengineering the Business Process 5 • Evaluating the various available ERP 6 • Finalizing of the most suitable ERP 7 • Installing the required hardware 8 • Finalizing the implementation consultants 9 • Implementation
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ERP
ERP
ERP
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ERP

  • 2. An Enterprise resource planning system is a fully integrated business management system covering functional areas of an enterprise like Logistics, Production, Finance, Accounting and Human Resources etc It organizes and integrates operation processes and information flows to make optimum use of resources.
  • 3. 1. Flexibility : An ERP system should be flexible to respond to the changing needs of an enterprise. 2. Best Business Practices : It must have a collection of the best business processes applicable worldwide. 3. Comprehensive : It should be able to support variety of organizational functions and must be suitable for a wide range of business organizations.
  • 4. 4. Beyond The Company : It should not be confined to the organizational boundaries, rather support the on-line connectivity to the other business entities of the organization. 5. Modular & Open :any module can be interfaced or detached whenever required without affecting the other modules.
  • 5. 1. ERP provides multi-functions 2. Functions are effectively integrated and information is immediately updated upon entry of any information. 3. Has end to end Supply Chain Management 4. ERP facilitates company-wide Integrated Information System covering all functional areas. 5. ERP performs core activities and increases customer service, thereby augmenting the corporate image.
  • 6. 6. ERP provides complete integration of systems not only across departments but also across companies under the same management. 7. ERP is the solution for better project management. 8. ERP allows automatic introduction of the latest technologies 9. ERP eliminates most business problems 10.ERP provides intelligent business tools
  • 7. 1. Increased control of invoicing and payment processing 2. Reduce paper documents 3. Improves timeliness of information 4. Greater accuracy of information 5. Faster response and follow-up on customers 6. More efficient cash collection 7. Better monitoring and quicker resolution of queries 8. Helps to achieve competitive advantage by improving its business process 9. Provides a unified customer database usable by all applications
  • 8. ï‚ž The scope of customization is limited in several circumstances ï‚ž The present business processes have to be rethought to make them synchronize with the ERP ï‚ž ERP systems can be extremely expensive to implement › Training › Integration › Data analysis and conversion ï‚ž There could be lack of continuous technical support ï‚ž ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future ï‚ž Takes time to implement ï‚ž Security issues
  • 9. 1. Standardized and speed up Manufacturing processes 2. Standardized HR information 3. Reduce Inventory 4. Integrate Customer order information 5. Integrate Financial Information
  • 10. ï‚ž Finance module ï‚ž Human resources Module ï‚ž Production Module ï‚ž Purchasing Module ï‚ž Inventory Module ï‚ž Sales and Marketing Module
  • 13. 1 • Identifying the needs 2 • Evaluating the ‘As Is’ situation 3 • Deciding the ‘Would Be’ situation 4 • Reengineering the Business Process 5 • Evaluating the various available ERP 6 • Finalizing of the most suitable ERP 7 • Installing the required hardware 8 • Finalizing the implementation consultants 9 • Implementation