Ites Erp


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Future and development of ERP. ITes Class assignment

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Ites Erp

  2. 2. Enterprise resource planning (ERP) software helps integrate management, staff, and equipment, combining all aspects of the business into one system in order to facilitate every element of the manufacturing process.
  3. 3. <ul><li>ERP evolved from manufacturing resource planning (which originated from material resource planning). </li></ul><ul><li>The functioning of ERP has gained much prominence and utility with the intervention of web enabled and open source technologies. </li></ul>
  4. 4. Some basic issues with ERP
  5. 5. <ul><li>Expenditure </li></ul><ul><li>It used to be a costly affair due to heavy capital outlay. Since it has come up with applications to core functions alone which has helped in reducing costs of obtaining this technology. </li></ul>
  6. 6. <ul><li>NEED BASED APPLICATION </li></ul><ul><li>It has to be implemented in whole system whether or not it is required. </li></ul><ul><li>Expense has to be incurred for whole application even if it is idle except the core function </li></ul><ul><li>But new ERP software has been developed where only for the core function, it requires to be installed </li></ul>
  7. 7. <ul><li>Reduction in implementation time </li></ul><ul><li>It used to be a time consuming activity which accrued loss of business and man hours during installation period. </li></ul><ul><li>Current Day ERP application s are less time consuming . </li></ul>
  8. 8. New inventions….
  9. 9. <ul><li>Web enabled ERP </li></ul><ul><li>It helps in making the enterprise operations go online. Any stakeholder or third party can access the required information very easily and that too by sitting anywhere in the world. This proves to be of great help especially during emergencies when the details are to be sourced with immediate effect. </li></ul>
  10. 10. <ul><li>Wireless ERP </li></ul><ul><li>It has helped organizations to make use of the communication channels effectively and efficiently. It has made it possible for many elements to operate in ERP which were otherwise not possible. Wireless ERP is nothing but sharing enterprise information through devices like internet and other devices making it possible for outsiders to access the same. </li></ul>
  11. 11. <ul><li>Open source ERP </li></ul><ul><li>Open Source ERP has done away with the hassles of paying license fees not only during installation but also whenever a modification is made. </li></ul>
  12. 12. ERP II <ul><li>ERP II the latest advancement in ERP software </li></ul><ul><li>ERP II is regarded as the “next generation” of ERP (enterprise resource planning) and offers several advantages over traditional ERP systems. </li></ul><ul><li>The most apparent change from ERP to ERP II is a change in focus from one that is totally enterprise-centric and preoccupied with internal resource optimization and transactional processing to a new focus on process integration and external collaboration. </li></ul>
  13. 13. Specific coverage to individual elements <ul><li>ERP I was focused more to macro parameters like departments, process and procedures. </li></ul><ul><li>ERP II has some comprehensive features that not concentrates on </li></ul><ul><li>individual elements but synergizes them and makes the functioning of the </li></ul><ul><li>concerned wholesome component more meaningful. </li></ul>
  14. 14. Applicable to all industries <ul><li>The concept of ERP enjoyed wide applicability in the manufacturing sector. </li></ul><ul><li>In addition Retail and distribution segments were benefited but benefits were uncalled for. </li></ul><ul><li>ERP lacked the facilities that were demanded by these sectors. </li></ul><ul><li>ERP II has made it available to all the sectors irrespective of the nature of business or volume of transaction. </li></ul>
  15. 15. Covers more functions <ul><li>ERP still helped in facilitating the business process however the outcome was not to the desired extent. </li></ul><ul><li>This limitation seemed to be a major handicap of ERP especially with the rapid transformations in the organizational structure and functions. </li></ul><ul><li>ERP II has helped to remove this barrier by including maximum functions under its scope. </li></ul><ul><li>It has facilitated in bring nonconventional ,core and supportive functions and the best practices </li></ul><ul><li>Also the best practices followed in the industry, other industries and the practices that were solely dedicated to the concerned industry. </li></ul>
  16. 16. <ul><li>Maximum Use of Internet </li></ul><ul><li>ERP II has been able to draw maximum benefits from internet. Its contemporaries Wireless ERP and WEB enabled ERP have helped in making this possible in addition to the special features of ERP. </li></ul>
  17. 18. Future for ERP <ul><li>Current level </li></ul><ul><li>ERP applications should be designed to make the maximum use of internet so that the user can access data from any part of the world just by a click of the mouse. The latest intrusions namely open source and web enabled technologies has increased the effectiveness of the application . ERP's future is yet to reach saturation. </li></ul><ul><li>Market forecasting </li></ul><ul><li>Formerly ERP was purely restricted to fortune 500 companies, in the sense only they could afford to invest on them. the intervention of open source facilities. The concept of outsourcing has helped in removing the difficulties faced by small and medium enterprises. Hence a large potential for ERP still exists in the S.M.E. market. </li></ul><ul><li>The future of ERP holds an undisputed demand not only in the national level but also at the global level. If the technology can be improvised to the desired ext </li></ul>
  18. 19. The Future of ERP <ul><li>predicting the future--especially in the technology world--is a fool's errand, best handled by Ouija Boards and IT analysts' dartboards. And isn't the future of ERP already here? Software-as-a-service, on-demand apps, enterprise 2.0 collaboration, open-source software, virtualization, cloud platforms. What more is there? </li></ul><ul><li>Right now, not much else. But the real future of enterprise software isn't exclusively based on wow-factor applications and functionality. It's about not only knowing which new applications and delivery models can immediately help the business; but also having the technological fleet of foot to take advantage of those new apps fast. That means not in 18 months or &quot;next quarter,&quot; but whenever line-of-business managers truly need that functionality. </li></ul>
  19. 20. <ul><li>Vendors and analysts have long recognized that while the high-end ERP market is saturated, there is tremendous opportunity for growth in the so-called mid-market. </li></ul><ul><li>So far, however, the much-ballyhooed mid-market ERP boom has failed to occur. Some, however, believe that could soon change. </li></ul><ul><li>But mid-market companies that have avoided ERPs because of cost and risk may gravitate to the application service provider model </li></ul>
  20. 21. <ul><li>ERP , as a single, central application, managing all data as well as business transactions , dead? Did the latest economic crisis, along with the advent of disruptive technologies ( cloud computing and open source ERP ) made CIO re-think their entire ERP strategy? </li></ul>
  21. 22. <ul><li>Large enterprises, deeply invested in current SAP or Oracle implementations, despite being sunk deep to their throats in yearly maintenance fees,are not likely to abandon their multi-million dollars investment for a different solution (a SaaS ERP or an open source ERP offering), according to the story. What is happening is a change in the dynamics between the megavendors – SAP and Oracle – and their customers, as large customers are able to re-negotiate maintenance fees, which have become a sour point in the ERP vendor-customer relationship. </li></ul>
  22. 23. <ul><li>the ERP systems brought a common information database which helped business functions of the organisation to shift their thinking to an organisation or enterprise-focus rather than a departmental-focus. </li></ul>
  23. 24. <ul><li>The challenge for many IT managers is to justify the cost of huge IT investments and show the real RoI from implementing these applications. Often we hear questions like; “My order process has changed. How long will it take IT to modify the software?” </li></ul><ul><li>“ We have changed our business model to conditionally outsource manufacturing of a sub-assembly. Can our system be modified to control this new process?” </li></ul><ul><li>“ Sometimes it is too late to react to an order cancellation causing loss of revenue. Can we improve our performance through better synchronisation?” </li></ul><ul><li>“ We have customised our ERP system by adding new functionality. Can I reuse this investment? Can I expose them to my customer portal?” </li></ul><ul><li>“ We need to implement a new industry solution. Do I need to migrate to a new major version of my ERP?” </li></ul><ul><li>“ Increasing regulatory issues require more changes and tighter control of my systems. I need a less costly way to keep up with the auditors’ demands. </li></ul><ul><li>Hence, the demands on ERP vendors serving the market continue to rise. </li></ul>