AN INTRODUCTION TO ERP

1. Submitted by:
Shibin Babu
Phoenix
MBA- SEM 4

2.  An integrated suite of information systems
that form the backbone of the enterprise
for running and managing its operations.
 ERP or enterprise resource planning software
offers a broad suite of software functionalities
designed to help you manage your accounting as
well as your business's operational tasks. With an
ERP system you are better able to centralize your
data, provide uniform access to resources across
your enterprise, and lower operating costs by
preventing data re-entry.

3.  Enterprise resource planning (ERP) systems
integrate internal and external management
information across an entire organization,
embracing finance/accounting, manufacturing,
sales and service, customer relationship
management, etc.
 ERP systems automate this activity with an
integrated software application. Their purpose is
to facilitate the flow of information between all
business functions inside the boundaries of the
organization and manage the connections to
outside stockholders.
 ERP systems can run on a variety of computer
hardware and network configurations, typically
employing a database as a repository for
information.

4.  ERP is a business process management solution
that provides organizations with consolidated
inventory, manufacturing, warehousing, financials,
multi-site reporting and relationship and
knowledge management capabilities.
 Employees, customers and partners are provided
with access to information across the entire
enterprise value chain.

5.  An integrated system that operates in real
time (or next to real time), without relying on
periodic updates.
 A common database, which supports all
applications.
 A consistent look and feel throughout each
module.

6.  Clients commonly realize the following benefits
from ERP:
Increased operational effectiveness &
productivity
Timely and targeted information feedback
system for decision support
Efficient inventory management
Improved Planning
Improved customer service

7.  Transactional database
 Management portal/dashboard
 Business intelligence system
 Customizable reporting
 External access via technology such as web
services
 Search
 Document management
 Messaging/chat/wiki
 Workflow management

8.  The fundamental advantage of ERP is that integrating
the all processes by which businesses operate saves
time and expense. Decisions can be made more
quickly and with fewer errors. Data becomes visible
across the organization. Tasks that benefit from this
integration include:Sales forecasting, which allows
inventory optimization
 Chronological history of every transaction through
relevant data compilation in every area of operation.
 Order tracking, from acceptance through fulfillment
 Revenue tracking, from invoice through cash receipt
 Matching purchase orders (what was ordered),
inventory receipts (what arrived), and costing (what
the vendor invoiced)

9.  Allows easier global integration (barriers of
currency exchange rates, language, and
culture can be bridged automatically)
 Updates only need to be done once to be
implemented company-wide
 Provides real-time information, reducing the
possibility of reoccurring errors
 May create a more efficient work environment
for employees
 Vendors have past knowledge and expertise
on how to best build and implement a system

10.  Customization is problematic.
 Re–engineering business processes to fit the ERP
system may damage competitiveness and/or
divert focus from other critical activities
 ERP can cost more than less integrated and/or
less comprehensive solutions.
 High switching costs associated with ERP can
increase the ERP vendor's negotiating power
which can result in higher support, maintenance,
and upgrade expenses.
 Overcoming resistance to sharing sensitive
information between departments can divert
management attention.
 Integration of truly independent businesses can
create unnecessary dependencies.