Project report erp success

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Project report erp success

  1. 1. PROJECT REPORT ON ERP SUCCESSSUBMITTED BY: - SUBMITTED TO:-SURAJEET SINGH Prof- Kapil Mohan Garg SESSION: 2011-2013 INSTITUTE OF TECHNOLOGY &SCIENCES GHAZIABAD U.P. 1
  2. 2. AbstractERP (Enterprise Resource Planning ) comprises of a commercial software package that promisesthe seamless integration of all the information flowing through the company–financial,accounting, human resources, supply chain and customer information” (Davenport, 1998). Muchhas been written on implementation of Enterprise Resource Planning (ERP) in organizations ofvarious sizes. The literature is replete with many cases studies of both successful andunsuccessful ERP implementations. Research on the implementation of ERP in certain Europeancountries shows that, the job of implementing an ERP is a riskier business for Small andmedium-size enterprises (SMEs) than for Large Enterprises (LEs), still SMEs have beenreceiving lesser focus from the software vendors and consultants than LEs (Shanks et al.,2000).There have been very few empirical studies that attempt to delineate the critical success andfailure factors that drive the success and failure of ERP implementation at Indian SMEs. Much ofthe time, ERP software vendors and consultants are the targets for blame when anticipatedresults do not materialize. Are the ERP vendors and consultants that sold the software the realculprits for the lack of business performance improvementEnterprise solutions provide a centralized framework for all data and processes of anorganization. It integrates all aspects of a business from planning to inventory control,manufacturing, sales, marketing, finance, customer service and human resources. A significantpart of our service portfolio is our customized ERP solutions. The SAP business and MSdynamics NAV services provided by us include: software licensing, data migration,implementation, support, consultancy and training. We deploy resources on integrated teams thatwork with our clients to undertake complex enterprise transformation efforts. Selection of thethree organizations is based on the need to collect detailed data about the ERP implementationprocess in each organization. In all the three industries, questionnaires were sent to 600 end-users. A total of 202 questionnaires taken for analysis have shown that the first three dominantsuccess factors of TI InfoTech, BPCL and ITTI are related to the quality dimensions, suggestingthat the success of implementing ERP system is largely determined by the quality dimensions.Thus the technological newness was the most important factor in determining the quality of thesystem. 2
  3. 3. IntroductionEnterprise resource planning (ERP), client/server applications for managing accounting,manufacturing, distribution, and human resources, are the de facto backbone of businessintelligence. However, while many organizations consider the introduction or enhancement of anERP solution, the significant and well publicized challenges associated with ERPimplementations often daunt them. According to Gartner Group, "…for 40 percent of enterprisesdeploying ERP or ERP II systems through 2004, the actual time and money they spend on theseimplementations will exceed their original estimates by at least 50 percent (.07 probability).Many enterprises have suffered spectacular project failures due to unplanned or under plannedimplementation projects."Reliably predicting implementation costs and the time required for implementation are two keyoutcomes of successfully planning an ERP initiative. Organizations must be able to accuratelypredict costs, resources, and requirements, and develop a plan of attack both before theimplementation begins and throughout the project.While ERP implementation horror stories highlight serious business consequences and criticizeleading ERP vendors for botched deployments, often the software giants are not to blame.Companies must realize that ERP systems are not a standalone solution, but instead an enablingtechnology to support a broad corporate change and the key to a successful deployment is in theprocess.Organizations must broaden their perspective in order to put their ERP efforts back on asuccessful path. Too many overlook a critical stage: New business processes must be established,thought through, and implemented before the selection, purchase, and deployment of a softwaresolution. As more organizations worldwide choose to build their corporate knowledge basearound complex infrastructure solutions, the need to understand how to successfully implementan ERP system has become increasingly important.Organizations today are constantly in search for ways to achieve better business performance andsustain competitive advantages through effective deployment of resources and businessprocesses. To improve business performance, organizations require an efficient planning and 3
  4. 4. control system that synchronizes planning of all processes across the organization. The key tocompetitiveness lies in a solid information system (IS) infrastructure seamlessly aligned withcore business processes developed for the delivery of high quality products and services tocustomers within the optimal time. These demands have prompted more firms to shift their ISstrategies from developing in-house information systems to purchasing application software,such as ERP systems, to generate synergies and enhance operating efficiency (Hong & Kim,2002). However, scarce work exists on measuring success for an ERP system. Although it is veryimportant to evaluate the success offer implementation projects since a lot of financial andhuman resources are invested (Bradford andSandy,2002) reported that 57% of the interviewedcompanies launched no assessments on the performance of ERP systems owing to lack ofempirically effective evaluation models. Information systems (IS) success is one of the mostwidely used dependent variables in information systems research. Not surprisingly, muchattention has been given to how best to measure it (De Lone & McLean, 1992). This researchaccordingly attempts to propose success model former systems and to empirically investigate themultidimensional relationships among the success measures. Additionally, three case firmsamong the success measures are also empirically tested. Enterprise solutions provide acentralized framework for all data and processes of an organization. It integrates all aspects ofbusiness from planning to inventory control, manufacturing, sales, marketing, finance, customerservice and human resources. A significant part of our services portfolio is our customized ERPsolutions (Debone & McLean, 2003). At Irion, we provide cost-effective enterprise solutions thatare developed and customized keeping in mind the individual requirements of clients and theirareas of operation. Our process experts will evaluate every detail and thoroughly assess eachoption that they draw for your organization. Our enterprise solutions enable the integration of allbusiness activities of an organization thereby improving operational efficiency. The SAPbusiness one and MS dynamics NAVservices provided by us include: software licensing, datamigration, implementation, support, consultancy and training. We deploy resources on integratedteams that work with our clients to undertake complex enterprise transformation efforts. 4
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  6. 6. ERP market growth in IndiaERP market in India steadily growing for the last few years and the main reason for thisenormous growth can be attributed to the inability of order system to manage the conversion toyear 2000. There are also other factors such as industry best practices, easy and fasterimplementation and good cost predictions.Another factor behind the growth is that already existing clients acquire more licenses andmodules. The number of employees using the ERP system is increasing and the ERP clients whohave started with the basic modules are going for subsequent applications. There is also a trendto replace customized system with standard application packages, like an ERP system.India is expected to present ERP suppliers an important marketplace as manufacturingcompanies are significantly investing in technology solutions to improve their manufacturingoperations.According to observation made by some experts in the field, the ERP market started showingsolid organic growth since 2004 as IT spending improved.The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 during theperiod of 2004-2009. The market was $83 million in 2004, and is projected to be over $250million in 2009, according to a research report.The report further clarifies that manufacturers in India are increasingly implementing ERPsolutions to ensure that decision makers have the required information visibility across the valuechain.Majority of Indian manufacturers are small by global standards, requiring easy-to-use ERPsolutions to meet their specific process requirements, including localization needs to address thecontinually evolving tax and statutory requirements. Small and medium enterprises acrossindustry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles, areleveraging ERP solutions to gain sustainable competitive advantages. 6
  7. 7. BARRIERS TO SUCCESSTypically, there are three process barriers that prevent many ERP implementations from beingsuccessful. These barriers result in an elongated development cycle with poorly defined andmanaged requirements and, as a result, poorly defined measures of success. The implementationteam often is tasked with chasing a series of fluid requirements, no process for managingchanges to the project scope, and a false belief that technology alone will prevail. Theseteams are, without fail, disappointed with the results.Specifically, the three most common mistakes of ERP implementations are the following:Focusing on technology: The technology "silver bullet" approach is one sometimes sold byvendors. However, there is no evidence anywhere in the history of IT that software alone willsolve a business problem.Ignoring the importance of requirements definition: Organizations too often ignore the needto define an optimal process and then use the technology as an enabler for the process. In toomany instances, organizations either try to adopt a process that is inherent in the ERPsolution, even if it does not fit their business requirements, or they try to shoehorn theirlegacy processes into a software package that is not designed to support their processes. Inboth cases, they sub optimize the capabilities in the technology and dont take advantage ofthe opportunity to streamline their business process the entire point of technology implemen -tations.Jumping from the requirements definition to the development phase: Pressed to deliversystems against predefined timelines that dont take into account all of the necessaryimplementation steps, organizations often rush the process, neglecting to build both a solidimplementation plan and solid agreement across the organization as to what it will take todevelop and implement the solution before implementing the technology. 7
  8. 8. THE IMPORTANCE OF ENTERPRISE RESOURCE PLANNINGERP is a Rising Need of Enterprises. is a strategic tool helping an organization to gain and edgeover its competitors by helping in successfully integrating its key business operations,synchronizing, planning and optimizing the resources available in the existing extremelycompetitive environment.Its use has a much broader scope in todays world rather than of just planning the use of theenterprise resources. Organizations (especially those which are borderless) face many difficultiesin quickly making out the information required. The integration of the business processesimproves coordination between bodies, streamlines workflows and processes and benefits themin terms of retaining and satisfying customers by delivering their orders "just-in-time" andkeeping them well informed about their orders current status rather than keeping them waitingfor just a small piece of information. ERP has the effect of making an enterprise more time-sensitive. Another benefit is of better marketing opportunities. ERP penetrates one segment afterthe other and addresses solutions to many debacles existing in an enterprise.Different ERP systems have been made to facilitate organizations in Enterprise ResourcePlanning. Leading ERP giants making ERP systems are Microsoft, Oracle, PeopleSoft and JDEdwards, SAP AG etc. These systems link the order, inventory, sales, purchase, manufacturing,supply chain and warehouse management modules in an enterprise for better, fast and accurateinformation availability to every single person which is its primary objective because everysingle operation and action taken at any place by any person depends on consistent and updatedinformation availability. Whatever a person needs can be immediately accessed by him subject tothe delegated authority. ERP function has thus helped individuals.They also enhance management decision making by making future projections about sales duringa certain period of a certain product. Management would then be able to make decisions whetherto increase/decrease production of that particular product which in turn would help saveresources from being wasted which could be used for other purposes e.g for making otherproducts. They also help managers make decisions about introducing some new value addedfeatures to an existing hot-demand product to enhance sales further. This is how product quality 8
  9. 9. is also enhanced. Inventory costs reduction must be given a great importance in everyorganization. ERP helps reduce inventory costs by better planning and forecasting ofrequirements. ERP system helps getting higher return on investments (ROI) in a fast manner.While there are absolute benefits, an ERP system also poses significant challenges in the areas ofinformation security and business continuity planning. Above mentioned things point to a verycritical step, the right choice of an ERP for your enterprise! Off all the ERP systems exiting inthe market, all seem to be performing the same function but the one best suiting yourrequirements needs to be picked up in order to achieve required results. The choice depends uponthe structure and type of the organization e.g financial, manufacturing etc. This is why someorganizations experience higher benefits as compared to others because theyve made the rightchoice and are able to make the right use of their system.One of the most powerful advantages to ERP is the implementation of software. Even thoughY2K didnt become the disaster that many people expected, it gave rise to the concept of makingsure software was properly implemented. In addition to dealing with software issues, ERP canalso help companies integrate their operations. At the same time, it is important to realize thatthere are a number of challenges involved with utilizing ERP. Perhaps one of the greatest ofthese challenges is cost. Enterprise Resource Planning tools are outside the price range of manyorganizations.It is important to understand that ERP tools must be customized to meet the needs of thecompany. In most cases, it will not be useful when it first purchased. Each company has uniqueneeds, and ERP tools must be able to meet them. A number of companies run into problemswhen they attempt to customize the software.To summarize, ERP has a great importance and ERP systems have become the biggest need oftodays organizations to survive. They provide tremendous benefits provided the Critical SuccessFactors of ERP system implementation are kept in mind. 9
  10. 10. Indian ERP system best suited for Indian industriesEnterprise Resource Planning (ERP) Solution software should address all the needs of anenterprise within the social context of the country in which the enterprise operates. This wouldimply that the local accounting practices, locally applicable taxation laws are fully adhered to inimplementing the various business processes.Many imported ERP software systems must incorporate India specific features beforeimplementation as per the specifications of its client, where as an Indian ERP solution hasalready been programmed to take care of the national industrys interest.Another feature of an India-made ERP like resource ERP software system is its design. It hasbeen designed to cater the need of the Indian users with fully knowing their workingenvironment and requirements.Industries also consider easy accessibility to their solution providers while choosing the rightERP for their enterprises. It also to be noted that eresourceInfotech serves all our customersequally, unlike some overseas vendors who have a strategy to serve only large clients.Cost factor also stands as one of the reasons why Indian ERP solution is best suited for Indianindustries. Many a time the huge cost involved in it scares away industries from implementingERP solution, depriving the benefits the system could offer. To overcome this precariousscenario, e-resource ERP has introduced an affordable ERP, keeping in mind the Indianindustries, specially the small and medium scale enterprises.TI InfoTech: TI InfoTech is an information technology company in Noida, New Delhi, India. Itspecializes in Reimplementation for SAP B1 and oracle E-business suite. For tour and travelcompanies we have ERP "travel assist" and XML integrated online booking engine. Thisindustry offer offshore custom software development for websites, portals, SEO activity, ITinfrastructure consultancy and hosting solutions for websites and emails. It has expertise in 10
  11. 11. industry like travel tour, trading, manufacturing, wholesale distributions, logistic serviceproviders, FMCG, chemical, automotive and pharmaceuticals.BPCL: In November 2001, Bharat Petroleum Corporation Limited (BPCL), a leading player inthe Indian petroleum industry, successfully implemented an enterprise resource planning (ERP).Implementation began in April2000 after the company decided to integrate allitsactivitiesthrough the ERP package SAP R/3 the Company hoped to speed up its decision-making and respond faster to customer needs through ERP. The intention was to show thedifferentiation in service, retain customers and help increase the business of its industrial andcommercial (I&C) customers BPCL also wanted to increase its retail thrust by exploiting ITinitiatives to them maximum.ITTI: (formerly, Innovation Technology Transfer India) is system integrator and softwareservices company with core competence in the areas of enterprise business solutions (ERPimplementation & support, business intelligence solutions and business integrationprojects);application development & maintenance services and infrastructure managementservices. ITTI have significant domain expertise in the manufacturing vertical (discrete &processindustries), as well as CPG, retail, automotive, Parma, cement and engineering industry verticals.ITTI Project teams provide world-class consulting and software services with the objective ofbuilding enduring relationships with our customers. Based on the leading edge CMMI(Capability maturity model integration)SW model and ISO 9001:2008 standards, our multi-shore delivery capabilities have further enhanced the value add that our customer’s experience,in their engagements with ITTI. 11
  12. 12. Exclusive for Indian manufacturersAn affordable ERP for SMEsIn a move to assure small business customer in India implements ERP solution, e-resource ERPhas come out with an ERP exclusively for Indian manufacturers. E-resource ERP iSE, an ERPfor Small and Medium Enterprises is affordable, quick to implement and enabling the SME tofocus on growth and improving their business rather than worrying about software.E-resource ERP for SME is designed to provide the small and medium enterprises to implementa suitable resource planning which will guarantee a return on investment, thus making it to growtheir business beyond their expectations and margins.EresourceInfotech so far implemented ere source ERP for SME module nearly in 25 customerlocations and our client list is growing more and more by day, which indicates the growingpopularity of this software.The key operational factor for SME is to increase operation efficiency, reduce cost of production,supply chain management and deliver product to customer. The major obstacle for the SMEs isthe cost element associated with ERP implementation, which are usually very expensive. Eresource ERP is priced at cheaper and be afforded by even very small industrial units.Moreover, the differentiating factor is that ere source ERP is modular with regard to pricing.Resources ERP comprises of modules, such as:  Sales and Distribution module  Purchase and Supplier Module  Inventory and Material Management Module  Production and Shop Floor Management Module  Total Quality management  Excise management  Accounts and Finance Management  Human Resource Management 12
  13. 13. Ere source ERP benefits Gain Business Visibility, Get accurate, timely information, Makebetter business decisions Increase Operational efficiency Gain Business Visibility Improve Customer Relationship Streamline Production and Planning Optimize IT Investments Comply with Regulations Cut Costs Bring product to market sooner Monitor and control and expenses Reduce errors Get accurate, timely information Support your changing needs Get a complete view of your business Make better business decisions Deliver the right product at the right time Keep customer promises Ability to modify/configure statutory changes Reduced product cost, reduced expediting Improved closure rates, Increased market share Improved sales and opportunity visibility better customer relationships, lower customer service costs Global reach, better inventory visibility, reduced distribution costs, higher 13
  14. 14. The flexible attitude of users hampering ERP success in IndiaSuccess of ERP performance is directly proportional to the adherence to standard operatingprocedures. However, we find that very common complaint against ERP is its rigid structure anddisciplined standard operating procedures. Often there are ridiculous demands and expectationsfrom users, which are conflicting with standard operating procedures. Hence ERP is eitherblamed or made to fail. When the user says he wants flexibility in ERP, actually he wants theofficial allowance to deviate from standards set for value generation. The repercussions of suchflexibility are tremendous, including the loss of value.For example, here goes a typical style of customer negotiations. The sales people of amanufacturing company arbitrarily fixed unit price and raised sales orders against customers.After physical material dispatches, suddenly the customer started negotiating with sales and therates were changed. The sales person then wanted to pass these entries in ERP. No good systemwill support such incongruous requirements. Here, the user wants flexibility in addressing theseissues from ERP and also expected that everything should happen automatically. To settle andaccount for such changes, one has to pass a number of reverse entries in ERP.Unfortunately, some consulting companies charge extra from clients for automating such absurdprovisions. The same thing happened with the above company also and they landed up with autoreverse entry module supporting the existing system. More ironically, this feature of ERP soonbecame so popular that the company asked a similar module for purchase transactions. Theultimate chaos is always observed in finance and costing modules where multiple figures ofprofits, inventory values, sales income, taxes, etc. linked to the same transaction are found.Nobody could really gather any meaningful information from such sets of data over a period oftime. At the end the user gets flexibility and the organization gets punishment.There are also some cases where flexibility going to the extent of unethical business practicesand in such cases illegal transactions can also be carried out.Here is one peculiar requirement that once observed from a user. He asked for various options ofselecting report sizes (A3 or A4) to use with different printers for printing the same reports. ERPwas expected to be flexible enough to accommodate multiple report sizes based on printer 14
  15. 15. selection. The same user never used in his earlier tenure any computerized output and did noteven know how to load paper into printer.The major flexibility expected by Indian ERP users can be summarized as "I want to dotransactions any way, later on it should get corrected." Hence we find demand of provisionalentries, temporary databases, notional requirements, etc. The fundamental principle of ERP isdoing right things right at first time is not understood and deviations are expected to beregularized. We find many of such cases, ultimately making ERP as unused ornament lying inthe bank locker.Familiar InterfacesIt is important that systems are easy to navigate for people who may use them only occasionallyas well as for power users. Information workers today spend a large portion of their workdayusing their e-mail applications, probably the most widely deployed applications in the world.Messages from co-workers, customers and suppliers constantly flow through e-mail inboxes.Rather than jump from an ERP system to e-mail, it’s simpler if business applications not onlylook and feel like e-mail but are actually integrated with it. A familiar interface enables workersto feel comfortable with an application immediately. And since industry analysts agree that oneof the biggest costs involved in implementing new ERP systems is training, which often equalsor exceeds the cost of the actual software purchase, eliminating the need for some training canspeed up the implementation time frame dramatically, leading to faster ROI and time to benefitfrom the ERP investment.Confident Decision Making:One of the lesser-known disadvantages of earlier generations of ERP is that software rarelycommunicated information to users about upcoming problems, unless the user was savvy enoughto ask the right question at the right time. If the user was lucky or smart enough to stumble on aproblem, deciding how to solve it was more often a matter of intuition than data analysis. Thetools available were simply too slow and cumbersome, especially as the pace of business gotfaster and faster. Data warehouses and other analytical tools usually rely on periodic updates,forcing users to work with less-than-current data. Disparate systems often yield conflicting 15
  16. 16. information. No wonder most manufacturers ran by the seat of their pants. They simply had notools.Today it’s possible for analytics engines to be embedded in applications or in the IT stack.Engines can access information from multiple disparate systems instantly and present the userwith up-to-date information in a graphical format. Some engines and search tools can combineboth structured data, like that found in ERP databases, and unstructured data, like that found indocuments like contracts or RFPs (requests for proposal), to present the user with an immediateand complete picture. 16
  17. 17. ERP systems improve companys business performanceEnterprises Resource Planning (ERP) solution enables the task involved in performing a businessprocess quickly and efficiently.With ERP, when a customer service representative takes an order from a customer, he or she hasall the necessary information to complete the order. Everyone else in the company sees the samecomputer screen and has access to the single database that holds the customers new order. Asand when a department completes their work with the order, it is automatically routed via theERP system to the next department for the next process.The order can be tracked any time of point by any department by logging into the system.The order process moves so quickly through the organization, and customers get their ordersfaster and with fewer errors than before. ERP can extent that application to the other majorbusiness process, such as employees benefits or financial reporting.The entire gamut of ERP activities are summarized below:  ERP facilitates a company-wide integrated Information Systems covering all functional areas such as manufacturing, sales and distribution, accounts, payables, receivables, inventory, human resources. Etc.  ERP integrates and automates most business processes and share information enterprise- wide in real-time, thereby improving customer service and the corporate image.  ERP provides complete integration of the system not only across departments but also across companies under the same management.  ERP bridges information gaps across a company and focuses on key issues such as productivity enhancement, customer service, cash management, inventory, quality control and prompt delivery. Etc.  ERP is the solution for better project management.  ERP provides business intelligence tools like decision support system, executive information system, reporting, data-mining, early-warning system, enabling people to make better decisions and improve business processes. 17
  18. 18.  ERP not only addresses the current requirements of the company but also provides an opportunity for improvement and refinement in the business process on a continuous process BPR plays a critical role in ERP implementationProcesses, organization, structure and information technologies are the key components of BPR,which automates business processes across the enterprise and provides an organization with awell-designed and well-managed information system. While implementing ERP, theorganizations have two options to consider.Either the organization must reengineer business processes before implementing ERP or directlyimplement ERP and avoid reengineering.In the first option of reengineering business processes, before implementing ERP, theorganization needs to analyze current processes, identify non-value adding activities andredesign the process to create value for the customer, and then develop in-house applications ormodify an ERP system package to suit the organizations requirements. In this case, employeeswill develop a good sense of process orientation and ownership.This would also be a customizedsolution keeping with line of the organizations structure, culture, existing IT resources,employee needs and disruption to routine work during the change programmer likely to be theleast. It could have a high probability of implementation. The drawback of this option is that thereengineered process may not be the best in the class, as the organization may not have access toworld-class release and best practices. Moreover, this may be the only chance to radicallyimprove in the near future and most attention should be paid while choosing the right ERP. Also,developing an in-house application or implementing a modified ERP is not advisable.The second option of implementing ERP package is to adopt ERP with minimum deviation fromthe standard settings. All the processes in a company should conform to the ERP model and theorganization has to change its current work practices and switch over to what the ERP systemoffers. This approach of implementation offers a world-class efficient and effective process withbuilt-in measures and controls, and is likely to be quickly installed. But if the employees do not 18
  19. 19. have good understanding of their internal customer needs or current processes, or if theseprocesses are not well defined and documented, then it is quite possible that while selecting thestandard process from the ERP package, employees may not be able to perceive the difficultieslikely to be encountered during the implementation stage. Employees would lack processownership and orientation. Other than technical issues, issues like organization structure, culture,lack of involvement of people etc. can lead to major implementation difficulties, and full benefitsof standard ERP package may not be achieved. It may lead to a situation where the organizationmay have to again reengineer its processes. This could be a very costly mistake.There is also a third option of reengineering business process during implementation of ERP. Butit does not considered to be a practical option and is likely to cause maximum disruption toexisting work. It should not be forgotten that during BPR and ERP initiatives, routine work isstill to be carried out and customers need to be served. 19
  20. 20. Difference between MRP software and MRP module of ERPMaterial Requirement Planning, popularly known as MRP, was developed during 1960s. Thiswas a proactive manner of inventory management. This technique fundamentally explodes theend product demand obtained from the Master Production Schedule (MPS) for a specifiedproduct structure (which is taken from Bill of Material) into a detailed schedule of purchaseorder or production orders, taking into account the inventory on hand.MRP is a simple logic but the magnitude of data involved in a realistic situation makes itcomputationally cumbersome. If undertaken manually, the entire process is highly timeconsuming. It therefore becomes essential to use a computer to carry out the exercise.MRP successfully demonstrated its effectiveness in reduction of inventory; production anddelivery lead times by improving coordination and avoiding delays, thus making commitmentmore realistic. MRP proved to be a very good technique for managing inventory, but it did nottake into account of other resources of an organization. Due to this shortcoming a modified MRPlogic, popularly known as closed loop MRP has been developed. A new module called CapacityRequirement Planning (CRP) has been incorporated in this. This module manages the capacity ofthe organization to produce a particular product. A feedback loop is provided from the CRPmodule to MPS if there is not enough capacity available to produce.Later the need was felt to integrate the financial resource with the manufacturing activities. Fromthis evolved an integrated manufacturing management system called Manufacturing ResourcesPlanning (MRP II).The shortcomings MRP-II and the need to integrate these new techniques, led to thedevelopment of a total integrated solution called Enterprise Resource Planning (ERP), whichattempts to integrate the transactions of suppliers and customers with the manufacturing andservice environment of the organization to produce the best possible plan. Today there arefurther development in the ERP concept and evolution of Web-enabled ERP. 20
  21. 21. Why should choose e-resource for ERP solution?E-resource ERP solutions are designed to seamlessly integrate personnel, processes, applications,and data across an enterprise, enabling the organization to streamline its operations and supportbusiness growth. Our integration solutions help organizations place information in the hands ofthose who need it, ensuring optimal relations with customers, partners, employees, and suppliers.Ere source offers range of ERP services with respect to enterprise solution to organization.Irrespective of ERP brand, be it, ere source OR SAP or Oracle or any other ERP brands in theworld, ere source renders services for complete Enterprise implementation life cycle,  Selection of ERP vendor  Risk Analysis & Mitigation Plan  Pre Implementation Approach  Project Management and Monitoring  ERP Training and Implementation  Operational Audit  Post Implementation Audit  Measuring Range compatibility and ROIWe work with you jointly to deliver the most favorable ERP solution for your organization, tohelp you further maximize your return on the investment.Ere source ERP, Indias leading ERP solution provider offers a centralized framework tointegrate and automate all business processes of an establishment with the aim of increasingoperational efficiency and improving the accessibility and flow of information across alldepartments. Availability of timely information combined with a flexible framework enableorganizations to respond and adapt quickly to the changing marketplace and businessenvironment in a more efficient manner, which obviously results in good ROI (Return onInvestment). 21
  22. 22. Our list of services also includes training of employees on the use of the system and postimplementation support and maintenance services.The five main reasons to choose ere source ERP solution are:1. OPERATIONAL EFFICIENCY:Automates all business and functional processes thereby increasing overall operationalefficiency.2. CUSTOMER SATISFACTION:E-resource ERP solution help in enhancing internal business processes and enables organizationsto improve customer satisfaction.3. EASY ACCESS:Our web-based ERP solution enables easy accessibility and availability of timely information,which results in better decision making and forecasting.4. FLEXIBILITY:E-resource ERP packages have a flexible and scalable structure thereby enabling organizations toadapt and cater to future business expansions and requirements.5. COST-EFFECTIVE:E-resource ERP for Small and Medium Enterprises is affordable, quick to implement thusenabling the SMEs to focus on growth and improvement of their business rather than worryingabout software. And over and above, eresourceInfotech work with you jointly to deliver the mostfavorable ERP solution for your organization, to help you further maximize your return on theinvestment. 22
  23. 23. Business benefit from ere source ERPWe are sure that the impact of implementation of ere source ERP would be visible in yourbusiness within a short period. One of our objectives is to provide the Indians SMEs with ahome-grown ERP solution which they could afford and bring the desired benefit in their businessquickly. ere source ERP software has been designed and developed accordingly.The added feature of ere source ERP is its quick implementation process. It is race against timeand money for many of Indian SMEs and by fully understanding this situation, ere source ERPhas introduced our Guaranteed On-Time Implementation offer.Ere source offers a full refund for any implementation fees where the agreed-upon ERP go livedate is delayed, provided the customer meets all defined milestone deliverables on time. Eresource is the only ERP solution provider that has earned extremely high marks from all theirexisting customers for its customer support. 23
  24. 24. Customer Relationship ManagementFor accomplishing desired success, organizations continuously strive for increased salesperformance, superior customer service and enhanced customer relationship management.To achieve these objectives you need solutions that provide rapid access to centralized customerinformation. You should also be able to access detailed and up-to-date communication history tofoster customer and prospect relationships, close sales and streamline all customer contactactivities.Ere source ERP offers consistent and readily available customer and prospect data, allowing youto manage pre-sales activities, perform automated sales processes, deliver consistent customerservice, evaluate sales and service successes and identify trends, problems and opportunities.Benefits at a glance  Interaction with other areas of the system, gives you a clear view of the customer  Maximizing opportunities and retaining high value customers enhances revenue and profit.  Provides value-added services enable you to stay ahead of your competitors.  Improves product development and service delivery processes  Prepare your personnel with in-depth knowledge of the customers needs  Organizes the customer experience through quick problem resolution  Easy re-run of customer information over and over againSuccessful customer interactionThe ere source ERP CRM module helps you know your customer better and includes manyfeatures such as activities, history, related contacts, addresses of your customers and theirrelations with your competitors. The flexible database structures enables you whateverinformation you would like to keep on your customer and maintains such information for yourfuture reference. 24
  25. 25. The e-resource ERP CRM module also facilitates control and organization of entire salesprocess, from offer to invoice. It empowers your sales staff by providing details such asinventory status, estimated costs and delivery time, risk status, habits and special demands, andprevious trades during offer stage.The e-resource ERP CRM module offers an effective customer complaint management toolwhich also includes repairs processing and document management. 25
  26. 26. The key to manufacturing ERP successThe enterprise applications space in India has been in a state of flux since it first made itspresence felt. Over the last only some years there has been a clearer understanding of the criticalbusiness advantage it can provide. A recent Gartner report that delved into the relevance andutility of enterprise applications stated that such applications can no longer be providing mereexpediency in existing business process, but rather, they need to have an inherent analyticcapability to effect business change. Obviously, USEFULNESS or USABILITY is driving theadoption of ERP solutions. Today, the Rs 321 crore Indian enterprise solutions market isundergoing a fundamental change in terms of the value proposition it represents and also in thevendors’ approach toward selling these solutions. This change is reflected in increasing adoptionnot just by large IT savvy companies, but also those in the SMB segment.To begin to define usability, it is best to start with the anticipated benefits such softwaresolutions can deliver. A software solution that scores high in usability will shortenimplementation time frames and reduce the amount of training required to go live, in turnenabling a faster return on investment and delivering benefits more quickly. Such a system willresult in a lower total cost of ownership, is likely to change and grow with your company, allowsfor easy upgrades and interoperability, and makes it much less likely that it will need to bereplaced to enable future business processes.Software vendors are adept at making their ERP look user-friendly. Carefully scripted and well-prepared demos can mask the more cumbersome aspects of day-to-day business processes.Selection committees are not usually made up of people who process transactions all day, soextra screens, background processes or required keystrokes may go unnoticed. And matching upthe software business flows with your in-house business processes doesn’t really tell youanything about the system’s ability to support your future needs. Even a hands-on session won’thelp you make the right choice in this crucial decision. 26
  27. 27. ConclusionThe first three dominant success factors of TI InfoTech, BPCL and ITTI are related to the qualitydimensions, suggesting that the success of implementing ERP system is largely determined bythe quality dimensions. The results indicated that technological newness was the most importantfactor in determining the quality of the system. System quality, such as performance, flexibilityof changes, response time and ease of use, is a technical issue. This result confirmedconventional wisdom that the pursuit of state of-heart technology is a risky proposition. Inaddition, different aspects of system quality, such as response time, ease of use, systemreliability, and flexibility of the system have been examined by IS researchers. Most of thesemeasures are fairly straightforward, reflecting the more engineering (technical) orientedperformance characteristics of the system. Researchers found that these engineering-orientedperformance measures were significantly related to technical-related issues of the proposedprojects. This paper proposed a success model and empirically tested the relationships betweenvariables. In summary, this research discovered that system quality and service quality areimportant dimensions for measuring post-implementation ERP success. Service quality andsystem quality dimensions play more important roles than their information quality counterpartin terms of influencing ERP benefit of use and user satisfaction.It’s rare today that a company has no IT systems in place, so it’s important to select applicationsthat run on industry-standard platforms so that applications can easily interoperate. Investigatingthe technology that surrounds required business functionality can be even more important thanthe functionality itself. After all, it’s relatively easy to add new features to a system. 27
  28. 28. Bibliography Bradford M and Sandy R (2002) Realizing value in ERP. J. Cost Management. 13–19. http://www.indjst.org/8A5EC6EC-FCAE-44AB-AAC3- 72E488574AC6/Final Download/Downloaded- B04D8E3B616BAFF6197566069D4A0896/8A5EC6EC-FCAE-44AB-AAC3- 72E488574AC6/archive/vol.3.issue.9-10/oct10seetharam-9.pdf http://www.eresourceerp.com/ERP-success-in-India.html http://www.academictutorials.com/erp/erp-analysis.asp 28

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