Enterprise Resource Planning

1. UNIT VI
Enterprise Resource Planning
By Dr. Dhobale J V
Associate Professor
School of Engineering & Technology
RNB Global University, Bikaner
RNB Global University, Bikaner. 1Course Code - 11010700

2. Objectives
 The Business Backbone.
 Benefits and Challenges of ERP.
 The Costs of ERP.
 Causes of ERP Failures.
 Trends in ERP.
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3. ERP - Business Backbone
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4. ERP - Business Backbone
 Enterprise resource planning systems or
enterprise systems are software systems for
business management, encompassing
modules supporting functional areas such as
planning, manufacturing, sales, marketing,
distribution, accounting, financial, human
resource management, project management,
inventory management, service and
maintenance, transportation and e-business.
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5. ERP - Business Backbone
 The architecture of the software facilitates
transparent integration of modules, providing
flow of information between all functions within
the enterprise in a consistently visible manner.
 Corporate computing with ERPs allows
companies to implement a single integrated
system by replacing or reengineering their
mostly incompatible legacy information
systems.
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6. ERP - Business Backbone
 American Production and Inventory Control
Society (2001) has defined ERP systems as “a
method for the effective planning and
controlling of all the resources needed to take,
make, ship and account for customer orders in
a manufacturing, distribution or service
company”.
6RNB Global University, Bikaner.Course Code - 11010700

7. ERP - Business Backbone
 what ERP can do for the business system are:
1. ERP provides multi-platform, multi-facility,
multi-mode manufacturing, multi-currency,
multi-lingual facilities.
2. It supports strategic and business planning
activities, operational planning and execution
activities, creation of Materials and
Resources.
3. ERP bridges the information gap across
organisations.
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8. ERP - Business Backbone
4. ERP covering all functional areas like
manufacturing, selling and distribution,
payables, receivables, inventory, accounts,
human resources, purchases etc.
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.
8RNB Global University, Bikaner.Course Code - 11010700

9. ERP - Business Backbone
7. ERP is the solution for better project
management.
8. ERP allows automatic introduction of the
latest technologies like Electronic Fund
Transfer (EFT), Electronic Data Interchange
(EDI), Internet, Intranet, Video conferencing,
E-Commerce etc.
9RNB Global University, Bikaner.Course Code - 11010700

10. ERP - Business Backbone
9. ERP eliminates most business problems like
material shortages, productivity
enhancements, customer service, cash
management, inventory problems, quality
problems, prompt delivery etc.
10. ERP provides intelligent business tools like
decision support system, Executive
information system, Data mining and easy
working systems to enable better decisions.
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11. ERP - Evolution
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12. ERP - Advantages
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13. ERP - Advantages
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14. ERP - Disadvantages
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15. Cost of ERP
 In general, the ERP price of
implementation can cost anywhere from
100 to 250 percent of the software
license cost for implementation.
 Here are the main factors that determine
how much an implementation will cost:
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16. Cost of ERP
1. System architecture.
2. Number of users.
3. In-house vs. outsourced implementation
services.
4. Applications and level of customization
required.
5. Migration.
16RNB Global University, Bikaner.Course Code - 11010700

17. Benefits of ERP
 The potential benefits of enterprise systems
depend on the way they are employed to
improve the business processes.
 Save money
 Keep their business data consist, current
and available,
 Speed up business processes, and
 Improve the quality and reliability of the
processes.
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18. Causes of ERP Failures
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19. Reviews
 The Business Backbone.
 Benefits and Challenges of ERP.
 The Costs of ERP.
 Causes of ERP Failures.
 Trends in ERP.
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20. Trends in ERP
1. CRM is at the top.
2. Need based ERP purchases.
3. Increasing focus on business intelligence
ERP.
4. Increased need for specialized ERP
services.
5. Better Integration architecture. 20RNB Global University, Bikaner.Course Code - 11010700

21. Trends in ERP
6. Big companies acquiring smaller start-
ups.
7. Rising importance of ERP on Cloud.
8. More focus on profit from ERP.
9. Mobile ERP.
10. Emergence of tiered ERP systems.
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22. Thank You!
RNB Global University, Bikaner. 22Course Code - 11010700