1. A Technical Seminar On
Enterprise Resource Planning
Prepared By
R. Pradeep Kumar (09671A0571)

2. Today we will be covering:
 What is ERP?
 History of ERP
 What will ERP do for the accounting department?
 Costs of ERP
 The Hidden Costs
 Advantages
 Disadvantages
 Why ERP ?
 To ERP or not to ERP?

3. 1. What is ERP?
 Integration Of all departments and functions across a company onto a
single computer system
 Some of ERP’s functions:
• Bookkeeping & Accounting
• Human Resource Management
• Planning Production
• Supply-Chain Management

4. Typical ERP Functionality

5. 2. History of ERP
 ERP has its roots in the MRP and MRPII systems.
 Companies realized Necessity Of ERP.
 ERP has evolved with computer and technology advances.

6. 3. What will ERP do for the Accounting Department?
 To integrate financial data
 Real time information
 Improves efficiency

7. 4. Costs of ERP
 Costs to implement an ERP system is not just a ‘one-time thing.’
 Real costs are in constant training, upgrading, and maintenance.
 Average Total Cost of Ownership (TCO) is $15 million.
 Benefits are not seen right away.

8. 5. The Hidden Costs
 Integration and testing
 Data conversion
 Data analysis
 Replacing your best and brightest

9. 6.Advantages
• Information entered once into system
• Allows customization
• Provides functionality to interact with other modules

10. 7. Disadvantages
 Implementation is expensive and lengthy
 Maintenance is costly and time consuming
 Data errors are replicated through the system

11. 8.Why ERP ?
 To improve the profitability of the company
 To solve problems of legacy systems (year 2000)
 To be able to cope with new production requirements
 To provide interoperability of its organizations
 To provide the means for Supply Chain Management
 One data base, data is added only once and used by all

12. 9. To ERP Or Not To ERP?
 Cost vs. long term gain
 Let’s do it!!