2. CONTENTS
Introduction to ERP.
Origin and its Types
Small and Midsize Business ERP.
Mistakes while choosing ERP.
Lifecycle of ERP.
Implementation
For Better ERP.
Pros and Cons of In-house implementation.
The other way.
Global ERP Consulting Companies.
ERP system Examples used for SMB.
Postmodern ERP Strategy.
3. INTRODUCTION TO ERP
OSS product in enterprise application domain. ERP is one
such software which is used to integrate business
processes and applications.
ERP(Enterprise resource planning ) is an information
system based on a central database which helps in using
resources for a company.
It makes the flow of information easy between the business
functions and with the stakeholders.
It serves the need of people in the company and for the
company so as to improve .
Components : DBMS , Management portal, People and
Software.
4. ORIGIN AND ITS TYPES
Originally, it was evolved from MRP(Material Required Planning) in 1960’s.
The term was officially coined in 1990 by Gartner Group.
ERP is needed because of integrated information system required for the
business.
It benefits business in various ways like better –data management,
information integration , automation , better customer satisfaction etc.
Functional areas of ERP are : Human Resource, Inventory, Purchase, CRM
, Sales and Marketing, SCM etc.
Whereas ,the types of ERP softwares includes:
Open-source ERP
Vertical ERP
Small business ERP
Generalist ERP
5. SMALL AND
MIDSIZE BUSINESS ERP
Common Misconception about ERP software:
a) Is for large companies.
b) Will make people jobless.
c) Will take care of everything.
General Example : Peoplesoft.
Main Problems Faced by SMB:
I. Budget
II. Complex Requirements
III. Flexibility
6. MISTAKES WHILE CHOOSING ERP
No proper Strategy (Understanding the Business needs)
Concentrating on just one requirement ( Thinking about
future needs)
Relying on Demo version (Must check requirements)
Focusing on Costs (Think about long –term Benefits)
7. LIFE CYCLE OF ERP
Process of
Preparation
Project
Preparatio
n
Business
Blueprintin
g
Realization Support
Go live
Preparatio
n
Figure shows : Phases of life cycle occurring
in an ERP software.
8. IMPLEMENTATION
Process of Preparation: Initial Planning
Project Preparation: Gathering resources
Business Blueprinting: Process Requirements
Realization: Implement Business Process
Go live Preparation and Support: Moving to live operation
9. FOR BETTER ERP
Flexibility : Meeting requirements
Technology: User friendly
Cost: Cost effective
Complexity: Less
Security
Selecting Partner: Industry experience
10. PROS AND CONS OF IN-HOUSE
IMPLEMENTATION
1.Better Process
Knowledge.
2.Better Industry
Knowledge.
3.No money Goes
outside.
1.Product Expertise.
2.Lack of
methods/tools.
3.No implementation
Experience.
4.Higher chances o
failure.
11. THE OTHER WAY
Customized ERP:
Covers most requirements.
Needs Modular Architecture.
Reduction of Additional cost.
Reduces Workflow.
Provides Proper User Interface.
12. GLOBAL ERP CONSULTING COMPANIES
IBM,
Accenture
Deloitte, HP-EDS, Wipro,
Infosys, TCS, CSC
Siemens, Cognizant, L&T Infotech,
ATOS, HCL-AXON, Other Small
Companies
Tier 1
Tier 2
Tier 3
13. FEW ERP SYSTEM EXAMPLES FOR
SMB
NetSuite.
Infor.
QuickBooks.
Microsoft Dynamics NAV.
Epicor.
Syspro.
Workday.
Sage.
16. POSTMODERN ERP STRATEGY
Breaks the idea that of “One product to rule all”.
No same vendor needed.
Best of breed solutions.
Self driven &Cloud Based Storage.
Less code .
ERP can also be considered as a concept , because it can be customized according to the company needs.
Small Business ERP can also be termed as Lightweighted ERP
Brackets indicates points we must actually consider thinking on it.
P.S. It is not important that the activities happen in same sequence.
For Small and midsize companies , ERP vendors have introduced pre-configured templates or fast forward implementation Methodology.
Some companies hire external consultant for implementation some decide to do of their own with the in-house team .
Studies show that Training senior members of company and then implementing ERP, failed many times.
Tier 1 Products: Can be used in many companies , Multi-language &Multi-currency Capability.
Tier 2 Products : Vertical Industry focus, International Operations, Can have Multi Language &Multi Currency support
Tier 3 Products : Vertical Industry Focus,
Gartner named NetSuite one of the few pure SaaS ERP system examples