The document discusses Enterprise Resource Planning (ERP), which is a type of software that integrates and manages a company's overall resources. ERP links different business functions like sales, inventory, production, and finance. It allows a company to track important business resources like cash, materials, production capacity, and customer orders. The document outlines the main benefits of ERP, which include improved efficiency, decreased costs, and better decision making through integration of systems. It also discusses some common challenges to implementing ERP, such as high costs and potential failures if not set up properly.

1. Uttar Tamang
7/30/2017
1

2. Enterprise Resource Planning (ERP)
7/30/2017
2
 It is a kind of special software which is used to integrate
and manage overall resources.
 It is the technological backbone and framework of the E-
business.
 It links with sales order process, inventory control,
production and distribution, planning and finance.
 It tracks business resources such as cash, raw materials,
production capacity made by customer.

3. Areas of ERP
7/30/2017
3
Customer
Employees
Production
Planning
Integrated
Logistics
Accounting &
Finance
HR
Sales
Distribution
order
Management
Fig: different activities of ERP

4. Benefits of ERP
7/30/2017
4
1. Quality and Efficiency
 Improving the companies internal business process through
integrates framework.
2. Decrease Cost
 Help of effective management.
3. Decision Support
 Helps to take right decision, at right time, integrate timely resources
to entire business enterprise.
4. Integration
 Integrate all sub-system like HR, sales, Finance, production with the
help of single software.

5. Challenges of ERP
7/30/2017
5
1. Cost of ERP
 It needs special types of software, different hardware, different another
software, skill man-power that needs high cost.
 An ERP implementation is like the corporate equivalent of a brain
transplant.
Reengineering,
43%
Hardware, 12%
Software, 15%
Training, 15%
Data Conversions,
15%
Fig: Typical costs of implementing a new ERP system

6. Cont…
7/30/2017
6
 ERP needs different types of costs. They are:
Cost Estimation;
1. Hardware
2. Software
3. Human Resources
4. Change Management
5. Vendor services

7. Cont…
7/30/2017
7
2. ERP Failure
 Different causes of ERP Failure:
- Insufficient budget
- Unskilled man-power
- Insufficient hardware and software
- Lack of proper implementation

8. Trends in ERP
7/30/2017
8
 ERP is the overall planning of an organization.
 Different trends in ERP are:
1. Improvement in integration and flexibility
2. Extension to E-business application
3. Adaption of internet technology
4. A broader risk to new user
Flexible
Web- enabled
Inter-enterprise
E-Business

9. ERP Lifecycle
7/30/2017
9
1. Adaption Decision Phase
- To satisfy business needs company start to question the need
2. Acquisition Phase
- Buying of ERP system
3. Implementation Phase
- Customizing, installation the system to business
4. Maintenance Phase
- Start using system in daily basis
5. Evaluation Phase
- Evaluate, integrate, extension with other system like SCM, CRM
6. Retirement Phase
- ERP is replace by new IT, BI, AI

10. By: Uttar Tamang
7/30/2017
10