The document discusses enterprise resource planning (ERP), including what ERP is, how it has evolved, reasons for its growth, advantages of ERP, and why some ERP implementations fail. Specifically, it defines ERP as a method for effective planning of all organizational resources. It also notes that ERP aims to integrate information and eliminate complexity through software that models business processes. However, ERP implementations sometimes fail due to choosing the wrong product or an ineffective, haphazard implementation approach.

1. 7/3/2010
Enterprise
Resource
Planning Sonali C.
UDIT - B.Sc (IT)
2009-08
Evolution Of ERP
 Enterprise
 Resource
 Planning
“Enterprise Resource Planning is method
of effective planning of all the
recourses in organization”
Sonali C.
Cont…
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2. 7/3/2010
Cont…
 Misconception about ERP
 It is a computer system: No It uses the
computers and tools of IT. The computer system
are used to achieve the organization mission
objectives.
 It is for manufacturing organizations: Firstly
ERP was applied to manufacturing organizations
i.e. why people believe that it is only for the
manufacturing organizations
 ERP not limited to any particular segment
of industry
Sonali C.
What is ERP?
“Enterprise Resource Planning covers
the techniques and concepts employed
for integrated management of
Businesses as a whole , from the view
point of the effective use of
management resources, to improve the
efficiency of an enterprise.”
 ERP Packages are integrated software
packages that support above ERP concepts.
Sonali C.
Cont…
 ERP software is design to model and
automate many basic processes of
company from finance to shop Floor.
 With a goal to integrate information
and eliminating complexity.
 ERP s/w is mirror image of business
processes of organization.
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3. 7/3/2010
Reasons For The Growth of ERP
 Improved business performance.
 Support business growth requirement
 To provide flexible, integrated, real-
time decision support
 To eliminate limitation in legacy
systems
Sonali C.
Advantage of ERP
 Many direct and indirect advantages.
 Indirect Advantages
 Better corporation
 Improve customer goodwill
 Customer satisfaction
Sonali C.
Cont…
 Direct Advantaged
 Business Integration
 Flexibility
 Better Analysis and Planning Capability
 Use of Latest Technology
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4. 7/3/2010
Why Do Many ERP Implementation
Fails
 If ERP package chosen correctly, will
raise the productivity and profits of
company
 But sometime fail due to:
 wrong product and haphazard
implementation
 inefficient and ineffective usage
Sonali C.
Cont…
 For successful Implementation:
 Good people who knows business
 Vendors shld be good and ERP package
should be according to company
requirement
 End-user training should be done
properly to understand the system.
Sonali C.
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