An overview of the various aspects of ENTERPRISE RESOURCE PLANNING

1. ENTERPRISE
RESOURCE
PLANNING
Presented By:
AVINASH NAHAK
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2. PAGE OF CONTENTS
• Introduction
• Origin
• ERP Modules
• Legacy System
• Implementation of ERP
• Critical Success Factors
• ERP Implementation: various requirements
• Benefits of ERP
• Disadvantages of ERP
• Conclusion
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3. INTRODUCTION
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 Enterprise resource planning (ERP) is an integrated business management software,
typically a suite of integrated applications that helps an enterprise to access,
interpret and monitor all the transactional and informational flow existing within the
enterprise.
• Automate and integrate the business processes
• Share common data and practices across the enterprise
• Produce and access information in a real time mode
• Lays the foundation for intelligence, integration, extended enterprise
• Forms the basis for business growth and expansion
 Time and resources are shifted to innovation, problem solving and enhances service
to customers rather than inputting, processing, organizing and verifying, leading to
greater efficiency and saving potential.

4. RIGIN
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The Gartner Group first used the acronym ERP in the 1990s, where it was seen to
extend the capabilities of Material Requirements Planning (MRP), and the later
Manufacturing Resource Planning (MRP II) as well as Computer Integrated
Manufacturing. Without replacing these terms, ERP came to represent a larger
whole that reflected the evolution of application integration beyond manufacturing.
ERP systems experienced rapid growth in the 1990s. Because of the year 2000
problem and introduction of the euro disrupted legacy systems, many companies
replaced their old systems with ERP. By the mid-1990s ERP systems addressed all
core enterprise functions. Governments and non–profit organizations also began to
use ERP systems.

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 HR (Human Resources)
 FICO (Financing &
Controlling)
 MM (Material Management)
 PP (Production Planning)
 SD (Sales & Distribution)
 QM (Quality Management)
 SRM (Supplier Relationship
Management)
 CRM (Customer
Relationship Management)
 APO (Advanced Planning
Optimization)
 PS (Project Systems)
 PI (Project Interface)
ERP MODULES

6. LEGACY
SYSTEM
A legacy system is an
old method, technology,
computer system or
even an application
program, "of, relating to,
or being a previous or
outdated computer
system”. Often a
pejorative term,
referencing a system as
"legacy" often implies
that the system is out of
date or in need of
replacement.
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LEGACY SYSTEM VS ERP

7. IMPLEMENTATION OF ERP
Implementation of ERP System is a complex exercise, involving many process
alterations and several legacy issues. Organizations need an implementation
strategy encompassing both pre implementation and implementation stages. The
various steps included are:
STRATEGIC PLANNING
• Assign a project team
• Examine current business processes and information flow
• Set objectives
• Develop a project plan
PROCEDURE REVIEW
• Review software capabilities
• Identify manual processes
• Develop standard operating procedures
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DATA COLLECTION & CLEAN-UP
• Convert data
• Collect new data
• Review all data input
• Clean-up data
TRAINING AND TESTING
• Pre-test the database
• Verify testing
• Train the Trainer
• Perform final testing
GO LIVE AND EVALUATION
• Develop a final Go-Live Checklist
• Evaluate the solution

9. CRITICAL SUCCESS FACTORS IN
ERP IMPLEMENTATION
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Critical success factors (CSFs) are often used to identify and state the key elements
required for the success of a business operation. Further on, critical success
factors can be described in more details as a small number of easily identifiable
operational goals shaped by the industry, the firm, the manager, and the
environment that assures the success of an organization
The critical success factors can be divided into three phases of the implementation
project
 The Strategic (planning) phase
 The Tactical (action) phase
 The Cultural phase

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 Strategic issues specify the need for a project mission, top management support, and a project
schedule outlining individual action steps for project implementation.
 Tactical issues focus on communication with all affected parties, recruitment of necessary
personnel for the project team, and obtaining the required technology and expertise for the
technical action step.
 Cultural issues specify cultural diversity among customers, consultants, and vendors.

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ERP IMPLEMENTATION: VARIOUS REQUIREMENTS
In order to successfully implement ERP, an organization requires four major components
 Software - ERP product
 Implementation partner
 Hard Ware
 Network solutions
ERP product
It is software developed to suite various types of organizations. Each of the ERP developing
companies conducts research on requirements of different organizations before developing and
selling the software. There are thousands of such ERP developers across the globe, but very few are
globally respected and used. Organizations like SAP, ORACLE, INFOR and Microsoft occupy more
than 70% of the market share.
.

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Implementation Partner
Implementation of ERP is the most crucial part of ERP. It is understood that purchasing of ERP software
and required hard ware along with network solutions is sufficient to implement ERP. It is like purchasing a
PC and windows software. But without knowing how to install the software, how to use it and how to
configure to suite to your requirements, there is no use of such software and hard ware.
Hardware
Entire data base of the organization including application software is stored at one place. Data base
servers, Application Servers and Web servers are provided with highest level of reliability. Personal
computer to each user any way is a necessity for implementing ERP.
Network solutions
ERP software and Hardware to be connected to all the users across the organization through Local Area
Network (LAN) and across the globe through Virtual Private Network (VPN) or Internet. Dedicated LANS
need to be provided for local users which require switches, firewalls, routers, fiber optic cable, LAN cable
etc. Dedicated VPN either hired or own is required to be proved to connect outside users.

13. IMPLEMENTATION PARTNER
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There are some prominent software organizations across the globe that has knowledge of the
ERP software and Hardware along with the knowledge of different organizations. These are called
Implementation Partner (IP).IP understands the organizational needs after thorough study and
discussion and configures the ERP software and hardware to suit to the specific requirements of
the type of organization.
LIST OF IMPLEMENTATION PARTNERS
Infosys Technologies Accenture
Wipro Technologies HCL Technologies
Tata Consultancy Services Cognizant
Hexaware Solutions Capgemini
IBM L&T Infotech
Oracle Consulting Hitachi Consulting

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HARDWARE
SERVER
Servers used in ERP Department at VSP
• Application Server
• Data Base Server
• Rack Mount Server
• Web Server
• Blade Server
• Quorum Server
• Back Up Server
• SAN (Storage Area Network)
• NAS( Network Attached Storage
Fig. HPrx7640 Application Server

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Dell PowerEdge Web Server IBM HS20 Blade Server

16. MANAGING DATA CENTRES
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The management of the Data Centre which houses all the hardware components and
few of the networking tools require the two basic things
 Power supply
 Cooling
 Backup
POWER SUPPLY
Power for the data centers in VSP are from two main sources.
 TPP (Thermal Power Plant)
 APSEB (Andhra Pradesh State Electrical Board)
The uninterrupted power supply (UPS) unit is used as stand by power supply during interruption of
regular power supply due to load shedding, power failure, power fluctuations etc.

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COOLING - AIR CONDITIONING SYSTEMS
The control of temperature, humidity, motion of air, air distribution, air pressure, dust, bacteria, odors,
toxic gases and ionization is known as Air Conditioning Systems. The environment is maintained to the
respective requirements by air conditioning systems. Air conditioning system in Datacenters of VSP are
provided by PACs.
PAC (Precision Air Conditioner)
Precision air conditioning systems are used in a wide range of applications such as Server rooms,
Computer rooms, Data centres, Switch centres, Telecom shelters, Quality Control labs, Precision
Manufacturing CNC Machine, Pharmaceutical industry, Medical equipment, Clean rooms and many
more. These large computers required reliable air conditioning systems capable of running round the
clock, maintain very close control on environmental conditions i.e. temperature and humidity and have
high sensible cooling capacity since the equipment loads were dominant in these applications.

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Fig. EMERSON Liebert
PoX cooling system
PAC WORKING

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BACK UP
These days, more and more people are using computers to store memories, important
documents, and various other bits of information that may need to be kept for long periods of
time. Backing up a computer is essential for keeping long term (or even short term) documents
around. The various types of backups are
 Operating System backup
 All File Systems database backup
 Off - line database backup - Fortnight basis
 On - line database backup - Daily basis
 Archive logs - Hourly basis
Fig. Hard Disk backup

20. NETWORK
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A computer network is a collection of computers and devices (routers, switch, hub)
interconnected by communications channels (fiber optics, UTP, SMF, MMF) that facilitate
communications and allows sharing of resources and information among interconnected
devices. The three types of networks are: the Internet, the intranet, and the extranet.
Examples of different network methods are:
• Local area network (LAN), which is usually a small network constrained to a small geographic area.
An example of a LAN would be a computer network within a building.
• Metropolitan area network (MAN), which is used for medium size area. Examples for a city or a
state.
• Wide area network (WAN) that is usually a larger network that covers a large geographic area.
• Wireless LANs and WANs (WLAN & WWAN) are the wireless equivalent of the LAN and WAN.
Networks may be classified according to a wide variety of characteristics such as topology,
connection method and.

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PURPOSE
Computer networks can be used for a variety of purposes:
Facilitating communications :
Using a network, people can communicate efficiently and easily via email, instant messaging, chat
rooms, telephone, video telephone calls, and video conferencing.
Sharing hardware :
In a networked environment, each computer on a network may access and use hardware
resources on the network, such as printing a document on a shared network printer.
Sharing files, data, and information :
In a network environment, authorized user may access data and information stored on other
computers on the network. The capability of providing access to data and information on shared
storage devices is an important feature of many networks.
Sharing software :
Users connected to a network may run application programs on remote computers.

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Data centers connecting diagram

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SOFTWARE
ERP product
These softwares are developed to suite various types of organizations. Each of the ERP developing
companies conducts research on requirements of different organizations before developing and
selling the software. There are thousands of such ERP developers across the globe, but very few are
globally respected and used. Organizations like SAP, ORACLE, INFOR and Microsoft are the leaders
in the ERP software market. Some of the ERP softwares available in the market are:
• Epicor ERP from Epicor
• Infor ERP BPCS/LX from Infor Global Solutions
• Maximo (MRO) from IBM
• Microsoft Dynamics AX, GP, NAV, SL
• NetSuite from NetSuite Inc.
• Opera (I, II and 3) from Pegasus Software
• Oracle Fusion from Oracle
• SAP Business All-in-One from SAP
.

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SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the
world's largest inter-enterprise software company and the world's fourth-largest independent software
supplier, overall.
The original name for SAP was German: Systeme, Anwendungen, Produkte, German for "Systems
Applications and Products." The original SAP idea was to provide customers with the ability to interact
with a common corporate database for a comprehensive range of applications. Today many
corporations, including IBM and Microsoft, are using SAP products to run their own businesses.
SAP applications, built around their latest R/3 system, provide the capability to manage financial,
asset, and cost accounting, production operations and materials, personnel, plants, and archived
document. The latest version of R/3 includes a comprehensive Internet-enabled package. SAP has
recently recast its product offerings under a comprehensive Web interface, called mySAP.com, and
added new e-business applications, including customer relationship management (CRM) and supply
chain management (SCM).
SAP

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R/3
R/3 is the set of integrated business applications from SAP. R/3 uses the client/server model and with the ability
to store, retrieve, analyze, and process corporate data for financial analysis, production operation, human resource
management. A recent release of R/3 gets the R/3 database and applications through Internet access and Web
browsers. A more recent one adds features to speed product delivery by helping to manage the supply chain.
ABAP
ABAP (Advanced Business Application Programming) is a programming language for developing applications for
the SAP R/3 system. The latest version, ABAP Objects, an object-oriented programming, uses a single inheritance
model and full support for object features such as encapsulation, polymorphism, and persistence.
CATT
CATT (Computer Aided Test Tool) is a test tool in the ABAP Workbench package from SAP. CATT allows a
developer to create test data and group and automate reusable test runs for repetitive business transactions.
BAPI
BAPI (Business Application Programming Interface) is a set of interfaces to object-oriented programming
methods that enable integration of third-party software into the proprietary R/3 product from SAP. BAPIs are
implemented and stored in the R/3 system as remote function call (RFC) modules.

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BENEFITS OF ERP
 ERP improves the quality and efficiency of the business. By keeping a company's internal
business processes running smoothly, ERP leads to better outputs that may benefit the
company, such as in customer service and manufacturing.
 ERP supports upper level management by providing information for decision making.
 ERP creates a more agile company that adapts better to change.
 ERP makes a company more flexible and less rigidly structured. So organization components
operate more cohesively, enhancing the business - internally and externally.
 ERP can improve data security. A common control system, such as the kind offered by ERP
systems, allows organizations the ability to more easily ensure key company data is not
compromised.
 ERP provides increased opportunities for collaboration. Data takes many forms in the modern
enterprise. ERP provides a collaborative platform that lets employees spend more time
collaborating on content rather than mastering the learning curve of communicating in various
formats across distributed systems

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DISADVANTAGES OF ERP
 Customization forces the organization to find workarounds to meet unique demands.
 Re-engineering business processes to fit the ERP system may damage
competitiveness or divert focus from other critical activities.
 ERP can cost more than less integrated or less comprehensive solutions.
 High ERP switching costs can increase the ERP vendor's negotiating power, which can
increase support, maintenance, and upgrade expenses.
 Overcoming resistance to sharing sensitive information between departments can
divert management attention.
 Extensive training requirements take resources from daily operations.
 Due to ERP's architecture (OLTP, On-Line Transaction Processing) ERP systems are not
well suited for production planning and supply chain management (SCM).
 Harmonization of ERP systems can be a mammoth task (especially for big companies)
and requires a lot of time, planning, and money.

28. ERP systems are important tools to help organizations change business
environment and gain sustained competitive advantages over their
opponents. In implementing an ERP solution, an organization can quickly
upgrade its business processes to industry standards, taking advantage of
the many years of business systems reengineering and integration
experience of the major ERP vendors. As a strategic business solution, it
will greatly improve integration across functional departments,
emphasize on core business processes, and enhance overall
competitiveness.
CONCLUSION
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