Enterprise Resource Planning

1. 1
MBA 508: Management Information System (Sec 01)
“Report”
Submitted To:
Mr. Abu Bakar Emran Salauddin
Independent University, Bangladesh (IUB)
Submitted By
Name ID
Meher Nigar 1630820
Nusrat Jahan Imi 1621040
Nayeema Afrin 1630878
Sonia Khatun 1621054
A H M Aman 1630822
Date of Submission: 15th
November, 2016

2. 2
Letter of Transmission
Date:15th November 2016
Submitted To:-
Mr. Abu Bakar Emran Salauddin
Independent University, Bangladesh (IUB)
Sub: Submission ofassignment about Enterprise Resource Planning (ERP) System.
Dear Sir,
With your regards we are telling you this, that all the information’s used over here have been taken from
either book or internet or made by us.
And this is for academic purpose only; if someone does this or uses it in practical use then it’s only that
person’s responsibility. We assure you that we have not copied this from anyone and have not let anyone
to copy from us.
So in this circumstance we are requesting you to accept our work.
Yours sincerely,
Meher Nigar 1630820
Nusrat Jahan Imi 1621040
Nayeema Afrin 1630878
Sonia Khatun 1621054
A H M Aman 1630822

3. 3
Acknowledgement
At first we want to express our great gratitude to our honorable teacher to give us such a good topic for
making an assignment. He gave us his helpful hand to do this assignment. His class lecture & advice help
us very much to prepare our assignment which was very fruitful to us. So we are grateful to him.
At the very beginning a special note of acknowledgement is due to our course teacher, Mr. Abu Bakar
Emran Salauddin, for giving us the permission to prepare the assignment on this topic. He was very
generous and friendly toward us while conducting the course and was the person who has guided us
throughout preparing the assignment. His teaching method was really effective and interesting.
We would like to thank all mighty Allah for keeping everything on right track. Finally, we would like to
thank our friends without their support it was not possible for us to complete the assignment.

4. 4
Table of Content
Contents
Chapter 1 Introduction of ERP 5-8
Chapter 2 Technical Profile of ERP 9-16
Chapter 3 Financial Profile of ERP 17-20
Chapter 4 ERP in Bangladesh 21-26
Chapter 5 Conclusion 27

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CHAPTER 1:
Introduction of Enterprise Resource Planning (ERP)
Acknowledgement:
The Gartner Group first used the acronym Enterprise Resource Planning (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.
Not all ERP packages developed from a manufacturing core; ERP vendors variously began
assembling their packages with accounting, maintenance, and human-resource components. By
the mid-1990s ERP systems addressed all core enterprise functions. Governments and non–profit
organizations also began to use ERP systems.
Explanation:
ERP systems experienced rapid growth in the 1990s. Because of the year 2000 problem and the
introduction of the euro that disrupted legacy systems, many companies took the opportunity to
replace their old systems with ERP.
ERP systems initially focused on automating back office functions that did not directly
affect customers and the public. Front office functions, such as customer relationship
management (CRM), dealt directly with customers, or e-business systems such as e-
commerce, e-government, e-telecom, and e-finance—or supplier relationship
management (SRM) became integrated later, when the Internet simplified communicating with
external parties.
Developers now make more effort to integrate mobile devices with the ERP system. ERP
vendors are extending ERP to these devices, along with other business applications. Technical
stakes of modern ERP concern integration—hardware, applications, networking, supply chains.
ERP now covers more functions and roles—including decision making, stakeholders'
relationships, standardization, transparency, globalization, etc.

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Component
Database transaction
A transaction symbolizes a unit of work performed within a database management system (or
similar system) against a database, and treated in a coherent and reliable way independent of
other transactions. A transaction generally represents any change in database. Transactions in a
database environment have two main purposes:
1. To provide reliable units of work that allow correct recovery from failures and keep a
database consistent even in cases of system failure, when execution stops (completely or
partially) and many operations upon a database remain uncompleted, with unclear status.
2. To provide isolation between programs accessing a database concurrently. If this
isolation is not provided, the programs' outcomes are possibly erroneous.
Transactional databases
A transactional database is a DBMS where write transactions on the database are able to be
rolled back if they are not completed properly (e.g. due to power or connectivity loss).
Most modern relational database management systems fall into the category of databases that
support transactions.
In a database system a transaction might consist of one or more data-manipulation statements
and queries, each reading and/or writing information in the database. Users of database
systems consider consistency and integrity of data as highly important. A simple transaction is
usually issued to the database system in a language like SQL wrapped in a transaction, using a
pattern similar to the following:
1. Begin the transaction
2. Execute a set of data manipulations and/or queries
3. If no errors occur then commit the transaction and end it
4. If errors occur then rollback the transaction and end it
Benefits
Digital dashboards allow managers to monitor the contribution of the various departments in
their organization. To gauge exactly how well an organization is performing overall, digital
dashboards allow you to capture and report specific data points from each department within the
organization, thus providing a "snapshot" of performance.
Benefits of using digital dashboards include:
 Visual presentation of performance measures
 Ability to identify and correct negative trends
 Measure efficiencies/inefficiencies

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 Ability to generate detailed reports showing new trends
 Ability to make more informed decisions based on collected business intelligence
 Align strategies and organizational goals
 Saves time compared to running multiple reports
 Gain total visibility of all systems instantly
 Quick identification of data outliers and correlations
Classification
Dashboards can be broken down according to role and are either strategic, analytical,
operational, or informational. Strategic dashboards support managers at any level in an
organization, and provide the quick overview that decision makers need to monitor the health
and opportunities of the business. Dashboards of this type focus on high level measures of
performance, and forecasts. Strategic dashboards benefit from static snapshots of data (daily,
weekly, monthly, and quarterly) that are not constantly changing from one moment to the next.
Dashboards for analytical purposes often include more context, comparisons, and history, along
with subtler performance evaluators. Analytical dashboards typically support interactions with
the data, such as drilling down into the underlying details. Dashboards for monitoring operations
are often designed differently from those that support strategic decision making or data analysis
and often require monitoring of activities and events that are constantly changing and might
require attention and response at a moment's notice.
Best practices
Most ERP systems incorporate best practices. This means the software reflects the vendor's
interpretation of the most effective way to perform each business process. Systems vary in how
conveniently the customer can modify these practices. Companies that implemented industry
best practices reduced time–consuming project tasks such as
configuration, documentation, testing, and training. In addition, best practices reduced risk by
71% compared to other software implementations.
Implementation
ERP's scope usually implies significant changes to staff work processes and practices. Generally,
three types of services are available to help implement such changes—consulting, customization,
and support. Implementation time depends on business size, number of modules, customization,
the scope of process changes, and the readiness of the customer to take ownership for the project.
Modular ERP systems can be implemented in stages. The typical project for a large enterprise
takes about 14 months and requires around 150 consultants. Small projects can require months;
multinational and other large implementations can take years.

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Customization
ERP systems are theoretically based on industry best practices, and their makers intend that
organizations deploy them as is. ERP vendors do offer customers configuration options that let
organizations incorporate their own business rules, but gaps in features often remain even after
configuration is complete.
ERP customers have several options to reconcile feature gaps, each with their own pros/cons.
Technical solutions include rewriting part of the delivered software, writing a homegrown
module to work within the ERP system, or interfacing to an external system. These three options
constitute varying degrees of system customization—with the first being the most invasive and
costly to maintain. Alternatively, there are non-technical options such as changing business
practices or organizational policies to better match the delivered ERP feature set. Key differences
between customization and configuration include:
Customization advantages include that it:
 Improves user acceptance.
 Offers the potential to obtain competitive advantage vis-à-vis companies using only
standard features.
Customization disadvantages include that it:
 Increases time and resources required to implement and maintain.
 Inhibits seamless communication between suppliers and customers who use the same
ERP system not customized.
 Can create over reliance on customization, undermining the principles of ERP as a
standardizing software platform.

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CHAPTER 2:
Technical Profile of ERP
ERP technology:
Client/Server technology:
A Client/Server model is one in which the client computer is identified separately from the
server computer. In this model, the client computer makes the request and the server computer
accepts this request, processes the request and initiates a response. Under this model, the client
hosts specific parts of the software while server hosts specific parts of the software. This design
architecture allows hosting of resources like databases in central locations and distributing
resources like user interface and reporting services to other locations. In a client/server
technology, the desktop computers are connected using networking devices like hubs and routers
to centrally located servers like database servers, application servers, print servers and file
servers. When developing ERP software for an organization, whether located in a single location
or spread over multiple locations it is advisable and strongly recommended to design the ERP
software based on this model.

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Database systems:
ERP systems use relational database management systems (RDBMS) to store enterprise data.
Many of us will be aware that a database system is computer software which is used to collect
and store data. In an ERP system too, a Database server mainly concentrates on managing a
single database of information among many concurrent users, controlling database access and
other security requirements, protecting database of information with backup and recovery
features, centrally enforcing global data integrity rules across all client applications, collect and
store transaction data of an organization etc. The database software manages this data efficiently
and provides features to maintain the integrity of the data. ERP software developers should be
proficient in using various interface tools of the database software.
Development tools:
Development tools such as Visual Basic.net or C net are required for ERP software development.
These tools enable a programmer to create a major part of the ERP software application except
the database. These tools have highly advanced features to quickly create data entry forms, client
side validations, programs to implement business logic, programs to interact with the database
and programs to communicate between different parts of the application. These software tools
come with features to debug while creating the above programs, easily manage, maintain and
package the ERP software for deployment.
ERP Software:
ERP software is expected to have modules, each module designed and created to automate a
particular set of related processes. The modules of ERP software are finance, sales and
marketing, purchase, materials management, CRM etc. The manufacturing module is expected to
automate the activities which fall under the purview of manufacturing department. ERP
Software’s can be broadly categorized based on the technology into three types.
The first type is client/server ERP software which works on a set of locally networked
computers. Second, web based ERP software is hosted on a web server and available for use by
independent computer systems with access to internet. The web based ERP software can be
accessed using a web browser. SAAS ERP software is also a web based ERP software, and is
accessed by using a browser but is available for use on a transaction or time basis.
ERP software development:
ERP system software conducts a detailed cost benefit study before initiating the ERP software
product development process. The biggest advantage of developing ERP software in-house is
that the company retains full ownership rights of the source code and the knowledge gained &
Companies will have flexibility in customizing the software as and when they think the time is
right. A major requirement of developing in-house ERP software is that the company needs to
have a core team which is experienced in executing such ERP projects. The core team should
have a long term requirements of software in mind before planning the ERP software. The team
should also have a thorough understanding of the business processes of the company and should
be proficient in designing a software system based on latest technology. By developing the

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software in-house, companies will have the freedom in choosing the software such as databases,
front end tools and report writers. The satisfaction levels among programmers who have
developed ERP in-house system software are much higher and sense of belonging is more. Such
motivated IT teams contribute greatly towards a company's competitive advantage.
In-house ERP software development can lead to a competitive advantage as companies are free
to make decisions related to their software systems. In contrast, when a vendor is hired to install
a ERP software, decisions related to software need participation from the vendor also which may
lead to delays and uncertainties.
Platform suited for Creating ERP Software:
Net platform is the most widely used platform given the number of windows machines used
worldwide. Let us assume that the .Net is our platform and all the following discussion is based
on this assumption. Net is a new layer of software that sits over the familiar Windows operating
system. This insulates computer users from the operating system and makes applications more
efficient. Let us now list the major features of .net technology.
Managed code:
Net offers many tools and components that can be used to write managed code. Managed code is
better because software errors are identified and stopped before systems crash. .Net ensures that
we do not encounter memory leaks while using software.
Security:
Net enforces a new system of supervision. Hackers will find it difficult to break through the net
security model.
Connectivity:
Net development tools make it easier to develop ERP software by providing connectivity
techniques such as XML web services. This is vital because ERP software will be distributed,
collaborative and networked systems which communicate constantly. Building an ERP system
for such environments is much easier with .net technologies.
Faster and easiersoftware development:
Net allows developers to develop software systems, much easier by offering RAD tools. These
tools have excellent programming and debugging features which allows development of better
software. Applications developed using these tools run faster as the code is managed by the .net
runtime system.
Scalability:
ERP software require continues up-gradations which means constant addition of new
technologies and features. .Net allows this, as improvements in .Net framework are instantly
available to the upgraded ERP software. This allows better scalability. Every company which is
planning to use ERP software has to have in-house knowledge of the working of their company,
specifications of the software they plan to install. Let’s discuss some important topics related to
ERP software development. We begin with technologies.

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OOP:
OOP is an important programming concept in software development. OOP stands for Object
Oriented Programming. Many books on programming and training institutes talk about OOPS
design in programming but rarely discuss how to implement OOPS in database applications such
as ERP or Accounting software.
Importance of layers in ERP software development:
Dividing an application into layers has many benefits. The biggest benefit is the neat separation
of the presentation part, the business logic part and the data part as layers and so we can handle
these parts independently of each other. For example, the presentation layer will contain all the
code related to the user interface and user interaction of ERP software. The business layer which
is adjacent to the presentation layer contains all the classes with code to implement business
rules of the ERP system.
SQL Server:
Every ERP software should include a database system which can handle the large amount of data
entered in ERP software. Relational databases like Oracle and SQL Server are recommended for
handling the data in ERP software. SQL server software provides advanced features such as
Structured Query Language, business intelligence, stored procedures to enforce validations,
implement business logic of an ERP application, triggers to initiate actions, implementation of
transactions in ERP software which enables concurrent access of database and provides security.

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Entity Framework:
Entity Framework enables programmers to create ERP applications without worrying about
structure of the database, and work with schemas which reflect business objects. Entity
Framework is an Object Relational Mapper (ORM)and programmers update data stored in a
database using this mapper. Using ORM, we can map database tables to .net classes and build
relationships between them. ORMs help us to create complex enterprise ERP software and build
the relational databases model and object oriented models.
The role of Grid View Control in ERP Software development:
The Grid View control is a part of the Presentation layer of an ERP software application. The
Grid View control normally handles all the table or spreadsheet like data entry of the ERP
software. ERP software developers need to know what is a Grid View control, how to bind a
Grid View control with dataset, how to handle fields within a Grid View control, how to auto
generate columns, how to use template fields in a Grid View and how to format Grid View using
CSS.
The role of Details view Control in ERP Software development:
The Details View control enables us to display single data item at a time. Programming the
Details View control is essential for developing ERP software. This is because it enables display,
edit, insert and delete of data items. The Details view control is typically used for updating and
inserting new records in a master/detail scenario. For instance, in an ERP application the details
view control is used along with a Grid view control to display pending Sales Order details and
Details view control displays a single sales order details.
Web ERP software development:
Web ERP software is partitioned similar to the desktop ERP software application that is it
contains the Presentation Layer, Business Layer and Data Access Layer. Usually, C is used to
build the business logics of web ERP software. However, programmers also use VB as a
language to develop the web ERP software. The Presentation layer is completely developed
using ASP.Net and AJAX.
ASP.Net:
ASP.net technology is used to develop web applications which can be used over the internet,
develop data entry forms which accepts data over the internet, use ASP.Net validation controls to
validate data entered, access database over internet and authenticate users.
AJAX:
AJAX is a more recent technology which can be used with ASP.Net and allows programmers to
write JavaScript code for speedier applications. AJAX application run faster than traditional

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ASP.Net applications are more versatile providing users with a user friendly interface.
Web Services:
A web service is a software application that works over the internet. A web service resides on the
web server and is available for use over the internet. We create a web service when we would
like to use a particular functionality or functionalities in many business applications. By adding a
web service to an application we can enhance the features of the application.
Smartphone programming:
Smartphone’s are extensively used by organizations which have implemented ERP software in
their organization. Smartphone’s are used for a variety of office functions such as
communication, recording of sales orders, delivery of goods, video conferencing and many other
functions. Popular operating systems used in Smartphone’s are Android, iPhone and Windows
mobile 7. Programming an application for an operating system such as Android requires
knowledge of Java language, Android SDK, Activities, menus, layouts, intents and broadcast
receivers. Developing applications for a Smartphone is different as compared to developing
applications for the web or desktop. Smartphone applications have to be light weight, have
interactive presentation layer and handle databases differently. The topics which come under the
domain group are working of an organization, Business processes, data recorded under various
departments, data grouped under heads, reports generated, documents generated and Business
Intelligence required by the organization. The technology specific topics are database design,
tables, stored procedures, triggers, programming languages such as vb, c and java, asp.net with
Ajax and SQL server.
The recommended order of topics for teaching ERP software development is given below.
 Domain knowledge required for developing an ERP software
 Database Design of an ERP software
 Interface design (Presentation Layer) of the ERP software
 Data Access Layer which includes the classes to access the database
 Business layer which contains the classes to implement the business logic
ERP software maintenance:
A maintenance plan is recommended as otherwise in case of a failure it would be difficult to get
maintenance done. A maintenance plan also ensures that companies are given the latest versions
of the software so that in case support for the earlier versions is discontinued the company is not
left with an unsupported ERP. When working out a maintenance plan with a vendor ensures that
there are no hidden clauses, the frequency of upgrade is high and often, penalties if any, and
ways to save on maintenance charges. If a company has IT staff reading the online manuals and
tech knowledge base will go a long way in understanding the product and its features better.
.

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Modern Manufacturing in the Cloud:
In today’s highly competitive manufacturing environment, you need every cost saving and
efficiency gain you can find. The Plex Manufacturing Cloud gives you everything you need to
run your mission-critical ERP .Plex's ERP technology provides Software-as-a-Service, using a
state-of-the-art multi-tenant model that lowers costs through economies of scale. We take care of
the hardware, middleware and ongoing management and support; you just tune your operations
to run exactly how you want them on our platform. Those reservations have gradually been
evaporating, however, as the advantages of the cloud become apparent. The Plex Manufacturing
Cloud significantly reduces the cost of installing, maintaining, supporting and upgrading your
ERP system. Our cloud-based platform lets you get up and running in just a few months,
allowing you to focus on business decisions rather than technology. And Plex eliminates the
need to spend money on new hardware, middleware, database servers, added IT staff, upgrades,
additional licenses or ongoing maintenance as your business grows. Total cost of ownership is
lower not just in year one, but throughout the lifetime of your relationship with Plex.
ERP Vendors
Depending on your organization's size and needs there are a number of enterprise resource
planning software vendors to choose from in the large enterprise, mid-market and the small
business ERP market.
 Large Enterprise ERP (ERP Tier I): The ERP market for large enterprises is dominated
by three companies: SAP, Oracle and Microsoft.
 Mid Market ERP (ERP Tier II): For the midmarket vendors include Infor, QAD,
Lawson, Epicor, Sage and IFS.
 Small Business ERP (ERP Tier III): Exact Globe, Syspro, NetSuite, Visibility, Consona,
CDC Software and Activant Solutions round out the ERP vendors for small businesses.
Mobile ERP
Executives and employees want real-time access to information, regardless of where they are. It
is expected that businesses will embrace mobile ERP for the reports, dashboards and to conduct
key business processes. Mobile ERP is an Enterprise Resource Planning System build from the
ground up for the mobile user. The main way of using the system is through a mobile device
such as a smart phone or tablet instead of location fixed computer .One of the advantages of a
Mobile ERP system is that it enhances mobility in a company and thereby increases efficiency
and decreases other costs such as transportation.
Cloud ERP
The cloud has been advancing steadily into the enterprise for some time, but many ERP users
have been reluctant to place data cloud.

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Social ERP
There has been much hype around social media and how important – or not -- it is to add to ERP
systems. Certainly, vendors have been quick to seize the initiative, adding social media packages
to their ERP systems with much fanfare. But some wonder if there is really much gain to be had
by integrating social media with ERP.
Two-tier ERP
Enterprises once attempted to build an all-encompassing ERP system to take care of every aspect
of organizational systems. But some expensive failures have gradually brought about a change in
strategy – adopting two tiers of ERP.
We can conclude by saying that, the advantage of postmodern ERP lies in the fact that it is
highly adaptable in case of emergency, metaphorically speaking: If a company is acquired and
has grown considerably within a short time span, it is way easier .Another point that speaks in
favor of postmodern ERP being the ERP of the future is that it fits perfectly into the overall
concept of the notorious bimodal IT and hybrid IT architecture — something all companies will
inevitably adopt sooner or later (or have already done this) for a reason. The core ERP would for
example cover such areas as procurement, financials and order management, while special
solutions will be implemented for retail, quality management or human capital management.

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CHAPTER 3:
Financial Profile of ERP
FINANCIAL SIDE
The total cost of an enterprise resource planning (ERP) system implementation includes several
factors, including the following:
• The scale of the ERP software, which corresponds to the size of the company it serves
• The need for new hardware capable of running complex ERP software
• Consultants’ and analysts’ fees.
• Length of time required for implementation
• Training
Based on these factors, Gartner (2009) proposed that the cost estimates be managed in three
different categories, such as
Establishment Cost – for example: Personal (In-House & Contract), Tools &
Equipment, Facilities, External services, Consultants, Training, Software, Hardware,
Platform, Network, Change management
Recurrent Cost – for example: Software license renewal, upgrades, Hardware
maintenance, rental, Facilities cost, On-going training cost, etc. that are incurred post
implementation
Decommission – Changeover to completely new version of ERP system
Since ERP system cost is not a once-off cost element for the organization, therefore a total Cost
of Ownership (TOC) approach in cost budgeting is very important to set realistic budget and
time scale for any ERP system implementation and maintenance. Some important key cost of
these three categories is described below:
Establishment Cost
 Change Management Cost
Since ERP implementations may trigger profound changes in corporate culture. Employees and
management staff that are not properly prepared will lead to denial, resistance, and chaos.
However, if change management techniques are properly deployed, the company should stand to

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enjoy the benefits and opportunities provided by the new ERP system (Umble et al.2003).
Therefore, resource cost in the form of Change Champions is required to be placed across all the
functional departments that will use the new integrated ERP system.
 Training Cost
Training the project team and end users on how to use and maintain the new system properly.
Training starts from beginning of the project all the way to testing and go live stage (part of
Establishment cost) and post implementation for upgrades, new users, as part of Recurring cost.
Training cost is unavoidable because training is one of the key success factor to ensure a good
ROI on new ERP system (Somers & Nelson 2001 and IOFM 2013)
 Software Cost
Initial software cost is relatively not the biggest cost component at about 10% (Hawking 2014)
as shown below.
And another report by Scheer &Habemann (2000) puts software cost at only 1/7 of total cost. In
summary, software cost is not high despite most users are stuck with only a few choices to
choose from, for example SAP, Oracle, Sage, Microsoft, etc.
 Hardware Cost
Users can choose for in-house hardware or rent a hard-ware from service provider like Cisco or
use cloud technology. Hardware costs are mainly initial purchase cost and yearly maintenance
cost. Hardware costs are easier to estimate in ERP implementation project as each hardware
purchased or leased can be used over a longer period. On-going hardware infrastructure upgrade
cost is lower than software yearly license (Burns 2011).
Design and
implementation
Software
Training
and
change management
Hardware
Data
cleansing
35%
35%
10%
10%
10%

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 Designand Implementation Cost
A few elements arising from the design stage is how much customization is required for the
business. As each ERP system is built based on best practices for an organization, most often
based on a manufacturing environment, any deviation from the standard program requires
customization of the program which can be very costly (Somers & Nelson 2001, Babey 2006 and
Burns 2011).
 Consultants Costs
Most ERP project can’t start without expert advice by consultants; therefore consultants are a
must in ERP system implementation. During the design and implementation stage, organizations
can make the same choice on whether to host own server & network or to lease from 3rd party
service provider.
Table from Burns (2011) shows the high cost of customization.
Sample ERP COSTS
Type of costs Amount ($) %
License fees 150,000 24%
Maintenance fees 81,000 13%
External consulting fees and customization 180,000 29%
Infrastructure upgrade costs 40,000 6%
Internal costs 180,000 29%
Total 631,000 100%
Recurrent Cost
 Data Cleansing Cost
Some of the old data might not be suitable or sufficient for the new ERP system and requires
cleaning before transfer. This data cleansing job is tedious and requires many man hours. Cost
incurred for this pre-implementation phase can be substantial. Data accuracy problem can cost
the organization dearly (Umble et al 2003).

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 Repair Maintenance and Upgrade Cost
This cost is incurred and varies depending on the quality of hardware used and required for
software. However, many firms opted for leasing of hardware that includes repair and
maintenance. Hence exposure in this cost is easier to budget in TOC. The study by Ng, Gable
and Chan (2003) indicated that maintenance can be as high as 25% of TOC.
Decommission
Decommission cost refers the cost until the end of life cycle of the system. This cost includes
complete changeover of new version of ERP system. This is important for upgrading of used
ERP system.
large companies
midsized
companies
small companies
0
100
200
300
400
500
600
large companies midsized companies small companies
MILLIONS

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Chapter 4
ERP in Bangladesh
ERP (Enterprise Resource Planning) in Bangladesh
An ERP (Enterprise Resource Planning) system allows one to integrate engineering, customer
service, planning, materials, manufacturing, finance, and human resources across a single facility
or across multiple locations.
A web base ERP is the most important software to work out to automate the whole system.
Those are normally use for day to activity. Customized web base ERP will help you to maintain
& improve inventory control, easier in-store operations and customer service, improved sales,
maintain & supply as well as the commercial activities and so on. Based on this customized web
base ERP has seceded to develop an automated system which will maintain the records and
generate daily, weekly or any periodical reports that are normally used for day to day activity.
With ERP system, one can implement the complete business software suite to run your entire
business better!
ERP helps to integrate finance, accounting, manufacturing, project, retail and other supply chain
management business processes. Here are the core features-
 Improve profitability and accomplish project goals on time and on budget
 Better decision-making for people across one’s organization—from warehouse personnel
to financial analysts
 Create accurate budgets and meaningful financial predictions with effective planning,
budgeting, and reporting tools.
 Use service-oriented architecture (SOA) and web services to extend and connect business
solutions.
ERP Solution (Capture the whole Business in a single system)

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ERP system in Bangladeshi Perspective
Some ERP Module use in Bangladesh:
1. Human Resource Module
2. Accounts Module
3. Inventory Module
4. Sales Module
5. Purchase Module.
6. CRM Module
7. Commercial Module
8. Production Module
9. Supply & Distribution Module
Kelly Co. Ltd. A Chemical Manufacturing Company (Korean-Bangladesh
Joint Venture)
Set stock’s Opening Balance
It’s too much easy to set all Stock's current balance, Rates and any other update which will save
lots of one’s working hour to start up with the uses of ERP System
Create MaterialRequisition
Just click on Create MR (Material Requisition) and send it to management for approving without
leaving one’s desk.

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Production Line Issue and Receive:
Issue Raw Materials to Production Line and receive Finished goods is now in one place. Track
all the production details report with one click.
ERP in Garments Sectorin Bangladesh
Create LC
Create LC with more details like, Party Name, Buyer Bank, Local Bank, LC Issue date,
Shipment Date, Expiry Date, LC Create date and so on. Then just track and watch LC Status.
Create PI (Performa Invoice) is now more easy with all kind of details. Now people can add multiple
InvoicesinOne PI.

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ERPinBankingSector(BRACBANK)
Enterprise Resource Planning (ERP)
BRAC bank use IFS software for their total ERP solution.
1. Accounting and Finance
2. Human Resource Management
3. CRM (Customer Relationship management
ERP delivers a single database that contains all data for the software modules, which would
include:
General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets.
SAP ERP (Enterprise Resource Planning)Software in Bangladesh
SAP ERP is enterprise resource planning software developed by the German company SAP SE.
SAP ERP incorporates the key business functions of an organization. The latest version (SAP
ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP8) for SAP
ERP 6.0 was released in 2016.
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.
Gradually, the applications have been assembled and today many corporations, including IBM
and Microsoft, are using SAP products to run their own businesses.

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Business Processes included in SAP ERP include Operations (Sales & Distribution, Materials
Management, Production Planning, Logistics Execution, and Quality Management), Financials
(Financial Accounting, Management Accounting, and Supply Chain Management) and Human
Capital Management (Payroll, e-Recruiting).
.In Bangladesh ERP Market is growing very fast, last 3 to 4 years SAP has faster growth rate.
There is about 39 local and foreign companies use SAP in Bangladesh. Here is the list of SAP
using companies in Bangladesh as bellow:
1. ACI Logistic
2. Bangladesh Bank
3. Bangladesh Edible Oilt Ltd
4. BASF
5. Bashundhara Group
6. British American Toabacco
7. Berger Paints Bangladesh Limited
8. Butterfly-LG Bangladesh
9. CEAT Bangladesh
10. Ceragem bangladesh Ltd
11. Coats BD
12. Erricsson
13. Gemcon
14. House of Pearl fashions ltd
15. Incepta Pharmaceuticals Ltd
16. Karnaphuli Fertilizer Company Ltd (KAFCO)
17. Lynde Bangladesh
18. Marks Spencer
19. MGH
20. Nestle Bangladesh
21. Novertis
22. Otobi
23. Partex
24. Pedrollo
25. Perffeti
26. Rahimafrooz
27. ROBI
28. Samung
29. Sanofi Bangladesh Limited
30. Santa Group
31. SAP India
32. Siemens
33. South China Bleaching & Dyeing Factory Ltd.
34. Square
35. Uilever
36. Ultratech Cement
37. Unique Group

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SAP Business All-in-One Software
The main object of ERP Development is keep record of the overall business under one database
so that all information can be stored and managed from a single point, use data security and
access control; generate reports with very few mouse clicks and in less time. The object also
includes providing high security and restricted access control, real time from anywhere
according to the needs.

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CHAPTER 5:
Conclusion
On implementing an ERP packaged system, the implementation model is provided by the
vendor, so what is most needed from the standpoint of the company installing the package are
the requirements for configuring and integrating the package system. When integration models
were applied to the companies represented by this case study, they provided the glue between the
business area representative's views and the technical team. The resulting solution models were
used to orient the staff resources that were brought in by the package vendor. They were also
used to carve out the implementation project and orient the internal teams who would carry out
the project.
Since 1984, Laura Brown has helped businesses and technical managers deliver systems
solutions, and have worked as management consultant and senior technical advisor to Fortune
500 companies. She is President of System Innovations, a consulting firm specializing in
enterprise application integration, data warehousing, and Internet design.
ERP Cost Comparison Depending on Size of the Company:
A large company, one with well over 1,000 employees, will likely spend $100 million to $500
million for an ERP system with operations involving multiple countries, currencies, languages,
and tax laws. Such an installation might cost as much as $30 million in software license fees,
$200 million in consulting fees, additional millions to purchase new hardware, and even more
millions to train managers and employees—and full implementation of the new system could
take four to six years.
A midsized company (one with fewer than 1,000 employees) might spend $10 million to $20
million in total implementation costs and have its ERP system up and running in about two
years.
A smaller company, one with less than $50 million in annual revenue, could expect to pay about
$300,000 for an ERP implementation, and one with revenue of $100–250 million could spend
around $1.4 million. For these smaller companies, implementations usually take about 10
months.

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http://www.erp.com.bd/web/
http://www.drinstech.com/erp-software-in-bangladesh.php
http://bdnews24.com/services-bangladesh/erp-software-bangladesh.html
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http://www.erpst.com/about-us/
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