This document provides an overview of enterprise resource planning (ERP) systems. It discusses how ERP systems enable seamless integration and information flow across key business processes through interdependent software modules and a common central database. The document also outlines some of the benefits of ERP systems, such as helping to unify an organization's structure, enabling more efficient operations and customer-driven processes, and providing firm-wide knowledge-based management. However, it also notes challenges in implementing ERP systems, such as requiring significant changes to how a business operates and large investments of time and money.

1. ERP Systems: An Overview
Dr. Nityesh Bhatt
Institute of Management, Nirma University
nityesh@imnu.ac.in

2. Dynamic Business Environment &
Role of IS
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Blurring Business Boundary
Cut-Throat Competition
Demanding Customers
Vigilant Government, Regulator and Judiciary
Changing Role of Trade Partners
Wider Choice with Employees

3. Business Information Value Chain
* Business Functions Vs Business Processes ???

4. Order Fulfillment Process
* Business Functions are inter-related - System Imperative?

5. Enterprise Applications
• Designed to support organization-wide process coordination
and integration
• Consist of :
• Enterprise systems
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Supply chain management systems
Customer relationship management systems
Knowledge management systems

6. Enterprise Application Architecture

7. Enterprise Resource Planning
• Provides a single information system for organizationwide coordination and integration of key business
processes.
• Interdependent software modules with a common central
database that enable seamless flow of information
throughout the firm
What was Pre-ERP Scenario ?

8. Traditional (“Silo”) View of Systems
What are TPS & MIS ??

9. Transaction Processing Systems (TPS)
• A computerized system that performs and records the daily
routine transactions
• Online (Real time) Vs. Offline (Batch Processing) System
• What are functional information system ?
* Need for Integration ???

10. Enterprise Systems

11. Characteristics of an ERP System
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Integrated
Sub-System concept
Management Oriented
Management Directed
Common Database
Common Dataflow
Heavy Planning element

12. Pre-requisites of Effective ERP
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Top Management Support
Technology Oriented Staff
Qualified Systems
Control of System
Periodic Evaluation
Database
Networks

13. Benefits of Enterprise Systems
• Help to unify the firm’s structure and organization: One
organization
• Management: Firm wide knowledge-based management
processes
• Technology: Unified platform
• Business: More efficient operations & customer-driven
business processes

14. Constraints in Implementing ERP
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Lack of skilled professionals
High turnover of experts
Lack of staff cooperation
Large investment & huge time requirement
Benefits not known to management

15. Challenges of Enterprise Systems
• Difficult to build: Require fundamental changes in the way
the business operates (Change Management)
• Technology: Require complex pieces of software and large
investments of time, money, and expertise
• On-time, on-budget implementation
• Centralized organizational coordination and decision
making: Not the best way for all kinds of firms