3. ERP
Definition
ERP is a set of integrated business
applications, or modules which carry out
common business functions such as
general ledger, accounting, or order
management.
IT software that integrates business
activities across an enterprise
4. What is ERP?
ERP is short for enterprise
resource planning.
An ERP system is an attempt to integrate
all functions across a company to a single
computer system that can serve all those
functions’ specific needs.
Support business through optimizing,
maintaining, and tracking business
functions.
From product planning, parts purchasing,
inventory control, and product distribution,
to order tracking.
6. What is Intranet ?
Internal company network that uses Internet
standards (HTML, HTTP & TCP/IP protocols) &
software.
Accessed only by authorized persons, especially
members or employees of the organization
Intranet = Network + Information Resource +
Information Services
7. What is Extranet ?
Extranet is an Intranet for outside authorized users
using same internet technology.
Inter-organizational information system.
enable outsiders to work together with company’s
employees.
open to selected suppliers, customers & other business
partners
12. Costing
There are two type of cost which involve in
ERP
Implementations Cost – This is one time
cost which company have to accrue during
implementing ERP Solution.
For Small and medium scale – 50 to 70
Thousand approx..
For Large scale industry – 1 lac to 10 lac
approx..
13. Cont.
Reoccurring or maintains cost
In this cost company have to give money to it
solution company for training fee, web server cost,
maintains cost.
For small Scale industry – 5 to 20 thousand per
month
For Large Scale industry - 25 to 50 thousand per
month
*Note – For large scale industry cost can go high, it
depend on requirement of company.
14. Major Things for ERP
Implementation :
Flexibility of software system upgrades
Availability of internal technical
knowledge and resources
Education and training
Need an outside consultant
Implementation strategy and execution
15. ERPSelection
Check whether all functional
aspects of your Business are
covered
Check whether all the business
functions and processes are
integrated
Check whether all latest IT
trends are covered
Check whether the vendor has
customizing & implementing
capabilities
Check the Service options
available
Check your purse & calculate ROI
(Return On Investment)
16. ADVANTAGE OF
ERP
Business Integration
• Improved customer service and order fulfillment
• Improved communication with suppliers and
customers.
• One common system - less duplication, more
efficient.
• Reduce inventory.
• Saves enormous time and effort in data entry.
Improved business performance.
17. Disadvantages of ERP
High Software cost
Consulting Fees.
Forced change of processes.
Very complex software
Lack of trained people
Not Internet-ready
18. Success
Stories
Autodesk (computer aided design software
maker)
Reduced delivery time from two
weeks to less than 24 hours
IBM Storage Systems Division
Reduced time to re-price – 5 days to 5
minutes
Time to ship a replacement part – 22 to 3
days
Time to complete a credit check – 20
minutes to 3 seconds
19. • Systems can be very difficult to use.
• Software logic and the company
strategy may not match!
• Inadequate training to to end users.
• Many companies cut costs by cutting
user training.
• ERP systems can be very expensive
to install.
Why ERP fails ?
20. ERP in Future
Internet – continue to help organizations integrate
data and process across functional departments
Availability of web-based and wireless ERP systems
Adoption of easy-to-install ERP systems
Linkage to other software systems, e.g., supply chain
management system, e-commerce, customer
relationship management system.