An ERP system is necessary for businesses to manage complex processes, comply with regulations, and adapt to changes. While ERP systems are crucial for large enterprises, small and medium enterprises also need ERP to handle complex tax and compliance requirements. Additionally, ERP protects businesses from risks by managing user access, transactions, and productivity. Selecting the right ERP solution requires an unbiased analysis of a business's needs and budget.

1. ERP** – Enterprise Resource Planning
An integrated business application
Presented by
Sanjiv Arora,
CISA, CISM, CGEIT, CHPSE
sa@tech-controls.com
Www.tech-controls.com
** Core Banking Solutions
(CBS), Hospital / Hotel
Management Systems (HMS),
Insurance Management
Systems or Industry specific
solutions are all ERP
equivalents

2. ERP : Why is it necessary?
Opinion #1
Businesses can not survive without
technology
A good business application can make or
break business
Correct ERP product selection depends on
unbiased consultants and vendors
You must ‘Service the Customer at any cost’
You must SURVIVE and be PROFITABLE

3. ERP : Why is it necessary?
Opinion #2
SME – Segment
Business complexities are not any
different from companies like
Fortune 500's
 Reliance, Wipro, Infosys, Tata’s
Excise, Taxation and returns
Regulatory compliance
Sox, PCI etc

4. ERP : Why is it necessary?
Opinion #3
Net worth of organizations is
evaluated on -
Information Assets (data,
know how, mature processes)
Physical Assets (Buildings,
cars, plant and machinery )
-As per Gartner
With timely information and
knowledge, take informed
decisions
85%
15%

5. ERP : Why is it necessary?
Opinion #4
Protect business from LARGEST growing
CRIME = White Collar crime
Manage confidentiality of information
Define procedures, processes and role
based authority
Verify the transaction through history trails
Monitor User activities
Manage productivity of factories and
Employees

6. ERP : Why is it necessary?
Opinion #5
IT Act 2000, Sox, PCI, ISO, HIPAA and
other Regulations, are in place
In India
RBI guidelines for banks, Financial and
Insurance companies
NSE for stock brokers
SEBI for public limited companies (clause
49)
Company Laws
Taxation
Business

7. ERP : Why is it necessary?
Opinion #6
IT is unavoidable, as…
IT Governance
(Well managed IT hardware, software
applications, Systems, Secure
Information)
Good internal controls
(Managed processes
and procedures)
Corporate Governance
(Well managed enterprise /
Managed Business Risk, IT is
Aligned)

8. ERP : Why is it necessary?
Opinion #7
Only CONSTANT in Business = Change
Plan, prepare and be ready to implement
changes with ease
Business Requires Solutions TODAY,
Long drawn ERP implementation are passe
Organization adapts to changing
Customer requirements
Global competition
Profitability Crunch = Profits are internal

9. ERP : Why is it necessary?
Opinion #8
Should Addresses 80% of business problems
Covers most business processes
Certain business functions perform best,
when kept manual
Lower your expectations
Keep complexities out of ERP, if volume is low
Only 80% of any software is usable which satisfies
only 80% of the users.
Derivative of Pareto principle

10. ERP : Why is it necessary?
Opinion #9
Ideal Business Solution
Easy, simple and user friendly
Reasonably priced
Understands diverse businesses
Low cost to procure, implement and Maintain

11. ERP : Why is it necessary?
Appropriate business decision
Consider Open source Open ERP, BI,
Database Solutions
After a detailed cost and justification
analysis.
Consult Experts / Risk Advisors / IT
Strategy Consultants – NOT ERP
VENDORS
After all it’s your business !