Enterprise resource planning (ERP) is an integrated software suite that supports core business functions such as order fulfillment, production planning, and billing. ERP coordinates resources, information, and business processes across an organization. It includes transaction processing modules like sales, distribution, and production planning as well as analytical tools for decision making. Implementing an ERP system is a complex process that involves configuring the software, customizing it to the business, migrating data, and training employees on new processes. Risks of ERP implementation include selecting the wrong system, high costs, disruptions to operations, and change management challenges.

1. TechKnowXpress
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2. WHAT IS ERP?
• Enterprise resource planning (ERP) is a crossfunctional enterprise system driven by an integrated
suite of software modules that supports the basic
internal business processes of a company.
• ERP is an enterprise-wide information system
designed to coordinate all the
▫ resources
▫ information
▫ activities needed
• to complete business processes such as;
▫ order fulfillment
▫ billing.
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3. 3
ERP APPLICATIONS
Core applications
• Online Transaction Processing (OLTP) are the
transaction processing systems.
• support the day-to-day operational activities of the
business.
• support mission-critical tasks through simple
queries of operational databases.
• include Sales and Distribution, Business Planning,
Production Planning, Shop Floor Control, and
Logistics modules.
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4. 4
ERP APPLICATIONS
(continue…)
Business analysis applications
• Online Analytical Processing (OLAP).
• decision support tool for management-critical tasks through
analytical investigation of complex data associations.
• supplies management with ―real-time‖ information and permits
timely decisions to improve performance and achieve
competitive advantage .
• includes decision support, modeling, information retrieval, adhoc reporting/analysis, and what-if analysis.
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5. WHAT IS ONLINE ERP?
 ERP installed with a
server and a network
connection is called
Online ERP.
 It ensures complete
transparency
between developers
of application and
the clients.
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6. HISTORY
Companies before ERP Systems
Islands Of information
Material accounting
Customer Services
Material receipt
Payroll
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7. HISTORY (continue…)
• In 1990 Gartner Group first employed
the acronym ERP as an extension of material
requirement planning (MRP).
• ERP systems experienced rapid growth in the
1990s because the year 2000 problem and
introduction of the euro disrupted legacy
systems.
• Enterprise application suite is an alternate
name for such systems.
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8. MODULES OF ERP
1.
2.
3.
4.
5.
6.
7.
8.
Financial and Accounting
Materials Management
Production Planning
Order Entry
Purchasing
Financial Control
Distribution/Logistics
Asset Management
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9. ADVANCED MODULES
• SCM – Supply Chain Management.
• CRM – Customer Relationship Management.
• SRM – Supplier Relationship Management.
• Workflow – Process Sequence and Authorization
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10. SUB MODULES
ERP
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11. TECHNOLOGIES - DEVELOPMENT
• Front End : Java/J2EE, .NET
• Backend : MySQL, MSSQL, Oracle
• Application Server : Apache Tomcat, Glassfish
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12. 12
DEPLOYMENT MODEL
Two-tier
• common server handles both application and database
transaction.
• used especially in LANs.
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13. 13
DEPLOYMENT MODEL (continue…)
Three-tier
• Client links to the application server which then
initiates a second connection to the database
server.
• used especially in WANs.
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14. User
Presentatio
n Layer
First Tier
Second Tier
Third Tier
Applications
Database
Application
Server
Database
Server
Three-Tier Client
Server
Application
Layer
Database
Layer
Online ERP

15. User
Presentatio
n Layer
First Tier
Second Tier
Third Tier
OLTP
Applications
Operations
Database
OLTP
Server
OLAP
Server
OLAP
Applications
Operations
Database
Server
Data
Warehouse
Server
Data
Warehouse
Application
Layer
Databas
e Layer
ERP with OLTP and OLAP Client Server using Data Warehouse
Online ERP

16. DATA CENTRE
Additional Servers Required
• Antivirus Server
• Email Server
• FTP Server
• Proxy Server
• Domain Server
Additional Server Hosting Model
•On Site Data Centre (with in Premises of Company)
• Off Site Data Centre ( Data Centre Hosting at BSNL, IBM, MTNL etc)
• Virtual Data Centre (Cloud Environment)
• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Infrastructure as a Service (Iaas)
Online ERP

17. IMPLEMENTATION STEPS
Process preparation
Linking current processes to the organization's strategy.
Analyzing the effectiveness of each process
Understanding existing automated solutions.
Extensions
ERP systems can be extended with third–party software.
ERP vendors typically provide access to data and features
through published interfaces
Online ERP

18. IMPLEMENTATION STEPS
(continue…)
Configuration
ERP systems typically include many settings that modify
system operation. For example, an organization can select
the type of inventory accounting—FIFO or LIFO—to use;
whether to recognize revenue by geographical unit,
product line, or distribution channel; and whether to pay
for shipping costs on customer returns.
Online ERP

19. IMPLEMENTATION STEPS (continue…)
Customization
ERP customers have several options to reconcile feature
gaps. 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.
Data migration
Data migration is the process of moving, copying, and
restructuring data from an existing system to the ERP
system.
Online ERP

20. ERP IMPLEMENTATION PATTERN
Software
Market Share
SAP
Peoplesoft
Baan
3.0
CA
3.0
JDE
2.2
SSA
2.1
GEAC
2.0
IBM
1.8
1.7
Others
Oracle ; 4,8
4.8
JBA
Peoplesoft;
4,9
4.9
Oracle
SAP; 15,6
15.6
59.0
Baan; 3
Others ; 59
CA; 3
JDE; 2,2
SSA; 2,1
GEAC; 2
IBM; 1,8
JBA; 1,7
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21. OUTPUTS OF ERP SYSTEMS
DOCUMENTS
Printer
Proposal
Orders approval
Mail
Delivery plans
Shipping papers
Warehouse check list
Material document
Accounting document
Fax
Delivery/shipping document
Invoice
Dept & credit doc.
EDI
Online ERP

22. 22
RISKS ASSOCIATED WITH ERP
IMPLEMENTATION
• Choosing the Wrong ERP
▫ Goodness of Fit: no ERP system is best for all
industries.
▫ Scalability: system’s ability to grow.
• Choosing the Wrong Consultant
▫ Common to use a third-party (the Big Five).
▫ Be thorough in interviewing potential consultants.
▫ Establish explicit expectations.
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23. 23
RISKS ASSOCIATED WITH ERP
IMPLEMENTATION IMPLEMENTATION
STEPS (continue…)
• High Cost and Cost Overruns
▫ Common areas with high costs:
 Training
 Testing and Integration
 Database Conversion
• Disruptions to Operations
▫ ERP is reengineering--expect major changes in
how business is done.
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24. IMPLEMENTATION OUTCOME
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