The document proposes implementing an ERP system like SAP to address the company's outdated legacy systems. It describes how SAP can help standardize processes, integrate systems, and provide functionality to support key business activities. SAP is presented as the leading ERP vendor due to its experience, size, continuous investment in R&D, and ability to support customers' evolving needs.

1. Proposal For ERP/SAP – Aspirants* Ramesh Rao Senior SAP Consultant Zylog Systems Limited Jubilee Hills, Hyderabad, India [email_address] [email_address] , www.zsl.com * This is for Academic Interest not Commercial \NO company is responsible for this

2. The Company’s current environment consists of independent systems for financial management, human resource management and payroll, sales information and administration, and materials management. The legacy systems are highly customized, lack flexibility and no longer have vendor support. Information is not available or easily accessed. Service delivery to the Company is ineffective and inefficient. Business processes are out-of-date.

3. Legacy technology environment is obsolete, marked by Poor integration of systems; Lack of functionality, requiring many shadow systems; Manual processing, paper-based processes, and little workflow; Difficulty in remaining compliance with regulations.

4. The need to deploy an ERP package is, in a way, unique for an organization. An organization operating in a matured market looks forward for reducing costs in all fronts, while in a growing market the strategic need would be efficient utilization of resources for enhanced response to customers. Typically a company operating in a multi product and multi location would focus on communalizing business processes for standardization and data integrity.

5. WHY SAP?

6. SAP, which took on its largest acquisition ever when it bought Business Objects in 2007, does not rule out further purchases. SAP is the recognized leader in providing collaborative business solutions for all types of industries and for every major market . SAP is the world’s largest interenterprise software company and the world’s third-largest independent software supplier overall. SAP will continue to provide you with solutions for all future trends to protect your investment.

7. R&D Investment ( € Millions ) We must continuously improve our portfolio of products if we wish to maintain and build on our current leading position as a vendor of enterprise application software. In 2010, we increased our research and development (R&D) expense €138 million, or 9 %, to €1,729 million (2009: €1,591 million). We spent 13.9 % of total revenue on R&D in 2010 (2009: 14.9 %). Our R&D expense as a portion of total operating expenses declined from 19.7 % to 17.5 % year over year. Excluding expenses associated with the TomorrowNow litigation, our R&D expense as a portion of total operating expenses was little changed since the previous year.

8. SAP is flexible so it grows with your business: Allows for increasing market share Scales to meet your needs Gives you operational visibility Helps shorten time to market Helps improve customer loyalty SAP is quick to implement with fast, predictable payback: Phased approach and best practices SAP is the smart choice for your investment: Over 30 years in business with 1,500 industrial machinery and component customers Number one enterprise software vendor in the world with more than $1 billion in annual R&D

9. Market Forces Price erosion due to globalization and cyclical capital investment Customer demands for customized products with short lead times Decreasing customer loyalty Increasingly complex customer base and regionally diverse customer base Trend toward offshore manufacturing Low market growth Resulting Key Challenges Counter margin pressures Speed up time-to-market Improve visibility Improve customer loyalty

10. mySAP ERP is a proven, robust application with extended cross enterprise functionality. It provides critical support for financials, operations, human capital management, corporate services, and other complex business areas associated with enterprise resource planning, customer relationship management, and supply chain management. You can manage IT costs more effectively by protecting and leveraging your existing investments. You can also extend the skills and training of your staff, as well as gain access to data locked away in legacy and non-SAP software systems, to further reduce operational costs. And, as new business needs and technologies emerge, mySAP ERP helps you position your organization for accelerated change.

11. KEY BUSINESS ACTIVITIES - mySAP ERP

12. No company can expect to succeed for long without core support for financial management and accounting. mySAP ERP helps you succeed in this area with support for the following enterprise management and support functions: • General ledger • Financial analytics • Operations analytics • Financial accounting • Management accounting

13. Consistent product structures, clear change management procedures, access to up-to-date information, and easy collaboration among engineers, production schedulers, and buyers are core requirements for any IM&C company trying to manage the myriad details involved with the product design process. mySAP ERP helps you succeed in this area with support for: • Engineering change management – Engineering change management – Order change management • Product structure management – Materials management – Bill of material (BOM) management – Routing management

14. Your ability to design and develop innovative new products and bring them to market quicker than the competition is critical to survival. Requirements include a flexible architecture for the integration of the marketing, manufacturing, and the design functions. mySAP ERP helps you succeed in this area with support for: • Program and project management – Product portfolio management – Evaluation of strategic product developments – Scenario simulation – Life-cycle planning – Life-cycle costing actual • Engineering change and configuration management – Change notification and claim management – Engineering change management – Order change management – Product configuration management • Data management – Material management – BOM management – Routing management – Order confirmation

15. Managing the sales cycle for greater efficiency and effectiveness can help reduce the cost of sales and boost revenues. You must be able to quickly determine pricing, create proposals, check product availability, acquire and enter orders, manage contracts, and track and manage orders. mySAP ERP helps you succeed in this area with support for: • Account and contact management, • Quotation management – Inquiry processing – Quotation pricing and monitoring • Sales order management – Sales order processing – Availability checks – Order confirmation

16. Make-to-order (MTO) manufacturing emphasizes the rapid assembly of complex products from an assortment of premanufactured parts. mySAP ERP helps you succeed in this area with support for: • Sales order management – Inquiry processing – Quotation pricing and monitoring – Sales order processing – Availability checks – Order confirmation • Production planning and scheduling – Production planning – Order scheduling and sequencing • Production and procurement execution – Procurement & Manufacturing – Subcontracting – Assembly – Change management • Shipping and billing

17. Make-to-stock manufacturing emphasizes commodity-based end products that are produced prior to sale based on forecasts. mySAP ERP helps you succeed in this area with support for: • Production planning and scheduling – Production planning – Detailed scheduling – Materials requirements planning • Production and procurement execution – Procurement – Manufacturing – Subcontracting – Assembly – Order change management • Sales order management shipping and billing – Quotation and sales order management – Availability checks – Shipping – Fulfillment tracking – Billing

18. Operational procurement touches on diverse aspects of the enterprise, including direct procurement of materials used in production, indirect procurement of services and subcontractors, and self-service procurement where employees can order what they need through Web-based catalogs. mySAP ERP helps you succeed in this area with support for procurement, including: • Vendor management • Catalog management • Contract management • Scheduling agreements • Procurement planning • Purchase order processing • Goods receipt and inventory management • Invoice verification • External services

19. To capitalize on potential service revenues, industrial manufacturers must optimize service operations performance. This involves forecasting planned services to ensure the proper distribution and utilization of finite resources, and then managing operations effectively. mySAP ERP helps you succeed in this area with support for: • Service forecasting and optimization – Strategic service planning and forecasting – Resource planning and optimization – Service activity planning • Service execution management – Installed base management – Case management – Knowledge management – Service scheduling and optimization – Service billing

20. When it comes to warranties and returns, you must strike the right balance between squeezing costs out of warranty-related service calls and honoring agreements to maintain customer loyalty. You also need visibility and flexibility to react to customer claims in a timely and efficient manner. Requirements include warranty validation, claims tracking, cost analysis, vendor recovery, inventory management, defective product reporting and product improvement. mySAP ERP helps you succeed in this area with support for the management of service execution, including: • Installed base management • Customer interaction management • Warranty management and entitlement validation • Case management • Complaints management • Knowledge management • Returns and repair management • Escalation management • Service billing

21. QUICK IMPLEMENTATION

22. SAP’s phased implementation approach provides the following benefits: Addresses key business issues from an industry-specific perspective Limits business disruption through predefined services focused on industry best practices Provides real ROI within budget and timeline Enables customers to buy only the modular functionality they need Leverages and extends existing investments. Customer decides what to add or replace Supports future growth Delivers business value through the service providers that best fit customer needs: Customers can choose familiar industry partners Customers can choose SAP if needs dictate

23. ZSL Offering Application Implementations Production Support Data Warehousing Enterprise Service offerings Application Enhancements Application Upgrades Application Re-engineering Customized Training Database Management Remote DBA Services Applications Assessment & Review

24. Value Proposition Deep competencies in technology and experienced lead team Ability to attract, retain and motivate skilled manpower Capability to work with large global customers and leverage partnerships Shorter development cycles through Global delivery model World class quality Best-cost service commitment is just the tip of the iceberg…