Chapter 1 enterprise resource planning alexis leon
1. 7/3/2010
Enterprise
Resource
Planning Sonali C.
UDIT - B.Sc (IT)
2009-08
Evolution Of ERP
Enterprise
Resource
Planning
“Enterprise Resource Planning is method
of effective planning of all the
recourses in organization”
Sonali C.
Cont…
Sonali C.
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2. 7/3/2010
Cont…
Misconception about ERP
It is a computer system: No It uses the
computers and tools of IT. The computer system
are used to achieve the organization mission
objectives.
It is for manufacturing organizations: Firstly
ERP was applied to manufacturing organizations
i.e. why people believe that it is only for the
manufacturing organizations
ERP not limited to any particular segment
of industry
Sonali C.
What is ERP?
“Enterprise Resource Planning covers
the techniques and concepts employed
for integrated management of
Businesses as a whole , from the view
point of the effective use of
management resources, to improve the
efficiency of an enterprise.”
ERP Packages are integrated software
packages that support above ERP concepts.
Sonali C.
Cont…
ERP software is design to model and
automate many basic processes of
company from finance to shop Floor.
With a goal to integrate information
and eliminating complexity.
ERP s/w is mirror image of business
processes of organization.
Sonali C.
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Reasons For The Growth of ERP
Improved business performance.
Support business growth requirement
To provide flexible, integrated, real-
time decision support
To eliminate limitation in legacy
systems
Sonali C.
Advantage of ERP
Many direct and indirect advantages.
Indirect Advantages
Better corporation
Improve customer goodwill
Customer satisfaction
Sonali C.
Cont…
Direct Advantaged
Business Integration
Flexibility
Better Analysis and Planning Capability
Use of Latest Technology
Sonali C.
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4. 7/3/2010
Why Do Many ERP Implementation
Fails
If ERP package chosen correctly, will
raise the productivity and profits of
company
But sometime fail due to:
wrong product and haphazard
implementation
inefficient and ineffective usage
Sonali C.
Cont…
For successful Implementation:
Good people who knows business
Vendors shld be good and ERP package
should be according to company
requirement
End-user training should be done
properly to understand the system.
Sonali C.
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