ERP and It’s Implementation

ObjectiveTo know about ERP and its relevant importance

To know about the ERP implementation and its likely outcomes if not implemented properly.

ERPServes as a cross-functional enterprise

backbone that integrates & automates many internal business processes and information systems

Helps companies gain the efficiency, agility, & responsiveness needed to succeed today

Gives a company an integrated real-time view of its core business processes

ERP software suites typically consist of integrated modules of…ManufacturingDistributionSalesAccountingHuman Resource Management

Benefits of ERPDecision support Provides cross-functional information on business

performance to assist managers in making better decisions

Enterprise agility Results in more flexible organizational structures,

managerial responsibilities, and work roles

Resource Integration Helps in integrating resources in an efficient and

effective manner.

Processes in ERP Implementation

ERP PackagesOn the basis of application

Customized PackageReadymade Package

On the basis of implementationBig BangFranchising optionSlam dunk

Top 10 ERP Vendors share 2006

Source: AMR Research, 2007

Different Phases of ERP Implementation Pre evaluation Screening Evaluation Package Project Planning Gap analysis Reengineering Team training TestingGoing Live Post implementation

Major ERP VendorsSAP AGMicrosoftOracleBaanJ D EdwardsPeoplesoftInforExact

Facts about SAP AGSAP is founded by five former IBM employees in 1972.SAP is situated in Walldorf, Germany.Number one vendor of standard business application

software, with a worldwide market share of 41%.Fourth-largest independent software supplier in the world.Available in more than 14 languages.10 out of 10 largest US companies with the highest

market value use SAP software.8 out of 10 largest US corporations use SAP software.More than 7500 customers in over 90 countries have

chosen SAP.

mySAP Modules

mySAP SCM

mySAP PLM

mySAP SRM

mySAP CRM

mySAP ERPAnalyticsFinancials

Human ResourcesCorporate Services

Operations

Life-Cycle-Data, Project-, Quality- and Asset Management

Inventory & Warehouse Mgmt.Manufacturing & Transportation

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1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

SAP R/3 Modules

Causes of ERP FailureUnderestimating the complexity of the

planning, development, and training required

Failure to involve affected employees in the planning & development phases and change management programs

Trying to do too much, too fastInsufficient trainingBelieving everything the software vendors

and/or consultants say

SAP ERP Solutions in TISCODecided to implement SAP ERP 3Forecasted for future operationsTook a long span of one yearNever bogged down by repeated failuresBrought about substantial increase in

profitsFocus on implementation and timely

completion.

Solution and ImplementationStudy was conducted related to

functionality, esteem, operability, support & future requirements.

Idea is to strengthen its position in market.Challenge is not implementation but to

build a conducive environment for it.Identified branches with huge transactions

as HUB and smaller branches as SPOKES

In Jan. 1999, “TERM ASSET “ is devised which is Achieve Success Through SAP enabled Transformation

It has two axioms- “go live date- 1st Nov.,1999” and “ there are only 24 hours a day”.

Planned a big bang approach of going live with all modules.

BenefitsSpent 40 crores and saved 33 crores

in first two years.Man power cost reduced from $200

per ton to $140 per ton in two years.Inventory cost deflated from Rs. 190

per ton to Rs. 155 per ton in one year.

THANKS