Erp Implementation

ERP and It’s Implementation

Objective To know about ERP and its

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

ERP Serves 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

ERP software suites typically

consist of integrated modules of… Manufacturing Distribution Sales Accounting Human Resource Management

Benefits of ERP Decision 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 Packages On the basis of application

Customized Package Readymade Package On the basis of implementation Big Bang Franchising option Slam dunk

Top 10 ERP Vendors share 2006

2007

Source: AMR Research,

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

Major ERP Vendors SAP AG Microsoft Oracle Baan J D Edwards Peoplesoft Infor Exact

Facts about SAP AG SAP 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 PLM Life-Cycle-Data, Project-, Quality- and Asset Management Sales Order Internet Sales

Purchase Order Requisitioning

mySAP SRM

mySAP ERP Analytics Financials Human Resources Corporate Services Operations

mySAP CRM

Inventory & Warehouse Mgmt. Manufacturing & Transportation

mySAP SCM

1991 1992 1993

1990

1994 1995

1996 1997

1993 - 1995 1998 1999 2000 2001 Interval Description

2002 2003

2004 2005 2006

2007 2008

2009 2010

2010

SAP R/3 Modules

Causes of ERP Failure Underestimating 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 fast Insufficient training Believing everything the software vendors and/or consultants say

SAP ERP Solutions in TISCO Decided to implement SAP ERP 3 Forecasted for future operations Took a long span of one year Never bogged down by repeated

failures Brought about substantial increase in profits Focus on implementation and timely completion.

Solution and Implementation Study 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.

Benefits Spent 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.

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