ERP OVERVIEW PRESENTED BY JAYA AGRAWAL TABLE OF

ERP OVERVIEW PRESENTED BY JAYA AGRAWAL

TABLE OF CONTENTS • WHAT IS ERP • HOW DO ERP SYSTEMS WORK • ERP COMPONENTS • AN ERP EXAMPLE: BEFORE ERP • AN ERP EXMAPLE: AFTER ERP • WHY ERP • BENEFITS OF ERP • LOCALIZATION/GLOBALIZATION • ERP PROJECTS AND TIMELINES • HIDDEN COSTS OF ERP • RISKS WITH ERP IMPLEMENTATION • CHALLENGES FACED DURING ERP IMPLEMENTATION • BEST PRACTICES OF ERP IMPLEMENTATION

WHAT IS ERP • THE PRACTICE OF CONSOLIDATING AN ENTERPRISE’S PLANNING, MANUFACTURING, SALES AND MARKETING EFFORTS INTO ONE MANAGEMENT SYSTEM. • COMBINES ALL DATABASES ACROSS DEPARTMENTS INTO A SINGLE DATABASE THAT CAN BE ACCESSED BY ALL EMPLOYEES. • ERP AUTOMATES THE TASKS INVOLVED IN PERFORMING A BUSINESS PROCESS.

HOW DO ERP SYSTEMS WORK

ERP COMPONENTS

AN ERP EXAMPLE: BEFORE ERP

AN ERP EXAMPLE: AFTER ERP

WHY ERP • MAJOR REASONS: 1. TO INTEGRATE FINANCIAL DATA. 2. TO STANDARDIZE MANUFACTURING PROCESSES. 3. TO STANDARDIZE HR INFORMATION

BENEFITS OF ERP • IMPROVING INTEGRATION, FLEXIBILITY • FEWER ERRORS • IMPROVED SPEED AND EFFICIENCY • MORE COMPLETE ACCESS TO INFORMATION • LOWER TOTAL COSTS IN THE COMPLETE SUPPLY CHAIN • SHORTEN THROUGHPUT TIMES • SUSTAINED INVOLVEMENT AND COMMITMENT OF THE TOP MANAGEMENT • REDUCE STOCK TO A MINIMUM • ENLARGE PRODUCT ASSORTMENT • IMPROVE PRODUCT QUALITY • PROVIDE MORE RELIABLE DELIVERY DATES AND HIGHER SERVICE TO THE CUSTOMER • EFFICIENTLY COORDINATE GLOBAL DEMAND, SUPPLY AND PRODUCTION

LOCALIZATION/GLOBALIZATION • DYNAMIC LANGUAGE CONVERSION (TRANSLATION TO 15 LANGUAGES) • CHINESE (SIMPLIFIED), CHINESE (TRADITIONAL), CZECH, DANISH, DUTCH, FINNISH, FRENCH, GERMAN, ITALIAN, JAPANESE, KOREAN, PORTUGUESE (EUROPEAN), PORTUGUESE (BRAZILIAN), SPANISH, SWEDISH • CODEPAGE / UNICODE SUPPORT • DYNAMIC TIME ZONE TRANSLATIONS • ALL TIMESTAMPS ARE STORED IN WAREHOUSE STORED AS UTC • CUSTOM LABELING AND NAMING SUPPORT / FLEX FIELD NAMING • COLUMN NAMES CAN BE DYNAMICALLY NAMED

ERP PROJECT AND TIMELINES • REAL TRANSFORMATIONAL ERP EFFORTS WILL USUALLY RUN BETWEEN 1 TO 3 YEARS, ON AVERAGE. • SHORT IMPLEMENTATIONS (3 TO 6 MONTHS): • SMALL COMPANIES, • IMPLEMENTATION LIMITED TO A SMALL AREA OF THE COMPANY, • OR THE COMPANY ONLY USED THE FINANCIAL PIECES OF THE ERP SYSTEM. • THE IMPORTANT THING IS NOT TO FOCUS ON HOW LONG IT WILL TAKE BUT TO UNDERSTAND WHY YOU NEED ERP AND HOW YOU WILL USE IT TO IMPROVE YOUR BUSINESS.

HIDDEN COSTS OF ERP • TRAINING • INTEGRATION AND TESTING • DATA CONVERSION • DATA ANALYSIS • CONSULTANTS • REPLACING BEST AND BRIGHTEST STAFF AFTER IMPLEMENTATION • IMPLEMENTATION TEAMS CAN NEVER STOP • WAITING FOR ROI • POST-ERP DEPRESSION

RISKS WITH ERP IMPLEMENTATION • EXPENSIVE (CAN COSTS 100 THOUSANDS TO MILLIONS OF DOLLARS) • TIME-CONSUMING (CAN TAKE MONTHS TO YEARS) • CHANGE MANAGEMENT • TRANSFER OF KNOWLEDGE • ACCEPTANCE WITHIN THE COMPANY

CHALLENGES OF ERP IMPLEMENTATION • IT IS VERY IMPORTANT, THAT IMPLEMENTATION IS DONE IN STAGES. TRYING TO IMPLEMENT EVERYTHING AT ONCE WILL LEAD TO A LOT OF CONFUSION AND CHAOS. • APPROPRIATE TRAINING IS VERY ESSENTIAL DURING AND AFTER THE IMPLEMENTATION. THE STAFF SHOULD BE COMFORTABLE IN USING THE APPLICATION OR ELSE, IT WILL BACKFIRE, WITH REDUNDANT WORK AND FUNCTIONAL INEFFICIENCIES. • LACK OF PROPER ANALYSIS OF REQUIREMENTS WILL LEAD TO NON-AVAILABILITY OF CERTAIN ESSENTIAL FUNCTIONALITIES. THIS MIGHT AFFECT THE OPERATIONS IN THE LONG RUN AND REDUCE THE PRODUCTIVITY AND PROFITABILITY. • LACK OF SUPPORT FROM SENIOR MANAGEMENT WILL LEAD TO UNNECESSARY FRUSTRATIONS IN WORK PLACE. ALSO, IT WILL CAUSE DELAY IN OPERATIONS AND INEFFECTIVE DECISIONS. SO, IT IS ESSENTIAL TO ENSURE THAT THE SENIOR MANAGEMENT SUPPORTS THE TRANSFORMATION. • COMPATIBILITY ISSUES WITH ERP MODULES LEAD TO ISSUES IN INTEGRATION OF MODULES. COMPANIES ASSOCIATE DIFFERENT VENDORS TO IMPLEMENT DIFFERENT ERP MODULES, BASED ON THEIR COMPETENCY. IT IS VERY ESSENTIAL THAT THERE IS A WAY TO HANDLE COMPATIBILITY ISSUES. • COST OVERHEADS WILL RESULT, IF REQUIREMENTS ARE NOT PROPERLY DISCUSSED AND DECIDED DURING THE PLANNING PHASE. SO, BEFORE EXECUTION, A DETAILED PLAN WITH A COMPLETE BREAKDOWN OF REQUIREMENTS SHOULD BE WORKED OUT. • INVESTMENT IN INFRASTRUCTURE IS VERY ESSENTIAL. ERP APPLICATIONS MODULES WILL REQUIRE GOOD PROCESSING SPEED AND ADEQUATE STORAGE. NOT ALLOCATING SUITABLE BUDGET FOR INFRASTRUCTURE

BEST PRACTICES OF ERP IMPLEMENTATION • A BUSINESS STRATEGY ALIGNED WITH BUSINESS PROCESSES • TOP-DOWN PROJECT SUPPORT AND COMMITMENT • CHANGE MANAGEMENT • EXTENSIVE EDUCATION AND TRAINING • DATA CLEAN UP AND DATA INTEGRITY • IMPLEMENTATION IS VIEWED AS AN ONGOING PROCESS

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