ENTERPRISE RESOURCE PLANNING BENEFITS.pptx

Enterprise Resource Planning (ERP) systems are integrated software solutions used by organizations to manage and automate core business processes. The primary purpose of ERP systems is to streamline operations and facilitate the flow of information across various departments, thereby enhancing efficiency and decision-making. This essay delves into the key aspects of ERP, its benefits, challenges, and future trends.

Understanding ERP
ERP systems encompass a suite of applications that manage core business activities such as finance, human resources, supply chain, manufacturing, and customer relationship management. These systems provide a centralized platform for data management, ensuring that information is consistently updated and accessible across the organization. The integration of various functions into a single system eliminates data silos, enhances collaboration, and improves overall operational efficiency.

Key Components of ERP Systems
Finance and Accounting: This module manages the financial transactions, including accounts payable, accounts receivable, general ledger, and financial reporting. It provides real-time insights into financial performance and helps in maintaining regulatory compliance.

Human Resources: This module handles employee-related processes such as recruitment, payroll, performance management, and benefits administration. It streamlines HR processes and improves workforce management.

Supply Chain Management: This module oversees the flow of goods and services from procurement to delivery. It includes inventory management, order processing, supplier relationship management, and logistics.

Manufacturing: This module manages production planning, scheduling, and quality control. It ensures that manufacturing processes are efficient and meet the required standards.

Customer Relationship Management (CRM): This module focuses on managing interactions with customers and improving customer satisfaction. It includes sales management, customer service, and marketing automation.

Project Management: This module assists in planning, executing, and monitoring projects. It helps in resource allocation, task management, and tracking project progress.

Benefits of ERP Systems
Improved Efficiency: By automating and integrating business processes, ERP systems reduce manual efforts, minimize errors, and accelerate workflow. This leads to significant time and cost savings.

Enhanced Decision-Making: ERP systems provide real-time data and comprehensive analytics, enabling informed decision-making. Managers can access accurate and up-to-date information to make strategic choices.

Data Accuracy and Consistency: With a centralized database, ERP systems ensure that data is consistent and accurate across the organization. This reduces data duplication and discrepancies.

Scalability: ERP systems can scale with the growth of an organization. They can accommodate increased data volume and expanded operations without compromising performance

1. ENTERPRISE RESOURCE PLANNING (ERP) What is ERP ? Evolution Of ERP Importance of ERP Why implement ERP in business ? Prepared By: Zain Ul Abideen

2. ENTERPRISE RESOURCE PLANNING (ERP) (ERP) is a process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance, human resources, etc.  

3. ERP SOFTWARE Enterprise resource planning (ERP) is business management software that allows an organization to use a system of integrated applications to manage the business. Being Specific ERP systems are large computer systems that integrate application programs in accounting (i.e., accounts receivable), sales (i.e., order booking), manufacturing (i.e., product shipping) and the other functions in the firm. This integration is accomplished through a database shared by all the application programs.

4. A typical ERP system will use multiple components of computer hardware and software to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for various system modules. Broken down into business processes HRM Distribution Financials Manufacturing

5. Enterprise resource planning  ( ERP ) is business management software—usually a suite of integrated applications—that a company can use to store and manage data from every stage of business, including: Product planning, cost and development Manufacturing Marketing and sales Inventory management Shipping and payment

6. Reasons for Adopting ERP Integrate financial information. Integrate customer order information. Standardize and speed up operations processes. Reduce inventory. Standardize Human Resources information . Common definitions. Common database. Update one module, automatically updates others.

7. Why ERP is Important ? Enhance productivity, flexibility and customer responsiveness By integrated core business processes together in one single application, it helps company maximize the efficiency of business process across the entire organization. Plant manufacturing can produces product faster. Increase on time delivery, Increase productivity, Increase ability to forecast demand to supplies, Increase order capacity, and improve customer service (Customer Relationship Management (CRM)).

8. Extend your business using the Internet By integrating all business functions together in one system, it increases ability of a company to use internet as part of the business strategy. Web-enabled technology allows you to access information, sell product, run business processes, and communicate with customers and partners at any time and from anywhere in the world.

9. LIMITATIONS High cost. Forced change of processes. Very complex software. Lack of trained people. Flexibility of software system upgrades. Implementation timelines. Availability of internal technical knowledge and resources. Education and training. Implementation strategy and execution. Resistance to change.

10. ERP IMPLEMENTATION PHASES

11. Pre evaluation screening Decision for perfect package Number of ERP vendors Screening eliminates the packages that are not at all suitable for the company’s business processes. Selection is done on best few package available.

12. Package Evaluation Package is selected on the basis of different parameter. Test and certify the package and also check the coordination with different department Selected package will determine the success or failure of the project. Package must be user friendly Regular up gradation should available. Cost

13. Project Planning Designs the implementation process. Resources are identified. Implementation team is selected and task allocated. Special arrangement for contegencies

14. Gap analysis Most crucial phase. Process through which company can create a model of where they are standing now and where they want to go. Model help the company to cover the functional gap

15. Implementation is going to involve a significant change in number of employees and their job responsibilities. Process become more automated and efficient. Reengineering

16. Takes place along with the process of implementation. Company trains its employees to implement and later, run the system. Employee become self sufficient to implement the software after the vendors and consultant have left. Team Training

17. Testing This phase is performed to find the weak link so that it can be rectified before its implementation.

18. Going Live The work is complete, data conversion is done, databases are up and running, the configuration is complete & testing is done. The system is officially proclaimed. Once the system is live the old system is removed

19. End User Training The employee who is going to use the system are identified and trained.

20. THANK YOU