UNIT 1 PART A

1. PREDICT THE REASONS FOR GROWTH OF ERP?

ERP market in India steadily growing for the last few years and the main reason for this
enormous growth can be attributed to the inability of order system to manage the
conversion to year 2000. There are also other factors such as industry best practices, easy
and faster implementation and good cost predictions. Another factor behind the growth is
that already existing clients acquire more licenses and modules. The number of
employees using the ERP system is increasing and the ERP clients who have started with
the basic modules are going for subsequent applications. There is also a trend to replace
customized system with standard application packages, like an ERP system. India is
expected to present ERP suppliers an important marketplace as manufacturing companies
are significantly investing in technology solutions to improve their manufacturing
operations. According to observation made by some experts in the field, the ERP market
started showing solid organic growth since 2004 as IT spending improved.

The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2
during the period of 2004-2009. The market was $83 million in 2004, and is projected to
be over $250 million in 2009, according to a research report. The report further clarifies
that manufacturers in India are increasingly implementing ERP solutions to ensure that
decision makers have the required information visibility across the value chain.

Majority of Indian manufacturers are small by global standards, requiring easy-to-use

ERP solutions to meet their specific process requirements, including localization needs to
address the continually evolving tax and statutory requirements. Small and medium
enterprises across industry verticals and micro verticals, such as automotive,
pharmaceuticals, and textiles, are leveraging ERP solutions to gain sustainable
competitive advantages.
2. Outline the advantages of ERP software?

· Enhanced Business Reporting:

Better reporting tools with real-time information

A single source of truth – one integrated database for all business processes

· Better customer service:

Better access to customer information

Faster response times

Improved on-time delivery

Improved order accuracy

· Improved Inventory Costs:

Only carry as much inventory as needed, avoid these common issues

Too much inventory, and higher overhead costs

Too little inventory, and longer customer fulfillment times

· Boosted Cash Flow:

Better invoicing and better collections tools to bring cash in faster

Faster cash means more cash on-hand for the business

· Cost Savings:

Improved inventory planning

Better procurement management

Better customer service

Improved vendor relationship management

 · Better Data & Cloud Security:

Dedicated security resources

Avoid installing malicious software

Data distributed across multiple servers

· Business Process Improvements:

Automate manual or routine tasks

Implement smarter workflows

Gain efficiency

· Supply Chain Management:

Effective demand forecasting and lean inventory

Reduce production bottlenecks

Transparency through the business

3. outline of business modeling of ERP?

Business Modeling for ERP

Business modeling is a precursor to business process reengineering, ERP implementation,

etc. A business model is a diagrammatic representation of different business systems and
processes, and their interconnections and interdependencies. The purpose of business
modeling is to provide a general overview of the operations of a business without going
into the technical details of the processes and systems. It defines the activities performed
and workflow structure in a broad manner. Figure illustrates the basic components of a
business system.
 Figure: Business as a System

A good business model should be comprehensible, coherent and complete. It should

define clearly the different systems and subsystems of a business system. A business
model is developed on the basis of an organization's goals, objectives and strategic plans.
Further, the model illustrates how various business processes exchange information
among themselves and the underlying database.

An ERP system is implemented to provide requisite information to individuals to enable

them to perform business processes more efficiently and effectively.

4. Determine the limitations of ERP?

Limitations of Enterprise Resource Planning (ERP)

The various limitations of enterprise resource planning (ERP) software include the
following:
Expensive System - One of the main limitations of Enterprise Resource Planning (ERP)
systems is that they can be extremely costly. Not only does the actual software and
implementation incur costs, but other requirements such as computer hardware, updated
network equipment, and security software may incur additional costs. It is important to
carefully evaluate the different options of ERP systems and other related systems to
choose the one that will be the best fit for your organization in terms of features offered
but also in terms of costs.

Training Inefficiency - Skills, experience, manpower, and optimum utilization of

resources are key within a manufacturing operation. Without these factors, it is difficult
to have your operation run efficiently and smoothly, which is why proper training in ERP
is imperative in order to make the system work appropriately. A substantial amount of
companies attempt to save money by not providing enough expenses for enterprise
resource planning training for employees. This will result in inadequate cognizance of the
particular Enterprise Resource Planning vendor package being utilized and may lead to
mishandling of the technology by employees resulting in the loss of valuable information.

Degree of Customization - Another limitation of ERP systems comes from their ability
to be customized to fit your business needs. The degree of customization available can be
limited and usually depends on the brand of software chosen as some systems have more
customization options than others. However, most ERP systems offer very little
customization or will charge additional fees for the extra features requested. It is
therefore important to consider your business needs and the standard features of ERP
systems when considering them.

High Implementation Times - Implementing a new operating system can be a

challenging task for any company. Depending on the complexity of the business
operations, the total implementation and training time can take over a year.
Implementation times and costs of ERP software are crucial to consider as the time
required for the implementation may disturb the normal functionality of the organization
and risk incurring a potential loss in business during that time. It is therefore important to
consider the implementation time when evaluating different ERP or other softwares that
 require an implementation to ensure that you will have significant returns in profits once
implemented.

Inter-connectivity of Departments - Although having inter-connectivity between

various departments in an organization may seem like an asset, it can also pose
disadvantages to the company. This is especially true if there are inefficiencies within one
department as it will lead to inefficiencies in other departments. If one department is
affected and becomes inefficient, it can affect the overall efficiency of the company. It is
therefore important to choose a software that will optimize your company and improve its
efficiency to avoid causing problems in multiple departments.

Due to the limitations of ERP systems, many manufacturers benefit from integrating their
ERP system to an Advanced Planning and Scheduling (APS) software. Planet Together
APS is an essential tool for manufacturers looking to improve their efficiency and
optimize their production.

5. Predict the benefits of ERP.

Here are the 10 primary advantages of a Sales force-native ERP system that will help
position your business for success.

* Maximized planning and resource management

Enterprise Resource Planning is aptly named because it truly does enable planning across
your organization so you know how to predict and forecast sales, costs, and the resources
you need, whether that’s materials, equipment, or people.

* Greater enterprise collaboration

Personnel are often siloed across an organization, but ERP consolidates information from
all departments into a single source of truth, making it simple to share accurate data in
real-time.

* Increased productivity
By automating major processes like inventory tracking or invoice generation, you can
realize productivity gains across the board and place greater focus on tasks that may have
otherwise fallen by the wayside.

* Reduced overhead costs

When used properly, ERP systems can deliver significant cost savings to your
organization. Prevent disruptions and delays that can be caused by a lack of accurate or
available information, keeping projects on track and on time.

* Better customer relationships

Using ERP on Sales force allows for integration with your Sales force Customer
Relationship Management (CRM) platform, drastically expanding the visibility you have
over your operations.

* Improved quality control

Quality management is a significant benefit of an ERP system. Let’s say you have a
product that has just completed the manufacturing process, but before you can sell the
product, you still need to review and sign off on the corresponding paperwork.

* Better inventory tracking

Tracking and monitoring inventory is a challenge, especially for large companies that
constantly have products coming in and going out and a high level of customer demand.

* Simplified risk management & regulatory compliance

Every business takes on some form of risk in the process of creating and disseminating
products.

* Enhanced data security

Using ERP on Sales force is the most secure way to store your data, hands down.

* Predictability & scalability

 Without question, an ERP system allows your business to be more predictive, driving
better business results that enable you to scale.

6. Determine term ERP?

Enterprise resource planning (ERP) is the integrated management of main business

processes, often in real time and mediated by software and technology. ERP is usually
referred to as a category of business management software—typically a suite of
integrated applications—that an organization can use to collect, store, manage, and
interpret data from many business activities. ERP Systems can be local based or Cloud-
based. Cloud-based applications have grown in recent years due to information being
readily available from any location with internet access. ERP provides an integrated and
continuously updated view of core business processes using common databases
maintained by a database management system. ERP systems track business resources—
cash, raw materials, production capacity—and the status of business commitments:
orders, purchase orders, and payroll. The applications that make up the system share data
across various departments (manufacturing, purchasing, sales, accounting, etc.) that
provide the data. ERP facilitates information flow between all business functions and
manages connections to outside stakeholders. Enterprise system software is a
multibillion-dollar industry that produces components supporting a variety of business
functions. Though early ERP systems focused on large enterprises, smaller enterprises
increasingly use ERP systems. The ERP system integrates varied organizational systems
and facilitates error-free transactions and production, thereby enhancing the
organization's efficiency. However, developing an ERP system differs from traditional
system development. ERP systems run on a variety of computer hardware and network
configurations, typically using a database as an information repository.

7. Discuss the term enterprise.(QUSN NO:10 & 7 SAME ANSWER)

Enterprise refers to a for-profit business started and run by an entrepreneur. And we will
often say that people running such businesses are enterprising. The roots of the word lie
in the French word entreprendre (from prendre), meaning ‘to undertake’, which in turn
comes from the Latin “inter prehendere” (seize with the hand).
 Entrepreneurs usually start an enterprise – with the associated risks – to make a profit,
and for one of several reasons:

· Problem-solving. They see a particular issue that they feel they can solve.

· Exploit ideas. They have a new idea or product they believe will be successful.

· Filling a gap. They see a gap in the market they believe they can fill.

· Competitive pricing. They believe they can produce something on the market
cheaper and offer it at a lower price.

· Knowledge-based. Where they believe they can supply specialist knowledge that
customers will pay for.

8. Complete the reason for growth of ERP market.

Since 1970, ERP is growing every year which you can find ERP history report. Growing
rate of ERP in the market is 30% every year. There are many reasons behind this whose
list, I am given below.

· Good Inventory Control

In any ERP package, you will find the inventory control system. With
inventory control system, you can add and raw data of raw material, work in
process and finished goods in the database from anywhere.

· Produce the Products Fastly

In ERP, both production department and sales department are inter-connected. So,
when production department tracks the demand from sale department, it can fastly
produce the products without any delay.

· New Product Development

 When developer sees all the information together, they get more idea to create
new product development.

· Support of Multiple Languages and Currencies

ERP systems support multiple languages and currencies. So, more and more
employees in different branches can work together because they can understand
database language through better translation support.

· Vertical Market Solution

A vertical market is a market in which vendors offer goods and services specific
to an industry, trade, profession, or other group of customers with specialized
needs. It is distinguished from a horizontal market, in which vendors offer a broad
range of goods and services to a large group of customers with wide range of
needs, such as businesses as a whole, men, women, households, or, in the
broadest horizontal market, everyone.

· Client Server

SAP, Oracle and Microsoft are the top client server ERP. One of main benefit, all
files will be stored same store. All files will have automatically back up. If there
is any bug, we can restore the back up.

9. Outline the overview of ERP?

Enterprise resource planning – more commonly referred to as ERP – is a software system

used to manage and maintain the functions of a business. The tasks are typically done in
real-time. Enterprise resource planning (ERP) is software designed to help companies
store, manage, and use data regarding their daily and regular processes.

ERP keeps track of a wealth of information, including payroll, raw materials, business
commitments, purchase orders, and capacity for production.

ERP software is part of the IT sector, and because of its usefulness and success, it is now
considered a multi-billion-dollar industry.
 Components of ERP Software

ERP programs are commonly known as business management software. They involve a
host of applications that work together to:

· Gather data

· Store it for future reference

· Manage and sort the information for easier access

· Interpret the data for use by the business

Primary Functions of ERP

ERP provides a host of services for companies trying to improve how efficiently they
operate. The systems are constantly being updated by the proprietors to offer the
speediest and most reliable services. As the name suggests, ERP’s primary goal is to
manage the various resources within the company to make sure they are being utilized in
a cost-effective way. It is also designed to make sure that all resources are being used
efficiently.

Flow of Information

ERP software covers a lot of different areas within a company – accounting, sales,
purchasing, manufacturing. One of the most important needs it addresses is the need to
communicate all pertinent information to the many departments that may require the data.

10. [SEE QUS NO :7]

11. Associate the different modules significance in ERP.

Enterprise resource planning (ERP) systems have become a critical tool for businesses
over the past several decades. An ERP solution automates critical business processes and
serves as a shared database for all financial and operational information from across the
company. It pulls this data from a number of modules built to help various departments,
from accounting to supply chain to human resources, perform their individual functions.
An ERP solution gives all employees access to the information they need to answer
important questions about their department’s current performance and future planning, as
well as target areas for improvement. This single source of information minimizes data
accuracy and consistency issues and ensures everyone is looking at the same numbers, no
matter their role. It also drives better decision-making that leads to more efficient
processes and cost savings. Additionally, ERP can automate many tasks, reducing errors
and freeing up employees to focus on more strategic work. Common ERP modules
support back- and front-office functions like finance and accounting, procurement,
manufacturing, inventory management, order management, warehouse management,
supply chain management, customer relationship management (CRM) procurement and
workforce management. More functionally-rich solutions may also include professional
services automation (service resource management), human resources management,
ecommerce and marketing automation.

ERP System Modules

Each ERP module is designed for specific business functions, providing the data and
supporting the processes that will help those employees do their jobs. Every module
plugs into the ERP system, so the system provides a single source of accurate data, even
as the business adds new modules. If the ERP system is the toolbox, the modules are the
screwdriver, wrench, hammer and other tools in the box that each have specific uses.
12. Summarize the ERP in present Indian Scenario.

In any case, some ERP designers were focusing on the emergency of this market and are
presently prepared to give moderate ERP answers for these littler organizations. As of
now, the SME’s fragment in India has turned into the most confident connectors for ERP
arrangements. About 60% of the SME’s part have effectively incorporated ERP
arrangements into their business. Because of ERP arrangements or other moderate ERP
modules created by some kind engineers, these SME’s organizations can now maintain
the budgetary needs to incorporate ERPs into their business. This aide the SMEs for
smoother stock administration, time administration, human asset administration, keeping
up item cycles and shipment of merchandise and furthermore in online information
correspondence. India’s financial development as to universal rivalry depends intensely
on Indian organizations to incorporate and actualize ERPs. There ought to be sufficient
mindfulness gliding through the air to tell them about the high benefit to cost proportion
 that ERPs can convey to an organization. A reasonable helpful impact gave by actualizing
an ERP can be judged if the organization in concern expresses their items before ERP
execution and after that measure their accomplishment after ERP usage. This can give a
superior understanding of the impacts of an ERP. By the by, ERPs incorporate
extraordinary elements that can ease up the workload for some organizations, at last,
bringing about less demanding work and in this way in a roundabout way increment
profitability. The way that the development rate of ERP usage in India is on the ascent
implies that Indian organizations can now stand toe-to-toe with the worldwide rivalry.

13. Determine the characteristics of ERP.

Four Characteristics of Enterprise Resource Planning (ERP)

The four characters of an enterprise resource planning (ERP) system includes the
following:

· Modular Design - The modular design of an ERP system incorporates distinct

business modules such as manufacturing, financial, accounting, and distribution.
Each module takes care of various functions of a particular section or department
within your organization. While these modules can operate separately, they are
integrated inside the ERP system to provide a seamless flow of data and
information between all modules. This ultimately will enlarge the operational
transparency provided for by the standard interface. These separate modules work
in real-time with online and batch-processing capabilities.

· Central Common Database - Implementing a common centralized database

management system, which is also called a DBMS, is an important characteristic
of an advantageous ERP system. All data is entered and stored only once and then
utilized by all departments simultaneously which helps eliminate data-entry errors
and other flaws associated with using a distributed database.

· Flexible and Open Database - Organizations are almost always dynamic in

nature, which is where ERP systems offer flexibility to respond to the changing
 needs of the enterprise. These systems have an open system architecture, allowing
them to attach or detach any module as and when required without affecting the
other modules. An advantageous ERP system should support connectivity to other
business entities within the organization and shouldn’t be confined within the
boundaries of a manufacturing facility. * Automatic Generation of Information
- An ERP system provides business intelligence tools such as executive
information systems, decision support systems, easy warning systems, and more.
These tools help manufacturing operations to make data-based decisions that
pertain to their overall production process. All financial and business information
will be automatically generated from the data that is found in the centralized
database of the ERP system.

14. Determine the tangible and intangible benefits of ERP.

The decision to purchase new enterprise resource planning system (ERP) once was a
tough one. On the one hand, a new ERP solution brings dozens of tangible and intangible
benefits to an organization. On the other hand, ERP rollouts used to cost a lot of money
and time—it was the definition of a big IT project. With the advent of cloud-based ERP,
however, the decision has gotten a lot easier; cloud ERP is a lot more cost-effective than
previous ERP rollouts because all the technology is hosted and maintained by the ERP
provider, and there’s less up-front costs. It also requires less time for implementation,
because businesses can start with best practices and preconfigured, prepackaged ERP
solutions for their industry. This makes a new ERP system a smart company initiative.
Here are 10 of the many reasons why you should consider a new cloud-based ERP
system for your company.

Tangible Benefits

· Cost Savings and Greater Efficiency. Process automation within the system
reduces time, effort and resources spent on daily, repetitive tasks, freeing up
employees to focus on more meaningful work.
 · Better Supply Chain Management. Cloud-based ERP can greatly improve a
supply chain by linking supplier systems, automating key functions, and boosting
responsiveness.

· Improved Data Quality and Accessibility. As a single source for all business
data, often collected, consolidated, organized and analyzed through automation,
cloud ERP systems improve data accuracy and reliability.

· Increased Automation. Business processes can be linked and automated because

all data flows into a single system or record.

· Reduced inventory and stock obsolescence. With complete, real-time visibility

over all aspects of operations, including those with suppliers and customers,
inventory levels can be refined and managed with greater precision.

Intangible Benefits

· Easier Reporting and Planning.

Reports can be generated automatically for any part of the business, including
financial, sales, operational, inventory, procurement, administrative and
elsewhere.

· Enterprise-Wide Integration.

Cloud ERP systems integrate various functions and business processes across an
organization and store them in a single database.

· Standardized and Simplified Business Processes. Because systems and data are
linked between departments, cloud ERP systems simplify business processes and
bring greater synergy across an organization through standardization.

15. Articulate ERP concept

Enterprise resource planning (ERP) refers to a type of software that organizations use to
manage day-to-day business activities such as accounting, procurement, project
management, risk management and compliance, and supply chain operations. A complete
ERP suite also includes enterprise performance management, software that helps plan,
budget, predict, and report on an organization’s financial results. ERP systems tie
together a multitude of business processes and enable the flow of data between them. By
collecting an organization’s shared transactional data from multiple sources, ERP
systems eliminate data duplication and provide data integrity with a single source of
truth. Today, ERP systems are critical for managing thousands of businesses of all sizes
and in all industries You can think of an enterprise resource planning system as the glue
that binds together the different computer systems for a large organization. Without an
ERP application, each department would have its system optimized for its specific tasks.
With ERP software, each department still has its system, but all of the systems can be
accessed through one application with one interface.

ERP applications also allow the different departments to communicate and share
information more easily with the rest of the company. It collects information about the
activity and state of different divisions, making this information available to other parts,
where it can be used productively. To these companies, ERP is as indispensable as the
electricity that keeps the lights on. Businesses employ enterprise resource planning (ERP)
for various reasons, such as expanding business, reducing costs, and improving
operations. The benefits sought and realized by one company may be different from
another; however, there are some worth noting. Integrating and automating business
processes eliminates redundancies, improves accuracy, and improves productivity.
Departments with interconnected processes can now synchronize work to achieve faster
and better outcomes. Some businesses benefit from enhanced reporting of real-time data
from a single source system. Accurate and complete reporting help companies adequately
plan, budget, forecast, and communicate the state of operations to the organization and
interested parties, such as shareholders. ERPs allow businesses to quickly access needed
information for clients, vendors, and business partners, contributing to improved
 customer and employee satisfaction, quicker response rates, and increased accuracy rates.
Associated costs often decrease as the company operates more efficiently.

SECTION – B (10 MARKS)

UNIT- I
76. Explain the evolution of ERP in detail with a diagram .
Enterprise resource planning (ERP) has evolved as a strategic tool, an outcome of over four
decades. This is because of continuous improvements done to the then available techniques to manage
business more efficiently and also with developments and inventions in information technology field.
 
1 Pre Material Requirement Planning (MRP) stage
 
Prior to 1960s businesses generally relied on traditional ways of managing inventories to ensure smooth
functioning of the organizations. These theories are popularly known as ‘Classical Inventory Management
or Scientific Inventory Control Methods’. Most popularly used among them were Economic Order Quantity
(EOQ); Bill of Material (BOM) etc. However these systems had very limited scope.
 
ERP system has evolved from the Material Planning System of 1980’s. There are various phases through
which this evolution process has gone through. The various phases of development of resource planning
system in relation to time and evolution of concept of ERP.
Figure 1.1
 
Stages of ERP Evolution
 
2. Material Requirement Planning (MRP)
 
MRP was the fundamental concept of production management and control in the mid-1970s and considered
as the first stage in evolution of ERP. Assembly operations involving thousands of parts such as automobile
manufacture led to large inventories. The need to bring down the large inventory levels associated with
these industries led to the early MRP systems that planned the order releases. Such planned order releases
ensured proper time phrasing and accurate planning of the sub-assembly items, taking into account
complex sub-assembly to assembly relationships characterized by the Bill of Materials.
 
Example:
 
A typical example is a bicycle manufacture. To manufacture 100 units of bicycles, one needs 200 wheels,
100 foot-pedals, and several thousands of spokes. On a given day, a plant may have 40 units of complete
bicycles in stock, 57 units of wheels, 43 units of foot-pedals and 879 units of spokes. If the plant is to
assemble 20 units of bicycles for the next 4 days of production, wheels and spokes-is a non trivial problem.
If the independent demand of the spare parts is also to be taken into account, one can visualize the
complexity of it.
 
 A typical automobile plant with hundreds, if not thousands of parts, has to face problems that are in order
of magnitude even more difficult. MRP systems address this need. Using the processing power of
computers, databases to store lead-times and order quantities and algorithms to implement Bill-of-Material
(BOM) explosion, MRP systems brought considerable order into the chaotic process of material planning in
a discrete manufacturing operation.
 
Essentially MRP addresses a single task in manufacturing alone. Material requirement planning (MRP)
system was adopted by firms for creation and maintenance of master data and bill of material across all
products and part within an organization. MRP on the other hand was an outgrowth of bill of material
(BOM) processing, which is purchase order management that utilizes parts list management and parts
development.
 
3 Manufacturing Resources Planning II (MRP- II)
 
A natural evolution from the first generation MRP systems was the manufacturing planning systems MRP
II that addressed the entire manufacturing function and not just a single task within the manufacturing
function. MRP II went beyond computations of the materials requirement to include loading and
scheduling. MRP II systems could determine whether a given schedule of production was feasible, not
merely from material availability but also from other resource point of view.
 
Typically, the resources considered from MRP II systems would include production facilities, machine
capacities and precedence sequences. The increased functionality enabled MRP II systems provided a way
to run the system in a loop. First it was used to check the feasibility of a production schedule taking into
account the constraints; second to adjust the loading of the resources, if possible, to meet the production
schedules; third to plan the materials using the traditional MRP II systems. Both MRP system and MRP II
systems were fairly successful in industry. Due to the power of information systems-databases, algorithms
and their integration, organizations did find real support for efficiently managing the manufacturing
function in the eighties.
 
4 Enterprise Resource Planning (ERP)
 
The nineties saw unprecedented global competition, customer focus and shortened product life cycles. To
respond to these demands corporations had to move towards agile (quick moving) manufacturing of
products, continuous improvements of process and business process reengineering. This called for
integration of manufacturing with other functional areas including accounting, marketing, finance and
human resource development.
 
Activity-based costing would not be possible without the integration of manufacturing and accounting.
Mass customization of manufacturing needed integration of marketing and manufacturing. Flexible
manufacturing with people empowerment necessitated integration of manufacturing with the HRD
function. In a sense the 1990s truly called integration of all the functions of management. ERP systems are
such integrated information systems build to meet the information and decision needs of an enterprise
spanning all the functions of management4.
 
5 Extended ERP (E-ERP)
 
Further developments in the enterprise resource planning system concept have led to evolution of extended
ERP (E- ERP) or web - enabled ERP. With globalization on one hand and massive development in the
 internet technology on the other, need for web based IT solution was felt. Thus E- ERP is development in
the field of ERP which involves the technology of Internet and World Wide Web (WWW) to facilitate the
functions of an organization around the web.
 
6 Enterprise Resource Planning II (ERP- II)
 
ERP II is the advanced step of E-ERP. It is the software package which has strengthened the original ERP
package by included capabilities like customer relationship management, knowledge management,
workflow management and human resource management. It is a web friendly application and thus
addresses the issue of multiple office locations.
 
 
7 ERP – A Manufacturing Perspective
 
ERP systems evolved out of MRP and MRP II systems. MRP systems addressed the single task of
materials requirements planning. MRP II extended the scope to the entire manufacturing function. The
manufacturing industry traditionally had a better climate to use computers. First of all the manufacturing
community being dominated by engineers had no computer phobia. Second the extensive use of Computer
Aided Drafting (CAD), Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) had
prepared the manufacturing function to use computers well, in fact exceptionally well. In fact
manufacturing engineers contributed significantly to the theoretical computer science by way of
contributions in the areas of graphics, computational geometry, significant visualization, feature
recognition etc.
 
Large corporations like General Motors (GM), Ford, Hewlett Packard (HP), and Digital primarily viewed
themselves as manufacturing companies until the 1980s. Naturally complex MRP systems were considered
the ultimate in enterprise information systems. The investments in hardware and software to manage such
complex manufacturing solutions gave these systems a visibility unparalleled in the industry. Compared to
these systems accounting systems, financial systems or personnel information systems were relatively
inconsequential to the organization.
 
With the globalization of operations and the proliferation of computer networks, it was important that the
manufacturing organizations extend their information system across the supply chain.
 
The supplier’s information system spread across continents with complex combinations of hardware and
software need to be integrated. Similarly the dealer-distributor network had to be integrated with the
manufacturing information systems. The reduction in product life cycle necessitated a quick response
manufacturing system that had its ears tuned to the market.
 
This forced manufacturing information systems to have a tighter integration with marketing information
systems. The manufacturing flexibility had translated into mass customization calling for further integration
of information systems. The opening up of several world economies including that of the Asian giants like
China and India, the emergence of trade blocks and consolidated markets such as European Union paved
the need for accounting and finance functions to be tightly integrated with manufacturing functions. It was
not sufficient anymore just to manufacture and sell but organizations had to arrange for finance, comply
with complex trade restrictions, barriers, and quotas.
 
 The balance sheets needed to account for multiple currencies, multiple export import rules and regulations,
multiple accounting codes, practices, accounting periods. This necessitated further
 
integration of accounting and financial information systems with manufacturing systems. In fact with large
capacities built around the world particularly in Asian countries, outsourcing and contract manufacturing became
viable alternative even in the high-tech industries like semi conductor manufacturing.
 
Suddenly the need was for an Enterprise Information System that looks beyond the manufacturing function to
address inbound logistics, outbound logistics, manufacturing, materials managements, project management,
quality management, accounting, finance, sales and personnel management. It was nearly impossible to integrate
individual modules of information systems. What was necessary was a system that addressed the enterprise
needs from the design stage. ERP systems were the natural choice in this changed scenario.

77 . Illustrate the ERP drivers and its key characteristics.

78 . Discuss the scenario and justification of ERP in India
Having ERP in India is like an investment that most business houses look up to. ERP or enterprise resource
planning can be defined as an integrated, multi-module system that assimilates all the data and processes of
an organization into a unified system. To attain this goal, it is essential to strike a successful combination of
both hardware and software. The whole concept of enterprise resource planning originated in the large
industrial types of companies where the system was used to simplify their processes and workflow.
However, with the passage of time, ERP has evolved as a more comprehensive system and now it is largely
available to companies of all types and sizes. It serves and supports a wide range of business functions like
manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing,
transportation and human resources.
The ERP Scenario in India
There are several positive and negative factors as far as the ERP scenario in India is concerned. Though
having ERP in companies of India mostly provides a profitable source of income and quality customer
service, there are several challenges to the introduction of ERP in India. This includes change management,
organizational intervention, replacing outdated software, shifting from function view to process view, hiring
ERP-literate staff and faith in package software in the place of custom-built software.
Certain concerns that have never used ERP software are intimidated whereas some view ERP as a takeover
to there IS professionals. Most of the Indian corporations have large in-house IS shops and they consider
ERP as a threat to their very existence. Moreover, ERP places more value on the domain knowledge of
functions rather than IT skills. The communication infrastructure needed to implement ERP are lacking in
some of the indigenous companies.
In spite of all these, the growth of ERP in India is quite promising. Several well-known business houses in
India like Cadbury India, Mercedes Benz India, Siemens, Haldia Petrochemicals, L&T, TISCO, and UTI use
SAP while Kellogg’s India Ltd., Maruti Udyog Ltd., Sony India Pvt Ltd. and CESC are Oracle users. India’s
most valuable contribution to ERP came in 1980s when the country launched the world class ERP product
Marshall from Ramco Systems, by using the technology of the 80’s. Marshall is the first successful large
scale software from India and several companies like HDFC Bank, Hyundai, Nestle Limited and Standard
Chartered Bank use this ERP package. Actually, this product is a formative ERP called virtual splat. A
virtual splat enables merging of accounting and manufacturing practices in an easy-to-use, implemented
package and is used by small start-up companies.
The benefits of ERP in India
ERP will provide the companies in India the facility to have information available freely, thus making the
generation of enquiry or report easier. These systems automatically adhere to most of the standard company
rules and compliances, making it easier for the organization to follow. The developed performance modules
help the businesses to develop refined analysis, insights, and innovative schemes for improvement. ERP
systems in India will also produce more dynamic jobs and improved customer care service and it will also
enhance product values. As more and more Indian companies become accustomed to ERP, they can develop
a successful broader scale of products for consumers. Last but not the least, having ERP in India implies not
having to go and develop software products in foreign countries and distributing them back to India.
Justification of ERP
The expected return on investment provides the cost justification and motivation for investing in ERP. There
are quantifiable benefits as well as intangible benefits in the ERP investment decision. The quantifiable
benefits have a bottom-line impact on profitability, asset turnover, and a potential effect on stock value. This
section discusses the quantifiable and the intangible benefits of an ERP system, which compares firm
performance before and after implementing ERP. Other scenarios are encountered in justifying ERP
investments. For example, a firm may be considering replacement versus upgrade or re-implementation of
an ERP software package. There are significant costs for not successfully implementing an ERP system.
Manufacturers often pay more for the lack of systems than they would have paid for improved systems.
They carry excess inventory or provide poor customer service, for instance. And manufacturers may invest
in ERP without gaining the benefits because the systems are partially implemented, unsuccessfully
implemented, or usage deteriorates over time. This is Part One of a four-part article reprinted from
Maximizing Your ERP System by Dr. Scott Hamilton. Bridging the theory and realities of current ERP
systems, Maximizing Your ERP System provides practical guidance for managing manufacturing in various
environments. Drawing on case studies from Dr. Hamilton’s first-hand experience in consulting with more
than a thousand firms, it covers common problems and working solutions for how to effectively implement
and use ERP systems. The book can be ordered on amazon.com.  This excerpt on “Justification of ERP
Investments” is presented in four parts:
  Quantifiable benefits from an ERP system
  The intangible effects of ERP
  Costs of implementing an ERP system
  Replacing or re-implementing an ERP system

(https://erpguide.blogspot.com/2018/08/scenario-and-justification-of-erp-in.html)
 79. Defend the differences between MRP, MRP II and ERP.

80. Organize the common ERP myths.

Enterprise resource planning  (ERP) is a business management methodology and enterprise

software  platform related to the real-time collection, storage and interpretation of data for core
business processes. ERP integrates various organizational systems and facilitates information flow
among all business functions, with the aim of error-free transactions in production.

ERP software is a multibillion dollar industry, with ERP systems becoming more common in
small and large enterprises. Despite its popularity, misconceptions remain about enterprise
resource planning and its implementation in today’s marketplace. Let’s take a look at some of the
myths.

Myth #1: ERP is too expensive

While high-end, innovative ERP solutions can still carry a hefty price tag, technical
advancements such as mobile and cloud computing are expected to make ERP software more
affordable. Also, some ERP software companies may offer variable pricing packages depending
on usage.

Myth #2: ERP is only for Big Business

Although ERP systems were typically used by larger firms in the past, smaller businesses
increasingly are able to explore enterprise resource planning due to the growing options for
customization through technological innovation. ERP solutions come in various shapes and sizes.
Choosing the right ERP solution, whether the business is big or small, is vital for effective
implementation and longevity.

Myth #3: ERP only benefits executives and management

Yes, ERP can provide upper management with important information for decision-making
purposes. But the benefits can spread to the entire business, improving operational procedures
and boosting employee performance across all levels. Enterprise resource planning enables the
widespread sharing of information, which may increase communication, improve project
planning, cut duplication of tasks and lower purchasing costs, among other advantages. In other
words, ERP solutions can benefit the whole company.

Myth #4: ERP solutions are only used to impress customers

If implemented correctly and utilized effectively, ERP solutions certainly have the potential to
impress customers. However, that is neither their sole nor their primary purpose. Providing
superior results through enhanced operational performance and improved quality of products and
services can help companies to boost customer goodwill and strengthen client relationships.

Myth #5: One ERP solution fits all

It’s important to compare ERP solutions and select the best fit depending on the business
requirements, trends, functionalities and features. For example, a company that produces one
product likely differs in its enterprise resource planning needs from a manufacturing unit that
 makes a variety of products. Additionally, a manufacturing unit that produces metal goods will
have different processes than a chemical plant. The specific attributes and capabilities sought
from an ERP system should change depending on the particular business needs.

Myth #6: ERP, SCM, CRM and MRP are all the same

Enterprise resource planning (ERP), supply chain management (SCM), customer relationship
management (CRM) and manufacturing resource planning (MRP) are different systems targeting
different business processes. These systems can be implemented and integrated separately or in
combination depending on company requirements.

Myth #7: ERP takes too long to implement

The time required for an ERP implementation generally will be dictated by a range of factors,
such as the size of the business, the expectations of company leadership, the number of users,
the degree of customization, the scope and technical complexity of the change, and the
availability of resources. Successful implementation, therefore, could require a commitment
ranging from several months to a couple of years.

Myth #8: ERP is an IT system and belongs in the IT department

Enterprise resource planning is a business asset that requires ownership and input across
departments and up and down the corporate hierarchy, from hands-on workers to C-suite
executives. So, while information technology (IT) is an integral part of ERP implementation and
maintenance, each and every business function has a role to play in the success of enterprise
resource planning.

Myth #9: An ERP system enables Enterprise Resource Planning

An ERP system facilitates enterprise resource planning. However, qualified professionals are
required to configure the system to a can improve efficiency and productivity on many
dimensions, there are still business activities that require manual intervention and guidance.

81.Illustrate the history of ERP.

machinery, worked with IBM to develop what is believed to be the first MRP system. Thereafter,
large manufacturers built these MRP solutions themselves.

While they were expensive to create, required a team of experts to maintain and took up a lot of space,
early MRP systems enabled businesses to track inventory and production. That helped manufacturers
manage raw materials procurement and delivery of product to the factory so they could better plan
production runs.

Although adoption of MRP systems gained traction in the 1970s, the technology remained limited to large
companies that had the budgets and resources for businesses.

History of ERP in manufacturing: The ‘80s marked a milestone in the history of ERP systems when the
first manufacturing resource planning (MRP II) systems appeared. These more sophisticated solutions
 supported manufacturing processes beyond inventory and raw materials procurement. MRP II systems
allowed the various departments involved in manufacturing to coordinate, and they had more advanced
production scheduling capabilities.

Evolution of ERP Systems

By 1990, research firm Gartner coined the term “enterprise resource planning.” The new name recognized
that many businesses—not just manufacturing—were now using this technology to increase the efficiency
of their entire operations.

This is when ERP systems took on their current identity: a unified database for information from across the
company. ERP systems brought in other business functions, like accounting, sales, engineering and human
resources (HR), to serve as a single source of accurate data for all employees.

ERP systems continued to evolve throughout the ’90s. One major breakthrough was the advent of cloud
ERP, first offered by NetSuite in 1998. With cloud ERP, widely seen as an improvement over on-premises
systems, businesses could access critical business data through the web from any device with an internet
connection. Cloud solutions meant companies no longer needed to purchase and maintain hardware,
reducing the need for IT staffers and leading to easier implementations.

This cloud model made ERP systems, once limited to enterprises, accessible to smaller companies that
lacked the capital to launch and support a resource-intensive on-premises solution. Small and midsize
businesses across industries could enjoy the same benefits as their larger counterparts, including automated
processes, improved data accuracy and greater efficiency.

In 2000, Gartner introduced the idea of ERP II to refer to internet-enabled systems that could pull data from
other sources, including front-office applications, like customer relationship management (CRM),
ecommerce and marketing automation, and back-end applications like supply chain management (SCM)
and human capital management (HCM).

This was a significant advance because the more information that feeds into the ERP system, the easier it is
to identify and resolve issues and capitalize on opportunities for improvement.

Today, leading ERP systems are vast repositories of information able to generate reports that can spotlight
the performance of every aspect of the business, from sales and marketing to product development to HR
and operations. There are countless applications available, designed for different industries, business
models and challenges, and ERP acts as command central for what can be a vast network of software.
History of ERP

2010s

ERP processes data in real-time, starts to leverage

machine learning, IoT

2000s

ERP II (internet-enabled) systems developed, cloud

ERP gains traction

1990s

Enterprise Resource Planning (ERP) systems debut,

integrating all business functions

1980s

Manufacturing resource planning (MRP II) systems

debut with more capabilities

1970s

More manufacturers use MRP systems, first system

providers founded

1960s

Manufacturers develop basic material requirements

planning (MRP) systems

82. Appraise why is ERP important to a company?

1. Optimizing Efficiency
Enterprise Resource Planning systems serve to simplify a variety of business processes that take a lot of
time and effort when done manually. Repetitive tasks such as tracking inventory, assigning tasks to
employees, monitoring working hours, distributing salaries, generating financial reports, all can be done
automatically.

By automating complex processes, your employees can focus more on their core deliverables without
bugging each other. For example, the marketing team can generate daily web traffic data without having to
request it from the IT team, or the accounting team can generate sales-related reports without having to rely
on sales managers.

ERP systems also provide fast data access for managers and stakeholders in the company. Decision-makers
can monitor key performance indicators throughout the company through the dashboard. All required data
can be generated in real-time.

2. Increasing Team Collaboration

Cross-departmental collaboration is a crucial and often necessary part of a business. An ERP system breaks
down barriers between departments in a  can extend existing inter-team collaboration across multiple
offices in different locations over the internet.

3. Reducing Operating Costs

ERP systems also help companies save on operational costs. Since most operational activities are
automated, various interruptions, delays, and breakdowns labor because ERP solutions take over a variety
of day-to-day tasks.

4. Improving Data Security

ERP solutions have firewalls and restriction controls to prevent data breaches. The system keeps all the
data concentrate on one point so the access points can easily monitor. Admins that are responsible for
managing company data can provide limited access rights to employees. For example, HR managers can
hide some important data only for themselves and stakeholders while granting employees permission to
view their financial data.

Admins can also quickly deactivate the access of laid-off employees and grant access to the new ones. ERP
solutions also show user activities, so the admins can easily identify unauthorized actions or suspicious
activity patterns in the system.

5. Making Realistic, Accurate Forecasts

One of the most crucial things for business advancement is the ability to make accurate forecasts.
Stakeholders rely on reports to make forecasts that will ultimately affect the decisions they make.
Therefore, it is very important for businesses to get real-time, complete, and consistent reports. ERP can
facilitate all that.

ERP reporting tools use sophisticated filters and analytics that can filter inconsistencies in the data. The
system also ensures that the data obtained is generated in real-time. Accurate business reports will help
stakeholders make the best decisions for their business.
 UNIT2 PART 2

1.Explain the EIS in detail.

Techopedia Explains Executive Information System (EIS)
Early executive information systems were developed as computer-based
programs on mainframe computers to provide a company’s description, sales
performance and/or market research data for senior executives. However,
senior executives were not all computer literate or confident. Moreover, EIS
data was only supporting executive-level decisions but not necessarily
supporting the entire company or enterprise.

Current EIS data is available company- or enterprise-wide, facilitated by

personal computers and workstations on local area networks (LANs).
Employees can access company data to help decision-making in their
individual workplaces, departments, divisions, etc.. This allows employees to
provide pertinent information and ideas both above and below their company
level.

The typical EIS has four components: hardware, software, user interface and
telecommunication.

2.Investigate the various ERP Market TIERS?

In this and other forums, many people use
abbreviations, acronyms and all manner of shorthand in
order to get as much information across in as little time as
is possible. One thing that they do is to talk about 'tiers' of
ERP systems, and 95% of the time that works well. The
problems start when we get into gray areas because many
marketing people see advantage in talking-up their
systems and that results in everything from Tier 2 systems
being sold as Tier 1, through to systems that are not ERP
at all being sold under that label. This might not seem
important but, when systems are oversold, somebody
usually suffers and that somebody is usually the
customer. This blog attempts to clarify matters but has to
start off by saying that there is no universally accepted
definition of what Tiers 1, 2, and 3 actually are; nor indeed
what criteria should be used when categorizing them.
Different companies use different criteria when reviewing
ERP systems; the most common of which are:
 Supplier size
 System cost
 Typical customer size
 Number of users supported
 Functionality
Investigating these, and investigating how they can
overlap or contradict, may be useful because all will be
seen to have their problems.
Supplier size

At first glance, this seems an eminently sensible approach

because it seems obvious that the big systems will come
from the big ERP providers. But although most people,
when asked to name Tier 1 suppliers, will immediately
name Oracle and SAP, it is not as easy as that because,
whilst nobody would deny that, for example, SAP ECC is a
Tier 1 system, equally nobody would claim that SAP
Business One was.
And, as we get close to the border between Tier 1 and Tier
2, things become even more unclear. Microsoft is an
enormous company but is Microsoft Dynamic 365 a Tier 1
system? Given that it is marketed as a replacement for a
range of systems, from AX down to GP, the answer is not
clear. Meanwhile, Infor is trying to position itself as a Tier
1 supplier but Sage is of equal size and clearly sees itself
as a supplier of Tier 2 and 3 systems (and, indeed, as a
supplier of accounting systems that are not ERP at all).
And then there are suppliers like IFS, which is a company
much smaller that Infor or Sage, but which would be
considered by most other criteria to be a Tier 1 system.
Clearly, supplier size has a role to play in the calculation
but it may not be a sufficiently good measure, so other
criteria need to be considered as well.
System cost

This appears to be a better way to categorize because

clearly the multi-million dollar top-end systems from
Oracle and SAP are Tier 1. This definition also means that
systems such as IFS and MSD365 can be categorized as
Tier 1, but the problem comes when Tiers 2 and 3 are
added to the mix. Then systems that have major gaps or
limitations in their functionality can, if sufficiently
expensive, fall into a higher category than can be
otherwise justified. For example; SAP Business One, which
is a Tier 2 when measured by cost, did not have an
inventory module that recognized storage locations until
very recently (because it is, at heart, an accounting system
and, in an accounting system, it is not important where
stock actually is: it is only important to know how much
there is and how much it costs) ; whilst a system that out-
scores it on functionality is available for less than a
quarter of the price. So, if systems with Tier 3 functionality
(see later for a definition of this criteria) are sold at Tier 2
prices, and systems with Tier 2 functionality are sold at
Tier 3 prices, there is again a very gray area and it remains
necessary to consider other options.
Typical customer size

Once again this definition appears to make perfect sense

because it would appear logical that big companies buy
big (i.e. Tier 1) systems. But again it is not that simple
because many big companies have realized that they are
actually big because they are a collection of small
companies or separate operating units and have then
decided to run Tier 2 or Tier 3 systems at that level and to
consolidate financial data in a Tier 1 accounting system at
a corporate level. It can make sense to do this for a
number of reasons; not least of which is that Tier 1
systems can be overkill for smaller organizations; being
too cumbersome and too complex for their needs.
However; some large organizations do impose such
systems on smaller operating units and subsidiaries, so
organization size may not always be an appropriate
measure because it is not clear which actual organization
is being measured.
Number of users supported

This is perhaps the best way to categorize ERP

systems even though it is not perfect. Clearly a system
that can only support, say, 25 users should be classified as
a Tier 3, and a system that can support 5000 users can
safely be classified as a Tier 1 (when talking about a
number of users, it is usual to talk about 'concurrent'
users; i.e. the number that can be logged on to the system
at any one time: this can be significantly less than the total
number of users authorized to use the system as some
users will only require occasional access).
But once again there are gray areas. Firstly, even with 3
tiers there is room for a lot of difference between systems
in the same tier; so some Tier 3 systems will run out of
steam with 25 concurrent users whilst others will perform
fine with 50. And some Tier 2 systems will struggle with
250 users whilst others will cope happily with one or two
thousand.
The second problem is that much also depends upon the
user company. Some will have a small number of
transactions every day whilst others will have many
thousands (imagine companies that sell capital equipment
and others that have telesales departments selling
consumer durables), and some will have small static data
files (customers, products, bills of material etc) whilst
others will not.
So although it is a good measure, it is only a good
measure most of the time.
Functionality

Ironically, this is probably the best measure but it is also

the most difficult to apply. Whilst it is reasonable to expect
Tier 1 systems to be functionally rich, these systems are
often subject to extensive, and expensive, customization
because most companies that spend millions on Tier 1
systems want and expect a 'glove fit' and are willing to pay
to get it. At the other end of the spectrum, companies that
spend perhaps only thirty or forty thousand dollars on a
Tier 3 system are usually more likely to accept its
limitations and shortcomings; if only because it does not
usually make sense to spend hundreds of thousands of
dollars on customizing a $50,000 system.
A danger, when ranking systems by ERP functionality, is
that some systems target niche markets and so a
particular system might, for example, be considered a Tier
1 system by a distribution company but a Tier 2 system by
a manufacturing company. Both of those categorizations,
for the companies involved, would be valid

3 Discuss the overview of ERP software

solutions for medium and large enterprises?
The flexibility which ERP offers is definitely a very big advantage
which interests the small business. Flexibility and the real time control over the
price and the jobs are the key features for a small sized company. Concise
reporting is also a main factor which decides the quality of the company.
 
Based on these needs, ERP vendors have made installation of the related software
as very less complex with much less manual job needed. The user friendliness of
the applications also got improved. Adding more users or customers will no way
affect the functionality of ERP.
 
Many small businesses are already enjoying the benefits after successful ERP
implementation. The profit of the company has certainly increased after the usage
of ERP provided the implementation procedures are followed perfectly. Business
which implemented ERP successfully saw their business profit increasing within
one year itself.
 
A good ERP system comes with essential features that will provide the
functionality of comparing the hours of working of the professionals and the actual
hours of work which was paid as a salary. In fact, many small businesses just
doubled their return on income with just using this service effectively. With this
ERP, they were able to monitor the time of production, cost, employee activity,
overall performance of the company and many more crucial information. Before
setting up ERP systems, small business must first identify the business
requirements. The impact which the ERP is going to have on the business should
be well analyzed. Cost factor involved in implementation should be set aside
initially. Once the requirements are well planned, then comparison can be made on
different vendors available and the vendor which provides cost effective service
and be opted.
Organizations are implementing Enterprise Resource Planning system to
streamline their internal business process and for smooth flow of data between the
different functional departments like inventory, purchase, production, accounts,
etc. The different functional modules of the ERP software look after the respective
functional department. Some of the functional modules in the ERP are as follows:
 
 
 
 
1.       Production Planning Module: The Enterprise Resource Planning system has
evolved from Material Resource Planning which was used for the manufacturing
requirements of the companies. ERP is more robust software for production
planning as it optimizes the utilization of the manufacturing capacity, material
resources and the parts using production data and sales forecasting.
 
 
 
 
2.       Purchasing Module: This module aids in streamlining the procurement of
required raw materials. It is integrated with the inventory control and production
planning modules and often with the supply chain management software. This
module automates the process of identifying potential suppliers, supplier
evaluation. It is used for automation and management of purchasing.
 
3.       Inventory Control Module: This module aids in managing the company's
resource inventory and the product inventory. It helps in handling the
replenishment of the product and maintenance of the stock levels of the products.
The inventory control module monitors the inventory stock present at the different
locations like at the warehouse, office and stores. The module can manage the
inventory of raw materials used for product planning. It enables the company to
plan the future production and keep a stock of products which go below critical
level.
 
4.       Sales Modules: This module automates the sales tasks, customer orders,
invoicing and shipping of products. It is integrated with the company's ecommerce
websites and many vendors provide with online storefront as a part of this module.
The sales department is an important area for the organization.
 
5.       Accounting and Finance Modules: Accounting and finance are the core areas
of an organization. This module interacts with the other functional modules to
collect the financial data for the general ledger and other financial statements of the
company.
 
Human Resource Module: This can be used as an independent module. It is used
for integrating the recruitment process, payroll, training and the performance
evaluation process. The module handles the history of the employee, tracks the
employees laid off and aids in rehiring of the employees.
 
7.       Manufacturing Module: This module includes product designing, bills of
material, cost management, workflow, etc.
 
8.       Marketing Module: The ERP marketing module supports lead generation
and the promotional activities.
 
Each of these above functional modules of ERP software plays an important role.
The organizations can choose to implement some of the modules or all according
to their requirements. The companies opt for the modules which are technically
and economically feasible to them. These modules streamline the flow of the
communication across the company by integrating the various functional
departments. The enterprise resource system is bound with all these functional
modules. These distinct yet seamlessly integrated modules cover most of the
functional needs of an organization. The functional modules of ERP software help
to achieve efficiency of operations, cost savings and help to maximize the profits.
 
Processes, organization, structure and information technologies are the key
components of BPR, which automates business processes across the enterprise and
provides an organization with a well-designed and well-managed information
system. While implementing ERP, the organizations have two options to consider.
 
Either the organization must reengineer business processes before implementing
ERP or directly implement ERP and avoid reengineering.

4 Explain in detail the principles of BPR with

suitable examples?
Principles of business process
reengineering
In the book Reengineering the corporation: A manifesto for Business
Revolution, Michael Hammer & James Champy suggested the following
seven principles:
Work should be designed such that it is result-oriented and not process-oriented

The first principle states that the tasks performed by different people can be
combined into one specialized task. Taking an example, the redesign of a
manufacturing company with separate divisions performing different functions
in a sequence.

One determines the customer requirement the other passes in the

information, and the third convey this to various plants and warehouses.

These sequential based activities led to errors, rework, and delays. When a
company re-engineers, it eliminates the assembly line approach.

Involve those people in the process who face the output

This principle states that the work should be done by the individual getting the
output, i.e., the consumer. Today, this can be observed as the “self-service”.

For example, if a customer is facing any problem, he has to fill in the data
himself instead of any office doing it for him. It pushes the work to the
consumer.

Merging data collection and processing units

This principle has matured and is visible in the concept, division of labor. This
means the data handling must be done by the same person who is collecting
the data. This reduces the number of errors by eliminating external contact for
a process.
For example, a company has a structure wherein one department collects the
information while the other records it. Here, the shared database will have
many errors while translating the information from one department to another.

Shared databases to interconnect dispersed departments

The advances in information technology allow the company to connect

separate units that are geographically dispersed by using a shared database.

Centralized databases provide economies of scale in addition to providing

flexibility and quick responses to the customers as there are better
agreements between the vendors.

Bridging the processes which are running on similar lines

According to Hammer, the processes of the activities must be integrated

rather than the end results. The parallel functions must be coordinated using
communication networks, shared databases.

These parallel activities must be linked continuously and coordinated at the

process execution. This will eliminate the high costs and delays in the
outcome of the process.

Decision making should also be a part of the work performed

There must be decision aiding-technology to cut unnecessary controls and to

keep a check in the process. Hammer states the decision should be made by
the person who is doing the work.
The processes can be improved by empowering the authority of the resource
with the responsibility to make the decision and improve the workflow.

5 Describe Enterprise Architecture Lifecycle

in detail with a diagram?
Enterprise Architecture has a
variety of definitions, primarily because the
word “enterprise” is overused as a result of the
current business environment.. Enterprise
Architecture today is the second most
important technology after SOA (Service-
oriented Architecture) and is a viable and
imperative technology for all large companies.
Compliance regulations (Sarbanes Oxley)
require that companies maintain coherent and
detailed transparent financial controls and
audits. IBM’s recent acquisition of
TeleLogic’s System Architect confirms the
importance of Enterprise Architecture in
today’s business environment. As with many
other now widely accepted technologies such
as CASE (ComputerAided Software
Engineering), object methodology and
business rule management systems (BRMS),
Enterprise Architecture has undergone
growing pains.. Many companies invested
heavily but did not receive substantial ROI for
a variety of reasons including poor
methodologies, tools, management, local
politics and inadequately trained staff. In
addition, many vendors and consulting
companies resisted enterprise architecture
because they were not familiar with the
technology and were focused on other more
circumscribed solution platforms and
approaches. But even though there are still
authors and professional groups who do not
yet appreciate the full value of enterprise
architecture, it has been mature for a few years
now, will grow substantially and has already
been adopted by the United States federal
government in their Federal Enterprise
Architecture (FEA) reference model that
 includes Homeland Security, and by, among
others, BP, Intel and Volkswagen AG.
Enterprise Architecture is essentially the
integration of business and technical
architecture using a comprehensive
methodology and a shared repository.

6 Assess the benefits of Enterprise

architecture. Explain in detail?

1. A Strategic Overview
EA is no longer the sole function of IT,
isolated from the rest of the organisation.
Nowadays, it has become much more—a
bridge between the business and IT. First
off, it provides you with a holistic
overview of your IT parameter and a
technological roadmap. It’s a strategic
lens for observing the entirety of your
infrastructure.
You gain crucial insights and a
comprehensive picture, one that
minimises miscommunication.
Think of it as a conceptual blueprint, an
integrated treasury of information. One
employs it to set the stage for the
delivery of concrete products,
documents, and other structural
elements. Moreover, it can help you
discover all the dependencies and points
of synergy between them.
2. Reducing Complexity
EA is a tried and tested way of
streamlining the core working of an
organisation.
This is a real game-changer, considering
most businesses operate as a mesh of
systems and components. Shying away
from facing this complexity isn’t an
option.
EA encourages you to adopt a proactive,
outcome-focused approach. Through a
selection of the right principles, tools, and
standards, it facilitates the calibration and
automation of processes.
The result should be nothing short of an
enterprise-wide transformation
endeavour. You aline tech needs with
business wants, enabling strategic
changes and pivots (such as acquisitions
and mergers).
Data-driven businesses that heavily rely
on technology stand to benefit the most
here.
3. Trimming Costs
This kind of organisational overhaul has
further positive implications.
It leads to more efficient resource
allocation and lets you score significant
savings. This is due to EA decreasing and
consolidating management,
maintenance, and operational costs. At
the same time, impact analysis eliminates
redundancies and duplication
(unnecessary rework).
You’re able to boost stability and overall
product quality while leveraging shared
capabilities. Along similar lines, many
organisations have achieved faster time
to market with EA.
All of this amounts to elevated ROI and
overall profitability. You can maintain a
sustainable pace of growth and manage
integration projects fuss-free. So do
yourself a favour and embrace the
concept sooner rather than later.
4. Standardisation and Flexibility
EA fosters a higher level of IT
standardisation.
It empowers decision-makers to flesh out
sound business and operational models.
Most of them mark the transition away
from silo-based systems.
Furthermore, when done right, EA makes
sure all employees are on the same page.
It’s easier to manage multiple business
units, as well as networks. You can,
amongst other things, offer better
software support and guidance than ever
before.
Finally, EA is also an opportunity to
maintain optimal productivity and
operability. It integrates services and
applications without friction and
increases their portability.
So harness the power of EA to strengthen
the organisation from within. Capitalise
on newfound opportunities to create,
buy, or outsource your IT solutions.
5. Security Gains
EA is the blueprint for addressing grave
cybersecurity concerns of today.
As a key tool in the arsenal, it works
wonders for data protection and security
processes in general. Updates and
patches are the most common tools used
across industry sectors.
All in all, you gain a real fighting chance
against the plight of threats that lurk all
around. Data breaches and thefts are just
the tips of the iceberg. There’s no
shortage of other ever-more-
sophisticated dangers.
We should also mention risks that stem
from internal IT missteps. We’re talking
about things such as shadow IT and
redundant applications. EA adds value in
this area is well.
It holds the key to protecting, grouping,
and making better use of your assets. As
an added bonus, you maintain consumer
trust by taking good care of their data.
6. Change Analysis and Adaptability
EA is conducive to tech innovation,
transformation, and smooth stack
implementation.
Higher agility means you respond to
sudden shifts in the industry and the
market. Your bolster your ability to
properly assess the impact of change and
make educated adjustments. It might
also make sense to go the extra mile and
revamp your business model and
strategies.
At the very least, do away with outdated
practises that cause more harm than
good. You’re likely to decrease project,
investment, and business risks that way.
The list of benefits goes on and includes
regulatory and legal changes that disrupt
the status quo.
GDPR is a prime example of how
compliance affects financial
performance and brand perception. So
stay abreast of the latest developments
and ahead of the curve.

7 Determine the benefits of business process

mapping and modelling. Explain in detail?

A process map visually

describes what happens in a business
process. Process mapping involves
specifically defining all the steps in a
process, who is responsible, and what the
outcome should be, to create a series of
steps that work towards an end result.
It is quite literally a map to guide you
through your business process,
identifying the data, activities, material,
and people involved.
Process mapping is a useful exercise
when defining exactly what happens in a
process and understanding the current
state of how your organization works.
Mapping the linear sequence of activities
that make up a business process helps to
identify bottlenecks or unnecessary steps
in the process. Having a visual
representation of this makes it easier to
explain both the current state and new
changes to users.
For example, you could map the process
for onboarding new employees to check
that all appropriate people are informed
and all necessary equipment is ready for
their start date. Seeing all the steps laid
out gives the opportunity to streamline
the process and make it as efficient as
possible

8 Explain the different phases of BPR?

Business process reengineering (BPR) has

been receiving attention from industries as
well as the academic community, because it
is likely to change management practice
and working processes in organisations in
the future. However it is commonly agreed
that BPR is important but also problematic.
In this chapter we explore the principles
and assumptions of BPR and identify the
factors affecting its successes and failures.
Especially we highlight some major debates
currently found in the literature of BPR.
These debates include the definitions used
to describe business processes and BPR, the
scale of the changes involved in BPR, and
the significance and role of information
technology (IT) in BPR, especially IT
systems. As the main theme of this thesis is
applying EM to BPR, it is essential to
understand some factors which cause BPR
projects failure due to the poor design of
the supporting systems under the
conventional paradigm. 3.1 Business
Process Reengineering: Introduction BPR is
known by many names, such as ‘core
 process redesign’, ‘new industrial
engineering’ or ‘working smarter’. All of
them imply the same concept which
focuses on integrating both business
process redesign and deploying IT to
support the reengineering work. In this
section we attempt to explore two
questions: where does BPR come from and
what is involved in BPR (i.e. its principles
and assumption.

Organize the guidelines for maximizing chance

for BPR success ?
Although the labels and steps differ
slightly, the early methodologies that were
rooted in IT-centric BPR solutions share
many of the same basic principles and
elements. The following outline is one such
model, based on the PRLC (Process
Reengineering Life Cycle) approach
developed by Guha.[13] Simplified schematic
outline of using a business process
approach, exemplified for pharmaceutical
R&D
1. Structural organization with
functional units
2. Introduction of New Product
Development as cross-functional
process
3. Re-structuring and streamlining
activities, removal of non-value
adding tasks
Benefiting from lessons learned from the
early adopters, some BPR practitioners
advocated a change in emphasis to a
customer-centric, as opposed to an IT-
centric, methodology. One such
methodology, that also incorporated a Risk
and Impact Assessment to account for the
effect that BPR can have on jobs and
operations, was described by Lon Roberts
(1994).[14] Roberts also stressed the use of
change management tools to proactively
address resistance to change—a factor
linked to the demise of many reengineering
initiatives that looked good on the drawing
board.
Some items to use on a process analysis
checklist are: Reduce handoffs, Centralize
data, Reduce delays, Free resources faster,
Combine similar activities. Also within the
management consulting industry, a
significant number of methodological
approaches have been developed.

10 Illustrate OLAP in detail?

Online Analytical Processing

(OLAP) is a category of software that allows
users to analyze information from multiple
database systems at the same time. It is a
technology that enables analysts to extract
and view business data from different points
of view.
Analysts frequently need to group, aggregate
and join data. These OLAP operations in data
mining are resource intensive. With OLAP data
can be pre-calculated and pre-aggregated,
making analysis faster.
OLAP databases are divided into one or more
cubes. The cubes are designed in such a way
that creating and viewing reports become
easy. OLAP stands for Online Analytical
Processing.

UNIT 3 PART A
UNTIT 3
SECTION-A
 1. Comment the reason for implementing MIS.
An MIS is a computerized database of financial, administrative and programmatic
information organized and programmed in such a way that it produces regular reports on
operations for every level of management in an organization. The main purpose of the MIS is to
give managers feedback about their own performance; top management can monitor the
organization as a whole. Information displayed by the MIS typically shows "actual" data over
against "planned" results and results from a year before; thus it measures progress against goals.

2. Summarize the history of SCM.

In the late 1920s, the introduction of mass production along assembly lines laid the
foundations for supply chain management. First successfully implemented by Ford, the idea of
producing consistent products on a large scale with increased efficiency changed trade and
supply chains irreversibly.
Mass production and the concept of interchangeable parts originated in the late 18th century with
weaponry in America and ship pulley production in England  but had not previously been
combined with division of labor, continuous workflow and specialization.
Containerization, or container shipping, not only increased the quantity of available space for
goods, but also increased the speed of the freight movement while decreasing the cost. The speed
increase came from more effective warehousing processes as well as transport terminal
efficiency.
Barcoding was another gamechanger for the industry, finally being used in a commercial context
in in the 1970s despite being patented more than twenty years before. Its adoption was spurred
forward by a standard requiring an identifying number from the US national association of food
chains and subsequent research showing large increase in profit from point scale scanning’. Once
the barcode was adapted to become an internationally used standard, it could be used from for
monitoring of the supply chain both globally and internationally.

3. Outline the different phases of BPR.

 4. Comment the reason for implementing DSS.
In organizations, a decision support system (DSS) analyzes and synthesizes vast
amounts of data to assist in decision-making. With this information, it produces
reports that may project revenue, sales, or manage inventory. Through the
integration of multiple variables, a DSS can produce a number of different
outcomes based on the company’s previous data and current inputs. 

5. Associate the SCM processes and participants.

ERP software doesn’t just enable supply chain management strategies, it informs your teams and
keeps them running at peak efficiency. This ensures your business runs smoothly in the face of
supply chain disruption. We can break down the role of Epicor ERP alongside supply chain
management into eight main categories:

 Purchase Management
 Demand Management
 Inventory Management
 Shipping And Receiving
 Warehouse Management
 Advanced Material Management
 Supplier Relationship Management
 Supplier Connect

6. Determine the Pros and Cons of EIS.

Enterprise Investment Scheme (EIS) is an investment program in the United Kingdom that
makes it easier for smaller, riskier companies to raise capital. The Enterprise Investment
Scheme helps riskier companies by giving their investors federal tax relief, which acts as an
incentive to investors, making the potential purchase of those companies’ shares more
appealing.

The Enterprise Investment Scheme works by granting 30% of what the investor pays for the
shares as a credit that then reduces the investor’s individual income tax owed for the year that
the individual purchased the shares.
7. Comment the reason for implementing EIS.
An enterprise information system is a solution of integrated systems that work together
to perform high-quality services to small, midsize, or large organizations. In other words,
an EIS allows organizations to process a great deal of data in a small amount of time to
make quick, accurate decisions.

 Helps decision-makers make sense of complex data

 Enables faster decision making

 Provides insight on the latest trends

 Helps transform your business

8. Determine the types of DSS.

Decision Support Systems (DSS) are a class of computerized information system that
support decision-making activities. DSS are interactive computer-based systems and
subsystems intended to help decision makers use communications technologies, data,
documents, knowledge and/or models to complete decision process tasks.

 Communication-driven DSS
 Data-driven DSS
 Document-driven DSS
 Knowledge-driven DSS
 Model-driven DSS

9. Comment the reason for implementing SCM.

We have an increased reliance on suppliers. Procurement happens in each and every
aspect of an organization, from business needs to IT needs. Everything needed in a
corporation is tied to suppliers and there will be a long list of suppliers in no time. The
 need to manage supplier relations, information, contracts and more grows rapidly while
the need to follow regulations persists.

Organizations need a SCM system such as IBM Emptoris Supplier Lifecycle Management to
establish streamlined supply chain management processes in order to realize the very best
value from their spending through supplier analysis of cost, risk and performance. They need a
SCM system to realize a 360-degree visibility into their supplier ecosystem.

An effective SCM system helps accomplish the following:

• Managing contractual obligations to assure a continuous supply and avoid a service
company’s delivery disruptions.
• Strengthening supplier relations for systematic synergy with suppliers and different
lines of business.
• Enterprise spending management to assure procurement happens through the right
suppliers and reduces costs.
• Managing risk and compliance to abide by organizational as well as industry specific
regulations and compliances.
• Establishing a single comprehensive supplier view and deriving insightful procurement
analytics.

10. Complete integration of ERP, supply chain, and customer relationship

applications.

A fully integrated ERP and CRM solution empowers your employees with access to the
information they need exactly when they need it. With the touch of a button, they can retrieve
inventory levels, shipments, customer financials, order history, returns, payments, pricing, etc.
Streamline business processes.
Let’s take a look at three benefits of merging your ERP and CRM software.

 A 360 degree view of your customer. How well do you know your
customers? One of the biggest advantages of CRM and ERP integration is
that it gives you a complete view of your customer. From prospect, to
sales and support, to finance and accounting, together these systems
provide complete visibility into your customers’ needs, buying habits,
order history, preferences, account standing, etc. Not only does this
knowledge give you better insight into your customer base, it can help
you build lasting relationships with customers and determine where
 there is potential for future growth. It can even help you anticipate your
customer’s needs before your customer does.

 Better access to critical information. A CRM and ERP solution that is fully
integrated gives your employees the ability to access important
information in real-time. Without it, your employees are less efficient and
your customers will pay the price. For example, when a customer
contacts your call center with a simple question about the status of an
order, your call center representative should not have to go into different
systems to access that information or inquire with other employees. A
fully integrated ERP and CRM solution empowers your employees with
access to the information they need exactly when they need it. With the
touch of a button, they can retrieve inventory levels, shipments,
customer financials, order history, returns, payments, pricing, etc.

 Streamline business processes. In the past, without an integrated

solution, many business processes were manual and time-consuming.
However, a key benefit to merging your ERP and CRM software is
enhanced productivity through streamlining processes and automating
workflow. Additionally, an integrated solution cuts down on the amount
of duplication of data entry tasks.

11. Predict the components of the e-business supply chain.

 The need for additional reduction in the costs as well as improvements in the
processes through the expansion of the tools for modern management in the
organizations from the supplier channels to the customer channels.
 The introduction of computerization and digitalization of the internal functions
of the organizations with new techniques, tools, and management methods.
 The need for efficiency and agility of the organizations in order that they can
respond to the higher demands of the customers whose growing demands and
bargaining power continually increases.
 The effort to optimize the organization by having lower inventory levels both in
manufacture and distribution by, in parallel, offering supreme quality and
service.
 The deserting of vertical integration and functional oriented organizations.
 The tendency for outsourcing of some operational functions that are not the core
of the business to other organizations specialized in that field.
 The explosive expansion of global commerce and the opening of new markets
that only few years ago were closed.
 The e-business technologies, particularly internet, have enabled organizations of
all sizes to have a network and be closely connected with their partners and
 conquer and compete for market share which was only possible before for the
large corporations.

12. Infer the meaning of is MIS?

MIS Reports are reports required by the management to assess the performance of the
organization and allow for faster decision-making. A Management Information System,
often simply referred to as MIS, can be understood by looking at each of the words that
make up the name. There is the management, the information, and the system. At the
heart of it, such a system is one that will provide important information to the
management of the company.

The complexities of running businesses, have made us more reliant on advanced

technologies which will remove any room for errors. On one hand, it accurately states
what a management information system does for the management of the company. On
the other hand, it cannot be overemphasized that management information systems are
very important to the smooth running of a business. It is crucial that businesses opt for
an automated management information system is set up for better decision-making.

13. Express the ERP related technologies.

There are many technologies that help to overcome these limitations. These technologies,
when used in conjunction with the ERP package, help in overcoming the limitation of a
standalone ERP system and thus, help the employees to make better decisions. Some of these
technologies are:

• Business process reengineering (BPR)

• Management information system (MIS)
• Decision support system (DSS)
• Executive information systems (EIS)
• Data warehousing
• Data mining
• On-line analytical processing (OLAP)
 • Supply chain management

14. Outline the data warehouse importance?

A data warehouse is a system that stores data from a company’s operational databases as well as
external sources. Data warehouse platforms are different from operational databases because
they store historical information, making it easier for business leaders to analyze data over a
specific period of time. Data warehouse platforms also sort data based on different subject
matter, such as customers, products or business activities.
Why is data warehousing important?
Data warehousing is an increasingly important business intelligence tool, allowing organizations
to:
• Ensure consistency. Data warehouses are programmed to apply a uniform format to all collected
data, which makes it easier for corporate decision-makers to analyze and share data insights
with their colleagues around the globe. Standardizing data from different sources also reduces
the risk of error in interpretation and improves overall accuracy.
• Make better business decisions. Successful business leaders develop data-driven strategies and
rarely make decisions without consulting the facts. Data warehousing improves the speed and
efficiency of accessing different data sets and makes it easier for corporate decision-makers to
derive insights that will guide the business and marketing strategies that set them apart from
their competitors.
• Improve their bottom line. Data warehouse platforms allow business leaders to quickly access
their organization's historical activities and evaluate initiatives that have been successful — or
unsuccessful — in the past. This allows executives to see where they can adjust their strategy to
decrease costs, maximize efficiency and increase sales to improve their bottom line.

15. GIS meaning?

GIS is as the web or mobile app that can help you bring in your data and integrate with
maps that can be used to visualize and analyze the data to find out patterns and derive trends.
Five things that brought the changes in GIS?

The world moved from desktops to servers to the web and then to mobile. As the technology
progressed, GIS also took this transition. GIS moved from being a desktop software, to be a server
based, to Web GIS and now to mobile GIS.

But, what made the change is the need for people to take advantage of the power of maps, the power
of location intelligence, the power of geography! Here are the aspects that brought this change:

1. You no more capture/create/edit base maps to visualize: Since the availability of

base map data as web services, the hectic task of creating base data first slowly started
to diminish. Want a street data, satellite imagery, terrain data or even traffic and
weather information. You now have it at your fingertips in a GIS.
2. You no more need to install a GIS: Since the Cloud and SaaS models started to get
popular, GIS is always there for you and your enterprise. It’s always up-to-date!
3. You don’t need to store it! It is always available as per your demand ― on PC,
mobile or tablet. Enterprises are taking the advantage of Cloud storage model of data.
4. You don’t need to run tools to analyze data: Rather than the need for the business
data to come to GIS; the GIS started getting integrated with business data, processes,
and workflows. Instead of running a toolbox, or script to do the analysis, the logic for
analysis is already pre-defined and the analysis can even happen over the Cloud. If
you don’t have the logic, you can always buy the tool as an App in the Cloud and run
it.
5. You no more create map layouts every time to visualize the data: Pre-set map
style and templates are available within the GIS, that helps you to open the template
and visualize the data. You can also share and publish these results easily and tell
stories with your data.

UNIT 3
SECTION B
1 Discuss supply chain business process
integration with ERP ?
 Enterprise Resource Planning
systems are used by companies to coordinate
their business operations. The core of an ERP
system is that it enables the integration of
various business processes into a single
platform for better organisation. That is, it
comprehensively connects various departments .
Supply chain management is
the process of managing the flow of resources
in a company from raw materials at the
production level to finished products at the
distribution level. The software that enables
this high-level organisation is an SCM system.
ERP and SCM are alike in that they integrate
various business functions, although limited to
the supply chain.

2 Categorize the various components of

EIS with a digram and suitable
examples?
 An executive information
system (EIS) is a decision support
system (DSS) used to assist senior
executives in the decision-making
process. It does this by providing easy
access to important data needed to
achieve strategic goals in an
organization. An EIS normally
features graphical displays on an
easy-to-use interface.

Executive information systems can be

used in many different types of
organizations to monitor enterprise
performance as well as to identify
opportunities and problems.
Early executive information
systems were developed as computer-
based programs on mainframe
computers to provide a company’s
description, sales performance and/or
market research data for senior
executives. However, senior
executives were not all computer
literate or confident. Moreover, EIS
data was only supporting executive-
level decisions but not necessarily
supporting the entire company or
enterprise.

Current EIS data is available

company- or enterprise-wide,
facilitated by personal computers and
workstations on local area networks
(LANs). Employees can access
company data to help decision-making
in their individual workplaces,
departments, divisions, etc.. This
allows employees to provide pertinent
information and ideas both above and
below their company level.

The typical EIS has four components:

hardware, software, user interface
and telecommunication.

3 Determine DSS and explain how is it

different from MIS?
MIS
MIS, Management Information System, is a
computer based program to assist users to
make decisions based on information
present in the system.
DSS
DSS, Decision Support System, is also to
help making decisions. It uses
communication technologies, data,
documents to identify problems and to
finalize decisions.
Following are the important differences
between MIS and DSS.

Sr. Key MIS DSS

No
.

Primary MIS identifies DSS identifies

Task the the tools to be
1 information used in
required. decision
process.

Focus Focus is on Focus is on

2
efficiency. effectiveness.

Database Corporate Special

3 Databases Database
are used. needed.
Sr. Key MIS DSS
No
.

Data Focus is on Focus is on

4 data storage. data
manipulation.

Dependency Dependent on Dependent on

5 computer. management
juridiction.

Usage MIS is used DSS is used in

to in control planning,
6 process. staffing and
decision
making.

7 Users MIS is used DSS is used

by middle by analysts,
level, low professionals
level users and managers.
Sr. Key MIS DSS
No
.

and senior
executives in
some cases.

Focus Focus is on Focus is on

information decision
8 processing. making,
support and
analysis.

3 Explain Business Process Reengineering

with examples?
It is argued by some
researchers (for example, van Meel et al.,
1994; MacIntosh and Francis, 1997; Peltu et
al., 1996) that there is no commonly agreed
definition of BPR. Peltu et al. consider that
this lack of an accepted definition of BPR
makes it difficult to assess the overall
success or failure of its concept. Thus it is
essential to make clear what the definition
of BPR is before we propose any framework
and techniques for BPR. The book
Reengineering the Corporation: A
Manifesto for Business Revolution by
Hammer and Champy (1993) is widely
referenced by most BPR researchers and is
regarded as one of the starting points of
BPR. The following is their definition of BPR:
[Reengineering is] the fundamental
rethinking and radical redesign of business
processes to achieve dramatic
improvements in critical, contemporary
measures of performance, such as cost,
quality, service and speed. (p. 32) Another
BPR father, Davenport (1993), describes
‘business process redesign’ as: ... the
analysis and design of workflows and
processes within and between
organisations. Business activities should be
viewed as more than a collection of
individual or even functional tasks; they
should be broken down into processes that
can be designed for maximum
effectiveness, in both manufacturing and
service environment. These definitions
suggest that we should concentrate on
processes rather than functions (or
structures) as the focus of the (re-)design
and management of business activity. The
definitions of the term ‘proc- 3 Business
Process Reengineering Page 70 § 3.1
Business Process Reengineering:
Introduction Yih-Chang Chen (2001)
“Empirical Modelling for Participative
Business Process Reengineering” ess’ by
different researchers are also slightly
different. For example, Hammer and
Champy (1993) define a process as: a
collection of activities that takes one or
more kinds of input and creates an output
that is of value to the customer. (p. 35) For
Davenport (1993) it is: A process is a
specific ordering of work activities across
time and space, with a beginning, an end,
and clearly identified inputs and outputs: a
structure for action. (p. 5) And Warboys et
al. (1999) define a process as: A process is
structured change, i.e. there is a pattern of
events which an observer may recognise
across different actual examples (or
occurrences) of the process, or which may
be made manifest, or implemented, in
many different occurrences. (p. 32) In BPR,
the process to be reengineered is the so-
called business process. Davenport
describes a business process as “simply a
structured, measured set of activities
designed to produce a specified output for
a particular customer or market”. Riemer
(1998) describes business processes in an
object-oriented style: “business processes
are series of steps that change states of
business objects (that is, customers, orders
and inventory), thereby causing business
events”. However we should note that BPR
is concerned with customer-orientation.
Thus the outputs of business processes
should not only achieve the company’s
objectives, but also need to satisfy
customers’ requirements. From these
definitions we can conclude that business
processes start and end with customers,
and the value of business processes is
dependent upon customers. The Origins of
BPR Some researchers argue that the
original concept of reengineering can be
traced back to the management theories of
the nineteenth century. As one report in
The Financial Times (1994): The purpose of
reengineering is to make all your processes
the best-in-class. ... Frederick Taylor
suggested in the 1880’s that managers use
process reengineering methods to 3
Business Process Reengineering Page 71 §
3.1 Business Process Reengineering:
Introduction Yih-Chang Chen (2001)
“Empirical Modelling for Participative
Business Process Reengineering” discover
the best processes for performing work,
and that these processes be reengineered
to optimise productivity. ... In the early
1900’s, Henri Fayol originated the concept
of reengineering: To conduct the
undertaking toward its objectives by
seeking to derive optimum advantage from
all available resources. (p. 8) Similarly,
Galliers (1998) observes that “BPR ... far
from being a new departure, is in fact a
reversion to the classical school1 of
strategic thinking popularised in the 1960s”.
That is, organisations make such radical
changes when they meet competitive
pressures which challenge their current
processes. BPR can be viewed as a response
to such change and therefore fits in the
classical school of strategy where
organisations adjust themselves to new
forms in order to maximise their profits.
However it is commonly agreed that BPR
first came and attracted academic and
industrial attention in 1990 as a result of
two papers by Michael Hammer (on
reengineering, see Hammer, 1990) and
Thomas Davenport (on business process
redesign, see Davenport and Short, 1990).
In 1993 they further published two key
books (Hammer and Champy, 1993 and
Davenport, 1993) which brought
widespread attention to the emerging field
of BPR. The concept of BPR is widely
regarded as having been introduced as a
perceived solution to the economic crisis
and the recession of the late 1980’s and
early 1990’s (Butler, 1994; Arnott and
O’Donnell, 1994). As Butler describes it:
“the ‘80s were a time for financial
reengineering ... the ‘90s are for
technological reengineering”. Hammer and
Champy (1993) propose that “BPR can help
 organisations out of crisis situations2 by
becoming leaner, better able to adapt to
market conditions, innovative, efficient,
customer focused and profitable in a crisis
situation”

4 Explain the characteristics of business

processes reengineering cycle?

If business process improvement

is fine-tuning your car, then business
process reengineering is doing a total
engine overhaul.
Business process reengineering
(BPR) helps organizations reimagine their
existing processes and take extreme
redesign measures to achieve remarkable
results.
BPR is different from other BPM initiatives
because it revamps a process entirely rather
than making repeated improvements to it.
Implementing BPR successfully will result in
more drastic benefits of saving costs,
speeding processes, and bettering
product/service quality.
BPR Blows It Up
In 1990 an MIT professor, Michael Hammer,
wrote an article titled, “Don’t Automate,
Obliterate” which fuelled BPR’s popularity as
a revolutionary concept. Hammer writes:
It is time to stop paving the cow paths.
Instead of embedding outdated processes in
silicon and software, we should obliterate
them and start over. We should “reengineer”
our businesses: use the power of modern
information technology to radically redesign
our business processes in order to achieve
dramatic improvements in their
performance.
Businesses love BPR for its no-nonsense,
blitzkrieg approach to completely blot out
waste from processes.
Of Tacos and Tauruses
BPR gained more steam when Fortune 500
companies started adopting business
process reengineering (BPR) as their new
weapon of choice to eliminate process
redundancies and shoot up workflow
efficiency.
In one of the early examples of BPR’s
success, Ford Motor Company examined
their Accounts Payable department. In the
early 1990s, they employed 500 people in
accounts payable to manage a very
complicated system. They also had
inefficiencies throughout the system and
many errors. Through some basic
improvements with IT, they thought they
could reduce their workforce by 20%.
However, when they realized that Mazda
employed only 5 people in their accounts
payable, they realized something more
drastic was needed.
Using BPR, Ford:
 Introduced the concept of “Invoiceless
Processing”
 Reduced their workforce by 75%
 Digitized its accounting process
 Improved vendor relationships
Taco Bell’s K-Minus initiative is another
example of a successful BPR initiative. The
retail food service company decided to
move the food preparation job from its
restaurants to a centralized commissaries in
1989. The decision helped them:
 Achieve greater quality control
 Lessen employee injuries in restaurant
kitchens
 Encourage employees to deliver better
customer service
When to Use Business Process Reengineering
(BPR)
The benefits of BPR are countless –
increased revenue, improved customer
service, reduced cost, higher employee
retention, faster processing time. Nearly any
business benefit can be gained from
business process reengineering.
However, the key is when to use BPR. Here
are some key times when you might want to
think about obliterating your processes and
starting fresh:
 When technology has significantly
disrupted your industry
 When a competitor does drastically
more with less (think Mazda)
 When you need to be the disruption in
your industry
 When a little improvement won’t make
much difference
The Pitfalls Of Business Process Reengineering
Business process reengineering (BPR) is
not a silver bullet to revive tangled up,
sloppy processes. It fails when companies
mistake BPR for a way to automate,
downsize, or outsource.
A business process reengineering (BPR)
initiative flops when organizations:
 Apply it to more than one process
 Don’t have long-term, clear goals
 End up with only minor changes to the
process
 Don’t dare to put their processes on the
anvil
 Apply it continually, reengineering
processes yearly or more often
 Focus more on automation than
redesign
 5 Investigate the ERP and related
technologies?
Enterprise resource planning
(ERP) refers to a type of software that
organizations use to manage day-to-day
business activities such
as accounting, procurement, project
management, risk management and
compliance, and supply chain operations. A
complete ERP suite also includes enterprise
performance management, software that
helps plan, budget, predict, and report on
an organization’s financial results.
ERP systems tie together a multitude of
business processes and enable the flow of
data between them. By collecting an
organization’s shared transactional data
from multiple sources, ERP systems
eliminate data duplication and provide data
integrity with a single source of truth.
Today, ERP systems are critical for
managing thousands of businesses of all
sizes and in all industries. To these
companies, ERP is as indispensable as the
electricity that keeps the lights on.
What’s the difference between ERP and
financials?
Although the term “financials” is often used
when describing ERP software, financials
and ERP are not the same thing. Financials
refers to a subset of modules within ERP.
Financials are the business functions
relating to the finance department of an
organization and includes modules for
financial accounting, subledger
accounting, accounting hub, payables and
receivables, revenue management, billing,
grants, expense management, project
management, asset management, joint
venture accounting, and collections.
Financials software uses reporting and
analytical capabilities to comply with the
reporting requirements of governing
bodies, such as the International Financial
Reporting Standards Foundation (IFRS),
Financial Accounting Standards Board
(FASB) for Generally Accepted Accounting
Principles in the United States (GAAP), as
well as for other countries (HGB in Germany
and PCG in France, for example). For public
organizations, financials software has to be
able to produce periodic financial
statements for governing regulators, such
as the US Securities and Exchange
Commission (SEC) (with reports such as
quarterly 10-Q and annual 10-K), European
Securities and Markets Authority (ESMA),
and others. For these types of financial
reports, a narrative reporting tool is used.
The person who is ultimately responsible for
financials is the CFO.
While financials handles one area of the
business, ERP encompasses a wide range of
business processes—including financials.
ERP software can include capabilities
for procurement, supply chain
management, inventory, manufacturing,
maintenance, order management, project
management, logistics, product lifecycle
management, risk management, enterprise
performance management (EPM), human
resources/human capital management,
and customer relationship management
(CRM). Cloud-based ERP applications are
often embedded with next-generation
technologies, such as the internet of things
(IoT), blockchain, AI, machine learning, and
digital assistants. These advanced
technologies deliver data and capabilities
that not only enhance many traditional ERP
functions; they create new opportunities for
increased efficiencies, new services, and
deeper insight across an enterprise. Since
ERP systems are comprehensive across an
enterprise, their management often involves
a partnership with the CFO as well as the
CIO, COO, and other key executive leaders.

6 Describe Supply Chain Management and its

process?
Supply chain management is the
management of the flow of goods and
services and includes all processes that
transform raw materials into final
products. It involves the active
streamlining of a business's supply-side
activities to maximize customer value
 and gain a competitive advantage in the
marketplace

In SCM, the supply chain

manager coordinates the logistics of all
aspects of the supply chain which consists
of five parts:
 The plan or strategy
 The source (of raw materials or
services)
 Manufacturing (focused on productivity
and efficiency)
 Delivery and logistics
 The return system (for defective or
unwanted products)
The supply chain manager tries to minimize
shortages and keep costs down. The job is
not only about logistics and purchasing
inventory. According to Salary.com, supply
chain managers “oversee and manage
overall supply chain and logistic operations
to maximize efficiency and minimize cost of
organization's supply chain."1
Productivity and efficiency improvements
can go straight to the bottom line of a
company. Good supply chain management
keeps companies out of the headlines and
away from expensive recalls and lawsuits.
SCM vs. Supply Chains
A supply chain is the network of individuals,
companies, resources, activities, and
technologies used to make and sell a
product or service. A supply chain starts
with the delivery of raw materials from a
supplier to a manufacturer and ends with
the delivery of the finished product or
service to the end consumer.
SCM oversees each touchpoint of a
company's product or service, from initial
creation to the final sale. With so many
places along the supply chain that can add
value through efficiencies or lose value
through increased expenses, proper SCM
can increase revenues, decrease costs,
and impact a company's bottom line.

7 Assess the various types of DSS? Explain in

detail with suitable examples?

A decision support system (DSS) is a computer

program application used to improve a
company's decision-making capabilities. It
analyzes large amounts of data and presents an
organization with the best possible options
available.
Decision support systems bring together data
and knowledge from different areas and sources
to provide users with information beyond the
usual reports and summaries. This is intended to
help people make informed decisions.
Typical information a decision support
application might gather and present include the
following:
  comparative sales figures between one
week and the next;
 projected revenue figures based on new
product sales assumptions; and
 the consequences of different decisions.
A decision support system is an informational
application as opposed to an operational
application. Informational applications provide
users with relevant information based on a
variety of data sources to support better-
informed decision-making. Operational
applications, by contrast, record the details of
business transactions, including the data
required for the decision-support needs of a
business.
Decision support system components
A typical DSS consists of three different
parts: knowledge database, software and user
interface.
Knowledge base. A knowledge base is an
integral part of a decision support
system database, containing information from
both internal and external sources. It is a library
of information related to particular subjects and
is the part of a DSS that stores information used
by the system's reasoning engine to determine a
course of action.

8 Illustrate the improvements that happened in

the SCM with ERP?

he integration of Supply chain management

and ERP allows manufacturing and distribution
businesses the ability to gain greater visibility
into all operations while increasing speed,
efficiency and overall customer satisfaction.
A growing number of businesses recognize the
many potential benefits of Enterprise Resource
Planning (ERP) when it comes to managing
business information, integrating various
systems and working processes, and ensuring
optimal operational efficiency.
When it comes to Supply Chain Management
(SCM), businesses need to interact with
numerous suppliers and partners in order to
obtain the raw materials and resources needed
to bring finished goods to market. ERP plays a
vital role in combating inefficiency; reducing
waste and ensuring that workers are better
able direct their efforts. The integration of both
systems may pose some unique challenges. It is
in your company’s best interest to ensure that
you and your staff fully understand the role of
ERP within the SCM process.
You May Also Like: Connecting ERP and Supply
Chain Management Strategies
Benefits of Combining Supply Chain
Management and ERP Systems
The feature-rich working environment of ERP
combined with the more streamlined and
efficient workflow of an effective SCM can
provide a range of important advantages,
including:
 Improved efficiency across multiple
departments and organizations working
within the supply chain
 Improved customer service for increased
customer retention and greater chance of
repeat business opportunities
 Automation of workflow for reduced
overhead and operational costs
 IT issues and problems that are less likely to
create bottlenecks to impede efficiency
 More flexible supply chain solutions that
may be readily adapted to meet the needs
of changing circumstances or future
business growth and expansion.

9 Compare MIS and DSS?

 MIS stands for Management
Information Systems. It is a type of link
that assists in the communication
between managers of various disciplines
in a business firm or an organization. On
the whole, it plays a very important role
in building up communication among the
corporate people. MIS is characterized by
an input of large volume of data, an
output of summary reports and process
characterized by a simple model. Usually,
in MIS, the flow of information is from
both sides, up and down.

MIS focuses on the information gathered

and the information that has poured
from different quarters. Furthermore, it
focuses more on planning the report of
various topics concerned with the
organization that would assist the
managers to take vital decisions
pertaining to the functioning of the
organization. Moreover, MIS is
characterized by an input of large volume
of data, an output of summary reports
and process characterized by a simple
model.

What is DSS?

DSS stands for Decision Support Systems.

It is an improvement of the concept of
MIS. It is true that both of them differ in
terms of their focus. DSS focuses more
on leadership. It is all about senior
management in a firm providing
innovative vision. Therefore, the Experts
on managerial behavior say that DSS
focuses more on decision making.
Home / Technology / IT / Applications / Differe
nce Between MIS and DSS
Difference Between MIS and DSS
February 13, 2011 Posted by Aron
53
The key difference between MIS and
DSS is that MIS is a primary level of
decision making whereas DSS is the
ultimate and the main part of the
decision.

MIS and DSS are two abbreviations that

are often heard in the field of Business
Management. They differ in a few
aspects. MIS is a complementary network
of hardware and software cooperating to
collect, process, store and distributes
information to support the managerial
role to increase business values and
profits. DSS is an information system that
supports business or organizational
decision-making activities.

CONTENTS

1. Overview and Key Difference

2. What is MIS
3. What is DSS
4. Side by Side Comparison – MIS vs DSS
in Tabular Form
5. Summary

What is MIS?

MIS stands for Management Information

Systems. It is a type of link that assists in
the communication between managers of
various disciplines in a business firm or
an organization. On the whole, it plays a
very important role in building up
communication among the corporate
people. MIS is characterized by an input
of large volume of data, an output of
summary reports and process
characterized by a simple model. Usually,
in MIS, the flow of information is from
both sides, up and down.

Figure 01: MIS

MIS focuses on the information gathered
and the information that has poured
from different quarters. Furthermore, it
focuses more on planning the report of
various topics concerned with the
organization that would assist the
managers to take vital decisions
pertaining to the functioning of the
organization. Moreover, MIS is
characterized by an input of large volume
of data, an output of summary reports
and process characterized by a simple
model.

What is DSS?

DSS stands for Decision Support Systems.

It is an improvement of the concept of
MIS. It is true that both of them differ in
terms of their focus. DSS focuses more
on leadership. It is all about senior
management in a firm providing
innovative vision. Therefore, the Experts
on managerial behavior say that DSS
focuses more on decision making.

Usually, the flow of information is only

upward in DSS. It is featured by an input
of low volume of data, an output of
decision analysis and a process
characterized by interactive model.
Moreover, DSS is featured by an input of
low volume of data, an output of decision
analysis and a process characterized by
interactive model.

What is the Difference Between MIS

and DSS?

MIS stands for Management Information

Systems. It is a complementary network
of hardware and software cooperating to
collect, process, store and distributes
information to support the managerial
role to increase business values and
profits. The main focus of MIS is on the
operational efficiency. Moreover, its flow
of information is from both sides, up and
down. Furthermore, MIS takes an input of
large volume of data and outputs
summary report. Its characterized
process is a simple model. Usually, the
MIS based reports are not very flexible.

DSS stands for Decision Support Systems.

It is an information system that supports
business or organizational decision-
making activities. The main focus of DSS
is on making the effective decision for the
company to do the right thing. Moreover,
the flow of information in DSS is only to
upward. Furthermore, DSS uses the input
of low volume of data and output
decision analysis. Its characterized
process is an interactive model. Usually,
the DSS based reports are more flexible.

UNIT- IV

 Section - A (5 Marks)
1) Summarize top ten ERP packages for manufacturing industry.
Ans:- a) Plex Systems:- Plex was one of them in the race to Cloud ERP solutions. They
helped pioneer the process and for that reason, they tend to be one of the more
mature cloud ERP systems out there.

b) Microsoft Dynamics 365 :- This software offers a lot of capabilities, both within and
outside of the manufacturing space, and they continue to evolve and improve as
they build upon manufacturer functionalities.

c) Deacom :-This company is focused primarily on manufacturing ERP systems, which

shows their dedication to their space.

d) Infor Cloudsuite :- Infor Cloudsuite has historically focused heavily in the

manufacturing space.

e) SAP/S4 HANA :-Yes – we have a tie. SAP has very comparable results to Infor

Cloudsuite because it’s tailored to larger organizations with its broad capabilities.

f) Epicor :- Along with many others, Epicor is making its transition to the cloud
space. They bring a new sense of transparency and seamlessness into
manufacturing operations that have benefited many of our clients.

g) Oracle ERP Cloud :- Oracle has traditionally been used by upper market
organizations, and their legacy products have done great in manufacturing.

h) Acumatica :-This is a newer product that has been around for just over 10 years,
but it’s one of the fastest-growing ERP systems on the market.

i) IQMS :-This product has been around for a long time and has been dedicated to the
manufacturing space since the beginning. IQMS is suitable for small to mid-sized
companies, and their biggest strength is the breadth of functionality within the
manufacturing space.

j) QAD :-QAD is a well-known manufacturing ERP solution across large, high

functioning manufacturing organizations, from automobiles to chemical
manufacturers.
 k) IFS :- IFS is a company based out of Europe, but they have become more well-
known across the globe in recent years. IFS is a manufacturing-focused product
and it’s a great fit for organizations with heavy project management.

2) Outline the ERP modules.

Ans:- Finance
Procurement
Manufacturing
Inventory Management
Order Management
Warehouse Management
Supply Chain Management
Customer Relationship Management (CRM)
Professional Services Automation (Service Resource Management)
Workforce Management
Human Resources Management
E commerce
Marketing Automation

3) Summarize any ten sub systems of human resource management module.

Ans:- (1) Performance Appraisal:

Performance appraisal is a process of rating or ensuring the performance of an employee of his

job. Performance appraisal is the assessment of an individual’s performance in a systematic
way.

(2) Potential Appraisal:

The object of potential appraisal is to develop latent abilities of individuals. Potential appraisal
provides vital information about individuals to prepare career plans for them.
(3) Career Planning:
Planning for Career makes employee grow in his working life time while unplanned careers
flopped.
(4) Training:
Training is an attempt to improve current or future employee performance by increasing an
employee’s ability to perform through learning usually by changing the employee’s attitude or
increasing his or her knowledge.
(5) Organization Development:
Organization Development intend to change beliefs, attitudes, values and structure of
organization that they can better adapt to new technologies, markets and challenges and the
dizzying rate of change itself.
(6) Rewards:
Rewarding employees for their excellent professional performance over and above their usual
wages and salaries boost up their morale and encourage others to work hard. 
(7) Counseling:
Counseling is an essential instrument of HRD. It serves several purposes. Counseling is a
service provided to the employees regarding their personal problems.
(8) Quality Circle:
Quality circle is a small group of people doing same or similar work. They meet voluntarily
together on regular basis for an hour per week, during office hours under the leadership of
their supervisor and trained to identify, analyze and solve some of the problems of their work
and submit solutions to management.
(9) Role Analysis:
Role is a set of expected behaviour patterns attributed to a person occupying a given position
in a unit. Every employee has a role to play.
(10) Human Resource Planning:
H. R. Planning is an integral part of business and organisation planning. It concerns with
detailed planning to establish the future human resource requirements at every level by skill
and category.

(11) Procurement and Placement:

It is one of the important sub systems of HRD. Procurement of human resources is done
through recruitment and selection.
(12) Job Rotation:
Jobs are rotated among the employees to increase their knowledge and skill required for
performance of various jobs.
(13) Quality of Working Life:
Employees are the assets of an organisation. To extract the best from employees adequate,
healthy and hygienic working conditions should be provided.

4) Outline the overview of Baan Company.

Ans:- Baan Company is a developer of enterprise business management and client server
software systems. From its dual headquarters in The Netherlands and in Reston, Virginia,
Baan oversees a global organization of subsidiary and partnership companies, both for product
development and for distribution and implementation of the company's products.

Founded in the Netherlands in 1978 by Jan and Paul Baan, Baan became a major ERP vendor
operating in more than 80 countries. Its products support Unix, Windows NT/2000 and
AS/400 platforms.

In 2000, Baan was acquired by British company The Invensys Group. In 2003, the Baan
division was purchased by SSA Global Technologies, which immediately integrated the Baan
applications into its own supply chain and lifecycle management portfolio. SSA Baan ERP
retained its long-running name lineage until Infor Global Solutions acquired SSA at the end of
2006.

5) Determine the Oracle Corporation.

Ans:- Oracle Corporation is the largest supplier of database software and the second largest
supplier of business applications in the world. Our products include the Oracle8 database,
server-based development tools, and business applications for the front and back office.

The strategy for our database business is simple: decrease the total cost of ownership of
mission-critical database applications while increasing the quality of service. How? Minimize
 the labor required to run your computer network. Moving database applications off user
managed desktop PCs and onto professionally managed application servers is the key.

Our business applications do more than automate back office processes. They automate the
front office too. And they provide the information that management needs: Our Applications
Data Warehouse monitors key business metrics and delivers fast answers to hard questions.

6) Complete a comparative assessment and selection of ERP packages and

modules.
Ans:- Complete a comparative assessment and selection of ERP packages and modules.

Formation of an evaluation committee:An ERP implementation is not an IT project

but a business oriented development. Therefore, in addition to Chief Information Officer, this
committee should comprise of all functional heads and driven by a top management
representative.

Requirement Analysis:This analysis should outline functional expectations of various

business divisions, such as warehouse, finance, procurement, from potential ERP package.
Vital requirements specific to the company should be highlighted e.g.

 Must have Distribution Requirement Planning (DRP) functionality.

 In transit inventory and pallet tracking, as a part of shipping requirement.
 Multiple purchase orders linked to one bill of lading.
 Multi currency and multi locations functionality.

Selection Criteria: A per-determined selection Criteria should be ready before actual

selection process commences. Selection criteria are normally in the form of questionnaire and
point system, where each question represents a business or technical need.

Selection Process: Selection process constitutes various stages as mentioned below:

A) Short listing of vendors.

B) Demo and Presentation.
 C) Site visit and contract negotiations.

7) Determine the warehouse management system in ERP

Ans:- Warehouse management system is an automation software that streamlines everyday
operations in the warehouse. Every business whether online or offline needs a right warehouse
management software to manage their distribution channel. A well-defined WMS software
boosts business revenues and fosters healthy business relationships with various stakeholders
of the business, such as vendors, customers, investors, and the internal team.

Key Benefits of Warehouse Management System:

 Increase Labour Productivity
 Improve Warehouse Space Utilization
 Improve Inventory Visibility and Accuracy
 Increase On-Time Shipments
Inventory Management

Order Management

Warehouse Inward

Warehouse Outward

RFID Bar-code Scanning-

Returns Management

Logistics Management
 8) Comment on leading ERP vendor SAP AG.
Ans:- In 1972 five former IBM employees -Dietmar Hopp,Hans-Werner,Hasso Plattner,Klaus
Tschira, And Claus Wellenreuther- launched a company called systems,Applications, And
Products in Data Processing (SAP) in Mannheim, Germany with a vision to develop standard
application software for real time business processing.With total revenues of $ 18.54 billion in
the financial year 2011, this company is now the recognized leader in providing collaborative
business solutions for all types of industries and for every major market. Headquartered in
walldorf,Germany, with locations in more than 130 countries and more than 61000
employees,SAP AG is the world leader in enterprise software and software-related services.

9) Predict the benefit of people soft.

Ans:-PeopleSoft is a human resource (HR) software designed for small to medium-sized
businesses. Through the software’s set of highly-scalable apps, users can achieve a unique
solution for their complex business requirements. PeopleSoft is created to provide you with
insights into every transaction made by your company. 

The main benefits of PeopleSoft are its comprehensive feature set, general usability, and
scalability. Here are the benefits offered by PeopleSoft for your business process:

Workforce Management

PeopleSoft ensures policies and controls to your workforce through a suite of helpful features,
including forecasting workload demand and labor, capturing the working time and absences,
creating and identifying work schedules, and ensuring compliance to rules, regulations, and
laws. With this, you can ensure efficiency and productivity within your team.

Human Capital Management

To make your company compliant with the global marketplace’ regulations and requirements,
PeopleSoft covers policies for consistent reinforcement and a source of truth in reporting
business metrics. It even got an “embassy-grade” security to safeguard your company’s
sensitive data and protect your privacy.

Labor Regulations and Monitoring Management

PeopleSoft lets businesses regulate costs by providing critical labor data analysis in real-time,
including the overtimes and unplanned absences. The software helps you streamline the entire
process through a centralized platform, which can be used and viewed by managers. They can
either approve or disapprove the requests and solve the conflicts.

Talent Management

PeopleSoft handles the whole talent cycle, including recruiting, planning and learning. Add
also to that the career development, compensation, performance, and others.

Staff Service Delivery

This feature can help your HR departments reduce its workloads.  All the leading tasks can be
done in a short period and it helps improve collaboration within the team.

10) Infer the meaning of JD Edwards.

Ans:-JD Edwards EnterpriseOne is a suite of enterprise resource planning (ERP) software that
is developed and sold by Oracle Corporation.

JD Edwards EnterpriseOne contains more than 80 separate application modules designed to

support a wide range of business processes. The suite includes supply chain management
(SCM) software as well as applications for financial management, project
management, enterprise asset management, order management, manufacturing operation
management and operational reporting. The software suite also features mobile applications
that support both iOS and Android and can be used on smartphones and tablets. 

EnterpriseOne was originally developed by J.D. Edwards, an ERP vendor that released the
first version of the suite in 1997 under the name JD Edwards OneWorld. The name was
changed to JD Edwards EnterpriseOne after J.D. Edwards was acquired by PeopleSoft Inc. in
2003. In 2005, Oracle acquired PeopleSoft, and with it the JD Edwards technology. The
following year, Oracle announced that it would continue to develop and support JD Edwards
EnterpriseOne indefinitely.

11) Summarize top ten ERP packages for maintenance management.

Ans:- Maintenance Management software automates the tracking and scheduling of
maintenance activities, enabling service organizations to operate proactively while reducing
downtime and increasing operating efficiency.

Felix

Aptien

EZOfficeInventory

Cryotos

UpKeep

Asset Panda

mHelpDesk

Verizon Connect

eSpace

Odoo

12) Determine the ERP vendors.

Ans:- Determine a Vendor's Current Clients. …

Focus on Companies in the Same Industry. ...

Compare Project Scope. ...

Consider Company Size. ...
 Verify the Consultants. ...
See the Application in Progress. ...
Be Prepared and Ask Questions. ...
Determine How the Vendor Handles Changes.
Does the Vendor Deliver Within Budget?
Consider the Culture

13) Complete SAP products with examples.

Ans:- Major units

SAP S/4HANA (Enterprise Resource Planning on-premise and cloud)

SAP Business ByDesign (SME Cloud Enterprise Resource Planning)

SAP Business One (Small enterprise Enterprise Resource Planning)

SAP CRM (Customer Relationship Management)

SAP ERP (Enterprise Resource Planning)

SAP PLM (Product Lifecycle Management)

SAP SCM (Supply Chain Management)

SAP SRM (Supplier Relationship Management)

Business software

SAP Advanced Data Migration (ADP)

SAP Advanced Planner and Optimizer

SAP Analytics Cloud

SAP Advanced Business Application Programming (ABAP)

SAP Apparel and Footwear Solution (AFS)

SAP Business Information Warehouse (BW)

SAP Business ByDesign (ByD)

SAP Business Explorer (Bex)

SAP BusinessObjects Lumira

SAP BusinessObjects Web Intelligence (Webi)

SAP Business One

SAP Business Partner Screening

SAP Business Intelligence (BI)

SAP Business Workflow

SAP Catalog Content Management ()

SAP Cloud for Customer (C4C)

SAP Cost Center Accounting (CCA)

SAP Convergent Charging (CC)

SAP Converged Cloud

SAP Design Studio

SAP PRD2(P2)

SAP Enterprise Buyer Professional (EBP)

SAP Enterprise Learning

SAP Portal (EP)

SAP Exchange Infrastructure (XI) (From release 7.0 onwards, SAP XI has been renamed as
SAP Process Integration (SAP PI))

SAP Extended Warehouse Management (EWM)

SAP FICO

SAP GRC (Governance, Risk and Compliance)

SAP EHSM (Environment Health & Safety Management)

Enterprise Central Component (ECC)

SAP ERP

SAP HANA (formerly known as High-performance Analytics Appliance)

SAP Human Resource Management Systems (HRMS)

SAP SuccessFactors

SAP Litmos Training Cloud

SAP Information Design Tool (IDT)

SAP Integrated Business Planning (IBP)

SAP Internet Transaction Server (ITS)

SAP Incentive and Commission Management (ICM)

SAP IT Operations Analytics (ITOA)[1]

SAP Jam

SAP Knowledge Warehouse (KW)

SAP Manufacturing

SAP Marketing Cloud

SAP Materials Management (MM)

SAP Master Data Management (MDM)

SAP Plant Maintenance (PM)

SAP Production Planning (PP)

SAP Product Lifecycle Costing (PLC)

SAP Profitability and Cost Management (PCM)

SAP Project System (PS)

SAP Rapid Deployment Solutions (RDS)

SAP Service and Asset Management

SAP Supply Network Collaboration (SNC)

SAP Solutions for mobile business

SAP Sales and Distribution (SD)

SAP Solution Composer

SAP Strategic Enterprise Management (SEM)

SAP Test Data Migration Server (TDMS)

SAP Training and Event Management (TEM)

SAP NetWeaver Application Server (Web AS)

SAP xApps

SAP Sales Cloud (previously: CallidusCloud)

SAP Supply Chain Performance Management (SCPM)

SAP Supply Chain Management (SCM)

SAP Sustainability Performance Management (SUPM)

SAP S/4HANA

SAP Master Data Governance (MDG)

SAP S/4HANA Cloud

Industry software

SAP for Retail

SAP for Utilities (ISU)

SAP for Public Sector (IS PSCD)

SAP for Oil & Gas (IS Oil & Gas)

SAP for Media (ISM)

SAP for Telecommunications (IST)

SAP for Healthcare (ISH)

SAP Banking (SAP Banking)

SAP for Insurance (SAP for Insurance)

SAP Financial Services Network (FSN)

SAP Shipping Services Network (SSN)

Engineering Construction & Operations (EC&O)

SAP IS Airlines & Defense

SAP for Discrete Industries and Mill Products (IS DIMP)

Software for small and midsize enterprises[edit]

SAP Business One (Small enterprise ERP 6.2, 6.5, 2004, 2005, 2007, 8.8x, 9.X, 10.x)

SAP Business ByDesign (SME Cloud ERP)

Platforms and frameworks

SAP Cloud Platform (Its brand name is removed[2] in January of 2021 in favor of SAP
Business Technology Platform)

SAP Enterprise Services Architecture

SAP NetWeaver Platform

SAP NetWeaver Portal (formerly SAP Enterprise Portal)

SAP NetWeaver BI (formerly SAP NetWeaver BW- "BW" is still used to describe the
underlying data warehouse area and accelerator components)

SAP NetWeaver Visual Composer

SAP Auto-ID Infrastructure

SAP Composite Application Framework

SAP NetWeaver Development Infrastructure

SAP NetWeaver Identity Management

SAP NetWeaver Single Sign-On

SAP Business Connector (deprecated/removed from product range)

SAP HANA

SAP IQ

Legacy platforms

SAP R/2

SAP R/3
Others

OpenUI5

SAP CCMS, monitoring program

SAP GUI

eCATT

SAP Central Process Scheduling, process automation and job scheduler

SAP Fiori for mobile devices announced on May 2013

SAP Solution Manager

Sybase ASE

Sybase SQL Anywhere

SAP Ariba

SAP Fieldglass

SAP Concur

SAP Hybris

SAP Litmos

14) Express Microsoft dynamics.

Ans:- Dynamics 365 Business Central

An all-in-one business management solution that connects financials, sales, service, and
operations to streamline business processes and improve customer interactions.

User Minimum: 1
Target Organization Size: 10-250

Capability: Core capabilities across finance, operations, supply chain, and project
management.

CRM: Inbuilt CRM capability, offering Outlook integration with opportunity management and
customer service capability.

Fully integrated cloud-based ERP and CRM solution that can help enterprise-level operations
optimize operational efficiency, improve strategic planning, and increase workforce
productivity.

User Minimum: 20

Target Organization Size: 250+

Capability: Advanced capability across finance, operations, manufacturing, and supply chain.

CRM: No CRM capability but Dynamics 365 for Sales is included with the full Dynamics 365
purchase plan.

15) Comment on QAD.

Ans:- In 1979, QAD was founded by Pamela Lopker, who was later joined by her husband
Karl Lopker, as a small startup solution to address a large gap in complete, integrated business
software for manufacturing companies.

We began with a few local customers, supporting them from our headquarters in Santa
Barbara, California. But as our customers took their brands to the next level—international—
we adapted quickly to keep up. Today we support customers in over 100 countries around the
world. Our products have gone global, too, and we have spent years innovating and growing
our offering as our customers expand their businesses overseas.
You’ll often hear us say that at the heart of QAD is a strong and loyal customer community.
We really believe that to create the best full-featured manufacturing ERP software for our
customers we need to work together. We pride ourselves on our customer engagement and our
commitment to continually evolve as the manufacturing industry changes.

It’s been over four decades; we still focus solely on manufacturing—we live and breathe it
every day alongside you. Together we are building an Adaptive Manufacturing Enterprise.

[DOCUMENT TITLE]

JESFIN SIMON
LSCM
20305115
PART B
UNIT- IV

Q1.Investigate the various functional modules of ERP.

Functional Modules of ERP Software
 
ERP software is made up of many software modules. Each ERP
software module mimics a major functional area of an organization.
Common ERP modules include modules for product planning, parts and
material purchasing, inventory control, product distribution, order
tracking, finance, accounting, marketing, and HR. Organizations often
selectively implement the ERP modules that are both economically and
technically feasible.
 
However, it is not necessary that every enterprise system application will
have all modules mentioned above. Some organizations intending to use
customized ERP software generally implement specific ERP
modules that are technically feasible and also economical to implement.
Such business organizations approach ERP Software Company with
their enterprise resource planning software requirements and ask them to
study and design enterprise system software as per their business
requirements. Let’s take a look at some main functional modules
of Enterprise resource planning system in detail.
 
  
1 ERP Production Planning Module
 
In the process of evolution of manufacturing requirements planning
(MRP) II into ERP, while vendors have developed more robust software
for production planning, consulting firms have accumulated vast
knowledge of implementing production planning module. Production
planning optimizes the utilization of manufacturing capacity, parts,
components and material resources using historical production data and
sales forecasting.
 
2 ERP Purchasing Module
 
Purchase module streamline procurement of required raw materials. It
automates the processes of identifying potential suppliers, negotiating
price, awarding purchase order to the supplier, and billing processes.
Purchase module is tightly integrated with the inventory control and
production planning modules. Purchasing module is often integrated
with supply chain management software.
 
3 ERP Inventory Control Module
 
Inventory module facilitates processes of maintaining the appropriate
level of stock in a warehouse. The activities of inventory control
involves in identifying inventory requirements, setting targets, providing
replenishment techniques and options, monitoring item usages,
reconciling the inventory balances, and reporting inventory status.
Integration of inventory control module with sales, purchase, finance
modules allows ERP systems to generate vigilant executive level
reports.
 
4 ERP Sales Module
 
Revenues from sales are live blood for commercial organizations. Sales
module implements functions of order placement, order scheduling,
shipping and invoicing. Sales module is closely integrated with
organizations' ecommerce websites. Many ERP vendors offer online
storefront as part of the sales module.
 
5 ERP Market in Module
 
ERP marketing module supports lead generation, direct mailing
campaign and more.
 
6 ERP Financial Module
 
Both for-profit organizations and non-profit organizations benefit from
the implementation of ERP financial module. The financial module is
the core of many ERP software systems. It can gather financial data
from various functional departments, and generates valuable financial
reports such balance sheet, general ledger, trail balance, and quarterly
financial statements.
 
7 ERP HR Module
 
HR (Human Resources) is another widely implemented ERP module.
HR module streamlines the management of human resources and human
capitals. HR modules routinely maintain a complete employee database
including contact information, salary details, attendance, performance
evaluation and promotion of all employees. Advanced HR module is
integrated with knowledge management systems to optimally utilize the
expertise of all employees.
 
Each of these above functional modules of ERP software plays an
important role. The organizations can choose to implement some of the
modules or all according to their requirements. The companies opt for
the modules which are technically and economically feasible to them.
These modules streamline the flow of the communication across the
company by integrating the various functional departments. The
enterprise resource system is bound with all these functional modules.
These distinct yet seamlessly integrated modules cover most of the
functional needs of an organization. The functional modules of ERP
software help to achieve efficiency of operations, cost savings and help
to maximize the profits.

Q2. Investigate the various modules of SAP – ERP.

SAP Application Modules

There are 2 Types of SAP ERP system Modules: Functional Modules
and Technical Modules. All SAP Modules integrate with each other with
functionality and provide the best solution for a Business.

Functional SAP ERP Modules:

 Human Resource Management (SAP HRM), also known as

Human Resource (HR)
 Production Planning (SAP PP)
 Material Management (SAP MM)
 Financial Supply Chain Management (SAP FSCM)
 Sales and Distribution (SAP SD)
 Project System (SAP PS)
 Financial Accounting and Controlling (SAP FICO)
 Plant Maintenance (SAP PM)
 Quality Management (SAP QM)

Technical SAP ERP Modules:

 SAP Basis
 SAP Security
 Advanced Business Application Programming (SAP ABAP)
 High Performance Analytic Appliance (SAP HANA)
 SAP NetWeaver
 Information Systems Management (SAP IS)
 Customer Relationship Management (SAP CRM Technical
module)
 Exchange Infrastructure (SAP XI)
 SAP Solution Manager

advantages of an ERP system:

1. Total Visibility – This benefit of ERP is one of the biggest selling

points for the software. ERP allows total access to every important
 process in your business by making data from every department
easily accessible to you and your senior management.
2. Improved Reporting and Planning – Implementing an ERP suite
across departments means your organisation has a single, unified
reporting system for every process which can generate useful
reports and analytics at any time.
3. Complete Customisation – Most ERP vendors offer several
applications that can be implemented together according to
business needs.
4. Improved Efficiency – Along with reduced IT and training costs,
an ERP can reduce the time and effort required by your workforce
to carry out their daily activities. Properly implemented, an ERP
can greatly reduce or eliminate repetitive manual processes, thus
freeing up team members to focus on revenue-affecting tasks.
5. Data Security and Quality – One of the biggest advantages of an
ERP system is data security. After all, at the heart of the ERP
concept is data. Sharing data across functional silos such as
customer service, sales, marketing and business development
enhances collaboration throughout a company. The other side to
widespread data access is controlling who can see and edit the
information. ERP solutions have intrinsic controls to ensure the
security of your data.

3Q.Explain the plant maintenance module of ERP

Plant Maintenance

 Plant Maintenance Module covers all maintenance tasks such as

Inspection, Servicing and Repair activities.
 It also provides Integrated Business Reports that help in reducing the
duration and cost of downtime as a result of damage.
 It enables the user to recognize the possible challenges within technical
system in good time.
Plant Maintenance
Plant maintenance is a type of module that provides an integrated
solution which supports the operational needs of an enterprise-wide
system. This module includes all the products that covers all aspects for
the maintenance of plant or equipment in good operating conditions to
avoid production stoppage and loss. It also becomes integral to access
the achievement of the process improvement.
The major subsystems of a plant maintenance are :
Preventive maintenance control :
Preventive maintenance control enables the organization to lower repair
cost by avoidance of down time, machine breakage and process
variability. It also provide planning, scheduling and control of facilities.
Equipment tracking :
An equipment is a useful thing which needs to be protect and monitor.
It’s cost constitute the single largest expenditure of an organization.
Component tracking :
Components are the subsets of larger equipment and also it deserve same
amount of cost control expenditure. It enables expenditure managers to
identify components with repair problems.
Plant maintenance calibration tracking :
It allows organizations to fully use their investments in the plant
maintenance module.
Plant maintenance warranty claims tracking :
It is an administrative system to provide control of all items covered by
manufacturer and vendor warranties. It includes the ability to establish
the type and length of warranty

Objectives of Plant Maintenance

It helps in minimizing the loss of production time due to any equipment
failure .
It helps in quality and product improvement.
It keeps all the assets in proper working conditions.

Advantages of Plant Maintenance :

It helps in reduction of breakdown losses.
It helps in reduction of quality defects.
It increases net quality profits.
It reduces maintenance cost.

Disadvantages of Plant Maintenance :

It increases investments in diagnostics equipment.
It also increases investment in staff training.
Saving potential that is not readily seen by the management.

4Q.Explain the quality management module of ERP

Quality Management - In every organization, raw material, work in
progress and end products are regularly inspected. This is basically to
ensure that nothing goes wrong during the process of procurement,
production or distribution. Thus, quality management module engages
entire supply chain quality operations. As a part of logistics application,
quality management module handles the traditional task of quality
planning, inspection and quality control.
Quality Planning - Before a quality inspection is carried out, it is
necessary to define prerequisite information of which product is needed
to be inspected. The inspection of selected product is done based on
some of its characteristic, of which method of inspection/ testing is to be
determined in advance. Quality inspections are not always a simple
measurement of characteristics but may involve complex calculations,
for which requisite algorithm is entered in the system for automatic
calculation of quality score during inspection. The effect the inspection
will have on the product and location where inspection is done is also
entered in the system.
Inspection Process - Inspection orders may be order specific and can be
created for a sales, purchase or production order. However, there may be
standard inspection procedure where inspection orders are triggered both
for moving products as well as products held in storage. Standard
inspection orders are automatically generated for purchase order, sales
order and production order as per a pre defined quality grouping.
Quality Control - This functionality helps in determining sample sizes
and adoption of Statistical Quality Control (SQC) techniques. The
controlling tools such as quality control charts, quality scores for
inspection lots, are part of this process. This procedure also helps in
generating quality notifications for external and internal problems and
initiating corrective action. The inspection results are also archived for
future analysis through this process.

5Q.Explain the material management module of ERP.

Material Management Module in ERP System Determines needs,

identifies a potential source of supply, compare alternative quotations,
create a purchase order, track the status of the purchase order, receive
goods, and verify invoices upon receipt of goods.

An ERP System provides a needed integration between Material

Management System and other sub-modules. For example, All purchase
orders are assigned to a cost center in the Management Accounting
module. In production planning, the inventory function post component
needed to fill Production Orders. This shows purchasing and financial
accounting share common vendor data.

Importance of Material Management Module :

The efficient and structured Material Management Module is very
advantageous for many companies. Also, customer satisfaction is can be
noticeably increased because only a well-functioning material is
available at the right time in the right place and in the required quantity
and quality. This in turn is the basis for high adherence to deadlines and
the lowest possible throughput times.

Material management is also important with regard to the warehouse

management because companies will know how many raw material,
finished products, and spare parts, etc. are available in Warehouse at all
the time.

Also, with the help of the material management module following below
tasks can be handled much easier:

Collecting material
Shipping planning
Container Management
Inventory Management

Key Components for setting up Material Management Module

When multiple projects are being managed then assigning of Unique
Project Number Schema reduces the ambiguity.
Material Storage Location must be clearly defined and marked.
Inspection, Certifications, Quality Management, Tracked Digitally.
The unit of measure and material classifications must be descriptive and
accurate to ensure all material can be found quickly and efficiently.

Objective of Material Management

Get at Right Price
High Turnover
Low Procurement and Storage Cost
Consistency in Quality
Continuity Of Supply
Inter-Department harmony
New Material and Product
Product Improvement

6Q.Appraise the comparative assessment and selection of ERP

packages & modules.
Evaluation and selection of ERP package is an essential criterion for
successful ERP implementation. Quality of selection will have a long
term impact on the processes of the organization. It is also not easy to
switch to another product with concomitant scale of investment and
complexities. This evaluation and selection process should be properly
directed and normally comprises of following activities:
Formation of an evaluation committee: An ERP implementation is not
an IT project but a business oriented development. Therefore, in addition
to Chief Information Officer, this committee should comprise of all
functional heads and driven by a top management representative. Since
all business functions are represented in selection process, the chosen
package would have wide acceptance subsequently.
Requirement Analysis: This analysis should outline functional
expectations of various business divisions, such as warehouse, finance,
procurement, from potential ERP package. Vital requirements specific to
the company should be highlighted e.g.

 Must have Distribution Requirement Planning (DRP) functionality.

 In transit inventory and pallet tracking, as a part of shipping
requirement.
 Multiple purchase orders linked to one bill of lading.
 Multi currency and multi locations functionality.

Requirement analysis forms a base for preparing a Request for Proposal

(RFP), where important technical and commercial perquisites are
incorporated. Common examples of technical perquisites: flexibility,
Upgradability, User friendliness, field level security, Operating system
and database compatibility. Common examples of commercial
perquisites: cost, reference sites, high level project plan, resumes of
consultants, post implementation support, financial health of the
company, local presence, number of installation and upgrade.
Selection Criteria: A pre-determined selection Criteria should be ready
before actual selection process commences. Selection criteria are
normally in the form of questionnaire and point system, where each
question represents a business or technical need. Weightage for each
point or a group of points are predetermined which varies according to
criticality of the issue. These processes help in making the selection
process objective and transparent.
Selection Process: Selection process constitutes various stages as
mentioned below:

1. Short listing of vendors: Hundreds of ERP packages are available

in the market, which have different concept, architecture and sets
of functionalities. Analyzing all the packages is not feasible.
Organization need to identify a few best suited packages by
looking at product literatures of vendor, finding out which product
is being used by their peer organizations and getting help from
external consultants. Once a few packages are short listed,
respective vendors should be asked to respond to the RFP, as per
its format.
2. Demo and Presentation: Responses from shortlisted vendors are
evaluated by the selection committee after collating scores
obtained by them and a consensus is reached about their final
ranking. Anyone not fulfilling a predetermined vital requirement is
eliminated at this stage. Top two or three vendors, are then invited
for demo and presentation. Mode of presentation should be
carefully scripted and send to the vendors in advance. They should
be asked to walkthrough a particular business cycle through their
vanilla software. They should be specifically asked to clarify any
area of concern about their proposal, which may expose weak/
problem area of their offer.
3. Site visit and contract negotiations: After the committee has
reached a decision on best suited package, visits to reference sites
are imperative. The vendor should provide reference sites of
similar size and industry, identical version and belonging to same
geographical location. Team members should have look and feel of
the systems operating at reference sites and ask pertinent questions
covering overall satisfaction, functionality, cost/ time over run,
support concerns etc. After site visit, if the committee members
 feel that their selection is right, they proceed with final negotiation
and procurement. Negotiations are normally held on license and
annual maintenance cost, payment plan including a leasing option,
support issues and other commercial and legal terms.

7Q.Defend how do plant maintenance module help in achieving

competitiveness?
importance of Plant Maintenance:
(i) The importance of plant maintenance varies with the type of plant
and its production.

(ii) Equipment breakdown leads to an inevitable loss of production.

a. If a piece of equipment goes out of order in a flow production factory,

the whole line will soon come to a halt. Other production lines may also
stop unless the initial fault is cleared.

b. This results in an immediate loss in productivity and a diminution of

several thousand rupees per hour of output.

(iii) An un-properly maintained or neglected plant will sooner or later

require expensive and frequent repairs, because with the passage of time
all machines or other facilities (such as transportation facilities),
buildings, etc., wear out and need to be maintained to function properly.

(iv) Plant maintenance plays a prominent role in production

management because plant breakdown creates problems such as:

Types of Plant Maintenance:

Maintenance may be classified into following categories:
(a) Corrective or breakdown maintenance,

(b) Scheduled maintenance,

ADVERTISEMENTS:

(c) Preventive maintenance, and

(d) Predictive maintenance.

Typical Causes of Equipment Breakdown:

(i) Failure to replace worn out parts.

(ii) Lack of lubrication.

(iii) Neglected cooling system.

(iv) Indifference towards minor faults.

(v) External factors (such as too low or too high line voltage, wrong fuel,
etc.)

(vi) Indifference towards -equipment vibrations, unusual sounds coming

out of the rotating machinery, equipment getting too much heated up,
etc.

8Q.Illustrate the leading ERP vendors Like SAP, Oracle and their
strength and weakness.

1. SAP

Based in Waldorf, Germany, SAP has been a frontrunner for large

enterprises. Although the implementation process can be lengthy, it is
often well-tailored to any given organization, according to the report.

SAP S/4 HANA (High-performance ANalytics Appliance) "uses in-

memory, column-oriented, and relational technology to speed data
retrieval. It acts as an intermediary between software requesting data and
the databases themselves," according to TechRepublic's Smart Person
Guide. By doing this, it can free up IT resources.

SAP also has cloud solutions like Aribra and Hybris that can help
consolidate the system landscape. And its Business One & SAP
Business ByDesign, ideal for small and midsize companies, "provide
comprehensive functionality for financials, sales, operations and
customer relations," according to the report.

2. Oracle ERP Cloud

Oracle is a top name for large enterprises in the ERP business, and
especially with its acquisition of NetSuite, has been successful in
offering a platform that can deliver add-on functionality, as harnessing
NetSuite's SaaS tools.

According to the report, Oracle "provides an integrated and

comprehensive suite of financials, procurement, project management,
risk management and enterprise performance management powered by
machine learning and artificial intelligence."

It "led the Magic Quadrant for cloud core financial management suites
for large, midsize and global enterprises for the third year straight,"
according to Panorama.

In particular, Netsuite "excels in IPO, fast-growing and midsize

businesses," and "provides pre-configured workflows, dashboards,
functional roles and KPIs, enabling rapid implementation."

3. Microsoft
For businesses that are already using Microsoft's technology, choosing
Microsoft for ERP could be a smart idea. Microsoft offers robust
products for small and mid-sized organizations, and is becoming a
growing force, looking towards larger organizations as well. 
According to the report, Microsoft "has a strong ecosystem of ISV
channel partners providing 'last mile' functionality."

Its Dynamics 365 Business Central, for instance, offers the following
features, according to the report:

 Targeted for the small and midmarket space.

 Recently rebuilt in Azure technology, making it a pure SaaS model
with other deployment options.
 Based on best practices of NAV, GP and SL. 

4. Infor 
Medium and large companies, both national and global, should consider
Infor, which is an emerging solution for the enterprise, offering a set of
applications specific to particular organizations. 

The Infor M3 can offer help for "after-sales service providers,

distributors and a variety of manufacturing verticals," the report states.

Infor Cloudsuite Distribution can allow wholesale distributors to "detect

trends and monitor inventory demand," as well as offer organizations a
way to "maintain a lean supply chain and implement new digital
strategies." 

And Infor Cloudsuite Industrial which is ideal for the manufacturing

industry, offers an "open source technology stack, which allows for
more flexibility to refine manufacturing processes" and is "designed
with features for repetitive manufacturing and capabilities to simplify
implementation."

5. IFS
Crafted for industries such as aerospace and defense, utilities and
resources, construction and infrastructure, manufacturing and service
industries, IFS has "robust end-to-end functionality," the report states,
and is well-suited for "large consumer packaged goods organizations
with a global footprint."

The report highlights IFS' ability to handle the following domains:

 Enterprise Resource Planning

 Enterprise Asset Management

 Service Management

 IFS Applications

 IFS Maintenix

 Enterprise Operational Intelligence

 IFS Cloud

6. Workday
Workday, which provides HCM for medium and large enterprises, has
recently grown into a full ERP solution, offering a flexible product and
expanding its ecosystem. With its focus on financial management, the
report notes, "the Workday solution is a robust SaaS product that is
growing into an end-to-end ERP."

The report highlights Workday's success in the following fields: 

 Communications
 Energy and Resources
 Financial Services
 Government
 Healthcare
 Higher Education
 Hospitality
 Insurance
 K-12
 Life Sciences
 Manufacturing
 Media & Entertainment
 Nonprofit
 Professional and Business Services
Retail and Technology

7.  Epicor
Small and medium enterprises should look to Epicor, which has put
resources toward R&D, and recently partnered with Microsoft. Epicor
10, its original offering, is suited for manufacturing, and also "provides
multiple deployment models, including a SaaS offering, as needed," the
report states.

Prophet 21, a "built-for-purpose distribution application...is a leader in

supply chain optimization." And Epicor's Eagle N Series, a retail
application, offers PoS and omnichannel capabilities, the report states.

8. abas
The abas ERP system can assist small and midsize manufacturers in "the
assemble-to-order, make-to-order and engineer- to-order environments,"
the report states, offering to tailor the service to customers' needs. 

Abas "provides multiple deployment options, including on-premise,

cloud and hybrid," as well.

Here are some areas where abas can help your business:

 Advanced Planning & Scheduling

 Business Intelligence
 Production Management
 CAD Integration
 Quotation Management
 Full Financial Accounting
 Flexible Product Costing
 Returns, Service and Repair
 CRM & Sales Management

9Q.Appraise the main factors to be evaluated while going for an ERP?

1. Company’s History & Background

Purchasing an ERP solution is a long-term decision and you want a
software vendor that can support and grow with you. Be sure to do your
research and due diligence about each vendor. Here are some questions
you should consider asking/researching:

 Has the vendor gone bankrupt or been sold?

 Does the vendor outsource support and/or development overseas?
 Is the vendor a reseller or do they actually develop the software?
If you have the time and resources, consider a visit to the vendor’s
headquarters to review their internal processes and how they support
their customers and manage their code.

2. Vendor’s Reputation
One of the best ways to quickly determine if a vendor’s software will
work for you is to see if it works for other companies that are identical to
your business. If you already have an existing business relationship with
any of the vendor’s current customers, then call them. This will give you
an accurate portrayal of the software vendor’s actual performance. In
addition, consider talking with multiple customers utilizing the vendor’s
software. It is one of the best ways to quickly determine if the software
will work for you.

3. Vendor’s ERP’s Features & Capabilities

One of the biggest and most critical factor in selecting a vendor is
knowing what the software can actually do and what are its limitations.
Much of the sales process revolves around a product demonstration.
Consider providing some sample data and have a script of typical
transactions. If you e-mail a C of A, SDS, Order Invoice with each
order, make sure these requirements are met and demonstrated. It is easy
for a vendor to say it does something, but actually seeing it happen will
validate that the functionality actually exists.

4. Vendor’s Support & Implementation Structure

Much of your success will rely on the professional services your vendor
offers in addition to the ERP software they provide. Be sure to vet your
potential implementation project leader. See how much experience they
have in your industry. Can they offer “Best Practice” advice and steer
you in the right direction from the start. How does the ERP software
vendor manage their support and product development? Is it overseas?
Do you go with a generic help desk or are you assign a primary support
person? How are software modification and enhancement managed?
How are updates to the software validated and delivered?

5. Vendor’s Technology
Finally, you should consider if the vendor’s underlying technology is
reliable, supported, widely used, and positioned for the future.
Putting It All Together
To recap, when conducting an ERP software search consider these 5 key
factors about each software vendor to discover if they are a good partner
for your business:

 Vendor’s History & Background

 Vendor’s Reputation
 Vendor’s ERP’s Features & Capabilities
 Vendor’s Support & Implementation Structure
 Vendor’s Technology
With so many different variables to consider in your search it is
important that you take the necessary time to research and evaluate each
vendor thoroughly. Finding the perfect partner will enable your business
to reach its full potential and maximize your success.

10.Discuss the different ERP modules and its specific coverage of

business

1. Finance
The finance and accounting module is the most important ERP module
because it allows businesses to understand their current financial state
and future outlook. Key features of this module include
tracking accounts payable (AP) and accounts receivable (AR) and
managing the general ledger. It also creates and stores crucial financial
documents like balance sheets, payment receipts and tax statements.

The finance module can automate tasks related to billing, vendor

payments and account reconciliation, helping the accounting department
close the books in a timely manner and comply with current revenue
recognition standards. It also has the data that financial planning and
analysis employees need to prepare key reports, including profit and loss
(P&L) statements and board reports, and run scenario plans.

2. Procurement
The procurement module, also known as the purchasing module, helps
an organization secure the materials or products it needs to manufacture
and/or sell goods. Companies can keep a list of approved vendors in this
module and tie those suppliers to certain items. The module can
automate requests for a quote, then track and analyze the quotes that
come in.

Once a company accepts a quote, the procurement module helps the

purchasing department prepare and send out purchase orders. It can then
track that purchase order as the seller turns it into a sales order and ships
the goods, automatically updating inventory levels once the order
arrives.

3. Manufacturing
The earliest version of ERP, material requirements planning (MRP)
systems, were designed for manufacturers, and manufacturing remains a
key piece of ERP. Today, ERP systems typically have a production
management or manufacturing execution system (MES). The
manufacturing module helps manufacturers plan production and make
sure they have everything they need for planned production runs, like
raw materials and machinery capacity. During the manufacturing
process, it can update the status of goods-in-progress and help
companies track actual output against forecasted production. It also
provides a real-time picture of the shop floor, capturing real-time
information on items in progress and finished goods. It can calculate the
average time to produce an item and then compare supply with
forecasted demand to plan adequate production.
4. Inventory Management
The inventory management module enables inventory control by
tracking item quantities and location down to individual SKUs. This
module offers a complete picture of not only current but also incoming
inventory, through an integration with the procurement tool. This piece
of software helps businesses manage inventory costs, making sure they
have sufficient stock without tying up too much cash in inventory. An
inventory management application can weigh sales trends against
available product to helps companies make informed decisions that
boost margins and increase inventory turn (a measure of how often
inventory is sold over a certain period). It can help prevent stockouts and
delays, which enhances customer service.

Businesses that lack other supply chain management modules may also
use the inventory management application to handle purchase orders,
sales orders and shipping. Larger organizations will need a version of
this solution that can track inventory across multiple locations.

5. Order Management
An order management module tracks orders from receipt to delivery.
This piece of the ERP feeds all orders to the warehouse, distribution
center or retail store after customers place them and tracks their status as
they’re prepared, fulfilled and shipped to the customer. The order
management module prevents orders from being lost and boosts on-time
delivery rates to keep customers happy and cut unnecessary expenses for
expedited shipping.

More advanced order management applications can help a company

determine the most cost-effective option for fulfilling an order—a store
vs. a warehouse vs. a third-party fulfillment partner, for example—based
on available inventory and the buyer’s location.

6. Warehouse Management
A warehouse management module can deliver a rapid return on
investment for businesses that operate their own warehouses. This
application can efficiently guide warehouse employees through all
warehouse processes based on the layout of the facility, from putaway
when shipments arrive to picking to packing and shipping. It can also
help companies plan labor based on expected order volume. The
warehouse management module can support different picking strategies
like batch picking, wave picking and zone picking depending on which
is most efficient for a given business, and some modules can show
employees the most efficient pick path.

When the warehouse management module is integrated with inventory

management and order management applications, employees can
quickly find the right products and get shipments out the door quickly.
Faster delivery ultimately increases customer satisfaction.

7. Supply Chain Management

A supply chain management module tracks each step in the movement
of supplies and goods throughout the supply chain, from sub-suppliers to
suppliers to manufacturers to distributors to retailers or consumers. It
can also manage any materials or products returned for refund or
replacement.

As noted earlier, supply chain management can include a wide array of

modules like procurement, inventory management, manufacturing, order
management and warehouse management. However, it may have
functionality beyond the core capabilities of those modules.

8. Customer Relationship Management (CRM)

The customer relationship management (CRM) module stores all
customer and prospect information. That includes the company’s
communication history with a person—the date and time of calls and
emails, for example—and their purchase history. A CRM improves
customer service because staffers can easily access all the information
they need when working with a customer.

Many businesses also use CRM to manage sales leads and opportunities.
It can track communication with prospects and suggest which customers
should be targeted for certain promotions or cross-sell opportunities.
More robust CRM modules may support customer segmentation
(enabling more targeted marketing) and advanced contact managers and
reporting tools.

9. Professional Services Automation (Service Resource

Management)
A professional services automation (PSA) module, also called a service
resource management module, allows an organization to plan and
manage projects. Services-based businesses often use this module. The
application tracks the status of projects, managing human and capital
resources throughout, and allows managers to approve expenses and
timesheets. It facilitates collaboration between teams by keeping all
related documents in a shared place. Additionally, the PSA module can
automatically prepare and send bills to clients based on rules around the
billing cycle.

10. Workforce Management

A workforce management module is similar to a human resource
management module but is designed for companies with more hourly
than salaried employees. It can monitor workers’ attendance and hours
and measure things like employee productivity and absenteeism.

Payroll could also fall under the workforce management module. A

payroll sub-module automatically distributes paychecks to employees on
a set schedule with the appropriate taxes deducted and handles expense
reimbursement. It can also provide reports on payroll expenses, total
overtime hours and similar KPIs.

11. Human Resources Management

A human resource management (HRM) or human capital management
(HCM) module usually encompasses all the features of workforce
management application and offers additional capabilities. HRM could
be viewed as CRM for employees. This popular module has detailed
records on all employees and stores documents like performance
reviews, job descriptions and offer letters. It tracks not only hours
worked but also paid time off (PTO)/sick days and benefits information.

Since the HRM module stores a vast amount of information on every

employee across the organization, it eliminates a lot of duplicate or
inaccurate data that many organizations store in various spreadsheets.

12. Ecommerce
Certain ERP vendors offer an ecommerce module for businesses that
want to sell online. This module allows companies to quickly launch a
business-to-business (B2B) or business-to-consumer (B2C) ecommerce
website. Leading commerce applications include user-friendly tools that
allow employees to easily add new items, update product content (item
descriptions, titles, specs, images, etc.) and change the look and feel of
the website.

When the ecommerce application is integrated with other ERP

applications, all payment, order and inventory information feeds [from
the ecommerce module] into the shared database. That ensures all
transactions are added to the ledger, out-of-stock items are removed
from the site and orders ship on time.

13. Marketing Automation

Like with ecommerce, certain software providers have developed
a marketing automation module. A marketing module manages
marketing campaigns across digital channels like email, web, social
media and SMS. It can automate email sends based on campaign rules
and has advanced customer segmentation features, so customers only
receive relevant messages.

Marketing automation software, whether part of the ERP system or a

separate solution, can provide detailed reports on the performance of
campaigns to shape future marketing plans and spend. These
applications increase leads, customer loyalty and, over time, sale
 ASSIGNMENT UNIT 5 SECTION B
- P GUNAHARSHA
1. Examine the selection criteria of ERP package.

Top 10 key criteria when selecting an ERP:

Business requirements
Upper management support
User support
Functional requirements
Integration with existing systems
Budget and resources
Technology and future scalability
Total cost of ownership and ROI
Evaluate and select options
Necessary customization
ERP selection criteria #1: business requirements
Develop a clear and comprehensive list of your requirements for your ERP.  Use every resource available
to make this list excellent.  Talk to your production workers and your purchasing manager.  Listen to
executive management, and your customers and suppliers.  Call in former employees and current
salespeople. When every thought is written, then prioritize the entire list.  Reach a solid consensus as to
which requirements are absolutely “must have”. The next priority tier includes things that are not
mandatory but there is general agreement that including them will benefit the company.  Any other listed
items are in a lower category, merely “nice to have”.
Take your priority list around to the same people who provided your inputs.  Do they agree with the
requirement list? Does it need to be updated? Can someone provide a solid case to elevate a point from
tier 2 to tier 1?  Much of every other criterion assumes this list is as good as it can be.
ERP selection criteria #2: upper management support
This could seem like an obvious criterion.  Too often, it is not recognized for its importance.  One can
select the absolute best ERP for their organization, yet without upper management support, the project is
likely doomed.  Support goes beyond simply getting a spending approval. You want your management to
actively embody their support. When a resource from another department is needed, the manager can
throttle progress by providing lukewarm support.  When a choice arises to support the new ERP or use the
present system, you want confidence that the manager truly supports the ERP even if there is a short-term
cost at the point of the choice.
ERP selection criteria #3: user support
People in every functional area will be users of the new ERP.  Gain their support by ensuring their needs
and desires are included in the requirements list.  Those users, wherever they work, will have much to
gain through the success of your ERP implementation.  Let those users know they will have the support
they need such as training and equipment they need to use the ERP and receive value for them as well as
for the overall organization.  Make certain they know they will have support helping them through the
needed changes. In return, they will support your efforts to use and benefit from your new ERP. Make
sure here that the documentation users will need is available when and where needed by users and is of
sufficient quality to meet their needs.
ERP selection criteria #4: functional requirements
Your business has certain functional requirements that must be satisfied even before your change and
update requirements.  Does this ERP support sales orders that include both physical products related and
services? If that is what your business sells, it has to.  Your business operates in multiple countries around
the globe. Do the accounting components of ERP include multiple currencies and the ability to work with
the variety of tax systems in those countries?
Think about any ERP components not required by your business.  If your business is distribution and you
perform no manufacturing, can you easily work around any work-in-process demands made by an
integrated inventory system included in some ERPs?
ERP selection criteria #5: integration with existing systems
Most businesses considering an ERP selection have other systems that are quite adequate for their
purpose and the business is not interested in changing multiple systems along with their ERP.  The
question now to be asked: how will those systems integrate with ERP?  Almost always, there are common
data elements.  Can ERP read and use the existing data in that other system?  Will you allow the same
data to exist and how will you keep those separately updated data elements compatible?  Will you be
better served by changing the other system to use that data from ERP?
What integration tools come with this ERP?  It should have simple integration such as .csv files for
occasional data updates.  That type of update is inefficient and likely too slow for everyday use. Web
services and XML files that allow different systems to quickly transfer data between systems are a more
modern way to work.
Many customers and suppliers use EDI (electronic data interface) to share data between companies.  If
this is needed, be sure your ERP supports that need.
ERP selection criteria #6: budget and resources
How much money is available for an ERP system? If you only have $10, then you have to have a very
strict selection criterion. A 2019 Software Path report stated that on average you can expect to spend
about $7,200 on each user of your system - that's a big investment and a reminder that ERP selection is a
long-term consideration. Most ERP systems will be used for a decade or longer so ongoing maintenance
and support for the ERP as well as the infrastructure related are a budget concern.  Your choice today will
lock costs into future budgets.
Who is going to take the time and perform the work involved in selecting and implementing ERP?
Ideally, you can devote full-time resources to the project but many businesses will want to use part-time
resources.  You need to plan who will perform the necessary work those resources perform now while
they devote time toward ERP.
ERP selection criteria #7: technology and future scalability
These concerns apply to the software used to develop your ERP system and to the hardware required to
use that ERP.  We know there will be ongoing developments and improvements in both domains. We
might not want either to perform on the bleeding edge of technology but neither do we want either one to
use obsolete technology today.  At the same time, we want to buy our ERP from a provider that has a
good record of accomplishment of keeping up with technology developments and who promises to
maintain that strategy.
ERP selection criteria #8: total cost of ownership and ROI
Add up all the incremental costs you will incur due to this ERP.  There will be the initial purchase amount
and some initial consulting expense.  You might need some updates to your servers and networks
immediately. You will spend money on training and temporary labor while your people are implementing
ERP.  You will have support and maintenance costs every year while you use the ERP.
At the same time, you will benefit from improvements in the cost to perform work.  You might see
additional revenue because you now can provide services and products to your customers that were not
possible without this ERP.
Spread those costs and benefits over time and calculate your return on investment.  Most businesses have
a threshold return needed before making an investment. Ensure that this ERP passes your business ROI
threshold.
ERP selection criteria #9: evaluate and select options
The traditional ERP system running on an on-premises server and supported by an in-house IT staff is not
the only choice today.  Many businesses choose an ERP that runs in the cloud using a SaaS framework.
The initial investment is reduced in favor of monthly “rental” payments that include the software and
most support needs.
You can choose a hybrid approach where your business owns the ERP but operates it in the cloud running
on shared servers.
Many ERP systems today are developed using open source software too.  These benefit from free or very
low cost to acquire the software. You have the source code for open-source so you have the power for
complete customizations.  Users everywhere update open source ERP and they find and fix bugs.  Those
improvements are available to all users immediately with no need to wait for a development company to
issue a new revision.
If you have concerns related to these options, your choice will point to what ERP system selection criteria
are essential for your business.
ERP selection criteria #10: necessary customization
The perfect ERP will never require any customization.  Since none are likely to be perfect, any
customization will be a selection criterion.  Understand among your team what customization is desired
and whether it truly is essential.  Today’s ERP systems use knowledge gained from thousands of
customers. Is there some component of your business that is unique among every other business around
the world?  Not likely. If your desired customization can be worked around easily using an existing ERP,
that customization is not a selection criterion. If that customization can be deferred while you use an
existing ERP and evaluated later, it is not immediately a criterion, but the ability to implement that
customization later is a criterion.

1. Explain the various change management strategies adopted by companies for an

ERP implementation.

5 Change Management Strategies for an ERP Project

As an independent ERP consulting firm, change management is a topic that comes up often as project
teams look to Ultra to understand the best way to work through and ERP project to improve key
processes.   We often guide our clients to work through these key change management strategies for an
ERP project.
1 – Mobilize and Align Leaders & Articulate the Case for Change
As a first strategy, it is key to clearly articulate the case for change. We encourage teams to communicate
project scope, rollout strategy and implementation schedule as the ERP project gets underway.  Key
aspects of this strategy include:
 Leadership understands implementation strategy and clearly define leadership actions to support
the change
 Communicate project scope, rollout strategy and implementation schedule
 Empower the implementation team and employees for broad based action by sanctioning them
with the authority to make decisions
2 – Identify and Manage “People” Opportunity and Risk
 It is also critical for the ERP project team to look at both the opportunity and risk of a project.
Here’s where a change management strategy and team is put in place to address the cultural
changes the implementation will create. Key areas to address include the following:
 Conduct organization and people readiness assessments to identify both opportunity and risk as
early as possible and define actions to realize these opportunities and mitigate risks
 Monitor the “people” risk mitigation progress by conducting mid-course and post implementation
checks
 Identify key stakeholders within the business and across the enterprise and implement best
practices for adoption
3  – Stakeholder Communications
  An important strategy when it comes to organizational change management is to define and
deploy a detailed communication plan – which answers what will be communicated, why, to
whom (audience), by whom, when, and how. All communications should include:
 Definition of project scope, objectives, milestones, deliverables, critical success factors and
approaches
 Information between and among all project stakeholders
 Plan for the transition process through implementation to post go-live
4 – Create the Future Organization
 As business improvement consultants, we hear all about the desire for a transformed
organization once an ERP implementation is complete.
 Developing and designing the desired future organization is also key to change management
and ERP. This phase includes assessing job redesign and competency requirements for the
new environment.
 These efforts also include:
 Analyze the current condition of the business, locations, and departments in terms of
processes, organization and people systems
 Develop a transformation plan that defines actions, responsibilities and timeframe to get to
target condition
 Analyze implications for HR such as performance management, compensation and
classification, recruiting, hiring and on-boarding, etc.
5 – Enable the Workforce
 A critical part of change management strategies for an ERP project involves enabling the
workforce to thrive in the transformed organization. This phase is more than simply training on a
new technology. This usually involves overall job, skill and organization design changes. We
suggest a focus on the following initiatives:
 Assess current workforce in terms of skills, abilities, experiences and capabilities; assess staffing
impacts
 Develop/implement training strategies and plans to close learning gaps
 Well before go-live, help end-users, leaders, implementation team members, process owners,
customer, suppliers understand how their processes and work will be impacted

2. Categorize the different types of ERP vendors.

In the software industry, one of the most common classification of the ERP vendors is by tiers. Based on
the company’s size and the ability to provide economical and business needs ERP vendors are classified
as Tier 1, Tier 2 and Tier 3.
 ERP vendors of type Tier 1 provide ERP software solutions for large multinational
corporations. These Tier 1 Vendors offer appropriate support and service infrastructures for their
customers all over the world. This type of ERP software also offers a large variety of process
options. It is very flexible and designed to meet all the requirements and needs of your
business. Tier 1 ERP systems are very costly due to their vast capabilities, which include being
able to handle the operations of a conglomerate with multiple global subsidiaries. Due to the
complexity costs of implementation and support, these ERP products have a high cost of
ownership.
 Tier 2 vendors sell ERP products for mid-sized businesses. ERP software solutions of that type
are simple to implement, manage and support. Tier 2 solutions are often specified as vertical.
This type comprises of at least 20 well-known competitive companies. ERP software solutions
 provided by this type of vendors have a lower cost of ownership and they propose lower annual
license fees.
 Tier 3 ERP vendors (or hybrid vendors) sell products that are designed for smaller companies.
Their customers have few locations and less complexity, their solutions usually have the lowest
total cost of ownership. Mostly they provide ERP systems for businesses with up to 20 users.
Many ERP software solutions in this group are single location installations and built for a single
vertical. They are situated locally and operate within one country or region. Tier 3 vendors allow
frequent and faster software development and modifications.

3. Discuss the ERP implementation life cycle with diagram.

Step 1: Selection of package

Every business is different and so are its needs. Thus, choosing the right ERP software for your business
is the first and the most important step. With numerous options available in the market, it could be rather
daunting to choose the right fit for your business operations. Thus, in this step, ERP modules that do not
fit your requirement are eliminated.
Step 2: Project planning
When kicking off any project, it needs to be planned out perfectly, so that there are no surprises during
the implementation. From choosing the right resources to allocating tasks to respective team members,
planning is key to achieve accurate ERP implementation.
Step 3: Analysis GAP
Another important step in the life cycle of ERP implementation step, GAP analysis is performed to
evaluate and compare the current system of the organisation and its future position as needed. This way
you can easily identify the key processes that need the most attention with your ERP.
Step 4: Re-engineering
To make the process more efficient and worthy, re-engineering is implemented as the process involves
several changes and alterations based on the planning and gap analysis.
Step 5: Training
Since there is a new system in place, it will require for employees to get proper training so they can start
using the product, seamlessly.
Step 6: Testing
This is another crucial step in ERP implementation life cycle. It is basically carried out to assess the errors
and try to resolve them before the actual application process.
Step 7: Application:
This is the stage where the actual implementation of the ERP system occurs. Once all the data is collated,
analysed and converted to be fed into the system, the new implementation is applied, and the older system
is discarded.
Step 8: Maintenance:
The last and the final step, of the ERP life cycle is maintenance. Now that the new system is in place, it is
the responsibility of the employees working on it to stay updated with the latest technology offerings.
Employees also need to learn how to keep the system up and working whenever the need arises.

4. Explain the success and failure factors of ERP.

Following are the common causes of critical success factors for ERP implementation:
 Complete focus on business requirements
The priority should be focused on the effective running of a business. Once you have defined the needs
properly, you can involve in a much more effective ERP software selection. It will lead to the accurate
running of your business operations.
 Selection of software
Selecting the wrong software is the most common fault. At least some people do it while executing
an ERP system. After understanding the exact needs, the priority should be given to choosing a perfect
ERP. It will let you better know your future needs, priorities, vendors, sales, and more.
 Scope of the project
Clearly describing the scope of a project will undoubtedly convey the status, its minute details, the steps
needed to be included in the project, etc. Because the ERP system may not satisfy all your requirements.
Simply creating the strategies and recognizing the modules will only allow you to exactly use the tools
and components associated with it.
 ROI
These are not revolutionary or even fresh ideas, but it should be handled carefully to implement the ERP
system and to make profits. For a business, the performance, targets, models, deadlines, etc. should be
measured carefully since it directly affects the profit of a business.
 Budget
Each company has to generate a convincing budget. The budget includes the whole price like software,
hardware and staff resources for the execution. All of these have to be done for making ROI from an ERP
project.

Not every company achieve high profits from ERP. ERP failure rates are also high that are considered as
the challenges of ERP implementation. Failure factors make a business loss, loss of market share and
market price, etc. Following are the common causes of critical failure factors for ERP
implementation:
 Lack of knowledge
If the staff is not educated and up-to-date about the functioning of the ERP system and confident about
the safety of their jobs by the upper management, they will start trusting the stories others say and
interrupt the ERP execution.
 Absence of enough management commitment
The management should initiate and prove that the ERP execution has their complete support. An ERP
operation is not simply clicking a button, it takes time and focuses to get correctly done. If not properly
implemented, it will disturb the majority of the main business procedures. The project team should
communicate clearly and regularly with the company about the prospects for the project, keeping a
positive attitude, showing appreciation, etc. for a productive business.
 Insufficient resources
The primary budgets can be frequently exceeded and there may be still numerous hidden charges in an
ERP execution. Though implementations can get expensive, the price of moving forward with
inexperienced resources is far bigger. So, while making the budget and assigning resources, care must be
taken to study all the features that could affect the costs, infrastructure requirements, etc.
 Wide customization
When you widely customize an ERP installation, you not only enhance time and prices but also installing
the next publication of the ERP software highly tough and expensive.
 Unrealistic expectations
ERP systems can create intense productivity if effectively implemented. The management and workers
must be aware of the advantages to reduce any over expectations.

5. Compare various ERP system packages available in market. Which one occupies
the top most position and why?

Top 12 Enterprise Resource Planning Software

Tool #1: Oracle ERP
Oracle ERP is a complete and integrated project financial and execution management system that
guarantees better enterprise performance management strategies with greater governance, risk, and
compliance factors on a comparatively larger scale. One of the topmost enterprise resources planning
solutions providers in the market, its extensive integration of cloud technology is worth mentioning.
Features:
 Full-fledged integration of cloud-based technological support system
 Strong backup and storage facilities with reference to the enterprise data
 Extensive modular implementation for better management of various operations
 Excellent incorporation of supply chain management features
 The presence of project portfolio management features for better insight into the project
workflow criteria
 Reduced time complexity solutions with automated response strategies for dealing with the
various queries of the customer support system
 The cross-platform installation features quite an affordable cost solution on the whole.
Tool #2: DataNote – OpenLogic ERP Framework
DataNote ERP is a feature-rich ERP software solution that enables you to share business data securely,
collaborate internally, and achieve your business objectives. This comprehensive solution runs on
OpenLogic Framework technology and helps you oversee all business operations like accounting, payroll,
inventory, and more. The solution is best suited for manufacturing companies in sectors like engineering,
metal, electronics, textile, food & beverage, and many more.
Features:
 Extensive integration of all the business processes and functionalities
 Industry-first OpenLogic framework based logical source code ownership
 Dedicated marketing and CRM modules to better interact with your customers
 Cutting-edge ERP in inventory management capabilities for superior inventory tracking and
efficiency
 Quality control features to improve product quality
 Leverage the procurement feature to keep suppliers informed and engaged
 Stay on top of your finances and taxes with a dedicated Finance Control module.
  Manage your workforce from one place with HR and payroll management capabilities.
 Integration with multiple enterprise apps for unified business management
Tool #3: Focus 9
Focus 9 is an ultramodern, AI-enabled ERP system for every business from small, medium, to enterprise-
level businesses to overcome their operational hassles. The solution comes with advanced tools that allow
you to automate your business processes and increase profitability. Besides, the easy-to-use interface of
Focus 9 makes it an ideal pick for all types of businesses.
Features:
 Scale-up your business seamlessly with cloud capabilities
 Adapt to the new system quickly with an easy-to-use interface
 Monitor all your financial information – like billing and invoicing, accounts, and taxes – from
one place
 Leverage the CRM module to better understand your customers
 Optimize your supply chain by tracking supply, demand, and production status
 Generate in-depth reports with business intelligence (BI) features
 Streamline production scheduling and material planning
Tool #4: Microsoft Dynamics
Microsoft Dynamics is one of the top twelve ERP software solutions existing in the current market and is
the preferred choice for quite a large number of users. It comes at quite an affordable cost and is quite
easy to integrate with the business mainstream activities, thus making it the most popular of brands in
terms of ERP software in the existing market scenario. 
Features:
 Highly creative and user-friendly interface with easy to use navigation solutions
 Extensive database solutions for better updating and retrieval of data, along with cross-
referencing
 Secure data storage and access solution for better market opportunities
 Cloud-based Data monitoring features for greater insight into the various operations conducted by
this particular ERP software
 Strategic project management features for methodical execution of integral operations
 Infrastructure, Hardware and IT cost management modules for better functionality levels on the
whole
 Engaging implementation of real-time data processing solutions for strategic management
techniques of various operational processes accordingly
Tool #5: Infor ERP
One of the trending enterprise resource planning software in the existing market scenario, Infor
ERP generates highly effective solutions in terms of customer interaction and governance regulation
operations on a comparatively larger scale. Highly effective for various levels of enterprises, this is one of
the most popular ERP solutions in the list of top twelve ERP software generated by the particular brand
for the best enterprise resource planning options.
Features:
 Extensive quality management features with integrated report generation for critical analysis
strategies
 Incorporation of human capital management features for better financial planning strategies in
terms of employee engagement options
 Creative customer management options with better implementation of ticket generation and query
reception strategies
 Mobile monitoring features for greater control over the various operational  processes while on
the go
  MRO/Service management features for ensuring better business opportunities customized in
accordance with the latest market standards
 Cross-platform installation applicability for the better scope of implementation criteria
 Exclusive database management system with better security features in terms of the various
transactional data
Tool #6: Epicor ERP Software
Epicor ERP is one of the topmost enterprise resource planning software solutions providers in the market
and is popularly known for its applicability to end-to-end economy management systems in the existing
business organizations at large. One of the best in the market, it has gained substantial importance in the
various mid-sized businesses and incorporates some excellent features in terms of the latest ERP solution
demands.
Features:
 The modular implementation of product management strategies for better insight into the various
transnational operations in terms of product handling
 Suggestive planning and scheduling options provided for strategic maintenance of various
business operations on the whole
 Product data management features, in terms of the various intermediate procedures, right from the
production to the delivery end
 Better service management strategies, for ensuring greater economic standards and building of a
strong service base for the various customers in the existing market scenario
 Highly engaging and user-friendly interface for greater navigability options and software
handling, hence implying better management solutions on the whole
 Real-time data updating and retrieval strategies for better management of the various transactions
that take place in compliance with a particular strategic implementation
Tool #7: Tally ERP 9
Tally ERP 9 is a one-stop solution for the various business and corresponding organizational needs for
inventory management, payroll management, and accounting services. One of the topmost enterprise
resource planning software solutions providers in the current market, its various modular implementations
provide for better management of financial solutions on the economic forefront accordingly.
Features:
 Extensive payroll management system with automated report generation and comparative visual
analysis strategies
 Real-time data update strategies with reduced time complexity solutions for better performance
levels in the given organizational level
 ERP helps to complete control over production and inventory management, in total compliance
with the latest market standards and suggestive implementation of inventory disposal
 Excellent quality assurance techniques for providing hassle-proof product delivery services to the
target business clients and customers in the international market
 Extensive ERP database management with greater security and control features to the
confidential data of the corresponding business organization at large
 Cross-platform implementation facilities for better management of the given data through various
devices and systems under consideration
Tool #8: IFS ERP
IFS ERP is one of the best enterprise resource planning software in the given market and incorporates
some highly efficient features targeted towards the agile development of technologically compatible ERP
solutions for various businesses. This particular solution in the top twelve ERP software list comes at
quite an affordable cost and delivers excellent performance levels for achieving greater economic
standards in the given market.
Features:
  Creative implementation of product lifecycle management strategies for ensuring hassle proof
product development and delivery to the target business organization
 Provides for easy-to-use interface solutions with better operational standards as per the current
market trends.
 Provides an extensive visual representation of the statistical information for critical analysis
purposes
 Better project and contract management options with easy database management solutions for the
transactions and the scheduled operations being carried out accordingly
 Integrative supply chain management solutions for the strategic implementation of the customs
processes of the given project and better financial levels
 Greater customer collaboration management strategies for engaging the clients and customers
with the mainstream activities of the given organization
 24*7 customer support solutions for instant query dealing and response generation, for ensuring
better customer retention features on the whole
Tool #9: Integra ERP
The best quality retail management operations with the most extensive of user interfaces and easy
navigation options are provided by Integra ERP. One of the best enterprise resource planning software in
the market, this particular software is in maximum demand and owes its popularity towards the various
business organizations existing in the given market scenario.
Features:
 A modular implementation of purchase management for better monitoring of the purchase
solutions generated in the due execution of the various order intakes
 Extensive sales management operations with graphical analysis and detailed report generation
feature in terms of the sales obtained for the current financial period
 Inventory management options with better stock arrangement and disposal solutions, for ensuring
greater financial standards in the economic forefront at large
 Extensive accounts management options for better analysis of the strategic implementation of
various ideas for ensuring greater financial operations
 Creative solutions with a high-end user-friendly interface for better navigation even for a novice
user
 Automated response solutions for dealing with the various queries of the given users
accompanied by highly effective and streamlined operations in terms of customer management
solutions
Tool #10: Netsuite ERP
One of the best web-based enterprise resource planning software solutions providers in the
market, Netsuite sets its place in the top twelve ERP software known for its quick transnational operations
and data management, with faster implementation options on the whole. The developers of highly
engaging user interface solutions; they are the most popular software solutions providers in the existing
market.
Features:
 Real-time data processing strategies and implementation criteria for better insight into the
business operations at large
 Order billing software and management module for perfect and accurate billing options and
documentation of the same in the mainstream database
 The revenue recognition management solution for critical analysis of the revenue generation
agents and their implementation prospects for greater financial standards of the corresponding
organization
 Recurring revenue management for maintaining revenue generation strategies and perfect support
system when it comes to emerging market situations
  Better and secure database solutions in total compliance with the latest market standards, for
providing hassle-free operations accordingly
Tool #11: Marg ERP 9+ 
Marg ERP 9+ stands to be the ideal integrated resource management solutions provider for various
businesses at large. One of the best software in the top twelve ERP software in the market, Marg ERP 9+
is the ideal ERP solution for various mid-sized to large business enterprises in the existing market. This
particular software comes at quite a highly affordable price and offers great compatibility with the latest
market standards.
Features:
 Extensive retail management strategies for better retail marketing and operations in the current
market
 Integrative supply chain management implementation for ensuring a better and highly
streamlined business operation at large
 Incorporation of manufacturing management techniques for greater insight into the
manufacturing segment, with great detail to product research and development criteria
 Highly secure database and support system for automated transnational data security solutions
 Automated response management system to deal with the various aspects of highly effective
customer management solutions accordingly
 Cross-platform synchronization features for compatibility with various devices and systems
accordingly
 Mobile implementation of the given software for greater monitoring and control features while on
the go
Tool #12: SAP ERP
SAP enterprise resource planning software solutions are one of the topmost ERP solution providers in the
international market and stand to offer extensive solutions for better business opportunities. This
particular software comes at quite an affordable cost and is one of the easiest software in terms of
implementation techniques.
Features:
 Provides real-time updating of the various transnational data for greater insight into the various
aspects of business implementations.
 Provider of integrated business processing solutions for enhancing modular business processes
intertwined with various operational strategies in the given business model.
 Highly automated customer engaging management solutions for better customer base buildup and
retention.
 Easy generation of tickets and dealing with various queries of the users for better implementation
of business strategies in the current market.
 Cloud-based compatible solutions provider for ensuring better safety and security standards of the
given transnational data and strategic implementation of the given business.
 The mobile intuitive interface is available for better integration into mainstream operations for
greater support statistics.
Enterprise resource planning is one of the crucial elements and the most important determining factors
which imply the business standards of any given organization. The performance levels of the given
business are totally judged by the effective handling techniques of the ERP solutions as such, and almost
as always, stands to create a highly positive impact for better sustainability in the existing market
scenario.
With the implementation of the latest technological innovations, the business standards are likely to have
inflation and are destined to create greater potential for better financial levels in the economic forefront in
the international market accordingly. Also before investing in ERP Software consider going through these
points.
With the implementation of the latest technological innovations, the business standards are likely to have

inflation and are destined to create greater potential for better financial levels in the economic forefront in

the international market accordingly.

6. Illustrate the persons involved in ERP implementation

 Executive roles on digital transformation and ERP implementation project teams

A project team is only as good as the executive guidance provided by leaders of the company. This is why
the ERP executive steering committee is so important to an effective transformation. For example, there
are several executive roles that are even more important than that of the CIO:
CEO. The CEO needs to provide clear direction and vision for the project. This goes well beyond
providing lip service of how important the project is, approving the project budget, and being a final point
of escalation when things go wrong. In addition, the CEO also needs to provide clear direction on how
exactly the transformation will enable the company’s long-term strategy and vision.
CFO. CFOs are often designated as executive sponsors because transformations often focus on the
finance function and because they have a knack for managing the dollars and cents of big capital
investments. But to be effective, CFOs need to play a more strategic role that extends beyond keeping the
train from going off the rails.
COO. Unless your transformation is purely a back-office financials and accounting transformation, your
operations business leaders will need to have instrumental roles in the project. This will ensure that the
business drives the technology implementation rather than the technology driving the project off the
wrong track. Only the COO can provide this business-centric leadership.
 Key supporting roles on digital transformation and ERP implementation project
teams
In addition to executive leadership, other roles are also pivotal in supporting the ERP project team:
Organizational change management team. This may be a separate team, or if you take the trojan horse
approach to change management, it may be embedded within the core project team. Either way, a solid
organizational change management team is critical to ensuring the success of your project. Unfortunately,
most systems integrators don’t handle this function well and most transformation project teams
underestimate this role, so be sure not to fall into either of these traps.
Subject Matter Experts. The more involvement you have from business process owners and subject
matter experts within your company, the more successful your project is likely to be. Of course, too much
involvement from too many people can delay decisions and expose alignment issues, but it is important to
create buy-in and ownership from the front lines.
Human Resources Department. Given the impact on people and their jobs, the HR department may be
the most underrated role on digital transformations. This is why HR is often the unsung hero of a
successful digital transformation. Without their help addressing the people side of the transformation,
yours is doomed from the start.
These roles should be clearly defined, and resources should be mobilized during the ERP implementation
readiness phase of your project.
 Overrated roles on digital transformation and ERP implementation project teams
In addition to the important roles outlined above, there are some roles that are important but overrated on
ERP implementation and digital transformation projects. These are examples of roles that made our top
10 list, but aren’t ranked as high as you might think:
Project manager. A good project manager can certainly increase your odds of success. However, even
the best ERP project manager can’t overcome lack of executive involvement, a weak systems integrator,
or lack of change management. Think of this as a capstone role that can be successful only when you
have shored up all the other roles in our top 10 list.
ERP systems integrator. This is arguably the single most overrated role on ERP implementations and
digital transformations. Companies too often take an “outsourcing” mentality that leads to loss of control
and excessive costs. It is important to find a solid ERP systems integrator, but don’t overinvest in this role
at the expense of others.

7. Defend the technological, operational, and business reasons for implementing

ERP.

If your organization is currently about to implement ERP, here are the key reasons to make the move.

1. ERP Solves IT Multi-Platform Issues

Over time, organizations may find themselves running many different software systems across multiple
departments. These systems may have been inherited with absorbed companies or pieced together to be
able to work with partners and vendors.  Yet this lack of conformity can have a detrimental effect on
process flow.

Problems arise when systems are incompatible, too expensive to maintain, outdated, and/or are unable to
be serviced or upgraded. When it becomes apparent that the systems need improvements, this is when an
overhaul of the current IT structure is reviewed, and an ERP solution begins to make business sense.

Syntax develops and implements ERP applications with a focus on JD Edwards solution set. Oracle’s
JD Edwards EnterpriseOne provides a comprehensive set of applications that enables customers to
aggregate and secure application content within a centralized user interface (UI). This means that
software, implementation, and training are pre-configured and all from a single source to keep you in
control. This comprehensive set of low-cost, low-risk JD Edwards applications delivers high functionality
in accordance with industry best practices.

With a common IT platform in place—the hallmark of an ERP system—IT operational costs are
drastically reduced, as they help automate processes, increase productivity, reduce/re-purpose headcount
and retire costly legacy systems.

2. ERP Improves Performance in a Down Economy

As forecasts continue to predict flat economic activity in the new year, 2013 will see organization’s IT
budgets as compact as they were in 2009 and 2010. However, high growth and medium-sized companies
are expected to continue to expand, and they will need to support and nurture this internal growth.

With ERP applications, business activities and company performance can be better monitored and
controlled.
According to a 2012 survey of nearly 250 organizations that have implemented an ERP system within the
past year, 94 percent of responders said the biggest benefits realized from the implementation included:

 Availability of information
 Faster response times and increased interaction across the organization as a result of
streamlining processes

3. Standardizes Business Practices

Disconnects between finance, sales and production caused by multiple software platforms, allow for
increased errors and wasted employee time trying to fix problems, or find needed information.

ERP system functionality includes the software pieces for Customer Relationship Management (CRM)
and sales automation in order to streamline sales processes and stop work redundancy.

When your sales professionals, product marketing team, customer service personnel and financial groups
work on a common sales platform, practices and reporting flow throughout the organization helping to
increase employee productivity, and generate higher revenues.

4. Increases and Improves Interaction

ERP systems are shown to increase and improve interaction internally and between customers and
suppliers. If your suppliers can also communicate more efficiently with sales, marketing and finance, or
even integrate with your ERP system, imagine the increased productivity that can be gained.

Availability of real-time company information to different groups within the company will allow for
faster response times and a streamlined workflow.

8. Explain Organization of the ERP implementation project with diagram.

Phase I: Project Development

Once an ERP solution has been selected, the first phase of the implementation begins. The customer
defines the team members who will be involved and responsible for a successful project. Likewise, your
ERP vendor defines their role. This can vary widely from one company to the next, depending on the
level of support required.
Part of this phase in your ERP implementation project plan also includes network/hardware requirements
and installation–unless you’ve chosen a cloud-based SaaS model ERP such as Infor CloudSuite
Industrial.
The implementation planning meeting takes place, led by the ERP vendor and including the core
members of the customer’s team. This meeting should review the plan, along with expectations, scope,
and timeline discussions.  After the meeting, the vendor puts together an ERP implementation project
plan for the execution of the solution.
Related: Infor ERP: Everything You Need to Know
Phase II: Data Conversion and Loading
Every company implementing ERP software has an existing system. While some think they have no
current system, they certainly do. It could be spreadsheets and manilla folders in file cabinets–that IS a
system!  Not a good one, but that’s why we’re here.
In phase II, we begin the process of gathering critical data from the existing system, and then scrubbing
and cleaning that data, so it’s formatted in a manner that allows it to be loaded into your new ERP
software. There are many data records we can add, but typically the minimums are customers, vendors,
and parts (both finished goods and raw materials). Ancillary data related to these three main categories is
also included, such as contacts, bill to/remit to/ship to addresses, vendor pricing, customer pricing, bills of
materials, etc. 
Data cleansing and migration is one of the most underestimated tasks of an ERP implementation plan,
from a time commitment standpoint. But the good news is we don’t need to wait for the completion of
phase II before beginning phase III.
Phase III: Procedural Development
When discussing an ERP implementation timeline, this is the phase that will undoubtedly contain the
most discussion and debate for how long the implementation should take.
In this phase, both the customer and ERP vendor teams will define the current policies and procedures in
order to develop the roadmap for the new policies and procedures. Required documentation and reporting
will also be part of this phase.
Building out the database to meet the new requirements, and initial simulation of the new processes
through the individual departments takes place. Once the new procedures are proven and accepted, they
will be documented and approved.
In phase III of the ERP implementation plan, end-user training begins. Until this point, the core
implementation team has been developing and proving out the new processes. Now it’s time to involve all
other users in the system. End users may bring up weaknesses in the processes that may have been
overlooked by the core implementation team. This is very normal.
All necessary report modifications and requirements have been met, or delegated if not necessary to move
to the next phase.
Phase IV: Implementation Preparation
At this point, the new processes are in good shape, end-user training is complete, and new procedures are
documented. Now it’s time for everyone to demonstrate they can successfully use the ERP system. Bring
on the conference room pilot (or dress rehearsal). 
Take several examples of typical orders and run them through the new solution from beginning to end.
This includes pulling in different users along the way to do their part–and prove they know how to do it
with little or no assistance.  If users get stuck, they should refer to their procedural documentation.
After the pilot, determine if you can go live on schedule or not. Were significant issues found during the
pilot that can’t be addressed in a timely manner to keep the go-live date? Do the end users need more
training than planned for? More training is always needed, but it should be minimal and not impact the
timeline.
Schedule another pilot if necessary. If procedures were found to be inaccurate or incomplete, they should
be updated and republished.
Phase V: Go-Live
With all the pieces in place and pilot runs completed, it’s time to turn the new ERP solution on and start
using it. Just a few more details before go-live day…
Now it’s time to load dynamic data. This is the data that changes and is transaction based, such as open
WIP, inventory, customer orders, purchase orders, accounts receivable, accounts payable, trial balances,
etc. Loading dynamic data is usually a two to five-day task prior to the go-live date, which should be an
accounting period start day. Opening balances in the new ERP should match closing balances in the
current system.
Celebrate! Months of hard work have finally materialized. Take a moment to reflect upon the triumphs
and tribulations along the way. But don’t bask for too long–now the real work begins!
Phase VI: Post Go-Live
ERP implementation success should be measured in years–not days, weeks, or months. Anyone can be
successful immediately after going live on a new solution. The true measure of achievement is how well
the processes hold up over the years and withstand inevitable changes, such as employee turnover,
business expansion and mergers, and other potentially unsettling events.
As I stated earlier, there’s no perfect ERP implementation plan template. Running daily, weekly, and
monthly status reports to validate that the correct procedures are being followed is crucial to the
continued success realized at the go-live time. Checking that your processes are still valid as time goes on
and your business changes should be an ongoing effort.

9. Illustrate the main pre-implementation tasks that should be performed.

During pre-implementation, you’ll focus on activities that help ensure a smooth implementation and go-
live. A few of the most important activities include:
 Ensuring you have enough resources allocated to the project
 Ensuring everyone on your team agrees on the project scope
 Ensuring there is no confusion on business requirements
After you complete your pre-implementation phase, your ERP project team will launch straight into the
design phase where you will determine the exact functionality of your system. That’s why it’s important
to get everyone on the same page before moving forward.

8 Pre-implementation Activities
1. Build a Project Team
 Your ERP project will be comprised of a number of pre-defined tasks, each carrying its own
schedules and dependencies. That said, it’s important to build a team that can help oversee or
perform these tasks and work together to keep the project on track.
 When building your team, look for employees from across departments with subject matter
expertise. Similarly, when choosing a project manager, look for someone who is intimately
familiar with your business, has proven project management skills and can work well with a
variety of personalities.
2. Define a Resource Strategy and Backfill Strategy
 Many companies struggle to understand the resources required to implement an ERP system. This
is often because their ERP vendor fails to set realistic expectations.
 The truth is your company will likely be responsible for a number of important project activities,
such as change management and data migration, which may or may not be included in the
vendor’s project plan.
  Ensuring adequate resources requires open communication with your vendor as well as an
understanding of implementation best practices and the importance of change management.
 In addition to a resource strategy, you will need backfill strategy. With so many of your A-Team
members hard at work on your ERP project, how will your company continue to operate and
grow? While it can be difficult to pull prominent team members away from their day-to-day
duties, you can always employ a backfill strategy. This ensures you have resources to take over or
help support these roles so project team members can focus on the ERP project.
3.  Define and Execute a Data Strategy
 Your data strategy includes the steps you will take to migrate your business information from
legacy systems onto your new ERP platform. To do this successfully, you will need to define
clear data conversion and data reconciliation processes. You will also need to assign data owners
and delegate responsibilities.
 The first step of ERP data migration is analyzing the status of your current data. Then, you should
consider the technical data conversion resources you’ll need to move information from one
storage location to another.
 During this process, it’s important to ensure that any non-systematic data you carry over is clean
of redundancies, inaccuracies and duplicities. At the same time, the new data you enter shou be
accurate, consistent, complete and valid.
 Rather than migrating everything at once, remember to work systematically to mitigate the
opportunity for error.
4. Set up Infrastructure and System Environments
 This is where you determine the specific system infrastructure in which you plan to run your ERP
solution. The two most prominent options are on-premise ERP and cloud ERP.
 As there isn’t a one-size-fits-all answer, you’ll need to take into account your unique business
requirements, budget and long-term goals to determine the infrastructure that works best for your
company.
 Then, consider the number of system environments necessary. Do you need a sandbox testing
environment? What about one for end-user training? How often will these environments be
refreshed and who has access to them? 
5. Establish Project Charter
An ERP project charter is a short document that describes the most important aspects of your project.
Some of the key details to include are:
 Your project goals
 Steps you will take to achieve these goals
 Your key stakeholders
 All identified risks
 A general budget overview
This document can serve as a resource to go back to if you feel your project veering off course.

6. Educate Executives to Ensure Continued Buy-in

 To ensure that your executives continue to provide much-needed support, we recommend
estimating the projected ERP business benefits. How much money will the system save the
company? Will you improve a key performance indicator (KPI) by a certain percent?
 These stakeholders are investing a significant amount of money in your efforts. Creating a
benefits realization plan can help them visually understand the value and ROI. An ERP
consulting firm can help you quantify potential cost savings and other tangible benefits of ERP.
7. Focus on Change Management
 There’s no denying that ERP projects can be disconcerting to employees, especially to those who
haven’t been involved in the effort since its inception. To this end, you might experience a little
pushback when you prepare to roll out your new ERP solution. 
  To help quell any anxiety, it’s important to ensure project awareness. In other words, define any
role changes that are required and communicate as frequently as possible. You should also be
available to answer questions as they arise.
 These activities should be part of a comprehensive organizational change management plan that
transitions employees, manages resistance and helps everyone in the company embrace change.
8. Standardize and Streamline Business Processes
 Any time you deploy a new business technology, it’s helpful to give your current business
processes a second look. Where can you standardize and streamline to increase efficiency?
 While it’s easy to get carried away and want to overhaul everything, keep in mind that ERP
customization can be an expensive and laborious process. That said, we recommend keeping the
out-of-the box functionality of your ERP software top of mind so you can ensure the system is
capable of handling your requests with minimal adjustments. 
 In other words, any business process reengineering you do should heavily focus on
standardization and adopting the best practices within the ERP system.

CASE STUDY
ERP Case study: ANSWERS
1. University Administration and Information Technology:
Strategic planning means the future planning of an organization; in other words, it refers to the
direction that the organization wants to move in that direction. Strategic planning of information
technology for any organization is an evidence that the organization’s information
architecture in light of strategic considerations such as mission, objectives, and priorities of the
organization becomes evident and it determines the necessary administration plan to achieve
systems and forms the informational databases at the organizational level. To put differently,
strategic planning of the information technology charter and the macro program in the
field of information systems are generally considered as the information technology. The
absence of a well established strategic plan will lead to fragile system of operations where
development and progress will be adversely impacted.
The decision by the HOD of CS department to connect to a separate cable network is a great one
as it allows the students and staff of the CS department to work with efficiency and meet their
ends, all the while keeping the current network infrastructure and staff traffic data safe from
unauthorised access. Needless to say a separate network would require extensive planning ahead
and the other impacts it can have.
First and foremost, a separate cabled network requires up to date firewalls, protection and
security. A planning committee regarding the security of the network must be established.
Individual workspace and computers should be regularly monitored to prevent it from any sort of
malpractices like hacking, phishing etc. The needs and wants of the CS department students and
staff must be heard, and the necessary requirements must be fulfilled to allow maximum
efficiency and growth.
Keeping track of data usage as well as maintain a Security Management Plan for technology
infrastructure that aligns with the guidelines outlined by the respective governing bodies must be
strictly adhered. Selecting an individual or a group who can oversee as well as control the
operations of the CS department is necessary. They must possess leadership qualities and be
knowledgeable of IT problems and show keen innovative ideas to solve it. They must regularly
keep in touch with the latest innovations and ideas in the IT field so as to allow the students to
have a decent exposure to new technologies and practical applications in their field of work.
With the large amount of data that is to be utilised a well organised storage facilities must be
provided. Proper care and management of data all the while keeping it safe and protected is
necessary. Periodic assessment and checks of the computer hardware and software by IT
professionals is required for the smooth and errorless free workflow.
Work ethics must be followed in the CS department and any misuse of the institutions
technology and computer hardware, must be strictly prohibited and penalised if done so. A
proper ethics committee will keep this in check. The freedom of expression and the spirit of
enquiry and innovations must be advocated to the students and staff so as to create a convenient
working atmosphere.

2. Oracle at Qualcomm CDMA Technology:

A1:

Qualcomm CDMA Technologies is the leading developer and supplier of CDMA chipsets,
hardware and software solutions, and tools, with more than 115 million MSM chips shipped
worldwide. QCT offers wireless position location technology by SnapTrack, a wholly owned
subsidiary of Qualcomm. QCT supplies chipsets to the world's leading CDMA handset and
infrastructure manufacturers. Qualcomm CDMA Technologies is the largest provider of 3G
chipsets and software technology in the world
QCT faced a lot of problems due to the complex nature of the supply chain management it
previously followed. They realised that a solid and effective supply chain management was
required for cost effective and efficient progress. Due to extensive customisations which was
manually done it was expensive and difficult to upgrade. They needed a way to make interaction
with customers cheap and digitalised. Thus QCT selected Oracle to ease complexity regarding
the customer interaction. The software developed by Oracle helped QCT integrate future plans
and software upgrades with ease. They can add future applications and projects cost effectively.
The services offered by Oracle allowed QCT to implement their products without extensive
customisation.

A2:

The integration of Supply chain management and ERP allows manufacturing and distribution
businesses the ability to gain greater visibility into all operations while increasing speed,
efficiency and overall customer satisfaction.
A growing number of businesses recognize the many potential benefits of Enterprise Resource
Planning (ERP) when it comes to managing business information, integrating various systems
and working processes, and ensuring optimal operational efficiency.
When it comes to Supply Chain Management (SCM), businesses need to interact with numerous
suppliers and partners in order to obtain the raw materials and resources needed to bring finished
goods to market. ERP plays a vital role in combating inefficiency; reducing waste and ensuring
that workers are better able direct their efforts. The integration of both systems may pose some
unique challenges.
With its integrated Oracle applications, QCT has also reduced inventory throughout the supply
chain and gains better information about supply and demand. In addition, QCT simulates supply
forecasts much more effectively now that its applications are integrated.
Due to the implementation of ERP the supply chain management has improved in the following
manner:
• Improved efficiency across multiple departments and organizations working within the supply
chain
• Improved customer service for increased customer retention and greater chance of repeat
business opportunities
• Automation of workflow for reduced overhead and operational costs
• IT issues and problems that are less likely to create bottlenecks to impede efficiency
• More flexible supply chain solutions that may be readily adapted to meet the needs of changing
circumstances or future business growth and expansion
3. Building the IT Infrastructure

A1:

Managerial issues faced by Alfred are as follows:

1. Cost of Internet connection. 

2. Leased time or dedicated line to be installed. 
3. Speed of Internet connection.
4. Level of security needed in connection. 
5. Type of appliance required for connection. 
6. Costs hidden in the prescribed project.

As managers, they must become knowledgeable with different kinds of information

especially in the business setting. It is important for managers to be tech savvy to become
aware of the areas of concern and also to avoid any attempts of deceit or unknown agenda
that might ruin his business. The importance of managers to be tech savvy: The
importance of managers to be tech savvy is
1. Information systems and technologies are some of the most important tools available to
managers for achieving higher levels of efficiency and productivity in business
operations.

2. Information systems and technologies are a major tool for firms to create new product
and services as well as entirely new business models. 

3. Information systems can help a business know its customer and serves them well, the
way they want to be served, the customers generally respond by returning and purchasing
more.

4. Information systems and technologies have made it possible for managers to use real
time data from the marketplace when making decisions.

5. These systems help a business achieve a competitive advantage, i.e. performing better
than others, charging less for superior products and charging less for superior products
and responding to customers and suppliers in real time.
6. For doing business, business firms invest in other systems and technologies. Thus,
firms turn to information systems and technologies to provide capability to respond to
information retention and operating requirements. 

A2:

Systems consultant is a consulting professional who is committed to deliver superior

services to leading IT organisations across the locations.
The value of having a systems consultant in an organisation is of great importance as they
can provide an expert opinion on a problem with an existing solution in order to create a
design brief and specification for a new, more appropriate solution. Whether upgrading
your existing facility or designing from the ground up, working with a systems consultant
will in the end, lead to a more cost effective solution that actually does what you need,
the first time out.
The importance of systems consultant lies in following:

1. Study of need for changes to the technology adopted by competitors. 

2. Review of business strategy with reference to the recent technology developments. 
3. Investigation of competitive advantage through IT. 
4. Providing specialist expertise, such as database design. 
5. Advising on systems integration and compatibility. 
6. Providing contract managers to cope with loads in a company. 
7. Decides support with project planning and management.
8. Providing staff training and help clients to develop and maintain functional IT. 

Skills of Systems Consultant

A system consultant supporting the services of a company should possess the following
skills: 
1. He should possess managerial skills for decision-making and planning. 
2. He must possess some experience in IT industry. 
3. He should have enough patience. 
4. He should have technical skills of computer applications, 
5. He should have leadership qualities to control and manage the organisation.

CASE STUDY
10. System X INC. withdraws 1 billion soft guide acquisition offer

 Why should SystemX be so concerned about the capabilities of SoftGuide’s data-

processing?

SystemX should be really concerned. Firstly, this one billion offer is not a joke. I mean, they
can’t really tell whether this will become an asset or a liability to its business. Secondly, the
SoftGuide CEO didn’t cite enough evidences to prove his reason that SoftGuide’s data-
processing was, indeed, quite competent. SoftGuide may have a considerable market share in
Training and Development services or may have absorbed at least one new product a month for
two years, but these are just some of its achievements, not the quality of service itself.

In my opinion, the SystemX’s officials were just right for being skeptical in making their
decision. They first try to observe the practicability of this data-processing system to their
business before buying such an expensive offer.

B. What competitive advantages to a Training and Consultancy services company may be

provided by an information system?

A good competitive advantage would be having intellectual property. This is actually what
makes a certain data-processing system unique in a way that it is beneficial and efficient to the
company as compared to other systems. With intellectual property, the company you’re offering
might be impressed and convinced.
Another good competitive advantage would be added value and less costs. SoftGuide could’ve
reduced the price of their data-processing system for SystemX’s convenience; but most
importantly, they must add value to their quality of service instead of bragging its achievements.

11.  Ten Guidelines for Strategic MIS Planning

A. What can be the drawback of having a formal system as mentioned in point 5?

One possible drawback of having a formal system as mentioned in point 5 is inflexibility in

systems planning because having a formal mechanism is having a fixed flow of procedures.
Meaning, certain adjustments or finalizations can’t be made at all due to a fixed and systematized
mechanism, that is performing a meticulous run-through of the systems plan.
“Too much formality at any events can be sometimes bad.”-Anonymous

B. Can transparency make organizational responsibility more effective?

Indeed. Being transparent means being free from deceit or untruthfulness. So in other words, the
organization is being open to their organizational responsibilities. This will not only show the
integrity of a certain organization, but also show how ethical the organization is. Therefore, the
value of transparency is highly effective.