Erp Project Ahsan

ENTERPRISE RESOURCE
PLANNING
TABLE OF CONTENTS
DEFINITION OF ERP:............................................................................................................. 4
CHARACTERISTICS OF ENTERPRISE RESOURCE PLANNING:..................................................5
UNDERSTANDING ERP:......................................................................................................... 5
EVOLUTION OF ENTERPRISE RESOURCE PLANNING:.........................................................7
ERP LIFE CYCLE:................................................................................................................... 8
a)
Concept selling........................................................................................................... 8
b) ERP Feasibility Study................................................................................................... 8

c)
ERP Readiness............................................................................................................ 8
d) ERP Software Selection............................................................................................... 8

e) Mapping...................................................................................................................... 8
f)
ERP Implementation Plan............................................................................................ 8
g) Actual Implementation................................................................................................ 9
h) Preparing to go live................................................................................................. 9
i)
Go live..................................................................................................................... 9
j)
Post implementation................................................................................................... 9
KEY MOTIVATING FACTORS OF ERP:...................................................................................... 9

TANGIBLE AND INTANGIBLE BENEFITS................................................................................10
COMPONENTS OF FINANCE MODULE:.................................................................................12
GL Management accounting........................................................................................... 12
AR Customer management............................................................................................. 12
AP Invoice receipt........................................................................................................... 12
Consolidation.................................................................................................................. 12
Financial Control.............................................................................................................. 12
Asset Management......................................................................................................... 12
Funds Flow...................................................................................................................... 12
COMPONENTS OF COST MODULE:...................................................................................... 12
COMPONENTS OF SALES MODULE:..................................................................................... 13
COMPONENTS OF PRODUCTION PLANNING MODULE:........................................................13
COMPONENTS OF MATERIALS MANAGEMENT MODULE:.....................................................13
COMPONENTS OF QUALITY MODULE:................................................................................. 13
PLANT MAINTENANCE MODULE:......................................................................................... 13
SERVICE MANAGEMENT MODULE:...................................................................................... 14
ERP [ENTERPRISE RESOURCE PLANNING]Page 2
HUMAN RESOURCE MODULE:............................................................................................. 14

ERP AS INFORMATION INFRASTRUCTURE FOR AN ENTERPRISE:.........................................14
ERP AND SUPPLY CHAIN MANAGEMENT (SCM):..................................................................15
ERP AND CUSTOMER RELATIONSHIP MANAGEMENT (CRM):...............................................15
ERP AND E COMMERCE:..................................................................................................... 16
ERP SOFTWARE:................................................................................................................. 17
BAAN ERP:.......................................................................................................................... 17
JD EDWARDS ERP:.............................................................................................................. 19
ORACLE ERP:...................................................................................................................... 19
PEOPLESOFT:...................................................................................................................... 20
SAP:.................................................................................................................................... 20
THE BEST ERP SOFTWARE --SAP R/3:.................................................................................22
INTRODUCTION
Advances in information technology, expansion of the Internet and electronic
business as well as an ever-growing global competition have made running a
successful business more difficult than ever before. To remain successful and to be
competitive, managers of manufacturing and service organizations must use
technology to improve information flow, reduce costs, streamline business
processes, offer product variety, establish linkage with suppliers, and to reduce
response time to customer needs and expectations. Corporate-wide technology
integration allows information users of the company to have access to the needed
information in a timely fashion and make intelligent decisions. Currently, a popular
approach to the development of an integrated enterprise-wide system is the
implementation of an enterprise resource planning (ERP) system, also called
enterprise system.
WHAT IS ERP?
DEFINITION OF ERP:
Enterprise Resource Planning (ERP) is software that attempts to integrate all
departments and functions across a company onto a single computer system that
can serve all those departments particular needs.
Evolving out of the manufacturing industry, ERP implies the use of packaged
software rather than proprietary software written by or for one customer. ERP
modules may be able to interface with an organization's own software with varying
degrees of effort, and, depending on the software, ERP modules may be alterable via
the vendor's proprietary tools as well as proprietary or standard programming
languages.
Enterprise resource planning (ERP) systems integrate internal and external

management
information
across
an
entire
organizationembracing
finance/accounting, manufacturing, sales and service, customer relationship

management, etc.
ERP systems automate this activity with integrated software ERP.
The purpose of ERP is to facilitate the flow of information between all business
functions inside the boundaries of the organization and manage the
connections to outside stakeholders.
ERP systems can run on a variety of computer hardware and network
configurations, typically employing a database as a repository for information.
CHARACTERISTICS OF ENTERPRISE RESOURCE PLANNING:

An integrated system that operates in real time (or next to real time), without
relying on periodic updates.
A common database, which supports all ERPs.
A consistent look and feel throughout each module.
Installation of the system without elaborate ERP/data integration by the
Information Technology (IT) department.
UNDERSTANDING ERP:
There are two flows across supply chain, one is product flow, and the other is
information flow. In the past, information system tended to be islands, depending on
their functions within the company. For instance, when orders came from customers,
they were processed and recorded by sales department, and then the sales
transferred the information to manufacturing. After the production made the master
schedule, the logistics knew the distribution requirements and then planned the
delivery. Finally, the accounting was able to bill to customers. Under this business
process, a lot of problems might occur, like delay, lost order, input errors and long
lead time, which is illustrated by the following chart:
Order Fulfilment before ERP

Ideally, everyone should be access to the same real time data through some
interface when they are needed to. This requires a single-point-of-contact system.
That is one of the original ideas of ERP. Based on the identical system and database,
the information flow and product flow can be processed efficiently. To guarantee the
effectiveness of ERP implementation, we need to link all the functions of the chain
seamlessly. As mention above, there are walls, barriers between departments. So
what we need to do is to smash the walls, to get connected tightly via the system.
Order Fulfilment after ERP
EVOLUTION OF ENTERPRISE RESOURCE PLANNING:

In 1990 Gartner Group first employed the acronym ERP as an extension of
material requirements planning (MRP), later manufacturing resource planning and
computer-integrated manufacturing.
Without supplanting these terms, ERP came to represent a larger whole, reflecting
the evolution of ERP integration beyond manufacturing.
Not all ERP packages were developed from a manufacturing core.
Vendors variously began with accounting, maintenance and human resources. By
the mid1990s ERP systems addressed all core functions of an enterprise.
Beyond corporations, governments and nonprofit organizations also began to
employ ERP systems.
The expansion process can be showed as following figure:
IC
MRPMRP
1960s 1970s
ERP
1980s
1990s
ERP LIFE CYCLE:

Typically ERP introduction in an organization goes through the following stages
a) Concept selling In this stage ERP consultants take the top management
through the ways in which ERP will help the organization in achieving the
business goals. Generally this process takes several weeks. The CEO, CFO, CTO
and the CIO must be actively involved in this process.
b) ERP Feasibility Study Once the top management is convinced of the role of
ERP, consultants do a feasibility study that broadly quantifies the benefits, costs
and the readiness of the organization for ERP implementation.
c) ERP Readiness Once the feasibility is achieved the organization is readied for
ERP by way of getting the IT and information infrastructure good enough for ERP
implementation. This may involve hardware addition / up gradation, network up
gradation and standardizing key business elements (account codes, material

codes, cost centres etc.,) and key business processes (order entry, procurement,
production, logistics, invoicing etc.,). Often this process leads to significant
Business Process Reengineering (BPR).
d) ERP Software Selection At this stage a detailed evaluation of the existing
leading edge ERP software available and support in the local market is done
(based on distributor availability, knowledgeable user / consultant support and
training support). Some puritans postpone software selection to a later stage.
e) Mapping At this stage, the existing organizational processes are modelled and
using the combined expertise of the entire organization, the processes are
improved to take advantage of the ERP. This process is often called the
reengineering process. Special tools to map processes, document processes
and improve processes are available either as part of the ERP software or as
independent software pieces under the name process modelling software such
as ARIS Toolset or Visio Enterprise Edition.
f) ERP Implementation Plan After the process mapping, the entire process of
implementation is identified that includes the nature of implementation, extent of
implementation, time schedule, cost schedule, training requirements, identifying
key users, transition planning, data migration etc., A key issue is the nature of
implementation some users prefer big bang that implies all modules
implemented across all departments of the enterprise in one go. Many others
prefer module based implementation, say finance first, followed by salesYet
others implement all modules in one location and roll out the modules in other
location (in multi-location organizations). There is no universal best option; the
user & consultant should jointly decide the choice. Generally an ERP Steering
Committee with the blessings and representation of the top management is
constituted to supervise the implementation.
g) Actual Implementation This stage involves the training of the users in the
detailed modules, customizing the software to meet the specific needs of the
enterprise, configuring the software to understand industry and firm specific
practices (accounting, material, bill of material structures, scheduling practices,
depreciation options, valuation of inventory / storage, stocking policies etc)
h) Preparing to go live At this stage the decision of project going live is

decided. This may coincide with natural roll over dates such as beginning of the
fiscal year, planning period etc., To keep the enthusiasm level of the people, a
kick off function is organized to formally mark the go live phase of ERP. All
account related start-up figures are fed into the ERP software.
i) Go live - when the organization starts using the ERP software
j) Post implementation In this phase the ERP software performance is fine
tuned to meet the users needs. Often more reports as demanded by the user
community is identified and designed.
KEY MOTIVATING FACTORS OF ERP:

When asked to identify the motivating factors behind the ERP decision, the key
decision makers and MIS directors at all three companies mentioned similar factors:
Standardize supply chain practices across multiple sites.
Simplify the software environment by replacing multiple, highly customized
legacy systems with a single fleet solution.
Support corporate-level visibility and control of key supply chain processes,
such as procurement and production scheduling.
TANGIBLE AND INTANGIBLE BENEFITS

The analysis must consider not only the obvious cost/benefit analysis, but also the
non-financial factors. Non-financial benefits include information visibility and
flexibility. A more complete listing of tangible and intangible benefits is provided in
Table below.
Tangible and intangible benefits.
MODULES OF ERP
ERP-Interface module manages the import and export data for the higher-level
systems. Interfaces to all popular ERP systems are available; e.g. SAP, Navision,
infor, proALPHA, BAAN. The software package combines two individual modules, the
communication module ERP-Export/Import and the ERP-Interface module.
All CROS modules are related to each other, all users working simultaneously
through the network, using the same data, according to their attributions and access
rights.
There are direct connections between different modules, without data's imports
and exports and without data redundancy.
The system brings together universally accepted models for all the organization
processes, adapted and developed as a result of successful implementations in
Romanian organizations.
The data flows within the informational system are faster and better organized
with CROS, this representing an important support for organization management.
COMPONENTS OF FINANCE MODULE:

GL Management accounting
Balance Sheet and Profit &
Loss statement
Closing Procedures
AR Customer management
Invoice & Credit / Debit
memo
Dunning (reconciliation)
AP Invoice receipt
Payments
Credit
Invoice posting
Consolidation
Capital
Debt
Fiscal year choice
Internal & external
company reporting
Financial Control
Cash Management
Electronic Banking
Account clearance
Foreign Exchange
Asset Management
Loans
Stocks
Currency Exchange
Depreciation, Valuation,
Plant Maintenance
Funds Flow
Budgeting
Expense accounts
Funds availability control
COMPONENTS OF COST MODULE:

Cost Centre Profit Centre
Accounting
Cost element
Variance analysis
Transfer pricing
Profitability Analysis
Sales & profit planning
Contribution planning
Customer order and cost of sale
accounting
Order & Project Accounting
Product Cost Accounting Product, Job Order costing
Performance Analysis including
ABC
COMPONENTS OF SALES MODULE:

Sales Support including
database, tele marketing
Customer call management
Inquiry, Quotation, Tendering,
Order processing
Special order such as Cash Order

Contracts, Schedule agreement
Pricing including pricing plans
Shipping & Transportation
Invoicing
Sales Information Systems
COMPONENTS OF PRODUCTION PLANNING

MODULE:
Sales Planning & Production
Planning
BOM with many levels
MRP II Simulation
Capacity Planning
Plant Data Collection

Production scheduling & control
Costing
Project management
Production Information System
COMPONENTS OF MATERIALS MANAGEMENT MODULE:
Forecasting
Requirement Planning
Vendor evaluation
Purchase management
Inventory management
Invoice verification
Warehouse management
Customer managed inventory
COMPONENTS OF QUALITY MODULE:

Quality planning
Quality control
Inspection
Quality documentation (ISO 9000

support)
Quality Information System
PLANT MAINTENANCE MODULE:
Maintenance planning
Maintenance orders
Asset history management
Worker scheduling
Integration with PLC

Plant Maintenance Information
System
SERVICE MANAGEMENT MODULE:

Customer management
Device management
Warranty management
Cost monitoring
Service Information Systems
HUMAN RESOURCE MODULE:

Master data management
Payroll accounting
Travel expense
Time management
Application processing
Personnel development
Manpower planning
HR Information System
As can be readily seen the features are very rich, comprehensive

and in turn complex; this explains the widespread interest as well
as the confusion that surrounds typical ERP software. The added
advantage is the tight integration of modules as pictured below:
Most ERP software provide extensive facilities for data protection,
security, access control, automatic logging of key transactions,
business model editors, data migration tools, reporting tools, MIS
tools, data archiving tools, data warehousing and data mining
capability either as pat of the core product or through strategic
partnership with Report writing software vendors, DBMS vendors,
data storage vendors etc..
ERP AS INFORMATION INFRASTRUCTURE FOR AN

ENTERPRISE:
The key benefit of ERP implementation is that ERP provides a solid
information infrastructure for an enterprise. As an infrastructure,
ERP data is shared by all departments across the organization and
owned by all users. ERP is NOT one more project initiative from
EDP/ MIS/ IT departments. ERP also ensures ready data availability.
A well-implemented ERP would pave the way for organizational
level data discipline. With Information available on tap, it is
important that the users start planning for innovative use of this
information for planning & analysis. Finally infrastructure should
not be viewed from a narrow cost benefit and ROI perspective.
The true benefits of ERP are not necessarily apparent on day one.
Accordingly benefit cost ratio might unduly overemphasize costs
that are apparent and underemphasize benefits that may not be
apparent. Like every other infrastructure - roads, seaports,
airports, telecom and railways information infrastructure in the
form of ERP needs a different mindset too. It must be noted that
investments in infrastructure pays by the innovative ways in which
the infrastructure is put to use investments in roads pays off
through returns from trucking industry, business generated

through phone calls pays for investments in telecom network
similarly innovative use of data generated through ERP would pay
for ERP investments. The improved organizational agility provided
by ERP must be put to good use.
ERP AND SUPPLY CHAIN MANAGEMENT (SCM):

With every enterprise setting up web-based storefront with fancy
shopping carts, order processing has become relatively simple for
the end users. It is particularly true of B2C (Business to Consumer)
scenario. As the Christmas 1999 season proved, it is NOT sufficient
to build easy-to-use electronic storefronts. There must be a rugged
ERP-class backend system to support thousands of customers and
variety of products that can be sold on 24X7 basis throughout the
year. More important is the ability to manage the logistics of
supply of raw materials that are needed for the production of
items to meet the orders taken over the electronic storefront. One
must also manage multiple levels of supply and in-house store
finished
goods,
work-in-process,
raw
materials
and
even
consumables across the entire supply chain. Ultimately the

delivery of the items to the end customer at the right time at right
cost must be guaranteed too. All this calls for advanced planning
and optimization of goods and services across multiple echelons.
This exercise calls for sophisticated multi-stage optimization
systems
with
superior
performance
to
handle
millions
of
customers, thousands of orders and hundreds of products the

core of Supply Chain Management software. Once again SCM
software has changed too it is not limited to manufacturing
execution and sophisticated planning. SCM is merging into ebusiness
scenario,
permits
web-based
usage,
works
across
corporate intranets and extranets and triggers production planning

systems from supply planning through sophisticated middleware
powerful application integration indeed.
ERP AND CUSTOMER RELATIONSHIP MANAGEMENT

(CRM):
Corporate applications of the nineties concentrated on internal
efficiencies. With functional integration, process orientation and
best of breed practices embedded in the software, internal users
did get significant benefits. Corporations gained through better
cost control, inventory reduction, reduced cycle times, improved
resource utilization etc., With the arrival of the WWW and the
surge in interest in e-commerce, the interest shifted from back
office to front office. Once the front office is the focus area,
customer moved to the center stage. The super efficient ERP
systems had also built solid information base about past
customers their buying pattern, their product preferences,
payment preferences, shipping preferences, location preferences,
brand preferences and even time preferences, thanks to solid
transaction handling capability of ERP systems. Thanks to the
technology of data warehousing and data mining, the customer
information and transaction information that has been logged
religiously by ERP systems and faithfully backed up could turn
into goldmines of information. The retail industry could launch
market basket analysis, the telecom industry could perform
churn analysis, the financial industry (particularly credit card
firms) could predict spending pattern that can be used to target
focused advertisements. It is important to realize that many of
these data mining could not have been attempted before the ERP
systems were running for several years. It is interesting though
that in some industries like telecom and banking, the benefits of
using
customer
information
through
Customer
Relations
Management (CRM) far outweigh the benefits of ERP, proving that

the customer is still the king, even in Internet age! In addition, eCRM addresses not only CRM in the Internet age but also CRM in
the specific context of web-based business processing; and even
processing associated with Dot.Com companies. For example pure

Dot.Com companies like Yahoo and AltaVista and Web-hosting
companies like Exodus need guaranteed web-serving performance
at customer end. To manage page to page refresh time across
millions of customers under varying load is a very demanding
customer service. Issues like personalization, studying customer
navigation in user sites and delivering information most
relevant to the individual customer preferences are challenging.
ERP AND E COMMERCE:

It is true that during 1996-98 ERP was the talk of the town.
Starting 1999, thanks to Dot.Com phenomenon the flavor of the
year was clearly E Commerce. Companies were busy setting up
store-fronts on the cyberspace, putting catalogues online, setting
up websites with bells and whistles, signing up web-hosting
contracts, putting in place a Net strategy, hiring consultants to get
a Net marketing in place to attract and retain eyeballs,
understanding payment systems, ensuring interactivity on their
sites through mail, chat, discussion groups, opinion polls etc. But
the December 1999 Christmas fiasco in USA clearly proved that
without an Enterprise System (call it ERP or whatever) in place,
one would not be able to manage all - customers, orders,
inventories, suppliers and logistics - particularly in physical
goods industries. The Dot.Com burst in the later half of the year
2000 brought some sanity to the enterprise growth.
CURRENT TECHNOLOGIES OF
ERP
ERP SOFTWARE:
Enterprise resource planning softwares, also called ERP systems or
enterprise resource planning business solutions, have been on the
advertise for large businesses, government organizations and

universities since the mid 1990s. They were initial developed a not
many years before that by software providers with an interest in
creating business management tools for the developed sector.
These early on enterprise resource planning softwares were called
manufacturing resource planning systems, or MRPs. They were
planned to make easy the manufacturing procedure by collecting
all the back office business functions in a known firm onto the
similar incorporated software stand. Before the achievement of
enterprise resource planning softwares, each section in the firm
ran its own programs, which meant that functions and scheduling
were complicated to organize. It also meant that statistics
collected by one department could not be simply accessed or
modernized by another. This separation lead to announcement
problems, potential error and inefficiency. It also had a slowing
result
on
the
manufacturing
process,
which
depends
on
streamlined processes for scheduling, organize processing and the

timed liberation of parts and effort to the store base.
BAAN ERP:
The ERP software from BaaN Company (acquired by InvenSys in
June 2000) grew out of a product with unique strengths to address
manufacturing industry, particularly those with complex process
oriented production. Over the years the product has evolved to
address all aspects of an enterprise across a range of industry
segments. The strength of BaaN ERP has been its componentbased architecture, modeling based implementation and tight
integration across all sub-systems of manufacturing production,
materials, procurement, shipping and logistics.
The component-based architecture gives the unique advantage of
reduced code size (in millions of lines) with every new release of
the product. Much of BaaNs component technology is built around
COM / DCOM / COM+ architecture of Microsoft. BaaNs Business

Object Interfaces is a set of APIs that offer component-based
approach to ERP. Such an approach permits easy mix and match
approach to deploy the best of breed modules among different
ERP products.
BaaN ERP products also exploit fully the back-office and frontoffice features of Microsoft Office products so that MS Word can be
used for documentation, MS Excel can be used for analysis and
decision support and MS Exchange / MS Mail / MS Outlook can be
used for communication seamlessly with BaaN ERP product suite.
BaaN has a unique Dynamic Enterprise Modeling (DEM), which
introduced a model-based approach to implementation of ERP
product.
During
the
configuration
phase
of
any
ERP
implementation, designers use a less structured approach to

correctly capture the requirements of an individual organization.
Thanks to DEM from BaaN this process could take a more
structured
approach
that
leads
to
consistent,
reliable
and
documented way of configuring the software without extensive

programming.
Most
other
ERP
vendors
have
model-based
configuration today; but BaaN is the early pioneer and continues

to offer superior capabilities in this area.
BaaN ERP is strong in supply chain integration, once again thanks
to its strong base among manufacturing and distribution firms.
Today every ERP vendor also offers SCM capability. BaaN today has
extensive support to both EDI and XML standards for integration
across multiple suppliers and business partners. BaaN ERP has
unusual support to handheld devices like PDA including wireless
devices support so that field staff can get the full benefit of
enterprise software.
Like every other ERP vendor BaaN ERP today is no longer sold as a
stand-alone ERP but as a series of e-business modules.
The financial troubles of BaaN Company throughout the past oneyear and the ultimate acquisition by InvenSys in June 2000 did
create problems for BaaN; the company continues to lead through
its technological innovation and appears to have come out of the
financial troubles.
JD EDWARDS ERP:
JD Edwards ERP has traditionally been a strong contender in the
AS/400 marketplace. Over the years this product has been ported
successfully to Windows NT and Unix platforms as well, though JDE
is still largely found in AS/400 shops, the stronghold of midsize
companies.
The product went through several transformations over the years.
OneWorld is the most successful component-based ERP from JDE
that had a good market acceptance. JDE has a unique hierarchybased
approach
to
components
that
is
claimed
to
make
configuration far easier. The current version is built around

OneWorld and has several components to address the whole range
of functions of a contemporary enterprise, namely, manufacturing,
financials, logistics and distribution.
Thanks to its strong presence in distribution, JDE is strong in CRM
through its close relationship with CRM leader Siebel Systems.
Today JDE works closely with several SCM and CRM vendors and
quickly positioned itself to address the e-business model of an
enterprise.
ORACLE ERP:
Oracle ERP traditionally has been sold as Oracle Applications.
Originally sold as Oracle Financials and Oracle Manufacturing
where the product had unique strengths, Oracle ERP has matured
into a full-service ERP provider addressing all needs of an
enterprise order processing, financials, manufacturing, financials

and human resources.
For many years Oracle Applications suffered from a lack of tight
integration across modules and a two-tier architecture. In the past
couple of years Oracle has integrated the products well and
started to fully support the n-tier architecture; in fact, Oracles
support to thin clients and web-based applications permit MIS
managers to upgrade new versions of the software with practically
no installation at client end.
Self-service across all modules (HR, financials, supply chain) is a
unique strength of Oracle Applications. This reflects the broad
philosophy that drives the company and its products using
Internet at the core of all its products and technologies.
Today Oracle Applications is tightly integrated with its Supply
Chain and CRM modules.
Reflecting the broad technology directions, Oracle Applications
supports middleware, CORBA-based components and an excellent
to support to EJB (and several Java-based technologies).
Oracle strengths in database technology and the related areas of
data warehousing and data mining gives Oracle Applications
significant
advantages
to
address
enterprise-wide
OLAP
applications and Business Intelligence.

PEOPLESOFT:
Originally started as human resource applications software,
PeopleSoft has evolved over the years to address all functions of
an enterprise and managed to win clients in financial and other
applications as well. Ease of use continues to be the key strength
of PeopleSoft.
With its acquisition of CRM software company Vantive, PeopleSoft

became a pioneer in visualizing the strength of ERP and CRM
products to address corporate applications. This strategy also
gives the added advantage of tighter integration across ERP and
CRM
segments
of
PeopleSoft
enterprise
software,
currently
marketed as e7.5 Integrated e-Business Backbone.

A unique aspect of PeopleSoft ERP is its ability to address
enterprise
performance
management
through
the
evolving
concept of balanced scorecard methodology a radically new

approach to measuring performance using KPI (Key Performance
Indicators). Through its web-enabled interface to enterprise
performance appraisal, PeopleSoft attempts to provide insight into
organizational performance that can be used by senior executives
from anywhere.
PeopleSoft industry solution templates is a unique way to address
vertical industry segments (like Insurance) that are also ready to
run significantly reducing the time and effort to implement
PeopleSoft ERP in customer premise.
SAP:
SAP is the market leader in ERP segment for many years with its
SAP R/2 product for the mainframes and R/3 for the client-server
environment. SAP ERP has the highest level of tight integration of
functional modules. This feature was the strength of SAP ERP
particularly for Fortune 500 companies. The Internet era, ebusiness scenario and the turbulence in the global marketplace,
the strength of a monolithic product like SAP R/3 became a liability.
Thanks to its quick re-design and re-positioning of its products,
SAP continues to drive the enterprise segment.
SAP Business Framework addresses the need for architecture and
framework based application development. Business Framework is
an evolution from SAP Business Engineer, which is more of a

toolset.
SAP Business API (BAPI) is a powerful way through which SAP
could
embrace
component-based
approach
to
ERP
implementation. BAPI provides application integration across

multiple vendor products without complex programming. In a
sense the core product feature could be extended without
extensive development efforts. Through an innovative object
repository (a collection of BAPIs), business objects could be built
out of BAPI.
SAP ERP
Founded in 1972 as Systems Applications and Products (SAP) in
Data Processing, SAP is the recognized leader in providing
collaborative business solutions for all types of industries and for
every major market.
Serving more than 36,200 customers worldwide, SAP is the world's
largest business software company and the world's third-largest
independent software provider overall. Today, SAP employs more
than 38,400 people in more than 50 countries. Our professionals
are dedicated to providing the highest level of customer service
and support.
THE BEST ERP SOFTWARE --SAP R/3:
SAP R/3 is provided by worlds largest enterprise software

company SAP AG.SAP R/3 is acronym for Systems Applications and
Products in data processing. R/3 means Runtime System, Three
Tier Architecture.
SAP R/3s Advantages:
Faster Speed
Integrated
Global Basis
Knowledge Sharing
Flexibility for changes(Business and IT)
Can be implemented as an individual
module.
SAP offers several software packages:
mySAP Business Suite All-in-One

mySAP Business One
Duet (a collaboration with Microsoft)
SAP xApps specifically designed software for individual company needs
Addressing the needs of extended enterprises in the form of SCM

and CRM, SAP built Advanced Planner and Optimizer (APO) and
Sales Force Automation (SFA) and CRM functionality. Through
strategic partnerships with SCM vendor Manugistics and CRM
vendor Siebel, SAP also offers multi-vendor solutions to address
the complex demands of extended enterprises.
Recognizing the e-Business challenge, SAP introduced mySAP a

combination of personal portal, e-marketplace and an ASP
(Application Service Provider) offering all three rolled into one.
mySAP has evolved quickly over the past one year started as a
fancy interface with bells and whistles personalization into a
Business-to-Business portal. With added functionality that cuts
across
personal
productivity,
personal
workplace,
personal
desktop, mySAP evolved into e-marketplace that goes beyond B2B

portal. Through strategic relationship with key industry leaders in
MRO segment, chemical and pharmaceutical industry, SAP could
use its established presence in Fortune 500 companies with a
formidably stable ERP product, SCM, CRM and SFA offerings to
offer a powerful e-marketplace. Again through its relationship with
telecom giants like Deutsche Telecom and British Telecom, SAP
could position mySAP as a flexible ASP that can offer a test drive,
solution builder, solution implementer, solution provider or a
solution buildercum--provider.
CONCLUSIONS
Corporate applications are undergoing a metamorphosis. First,
Enterprise Resource Planning (ERP), Supply Chain Planning (SCM)
and Customer Relationship Management (CRM) are seamlessly
coalescing into one another; with practically all enterprise
software vendors offering these features as part of their broader ebusiness suite. This in turn has led to several mergers and
acquisitions (BaaN and Invensys, PeopleSoft and Vantive, Nortel
and Clarify) indicating a shift from growth phase to consolidation
phase. Second, all the product suites are fully web-enabled that
the Internet Browser has become the de facto user interface for all
corporate applications. Third, as we enter the post PC centric
computing model, access and delivery of the enterprise software
through portable and mobile devices are getting the maximum
attention. Fourth, as we go past the Dot.Com burst, robust ecommerce through business exchanges would be the order of the
day. Several companies will move to e-markets; IT services will get
outsourced;
Application
Service
Providers
(ASP)
will
host
applications; many of the enterprise software products will be

offered as services; and the companies that help corporations to
leverage e-business companies who provide global e-commerce
solutions and professional services - will be the most influential
ones.
REFERENCES
1.
Beheshti, H.M., What managers should know about ERP/ERP II.
Management Research News, 2006. 29(4): p. 184-193.
2.
Koch, C., The ABCs of ERP. http:// www.CIO.com.
3.
ERP. http://www.answers.com/topic/enterprise-resource-planning.
4.
Andrea, R., S. Sieber, and J. Valor, Introduction of ERP.
http://webprofesores.iese.edu/Valor/Docs/EMBA/Intro%20ERPs.pdf.
5.
Enterprise Resource Planning.
http://www.erpfans.com/erpfans/erpca.htm.
6.
Gumaer, R., Beyond ERP and MRPII optimized planning and
synchronized manufacturing. IIE Solutions, 1996. 29(9): p. 32-36.
7.
Sarpola, S., Enterprise Resource Planning (ERP) Software Selection And
Success Of Acquisition Process In Wholesale Companies. 2003.
8.
CROS - Bar codes system integration.
http://www.crisoft.ro/Engleza/prod&serv/cros.html.
9.
Bozarth, C., ERP Implementation: Motivation and Justification.
http://scm.ncsu.edu/public/lessons/less060406.html.
10.
Gargeya, V.B. and C. Brady, Success and failure factors of adopting SAP
in ERP system implementation. Business Process Management Journal, 2005.

11(5): p. 501-516.
11.
Jutras, C., The ERP in Manufacturing Benchmark Report.
12.
Weir, B. and R. Mickool, For Enterprise Applications and Data, the
Question Is Not Make Versus Buy ... Educase Quarterly, 2003(November 1): p.
5-9.
13.
Kmpf, R., ERP-Systems Situation and future Developments.
http://www.ebz-beratungszentrum.de/pps_seiten/sonstiges/erp_engl.htm.
14.
Nah, F.F., J.L.a. Lau, and J. Kuang, Critical factors for successful
implementation of enterprise systems. Business Process Management Journal,

2001. 7(3): p. 285-296.
15.
Reilly, K., Enterprise Resource Planning Software Will Grow to $29 Billion
in 2006. AMR Research, October 10, 2006.
16.
Reilly, K., AMR Research Releases Report Showing Overall European
Market for ERP Vendors to Grow 7% Annually Through 2009. AMR Research,
June 20, 2005.
17.
Oracle histry. http://www.oracle.com/corporate/story.html.
18.
http://www.oracle.com/corporate/press/2004_dec/acquisition.html.
19.
http://www.peoplesoft.com/media/en/pdf/jdedwards_pr060203.pdf.
20.
22.
mySAP. http://www.sap.com/company/index.epx.
ttp://www.cbe.wwu.edu/misclasses/mis320S06lab/erp/intro_files/intro.htm.
23.
Knorr, E., ERP Springs Eternal. InfoWorld, 2004. 26(12): p. 44-54.
24.
King, W.R., Ensuring ERP implementation success. Information Systems
Management, 2005. 22(3): p. 83-84.
25.
Gillooly, C., Disillusionment ,. Information Week, 1998. February 16: p.
46-56.
26.
Mohamed, A., Firms failing to fully exploit ERP systems. Computer
Weekly, 2006. Jan 17: p. pg. 8, 1 pgs.
27.
Will, L., SAP Active Global Support. http://web.f4.fhtw-
berlin.de/ginnold/stuff/sapat/at19/will.pdf.
28.
The Hershey Company. http://www.thehersheycompany.com/about/.
29.
Stedman, C., Failed ERP gamble haunts Hershey. Computerworld; Nov 1,
1999;, 1999: p. Nov 1.
30.
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February 14.
http://itmanagement.earthweb.com/erp/article.php/11072_364396
6_1, 2006.

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ENTERPRISE RESOURCE

b) ERP Feasibility Study................................................................................................... 8

d) ERP Software Selection............................................................................................... 8

ERP Implementation Plan............................................................................................ 8

KEY MOTIVATING FACTORS OF ERP:...................................................................................... 9

HUMAN RESOURCE MODULE:............................................................................................. 14

ERP [ENTERPRISE RESOURCE PLANNING]Page 3

Enterprise resource planning (ERP) systems integrate internal and external

finance/accounting, manufacturing, sales and service, customer relationship

CHARACTERISTICS OF ENTERPRISE RESOURCE PLANNING:

Order Fulfilment before ERP

Order Fulfilment after ERP

EVOLUTION OF ENTERPRISE RESOURCE PLANNING:

ERP [ENTERPRISE RESOURCE PLANNING]Page 7

ERP LIFE CYCLE:

gradation and standardizing key business elements (account codes, material

h) Preparing to go live At this stage the decision of project going live is

KEY MOTIVATING FACTORS OF ERP:

TANGIBLE AND INTANGIBLE BENEFITS

ERP [ENTERPRISE RESOURCE PLANNING]Page 10

ERP [ENTERPRISE RESOURCE PLANNING]Page 11

COMPONENTS OF FINANCE MODULE:

COMPONENTS OF COST MODULE:

COMPONENTS OF SALES MODULE:

Special order such as Cash Order

COMPONENTS OF PRODUCTION PLANNING

Plant Data Collection

COMPONENTS OF MATERIALS MANAGEMENT MODULE:

COMPONENTS OF QUALITY MODULE:

Quality documentation (ISO 9000

PLANT MAINTENANCE MODULE:

Integration with PLC

SERVICE MANAGEMENT MODULE:

HUMAN RESOURCE MODULE:

ERP [ENTERPRISE RESOURCE PLANNING]Page 15

As can be readily seen the features are very rich, comprehensive

ERP AS INFORMATION INFRASTRUCTURE FOR AN

through returns from trucking industry, business generated

ERP AND SUPPLY CHAIN MANAGEMENT (SCM):

consumables across the entire supply chain. Ultimately the

customers, thousands of orders and hundreds of products the

corporate intranets and extranets and triggers production planning

ERP AND CUSTOMER RELATIONSHIP MANAGEMENT

Management (CRM) far outweigh the benefits of ERP, proving that

processing associated with Dot.Com companies. For example pure

ERP AND E COMMERCE:

advertise for large businesses, government organizations and

streamlined processes for scheduling, organize processing and the

COM / DCOM / COM+ architecture of Microsoft. BaaNs Business

implementation, designers use a less structured approach to

documented way of configuring the software without extensive

configuration today; but BaaN is the early pioneer and continues

configuration far easier. The current version is built around

enterprise order processing, financials, manufacturing, financials

applications and Business Intelligence.

With its acquisition of CRM software company Vantive, PeopleSoft

marketed as e7.5 Integrated e-Business Backbone.

concept of balanced scorecard methodology a radically new

an evolution from SAP Business Engineer, which is more of a