introduction to enterprise resource and plannig (erp)

ENTERPRISE RESOURCE PLANNING

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2

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Market Share, Key Player

Introduction to ERP

AGENDA

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Fuctionaloty Details

Future Trends

What is ERP?

We need some Tools…

Long ago…

Later on…

BEFORE ERP

Problems:

Delays, Lost Orders, Keying into different computer systems invites errors

Not Feasible for clients, right? …

What is the solution, then?

OR

Enterprise-wide system which integrates the business functions and processes of an org

Integration of business functions into one seamless app

Replaces Countless Dept. & Workgroup Information Systems

Usually runs on a RDBMS

Introduction

AFTER ERP

Key Players

Market Share

SAP 33%

ORACLE 25%

Microsoft 12%

Baan 5%

Other 25%

Software Companies

Market is healthy with a 61% growth

Moving to ERP system is NOT easy

1960s Inventory control

1970s MRP (Material Requirement Planning)

1980s MRP II (Manufacturing Resource Planing)

1990s ERP

2000s ERP II

Evolution of ERP

Functionality

There is an increasing demand for innovative applications like E-Commerce, SCM, and HR/Customer self services.

ERP applications are complex, multi module suites of Business Management Software.

Future Directions of ERP:

New Markets

•Vendors are supplementing their direct sales force with reseller

channels.

•Lowering entry price of the software to make it financially viable for SMEs.

•Reduced Functionality.

•Improving the Implementation methodologies for faster deployment.

•Porting the products to platforms such as Microsoft Windows NT.

New Channels

• SAP AG, Oracle, Baan are building reseller channels both in US & worldwide.

• To reach smaller businesses, ERP software is made financially more attractive by lowering the entry price point for each module & by ramping up the Total Cost by basing the Price on User Licenses.

• Oracle is offering software for middle market from companies such as Platinum Software & Great Plains Software.

New Business Segments

• Variants of ERP to Service vertical markets.

• Specialized areas such as SCM , CRM, Demand Forecasting, Sales Force Automation etc.

• PeopleSoft bought Red Pepper Software to enhance its SCM offering.

• Baan acquired Aurum Software for its CRM tools & also teamed up with Hyperion Software to strengthen its Financial Modules.

Current updates related with ERP……

• 14th sept 2010: Wipro & Oracle join to make integrated lifecycle management solution.

• 1st june 2011: Cloud ERP.

• 28 july 2011: BITS Pilani Selects Oracle PeopleSoft Enterprise Applications to streamline its business processes.

Conclusion

ERP systems allow companies to better understand

their business.

With ERP software, companies can standardize business processes and more easily enact best practices.

By creating more efficient processes, companies can concentrate their efforts on serving their customers and maximizing profit.

Prepared by

Yuvraj Zala