Topic Presentation:

Group members:Haseem Uz ZamanJawaria HameedMahrukh SheikhMaryam Khan BalochRabab RizviSaroosh Zahid

Thursday, April 13, 2023

E.R.P.

What is an E.R.P.?

Enterprise Resource Planning

“A process or approach which attempts to consolidate all of a company's departments and functions into a single computer system

that services each department's specific needs.”

During the 1960’s, Inventory Control was the main focus.

ERP term first employed by research firm Gartner Group (1990) as extension of MRP

ERP= MRP II + Other Functions

In the 1980's the concept of MRP-II evolved.

ERP systems had a boost in sales in the ‘90s due to the Y2K problem

ERP II-next generation ERP systems

A Brief History of E.R.P.

Why Make the Transition?

Inventory Reduction

Improved Cash Management

Increased Revenue and Profits

Reduced Transportation and Logistics Costs

Reduced Information Technology (IT) Costs

What drives an ERPBUSINESS

Customer satisfactionBusiness development-new areas, products and servicesAbility to face competitionEfficient processes to push the company to top gear

ITPresent software does not meet business needsLegacy systems difficult to maintain, Y2K problem and Euro CurrencyObsolete hardware/software-difficult to maintain

Five major reasons why companies undertake ERP

Integrate Financial Information Integrate customer order information Standardize and speed up

manufacturing processes Reduce inventory Standardize HR

information

Modules Of an ERPCustomer Relationship Management Manages the enterprise's relationship with its customers

Human Resource ManagementStreamlines the management of human resources and

human capitals.

Finance and management Gather financial data from various functional departments

Supply chain management Includes the controlling the direction of resource movement

Sales Implements functions of order placement, scheduling etc

Marketing ERP marketing module supports lead generation, mailing campaign and more.

The six main steps of an ERP project:

• Vendor Selection

• Business Strategy Formation

• Application Configuration

• Testing and End-user Acceptance

• Training

• Rollout

Implementing Enterprise Resource

Planning

ERP systems Implementation Project Organization

The Benefits of ERP Visibility on all operations and future path.

Paperless work environment

Performs ‘what if’ scenarios and analysis

Ability of the Company to Optimize Newer Technologies and

Products

Y2K Compliant Systems without Rewriting Legacy Code

Consolidation and Centralization of Corporate Data

Abundance of Tools and Services

More benefits… Identifying faults and planning improvements

Creates a plan automatically that guarantees there will be no violation of

resource constraints

Provides an ideal platform to perform businesses globally and regionally.

Support and Upgrades from Vendors; better Inventory management

Training

Integration and testing

Customization

Data conversion

Hidden Costs of ERP

Calculating Return on Investment (ROI)

Obtaining Support from Major Executives

and Third Parties

Major Business Process Reengineering (BPR)

ERP Is Cost Prohibitive

Scope Creep

Difficulty of Training End Users

ERP Challenges

Extended ERP

Inclusion of Sales-force Automation Applications

and Supply Chain Management Software

Outsourcing ERP

How ERP Is Evolving

Market Leaders

•SAP and Oracle are the top two ERP vendors

•SAP rank highest by capturing 32%-39% of the market

Market Leaders

Large non-government – most use ERP, Large government – very few use ERP, Medium non-government – 20% approx. Medium government – 5% approx. Small non-government and small government –

near to none.

ERP’s used locally Jaffer Brothers, Mobilink, Shell, IBA, Tapal, Unilever, PIA,

UBL, Civil Aviation, Siemens etc.

Local Perspective

Interview with Jaffer Brothers• ERP uses a single database. Did the database ever crash? And do

you have any backups?

“I have never seen one crash. But we have strong Disaster Recovery Management Plans in place in case of any disaster such as bomb blast, natural calamities, viruses and other network problems.”

• Are people resistant to the new ERP systems? How do you overcome that challenge?

“People are reluctant to use new ERP solutions, which is a natural human behavior. Now for this we have two tools:

• Incentive (Push) approach• Stick (Pull) approach”

Facts on ERP61.25% of ERP implementation projects fail.

50% of ERP software projects are terminated somewhere along the implementation process.

75% are rated poor by the users (of those that are implemented and reached the operational phase)

6% out of 500 companies felt that there ERP systems were effective.

Among 63 companies surveyed the average TCO was $15 million

Questions.