Enterprise Resource Planning

1
Enterprise Resource Planning

• - Presented by Rinkal Hirani

Session 2
2
Session 2

• Tangible and Intangible Benefits of an ERP
• Risks of ERP
• Risk Mitigation
• Technologies related to ERP

3
Tangible Benefits of an ERP

• Reduced Inventory costs
• Reduced Manpower costs
• Reduced Material costs
• Improved Sales and Customer service
• Efficient Financial Management

4
Intangible Benefits of an ERP

• Accounting
• Product and Process Design
• Production and Material Management
• Sales
• MIS Function

5
Risks of ERP

• People Issues
• Process Risks
• Technological Risks
• Implementation Risks
• Operation and Maintenance issues

6
People Issues

• Change management
• Internal staff adequacy
• Project team
• Training
• Employee re-location and re-training
• Staffing
• Top management support
• Consultants
• Discipline

7
Process Risks

• Program Management
• Business Process Reengineering
• Stage Transition
• Benefit Realization

8
Technological Risks

• Software Functionality
• Technological Obsolescence
• Application Portfolio Management
• Enhancement/Upgrades

9
Implementation Risks

• Project Size
• Length Implementation Time
• High Initial Investment
• Unreasonable Deadlines
• Insufficient Funding
• Interface
• Organizational Politics
• Scope Creep
• Unexpected Gaps
• Configuration Difficulties

10
Risk Mitigation

• Phased-out approach to migration
• Sufficient Training
• Legacy System planning
• Thorough testing
• Provide plenty of IT support
• Develop contingency plan

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Technologies related to ERP

• Business Process Re-engineering (BPR)
• Data Warehousing
• Data Mining
• On-line Analytical Processing (OLAP)
• Product Life cycle Management (PLM)
• Supply Chain Management (SCM)
• Customer Relationship Management (CRM)
• ERP Security
• ERP Bolt-ons