Karachi Institute of Economics and Technology

College of Computing and Information Sciences

Fall 2023 – ERP
Assignment No. 2
Due date ( I will tell you in class)
Submit it on LMS (soft copy)
Late submission is not allowed
Only Hand Written Solution is Acceptable
Also keep your hard copy of assignment for viva and assignment lab exam with you until end of
semester.
Write the detail answers of the following question:

You can take help of book and internet to support your answer. Plagiarism is not allowed at
all

QUESTION # 01

How ERP Evolved from EDP to ERP? Discuss all the factors.

ANSWER # 01

Enterprise Resource Planning (ERP) has evolved significantly from its early roots as Electronic Data
Processing (EDP) systems. The evolution can be traced through various factors that shaped the development
of ERP over the years. Here's a brief discussion of the key factors contributing to this evolution:

1. Early Computing Technologies (1960s-1970s):

 EDP Systems: The concept of EDP emerged in the 1960s when businesses started using computers
for basic data processing tasks. These systems were primarily focused on automating routine,
repetitive tasks like payroll and inventory management.
2. Integration of Business Functions (1980s):
 MRP and MRP II: In the 1980s, Material Requirements Planning (MRP) and Manufacturing
Resource Planning (MRP II) systems were introduced to manage manufacturing processes and
integrate production planning with other business functions. These systems paved the way for a more
comprehensive approach to business management.
3. Evolution into ERP (1990s):
 Expansion of Functionality: ERP systems evolved in the 1990s by expanding beyond manufacturing
into other business functions such as finance, human resources, and customer relationship
management.
 Client-Server Architecture: The shift from mainframe to client-server architecture allowed for more
flexible and scalable ERP solutions.
4. Y2K Compliance and Euro Conversion (Late 1990s):
 Globalization Challenges: The need for Year 2000 (Y2K) compliance and the Euro currency
conversion forced many businesses to upgrade their systems. This created an opportunity for ERP
vendors to provide solutions that addressed both Y2K issues and international business requirements.
5. Internet and Web-based Technologies (2000s):
 Web-enabled ERP: The advent of the internet and web technologies allowed ERP systems to become
more accessible and collaborative. Web-based ERP solutions enabled real-time information sharing
and collaboration across geographically dispersed locations.
6. Cloud Computing (2010s):
 Cloud-based ERP: The rise of cloud computing further transformed ERP. Cloud-based ERP
solutions offered increased scalability, reduced infrastructure costs, and improved accessibility. This
 shift allowed businesses to adopt ERP without significant upfront investments in hardware and IT
infrastructure.
7. Mobile and Analytics Integration (2010s):
 Mobile ERP: With the proliferation of smartphones and tablets, ERP systems became accessible on
mobile devices, enabling employees to access critical information on the go.
 Data Analytics: The integration of data analytics into ERP systems provided businesses with
powerful tools for decision-making and business intelligence.
8. Focus on User Experience (2010s-Present):
 User-friendly Interfaces: Modern ERP systems prioritize user experience, offering intuitive
interfaces to enhance user adoption and efficiency.
 AI and Machine Learning Integration: The integration of artificial intelligence and machine learning
into ERP systems enables predictive analytics and automation of routine tasks.
9. Industry-Specific Solutions (Present):
 Specialized ERP: Today, ERP systems are available in industry-specific versions, catering to the
unique needs of various sectors such as manufacturing, healthcare, and retail.

The evolution of ERP from EDP to the present reflects the ongoing efforts to align with technological
advancements, business requirements, and user expectations, making ERP a vital component of modern
enterprise management.

QUESTION # 02

Write the details of all reports present in ERP. Also write which report is suitable for which type of
Management and why?

ANSWER # 02

The reports available in an ERP system can vary depending on the specific software and the modules
implemented. However, I can provide a general overview of the types of reports commonly found in ERP
systems and their suitability for different levels of management:

1. Operational Reports:
 These reports provide particular details about day-to-day operations. Examples include transactional
reports, order status reports, and inventory level reports.
 Operational reports are suitable for operational-level management, such as team leads and front-line
supervisors. These reports help in monitoring and controlling routine activities and ensuring that
operational goals are met.

2. Tactical Reports:
 Tactical reports offer a mid-level view of business activities, often summarizing data over specific
periods. Examples include sales forecasts, production schedules, and quality control reports.
 Middle-level management, including departmental managers and regional supervisors, benefits from
tactical reports. These reports aid in decision-making related to resource allocation, process
improvements, and goal achievement.

3. Strategic Reports:
 These reports provide a high-level overview of the organization's performance over extended
periods. Examples include financial statements, executive dashboards, and market trend analyses.
 Strategic reports are designed for top-level management, including executives and board members.
They offer insights into overall performance, long-term planning, and strategic decision-making.
4. Financial Reports:
 Financial reports encompass balance sheets, income statements, cash flow statements, and budgetary
analyses.
 Financial reports are crucial for financial management at all levels. Operational managers use
budgetary analyses for cost control, while top-level executives rely on financial statements for
strategic planning.

5. Human Resources Reports:

 HR reports include employee performance reports, attendance summaries, and workforce
demographics.
 Human resources reports are essential for HR management at all levels. Operational managers use
attendance reports for workforce scheduling, while strategic decision-makers may analyze workforce
demographics for long-term planning.

6. Inventory and Supply Chain Reports:

 Reports related to inventory levels, order fulfillment, and supply chain efficiency.
 Operational managers use these reports for day-to-day inventory management and order fulfillment.
Tactical and strategic managers use them for supply chain optimization and forecasting.

7. Customer Relationship Management (CRM) Reports:

 Customer satisfaction reports, sales performance analyses, and customer segmentation reports.
 Suitability: levels, strategic managers use them for market segmentation and customer relationship
strategies.

8. Compliance and Audit Reports:

 Reports ensuring compliance with industry regulations and internal policies. Audit trails and
compliance checklists fall into this category.
 Compliance reports are essential for all levels of management. Operational managers ensure daily
processes comply, while strategic managers monitor overall organizational compliance and risk
management.

In summary, the suitability of reports in an ERP system depends on the management level and the specific
needs of each level. Operational reports aid in day-to-day activities, tactical reports support mid-level
decision-making, and strategic reports provide insights for long-term planning at the top management level.
The key is to align the information provided in reports with the responsibilities and decision-making scope
of each management level within the organization.

QUESTION # 03

What are the criteria to select an ERP Vendor for our business? Write the detail of ERP development
Process?

ANSWER # 03

Choosing the right ERP vendor is a critical decision for any business. Here are key criteria to consider when
selecting an ERP vendor:

1. Business Requirements:

 Understanding Needs: Clearly define your business requirements and objectives. Identify specific
features and functionalities needed to meet your business processes.
2. Scalability:
 Future Growth: Ensure that the ERP solution can scale with your business as it grows. Consider the
ability to add users, modules, and accommodate increased data volume.
3. Integration Capabilities:
 Compatibility: Check if the ERP system seamlessly integrates with existing software, databases, and
third-party applications. Integration capabilities are crucial for a streamlined business process.
4. Customization Options:
 Tailoring to Needs: Assess the level of customization the ERP system allows. The solution should be
flexible enough to adapt to your unique business processes without excessive complexity.
5. User-Friendly Interface:
 Ease of Use: The ERP system should have an intuitive and user-friendly interface. A system that is
easy to use reduces training time and encourages user adoption.
6. Vendor Reputation:
 Industry Experience: Consider the vendor's experience in your industry. A vendor with industry-
specific knowledge is better equipped to address your unique business challenges.
7. Support and Maintenance:
 Service Level Agreements (SLAs): Evaluate the vendor's support and maintenance services. Look
for clear SLAs, response times, and ongoing support options.
8. Implementation Time and Cost:
 Project Timelines: Understand the estimated time required for implementation and associated costs.
A realistic timeline and budget are crucial for project success.
9. Data Security and Compliance:
 Security Measures: Ensure that the ERP system meets industry standards for data security. Check for
compliance with relevant regulations and data protection laws.
10. Training and User Adoption:
 Training Programs: Evaluate the vendor's training programs. A vendor that provides comprehensive
training resources contributes to successful user adoption.
11. Mobile Accessibility:
 Remote Access: In a modern business environment, having mobile accessibility is crucial. Check if
the ERP system supports mobile access for on-the-go operations.
12. Upgrade Path:
 Future Updates: Understand the vendor's approach to software updates and upgrades. Ensure there is
a clear upgrade path, and updates won't disrupt your operations.
13. References and Case Studies:
 Client Feedback: Request references and case studies from the vendor. Speak with existing clients to
understand their experiences with the ERP system and the vendor's support.
ERP Development Process:
The ERP development process typically involves several key stages:

1. Needs Assessment:
 Define Requirements: Identify and document the specific needs and requirements of the
organization. This involves understanding business processes, workflows, and areas for
improvement.
2. System Design:
 Architecture Planning: Design the overall architecture of the ERP system. Define the database
structure, module interactions, and user interfaces. This stage may include prototyping and mockups.
3. Development:
 Coding and Configuration: The actual coding and configuration of the ERP system take place.
Developers build the software based on the design specifications. Customization may occur during
this phase.
4. Testing:
 Quality Assurance: Thorough testing is conducted to identify and fix any bugs or issues. This
includes functional testing, performance testing, and user acceptance testing (UAT).
5. Deployment:
  Rollout: The ERP system is deployed in the production environment. Data migration and system
integration may occur during this phase. Training programs for end-users are often conducted.
6. Training:
 User Education: Train end-users and administrators on how to use the ERP system effectively.
Training may be provided through documentation, workshops, or online resources.
7. Go-Live:
 Official Launch: The ERP system is officially launched for day-to-day operations. Support and
monitoring are heightened during the initial post-implementation period.
8. Support and Maintenance:
 Ongoing Assistance: The vendor provides ongoing support and maintenance to address any issues,
implement updates, and ensure the system's smooth operation.
9. Continuous Improvement:
 Feedback and Optimization: Gather feedback from users and stakeholders. Use this information to
make continuous improvements to the ERP system, addressing evolving business needs.
10. Upgrades and Enhancements:
 Software Updates: Periodic upgrades and enhancements are released by the vendor to improve
functionality, security, and performance. The organization evaluates and implements these updates as
needed.

A well-structured ERP development process ensures that the system is aligned with the organization's
objectives, is user-friendly, and can adapt to changing business requirements over time.