BY:

Monika Dixit Bajpai

Assistant Professor-
IT
 Historical Context of ERP
Historically, companies created “islands of automation”.

Resulting into a hodge-podge of various systems that

operated or managed various divergent business processes.

Sometimes these systems were integrated with each other

and sometimes they weren’t. Sometimes they were loosely
interfaced and sometimes they were more tightly interfaced.
 BIG QUESTION?

How to integrate these huge islands

of automation?
The solution is

ERP
Enterprise resource planning (ERP) is a process by which a
company manages and integrates the important parts of its
business.

An ERP management information system integrates areas such

as planning, purchasing, inventory, sales, marketing, finance and
human resources
 ERP
Definition:

ENTERPRISE RESOURCE PLANNING(ERP) is a business

process management software that allows an organization to
use a system of integrated applications to manage the
business and automate many back office functions related to
technology, services and human resources.
Or
ENTERPRISE RESOURCE PLANNING(ERP) is a cross-
functional enterprise system driven by an integrated suite of
software modules that supports the basic internal business
processes of a company.
Benefits
 Scalability
 Improved reporting
 Data quality
 Lower cost of operations
 Better CRM
 Business analytics
 Improved data access
 Better supply chain
 Reduced complexity
 Regulatory compliance
ERP Implementation Plan

 Discovery and Planning

 Design
 Development
 Testing
 Deployment
 Ongoing Support
Approaches To Implementing ERP
Systems

 Enterprise-wide full installation

 Unit by Unit
 Key-Process Installation
ERP Tier Support
Challenges in ERP Implementation
 Choosing an adequate ERP system
 Organizational Changes
 Flexibility of ERP Software/System
 Time consuming & costly to Implement
 Resistance to Change
 ERP Implementation Goals
 Its time for a

BRAIN STORMING QUIZ

1. Which of the following describes an
ERP system?
A) ERP systems provide a foundation for collaboration
between departments
B) ERP systems enable people in different business areas to
communicate
C) ERP systems have been widely adopted in large
organizations to store critical knowledge used to make the
decisions that drive the organization's performance
D) All of the above
 Answer: D

Response:
All of the above describe ERP systems.
2. What is at the heart of any ERP
system?
A) Information
B) Employees
C) Customers
D) Database
 Answer: D

Response:

At the heart of an ERP system is a central database.

3. What must a system do to
qualify as a true ERP solution?
A) Be flexible
B) Be modular and closed
C) Extend within the company
D) All of the above
 Answer: A
Response:

To qualify as a true ERP solution the system must be

flexible, modular and open, and extend beyond the
company.
4. Which of the following is a
reason for ERPs explosive growth?
A) ERP is a logical solution to the mess of incompatible
applications
B) ERP addresses the need for global information
sharing and reporting
C) ERP is used to avoid the pain and expense of fixing
legacy systems
D) All of the above
 Answer: D

Response:

All of the above are reasons for ERPs explosive growth.

5. Which of the following occurs when everyone
involved in sourcing, producing, and delivering the
company's product works with the same information?
A) Eliminates redundancies
B) Cuts down wasted time
C) Removes misinformation
D) All of the above
 Answer: D
Response:

All of the above occur due to the use of an ERP system.

6. What are several different types of software,
which sit in the middle of and provide
connectivity between two or more software
applications?
A) Middleware
B) Enterprise application integration middleware
C) Automated business process
D) e-business infrastructure
 Answer: A
Response:

This is the definition of middleware.

7. Who are the primary users of
SCM systems?

A) Sales, marketing, customer service

B) Accounting, finance, logistics, and production
C) Customers, resellers, partners, suppliers, and
distributors
D) All of the above
 Answer: C

Response:

The primary users of SCM systems are customers,

resellers, partners, suppliers, and distributors.
8. What are the primary business
benefits of an ERP system?
A) Sales forecasts, sales strategies, and marketing
campaigns
B) Market demand, resource and capacity constraints,
and real-time scheduling
C) Forecasting, planning, purchasing, material
management, warehousing, inventory, and
distribution
D) All of the above
 Answer: C

Response:

The primary business benefits of an ERP system include

forecasting, planning, purchasing, material
management, warehousing, inventory, and
distribution.
9. Who are the primary users of
ERP systems?

A) Sales, marketing, customer service

B) Accounting, finance, logistics, and production
C) Customers, resellers, partners, suppliers, and
distributors
D) All of the above
 Answer: B

Response:

The primary users of ERP systems are accounting,

finance, logistics, and production.
10. EIS stands for_______

A. Executive Interaction System

B. Executive Interconnecting Systems
C. Executive Information Systems
D. Executive Instrumental Systems
 Answer: C
Response:

Executive Information Systems

 11. Which of the following features would
be useful to a chain of restaurants
implementing an ERP system?

A. Each chain will implement its own system.

B. A database that will be shared by all locations and users.
C. A database that will integrate information from across the
organization after sometime.
D. Each location will use its own bookkeeping system.
 Answer: B
Response:

A database that will be shared by all locations and users.

Thank You