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Enterprise Resource Planning

Made By -
Submitted to Pavan Mathur
Mr. Sonu Mittal Prateek Kedia
 What is ERP?
ERP facilitates company wide
integration of information systems,
covering all functional areas.

Performs core corporate activities and

increases customer service, augmenting
corporate image.
 Common problems a company
faces
Difficult to get timely & accurate information.
Heterogeneous Hardware & Software platforms &
practices.
Poor connectivity between different organizational
locations.
Sticking with obsolete technology.
Resist to change.
Lack of proven man-power to develop integrated
software.
 Why ERP?
For Management – to know what is happening in the
company
One solution for better Management
It saves time
To achieve cost control & low working capital
To implement latest technologies
To reduce the geographical gaps
To satisfy the customers with high expectations
To be Competitive for survival
 ERP Definition…

“ERP is a software solution that addresses the

enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions
under a common software platform”
 Customer Relationship mgmt.

Distribution Warehouse mgmt.

Financials Supply chain mgmt.

Human Resources ERP Package Accounting

Inventory Product Life Cycle

Evolution of ERP
 ERP is complex...

Not so Smart
Smart organizations
organizations

•Hire
• ERP in-house
Work consultants
 An ideal ERP system should…
integrate all the functions
integrate the systems running in all the locations
provide transparency of information using a single
data source across the organization
be responsive
be modular
be flexible
be easy to add functionalities
provide growth path
 Implementation Process

ERP system = Standard business processes

Modular nature

Small and medium scale firms adapt themselves according to ERP package.

Thorough analysis must be done before implementing an ERP.

Hardware/Communication cost estimation

Failure of most ERP packages is because of lack of thorough analysis.

Product Selection - Parameters
 Reputation of the ERP product
 No. of installations in the geographical vicinity
 Overall functionality integration
 Customization possibilities
 After sales support
 Your investment plan & budget
 Consultant’s track record
 Critical Success Factors for ERP
 The firm & optimistic approach of the Management
- on adapting the ERP product driven methodologies
- on customization
- on monetary commitments
 A dedicated Team
 Good Training
 Strict adherence to the Project schedules
 Right technical infra-structure
 Change Management
The SAP ERP application is an
integrated ERP software manufactured
by SAP AG that targets business
software requirements of midsize and
large organizations in all industries and
sectors. It allows for open communication
within and between all company functions.
 SAP AG is the Europe’s largest software enterprise.
SAP AG is the 3rd largest software company in the world.
It ranks after Microsoft and IBM in terms of market
capitalization.
It is also the largest business application software maker.
 SAP R/3
R/3 is a SAP integrated software solution for
client/server and distributed open systems.

R/3 meets the needs of a customer from small

companies to multi billion dollar companies.

In R/3 we have got three layer concept.

1st Layer: Presentation Layer
2nd Layer: Application Layer
3rd Layer: Database Layer
SAP R/3
 Presentation Layer
 It is the GUI component.
 Accepts input from the user.
Sends the requests to the application layer to be
processed.
 The application server sends the results back to
the GUI which then formats the output for display to
the user.
 Application Layer

 Interprets ABAP/4 programs and manage

input/output for them.

 It sits between presentation layer and

database layer.
 Major components of SAP
Advanced Planner and Optimizer (APO)
Business Information Warehouse (BIW)
Customer Relationship Management (CRM)
Supply chain Management(SCM)
Human Resource Management System (HRMS)
Product Life Cycle Management (PLM)
Exchange Infrastructure (XI)
Enterprise Portal (EP) and
SAP knowledge warehouse (KW)
“NetWeaver” a new technology platform
SAP
SAP Architecture
Some SAP Success stories
• Microsoft
• IBM
• GM
• Tata Group
• Reliance Group
• Jet Airlines
• And many more…
Thank you for your time...