LPU

ASSIGNMENT
NO4
OF
ERP

SUBMITTED TO SUBMITTED BY
AMANDEEP RONNIE
E3803B30
BCA-MCA

Part A
 1. Compare and contrast In-house Implementation along
with End Users with some real life examples?
Ans 1
Developing an ERP package is a very complex and time-
consuming process, which needs a lot of skilled manpower and
other resources. Many companies have personnel in their IT/IS
departments who can absorb the necessary knowledge and
who have experience in developing sophisticated systems. The
problem is that such specialized computer work is not the main
business of these companies. They should be directing all their
available resources into improving their own products or
services so that they can remain competitive, serve their
customers better and continue to grow. Besides having a very
good knowledge of the product, the people who are to
implement the ERP system should possess the following skills:
.
• Knowledge of how to organize and run a project of this
magnitude: This calls
for good organization skills, project management skills,
team management skills and knowledge of scientific
methods of software project management.

• . Enough experience in handling problems and issues that

arise during the implementation: No implementation will
be a smooth process; there will be problems, cost
overruns, time overruns and so on. Knowing what to do in
 these situations is vital for the success of the project.

• . Good people skills: Any ERP implementation will face

resistance from the employees. The resistance could be
due to ignorance about the product, fear of
unemployment, fear of training, fear of technology and so
on. So it is very important that the people in the
implementation team are very good diplomats, adept at
diffusing crisis situations.
• Good leadership skills: ERP implementation will involve
dealing with a lot of
people and good leadership and communication skills are
very effective.

• Excellent training skills: Every ERP project involves

considerable amount of training at various levels and in
various details. There will be a familiarization programs
for all the employees, be executive programs for the top
management, functional training for the implementation
team members and end-user training.

2. Being a manager of an upcoming organization what

different ERP implementation methodologies would you
adopt for SME’s in India?
Ans 2

• Brings Global e Market at your door step

 • Generates Global Business Opportunities for you, even when
you are sleeping / holidaying
• Automatically publishes your Company Details on major
Business & Trade Directories
• Connects your Company to Targeted Business Companies
• Enables search and display of your Products & Company
Details in 16 international languages
• Facilitates Request for quotes from manufacturers,
distributors, and retailers
• Makes you part of Over 1,700,000 worldwide listings
• Gives exposure to your Company in over 177 countries

3. Define steps you would follow to achieve the

manufacturing target provided to you using ERP
Ans 3

Many organizations do not have sufficient internal skills to

implement an ERP project. This results in many organizations
offering consulting services for ERP implementation. Typically, a
consulting team is responsible for the entire ERP implementation
including

1. selecting
2. planning
3. training
4. testing
5. implementation
6. delivery

of any customized modules. Examples of customization includes

creating processes and reports for compliance; additional product
training; creation of process triggers and workflow; specialist
advice to improve how the ERP is used in the business; system
optimization; and assistance writing reports, complex data
extracts or implementing Business Intelligence.
For most mid-sized companies, the cost of the implementation
will range from around the list price of the ERP user licenses to up
to twice this amount (depending on the level of customization
required). Large companies, and especially those with multiple
sites or countries, will often spend considerably more on the
implementation than the cost of the user licenses—three to five
times more is not uncommon for a multi-site implementation

Unlike most single-purpose applications, ERP packages have

historically included full source code and shipped with vendor-
supported team IDEs for customizing and extending the delivered
code. During the early years of ERP the guarantee of mature tools
and support for extensive customization was an important sales
argument when a potential customer was considering developing
their own unique solution in-house, or assembling a cross-
functional solution by integrating multiple "best of breed"
applications

Part B

4. Predict the future of ERP in India in coming decade?

Ans 4

Necessity of ERP

Intense global competition and mass customisation have resulted

in the need for having better systems that can provide quick and
reliable information across the complete value stream.

Enterprise Resource Planning (ERP) systems became synonymous

with competitive advantage, particularly through the 1990s. ERP
systems replace isolated information with a single, packaged
software solution that integrates all traditional enterprise
management functions like financials, human resources, and
manufacturing & logistics. Started with an IT application to handle
the inventory problems of enterprise in 1960, the ERP systems
brought a common information database which helped business
functions of the organisation to shift their thinking to an
organisation or enterprise-focus rather than a departmental-
focus.

Many companies have implemented ERP applications; either

developed in-house or off-the-shelf products from ERP vendors,
with a hope to become more responsive to the customer needs
and enhance business.

Investment in ERP

Even though ERP systems resolved the internal issues within an

enterprise, the industry did not really perceive their complete
benefits, as these systems were blind towards understanding the
parameters outside the four walls of the enterprise. There is a
necessity to have application over the ERP systems so as to
increase the value of the core ERP systems. Vendors started
building strategic applications around ERP, and called them
Extended ERP or ERPII, which brought a dynamic new way of
doing business by having real-time collaboration with partners,
suppliers and customers. This enabled enterprises to react quickly
to changes in the market place and become more agile.
Applications like supply chain management (SCM), supplier
relationship management (SRM), customer relationship
management (CRM), and product life-cycle management (PLM)
helped in collaborative planning and scheduling, collaborative
forecasting, collaborative product development and so on. The
complete value chain—supplier-manufacturer-customer—has
become more dynamic and responsive to the needs of end-
customers.

Most ERP vendors have geared up to the needs of the customers

by increasing their product breadth and providing a complete
end-to-end solution to meet the customers’ demands.

Functional gaps
Even though packaged ERP systems provide off-the-shelf best
practice solutions, they may not provide 100 percent support to
all the features required for all the verticals. Also, there would be
some regulatory requirements that need to be addressed in the
applications as and when they are introduced by the regional or
global bodies/authorities like new VAT regulations for Indian
industries, the SOX compliance and so on. In addition, the
customers will have some practices which they desire to retain,
and hence customise the packaged ERP applications to their
needs.

Complexity of integration

Most of the customers presently have disparate applications on

many technology platforms built with different tools, purchased
from various vendors, and not working seamlessly. One of the
major challenges of the IT managers is to make these applications
integrate well.

A study by AMR indicates that a ‘demand-driven enterprise’ can

further drive revenues and profitability; as those are based on
aligning processes to sense and shape demand, and respond
portably to a demand signal. By improving the critical business
processes that increase responsiveness, speed, and agility, the
Demand Driven Supply Network (DDSN) can directly impact the
key drivers of financial performance: faster growth, higher
profitability, and improved capitalisation.

Service Oriented Architecture

SOA is an approach to designing, implementing, and deploying

information systems such that the system is created from
components implementing discrete business functions. These
components called ‘services’ can be distributed across
geography, and can be reconfigured into new business processes
as needed. The services are ‘loosely coupled’ allowing for more
flexibility than older technologies with respect to re-using and re-
combining them to create new business functions both within and
across an organisation.
Vendor consolidation

Another important market trend that will be seen in late 2000 is

the vendor consolidation. This consolidation among mid-market
vendors will continue as per Forrester Research. Providing a
strategic product direction will become important to the vendors
to increase the comfort level for their existing customers and new
accounts.

5. Web enabling and snapshots are the upcoming terms in

ERP. Explain them with the help of an example?

Ans 5

Web enabled erp services have helped to remove many

drawbacks of the earlier applications. This has gained momentum
as it has made ERP function more meaningful and dynamic with
the latest inclusions.

Dependability

Web enabled ERP services help the companies to keep track on

what is going on. Since the entire system comes under the
purview of internet it is not possible for the employees to engage
in any sort of misappropriations funds or otherwise

Convenience in reaching

Formerly when customers had to know the status of their order or

any other query he must communicate to the marketing
department. They will inurn speak to the concerned department
trace the product or get clarifications in the case of technical
query or any another information and then get back to them after
confirming the required and relevant details
Easy to use

Web enabled applications makes the job of the employees easy.

They don't have to rely on others before taking a decision for
every petty issue. Infact it has helped them to work efficiently and
in a relaxed manner.

Integrating technology and manual Data in public domain

Web enabled applications have greatly reduced the limitations of

manual data. These manual data became easily accessible after
computerization and enterprise resource planning.

Future
Web enabled erp have been citied as one of the important reason
for ERP's dominance in the days to come. This system needs more
development apart from the present changes.