Already

November 30

2010
COMPANY: A.R. Scientific & 4363 Surgical
Enterprises

NAME : RAHUL CHAUHAN

ROLL : 09

DEPARTMENT : INFORMATION MANAGEMENT

( 5TH TRIMESTER)

CONTENTS :
 1. ABOUT COMPANY.
2. ERP SELECTION.
3. ERP IMPLEMENTATION.
4. ADVANTAGES OF E.R.P
5. DIS ADVANTAGES OF E.R.P
6.OPPORTUNITIES IN E.R.P
7.CHALLENGES IN E.R.P IMPLEMENTATION

ABOUT COMPANY

Founded in 2005 and headquartered in Ahmadabad is a

electronic company specializing in the enterprise resource planning
(ERP) market for mid-sized companies . Independent of affiliation, it is
a new company but its growth rate is more than 32% its net worth is
more than 400 crore Rs.It is helpul to firms evaluate and select ERP
software, manages the implementation of the software, and facilitates
all related organizational changes to assure that each of its clients
realize the full business benefits of their ERP implementation. We
minimize ERP risk, accelerate implementation progress, and increase
the success and value of your ERP initiatives.

Three Key Steps to Effective ERP Software Implementations

 ERP Software Selection

 ERP Implementations
 ERP Organizational Chain Management
  We are independent and technology-agnostic
 Deep and broad expertise with over 100 different ERP systems
 Best practice and proprietary tools and methods
 International group of consultants prepared to work on-site with
your team
 Team with strong business, operational, and technology
backgrounds
 Focus on bringing measurable results and a positive ROI to your
ERP engagement
 We guarantee our work

ERP SELECTION

Using a proprietary ERP selection process, Panorama Consulting

Group helps clients find the ERP software that best fits their budget,
time-frame, industry, technological infrastructure and operational
needs.

Our clients benefit from the following advantages:

 Because Our company is independent and technologically
agnostic, we don’t push one software package or ERP vendor
over another to benefit our own bottom line.
 We take the time to get to know your business, understand your
operational model, get to know your people, and find the right fit
for your organization.
 We leverage a number of proprietary and proven tools designed
to help you minimize time, cost, and risk
 We guarantee our work and operate on a fixed pricing model.

We provide full ERP lifecycle consulting services, so our software

selection clients benefit from our hands-on
 ADVANTAGES OF E.R.P

In the absence of an ERP system, a large manufacturer may find itself with many software
applications that cannot communicate or interface effectively with one another. Tasks that need
to interface with one another may involve:

 Integration among different functional areas to ensure proper communication,

productivity and efficiency
 Design engineering (how to best make the product)
 Order tracking, from acceptance through fulfillment
 The revenue cycle, from invoice through cash receipt
 Managing inter-dependencies of complex processes bill of materials
 Tracking the three-way match between purchase orders (what was ordered), inventory
receipts (what arrived), and costing (what the vendor invoiced)
 The accounting for all of these tasks: tracking the revenue, cost and profit at a granular
level.
 DISADVANTAGES OF E.R.P

Problems with ERP systems are mainly due to inadequate investment in ongoing training for the
involved IT personnel - including those implementing and testing changes - as well as a lack of
corporate policy protecting the integrity of the data in the ERP systems and the ways in which it
is used.

 Once a system is established, switching costs are very high for any one of the partners
(reducing flexibility and strategic control at the corporate level).
 The blurring of company boundaries can cause problems in accountability, lines of
responsibility, and employee morale.
 Resistance in sharing sensitive internal information between departments can reduce the
effectiveness of the software.
 Some large organizations may have multiple departments with separate, independent
resources, missions, chains-of-command, etc, and consolidation into a single enterprise
may yield limited benefits.
 The system may be too complex measured against the actual needs of the customers.
 ERP Systems centralize the data in one place. This can increase the risk of loss of
sensitive information in the event of a security breach.
 Customization of the ERP software is limited.
 Re-engineering of business processes to fit the "industry standard" prescribed by the ERP
system may lead to a loss of competitive advantage.
 ERP systems can be very expensive (This has led to a new category of "ERP light"
solutions)
 ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and
business process.
 How did ERP penetrate on a vast scale in India?
The Y2K problem and other diminishing opportunities of IT professionals
were seen as a big challenge to the IT market. This was not only the case
in India but else elsewhere in the globe. This proved to be a biggest
challenge to the nation who were banking (and are still) on IT skills for
development aspects (individual, economical and overall). The slump of the
IT sector would add drudgery and smash the hopes of so many individuals
and companies.
This problem in itself helped to get another important solution. Firstly this
paved way for more prospects in ERP market. The demand and supply
gradually transformed from general to enterprise resource market. Once
this got stabilized there was no looking back. It was well evident that ERP
market could boom and give the necessary impetus to stakeholders.
However this did not mean that mediocre could survive in the market.
There was demand only for top notch services and professionals. This
naturally led to improvement in the quality of services offered. Such an
improvement increased the competition among various players. The end
user was getting assured that he would be receiving the best services for
the money invested. Case ERP in India got more and more competitive. The ERP implementation in India demanded
more than the custom erp India module. Sudden change
Firstly they are bound to increase the scope of ERP in enterprise
operations. As discussed earlier ERP was initially restricted to back office
functions and later spread its wings to all the operations in the enterprise.
This naturally meant that the ERP manufacturers and vendors had to
increase the functionalities and scope of the application. There are practical
difficulties when it comes to this issue. The ERP experts will definitely be
able to restructure the ERP systems with the help of resources and
expertise available with them. However doing it all on sudden is a difficult
task. They must have been working with different requirements till then.
Compelling them to suddenly change will land things in a mess because
there will be lot of confusions for the vendors, manufacturers and end-
users. The unrealistic deadlines and time pressures further add agony to
this menace.
Technical factors
Secondly ERP in the nation calls for a restructuring in the technical
aspects. This is definitely appreciable. The fate of the businesses that have
already implemented and deployed ERP remains a big question mark. No
doubt change is inevitable and an element for growth. However it would be
next only to impossible to change even before the current change has
stabilized in the market. This is advantageous for the companies that go for
ERP at the first instance .But when it comes to companies that already run
successful ERP systems they have to stick on to the technical changes or
ship out from the market. They can decide to stick on to change but it will
cost them heavily. They can work on to find some replacement technology
rather than going for an all round change. The effectiveness of the
replacement is an important issue.
Finance
This is another important determinant of ERP market in India. Some bigger
companies still hesitate to invest in ERP due to the exorbitant costs. It is
indeed encouraging to find that a vast majority of them have realized its
benefits and have determined to go for it. However some of them are
keeping quiet due to the risks involved besides the unforeseen expenses
and losses.
Conclusion
The ERP market in India is definitely promising. However India has got a
long way to go when it comes to Improving ERP in terms of technology,
scope and applicability in terms of opportunities and venues, penetration in
terms of sectors like education, employment and the state run offices.
ERP implementation is always a tough job for the organizations. To get
successful implementation organizations need to be very careful. When
SMEs think about ERP implementation, they identify the need of an ERP
system. They prepare pre-implementation strategy for enterprise software.
This strategy involves identification of business needs, budgeting for the
procurement of ERP software and services, evaluation of various ERP
software to suite its business process. After finalizing the enterprise
software they start the implementation and finally adopt the ERP system as
an organization wide solution. The major challenges of an ERP
implementation for an organization are:

Selection of ERP software:

This is a very critical decision that an organization needs to take. However

it is vital to consider the size of the business operations, the projected
growth in the years to come, geographical spread, nature of business and
investment figure
It shall have aggressive schedule and proven path for implementation.

Taking a time more than a year takes its seriousness and positive feeling of
getting changed for for better business away and leads no where.

Temporary Change in the business shall not effect the implementation of

erp and its software.

During implementation of erp time,resources and work shall be taken into

consideration and plan
shall be laid down for it.

So erp implementation can be divided into parts like different departments

and they can be integrated at the later stage .This gives the advantage of
seeing the results in one department and hence resources can be
effectively utilized by the next departments.