ENTERPRISE RESOURCE

PLANNING (ERP)

ERP combines all departments and functions across

the company into a single, integrated software
program that runs of a single database so that the
various departments can more easily share
information and communicate with each other.
WHAT IS ERP ?
INTER!TI"N "# $!RI"%& #%N'TI"N&
IN !N "R!NI&!TI"N

The term ERP was coined in ())*, but its roots date to
the ()+*s. ,ac- then, the concept applied to inventory
management and control in the manufacturing sector.
&oftware engineers created programs to monitor
inventory, reconcile balances, and report on status. ,y
the ().*s, this had evolved into /aterial
Re0uirements Planning 1/RP2 systems for scheduling
production processes.

In the ()3*s, /RP grew to encompass more

manufacturing processes, prompting many to call it
/RP4II or /anufacturing Resource Planning. ,y ())*,
these systems had e5panded beyond inventory control
and other operational processes to other bac-4o6ce
functions li-e accounting and human resources, setting
the stage for ERP as we7ve come to -now it.
EVOLUTION OF ERP

Reduction of lead4time.

"n4time shipment.

Reduction in cycle time.

,etter consumer satisfaction.

Improved supplier performance.

Increased 8e5ibility.

Improved resource utility.

Improved information accuracy and

decision4ma-ing capability.
REASONS FOR GROWTH OF ERP
MARKET

,usiness Integration.

#le5ibility.

,etter !nalysis and Planning 'apabilities.

%se of 9atest Technology.

Reduced Response Time.

ADVANTAGES OF ERP

!dopting ERP systems can be expensive.

$endor should be good and his pac-age

should be es! s"i!e# for the company:s
needs.

Re0uires thorough p$%nnin& and e5ecution.

Re4engineering business processes to ;t the
ERP system may damage competitiveness
or divert focus from critical activities.

End user !'%inin& important.

DISADVANTAGES OF ERP
(. The p%'!i(ip%!i)n of users is very important for
successful implementation of ERP pro<ects = &o,
e5haustive user training and simple user interface
might be critical. ,ut ERP systems are generally
di6cult to use 1and learn2.
>. /anagement 'ommitment = to overcome
organi?ational politics.
@. etting a Pro<ect /anager from the ,usiness.
A. /igration of Bata.
C. "nce an ERP systems is implemented it becomes a
single vendor loc-4in for further upgrades,
customi?ations etc.
CHALLENGES IN IMPLEMENTING
ERP S*STEMS
ENTERPRISE
RESOURCE PLANNING
/a<or vendors
MA+OR VENDORS
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EVOLUTION OF
SAP

In ().@, the ;rst commercial product was launched. It was called &!P
RD)3,E3F and ofered a common system for multiple tas-s. This permitted
the use of a centrali?ed data storage, improving the maintenance of data.

In ().+, &!P mbG was founded, and moved its head0uarters the
following year to Halldorf, ermany. The company7s o6cial name became
SAP AG after the >**C .

Then, in ().), &!P launched &!P RD>, e5panding the capabilities of the
system to other areas, such as material management and production
planning.

In ()3(, &!P brought a re4designed product to mar-et. Gowever, &!P RD>

did not improve until the period between ()3C and ())*.

&!P released the new &!P RD@ in ())>. &!P developed and released
several versions of RD@ through ())C.

,y the mid4())*s, &!P followed the trend from mainframe computing to

clientDserver architectures. The development of &!P:s internet strategy
with my&!P.com redesigned the concept of business processes
1integration via Internet2.
A'e%s pe'!%inin& !)
ERPEs -"n(!i)nin&
It has ac0uired more than C*4 CC ;rms, in the
areas of ,ehavioral target mar-eting, 'ontingent
labor and services, Predictive analytics, Retail,
Insurance solutions, Inventory optimi?ation, 'R/
for sports and entertainment promoters, &upplier
networ-, /obile asset management, Electronic
performance support technologies, &ocial media
analytics, Talent /anagement, @B visuali?ation,
,>, e4'ommerce, &ecurity software, Bisclosure
/anagement, Batabase, middleware, mobile
software and many other.
SAPEs
M)#"$es
&!P ERP is one of ;ve enterprise applications in
&!P7s ,usiness &uite. The other four applications
areI
J 'ustomer Relationship /anagement 1'R/2 =
helps companies ac0uire and retain customers,
gain mar-eting and customer insight
J Product 9ifecycle /anagement 1P9/2 = helps
manufacturers with product4related information
J &upply 'hain /anagement 1&'/2 = helps
companies with the process of resourcing its
manufacturing and service processes
J &upplier Relationship /anagement 1&R/2 =
enables companies to procure from suppliers
App$i(%!i)ns
GPKK

httpIDD
www.sap4customers.comDvideoD(CC)Dhp4on4sap4afaria4customer4
testimonial4video4english

MA+OR PLA*ERS
ORACLE
CORPORATION
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The ,ene;tsI Increased /obility 9eads to
!dministrative E6ciencies

The /aa&@+* solution 1ERP $endor2 has enabled #lip-art to

successfully increase e6ciencies with eMart on /aa&@+*4
protected mobile devices. !utomation reduces
administrative burden. Replacing its time4consuming
manual upload process with the automated system.

!dditionally, mobile device management enables

centrali?ation of IT resources. /aa&@+* enables IT to
monitor all of its devices from a single console. !s a result,
#lip-art has been able to centrali?e its IT team, eliminating
the need for designated IT resources in each of its (@
delivery hubs.

#lip-art:s IT team can remotely deploy updates to the e4

Mart application, ensuring that all delivery e5ecutives are
utili?ing the most current version.

,ased on its success to date with the mobile roll4out of the

;rst 3C* devices, #lip-art plans to e5tend its mobile reach
to include >***N devices in the near future.
M%2in#'% L M%2in#'%
In >**., /ahindra O /ahindra loo-ed at creating a common
IT platform for common processes across the roup. It was
running several pro<ects on multiple instances with no
standardi?ation of processes, systems or data related to
customers, partners, vendors, employees or even products.
Hith this ob<ective in mind, the roup implemented &!P
E'' +.*. Buring the implementation phase which lasted
eight months, the IT team implemented harmoni?ed
processes for GR, ;nance, accounts and procurement,
employee and manager self4service, and logistics processes
for the manufacturing and services companies within the
roup.
,esides implementing /aster Bata /anagement and
overnance, Ris- and 'ompliance 1R'2, the team loo-ed
at integrating the overall system with other systems such
as &!P &'/ and dealer portals. The most important change
in the IT infrastructure was that all individual &!P instances
that previously ran on separate servers were consolidated
into a single &!P E'' +.* instance.
ERP M VIEW OF
ACADEMICIANS L FUTURE
TRENDS
ERP I/P9E/ENT!TI"NI !N INTER!TI$E
/ETG"B"9"P
RE&E!R'G P!PER ,P

A#"$$%2 A$6M"#i/i&2
PhB 'andidate, %niversity of ,radford, %M

P')-ess)' M)2%/e# N%i'i
Birector of the European 'entre for TL/, %niversity of ,radford, %M


D'7 M%Oe# A$6M%s2%'i
Bepartment of Information &ystems,'ollege of 'omputer and
Information &ciences,
Ming &aud %niversity, Riyadh, &audi !rabia.
.
!,&TR!'T
Though ERP systems are being widely implemented in many
organisations, there is a lac- of uni;ed
implementation methodologies that re8ect the essential critical
factors of success. Research developing such
methodologies has been scarce. This paper ;lls this gap by
proposing an integrative methodology based on
an e5tensive review of the essential critical factors of success.
#ollowing the generic proposed methodology
and framewor-, it is argued that success can be yielded in
implementing ERP systems.

/any companies are radically changing their
information technology strategies to maintain a
competitive advantage, become more responsive to
change mar-ets, and deliver better service at lower
cost by purchasing of4the4shelf integrated ERP
software instead of developing IT systems in4house.
This paper gives a framewor- for ERP
implementation based on review factors and
essential elements that contribute to the success in
ERP implementation in an organi?ation.
INTR"B%'TI"N

'hange management

Training

Pro<ect $ision and ob<ective

Top management supportD'ommitment

Giring consultants

#inal preparationDTesting

o live
#actors for success of ERP
implementation

ERP is not much a technological e5ercise as it is an

organisational revolution.

!lmost half of ERP pro<ects fail to achieve e5pected

ben;ts because manager underestimate the eforts
involved in change management.

Enterprises are generally advised to start planning

ERP system implementation at the strategic
level1top management2 before proceeding to
technical, software and hardware levels.

Top management support has been identi;ed as the

most important and crucial success factor in ERP
implementation pro<ects.
MEP P"INT& #R"/ TGE RE&E!R'G
P!PER

FASTER IMPLEMENTATION METHODOLOGIESP

Implementation process often ta-es a long time
to complete and by that time the costs may
increase.

Thus to ma-e implementation of pac-age more
convenient , the ERP vendors are searching for
faster methodologies for implementation. #or eg.
!ccelerated &!P1!&!P2 is program introduced by
&!P.
FUTURE TRENDS
NEH ,%&INE&& &E/ENT&
!fter establishing in business environment, ERP
vendors are trying to deliver specialised variants
of their products to other industries such as
government, health care , ;nancial services, etc.
The ERP modules are being implemented in
diverse areas such as demand forecasting of sales
and mar-eting.


'ompanies are wor-ing in an uncertain
environment. Thus implementing e5pensive
ERP system may be di6cult .
Thus companies may opt out of ERP
investments and focus more on re4
engineering processes and providing better
training to employees to get more out of
their current systems
L)1 inves!/en!s )n ERP

ERP system users are now trying to ;gure

out how to design and implement their ERP
system for the cloud.
#or e.g. &!P released ,usiness ,y
Besignand "racle is wor-ing to develop its
#usion 'loud ERP.
'9"%B ERP

&ocial ERP

!nalytics for ERP

ERP !pp &tores

S)/e /)'e -"!"'e !'en#s
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