PHASES OF ERP IMPLEMENTATION

• An information system or process integrating all

In the ever growing business environment the following demands

o Aggressive Cost control initiatives

o Need to analyze costs / revenues on a product or customer basis

o Flexibility to respond to changing business requirements

o More informed management decision making

o Changes in ways of doing business

o Difficulty in getting accurate data, timely information and improper

They are:

Management Information Systems (MIS)

Integrated Information Systems (IIS)

Executive Information Systems (EIS)

Corporate Information Systems (CIS)

Enterprise Wide Systems (EWS)

Material Resource Planning (MRP)

Manufacturing Resource Planning (MRP II)

Money Resource Planning (MRP III)

OUT OF ABOVE SYSTEMS ERP EVOLVED AS THE LATEST SYSTEM FOR ALL
BUSINES SYSTEMS
• Evolution Of ERP
• ERP (Enterprise Resource Planning) is the evolution
of Manufacturing Requirements Planning (MRP) II.
From business perspective, ERP has expanded
from coordination of manufacturing processes to
the integration of enterprise-wide backend
processes. From technological aspect, ERP has
evolved from legacy implementation to more
flexible tiered client-server architectur
 Benefits of ERP :
• Increased control of invoicing and payment processing and thereby boosting
productivity and eliminating reliance on computer personnel for these
operations.
• Reduce paper documents by providing on-line formats for quickly entering and
retrieving information.
• Improves timeliness of information by permitting, posting daily instead of
monthly.
• Greater accuracy of information with detailed content, better presentation.
• Improved Cost Control
• Faster response and follow up on customers
• More efficient cash collection, say, material reduction in delay in payments by
customers.
• Better monitoring and quicker resolution of queries.
• Enables quick response to change in business operations and market conditions.
• Helps to achieve competitive advantage by improving business process
• Improves supply-demand linkage with remote
locations and branches in different countries.
• Provides a unified customer database usable by all
applications.
• Improves International operations by supporting a
variety of tax structures, invoicing schemes,
multiple currencies, multiple period accounting
and languages
• Improves information access and management
throughout the enterprise.
• Provides solution for problems like Y2K and Single
Monitory Unit(SMU)
• Business Process Re-engineering is a pre-requisite for
going ahead with a powerful planning tool like ERP. BPR is
one of the fundamental steps undertaken prior to ERP
implementation. Business process reengineering analyses
and suggests the structural changes. This is regarded to
be very important because it helps in knowing how the
organization should be customized in order to become
ERP friendly. BPR is inevitable not only for ERP but as far
as any business process is concerned. BPR becomes the
first step in the process of ERP implementation. Business
process reengineering is taken to conduct feasibility study
and other restructuring exercises. Nothing can be done to
prevent change. The best way to manage change is to
adopt it.
• Time and again it has been proved that imposing
change of any magnitude all on a sudden is not the
proper way. There needs to be a proper method to
bring about it. Business process reengineering is one
scientific study that helps organizations largely to
analyse the viability of not only ERP but any other
dynamic change. BPR ERP are not watertight
compartments. An in depth BPR study has to be done
before taking up ERP.
• Business Process Re-engineering brings out
deficiencies of the existing system and attempts to
maximize productivity through restructuring and re-
organizing the human resources as well as divisions
and departments in the organisation
• Business Process Engineering evolves the following
Steps:
– Study the current system
– Design and develop new systems
– Define Process, organisation structure and procedure
– Develop customize the software
– Train people
– Implement new system
 ANS 5:
• A.) Customer relationship management (CRM) is a widely-implemented strategy for
managing a company’s interactions with customers, clients and sales prospects. It
involves using technology to organize, automate, and synchronize business
processes—principally sales activities, but also those for marketing, customer
service, and technical support. The overall goals are to find, attract, and win new
clients, nurture and retain those the company already has, entice former clients
back into the fold, and reduce the costs of marketing and client service. Customer
relationship management describes a company-wide business strategy including
customer-interface departments as well as other departments
•  
• To be and remain competitive, today’s businesses require the ability to have a full
and up-to-date view of their business—whenever they need it. To achieve this, you
need an integrated business environment and automated processes that can
consolidate the data from your ERP and CRM systems with your other business
applications, quickly and simply.
• Integrating your ERP with your CRM, and integrating ERP and CRM with your
company’s other internal systems and with systems external to your business may
help you to extend functionality by automating business processes such as
•  Automating manual communication with your trading
partners
•  Connecting your e-Commerce site to your ERP
•  Handling service requests via the Web
•  Allowing your customers to submit their orders via the
Web
•  Facilitating EDI transactions
•  Sharing data across systems and/or combining
processes
•  Consolidating a chart of accounts
•  Synchronizing your company’s data across multiple sites
•  Logging your incoming email
•  
• C.) Radio-frequency identification (RFID) is a technology that uses communication
via radio waves to exchange data between a reader and an electronic tag attached
to an object, for the purpose of identification and tracking. Some tags can be read
from several meters away and beyond the line of sight of the reader. The
application of bulk reading enables an almost parallel reading of tags.
• radio frequency identification (RFID) tags, which provide an efficient solution for
regulatory and customer food/product security requirements, particularly in high
volume environments.
• With RFID, portals can be positioned so that a forklift driver could pass through
with a full pallet of mixed items, and all of the RFID labels could be read
simultaneously and discretely.
• Large organizations like Wal-Mart and the U.S. Department of Defense, which deal
with millions of pallets of material a year, foresee large savings in labour and
increased data accuracy, by employing RFID technology. Driven backwards through
the supply chain, primarily by large retailers, RFID will eventually become a
universal, entrenched part of the physical buyer/seller transactions in industries
where large volume transactions exist, in addition to a regulatory environment
where issues of food/product security, lot traceability and real-time data accuracy
are paramount. The relatively high cost of RFID labels and the lack of
standardization of the format are still obstacles, but RFID will become a standard
in these industries over time
• D.) Electronic commerce is the paperless exchange of business
information using electronic data interchange (EDI), e-mail, electronic
bulletin boards, fax transmissions, and electronic funds transfer. It
refers to Internet shopping, online stock and bond transactions, the
downloading and selling of “soft merchandise” (software, documents,
graphics, music, etc.), and business-to-business transactions.
• The concept of e-commerce is all about using the Internet to do
business better and faster. It is about giving customers controlled
access to your computer systems and letting people serve themselves.
It is about committing your company to a serious online effort and
integrating your Web site with the heart of your business. If you do
that, you will see results!
• The Internet’s role in business can be compared to that of the
telephone. It is a way for people to communicate with each other. It is
also a way for a consumer to communicate with a company’s computer
systems without human intervention. In fact, the Internet is a
communication medium like the many others we use in business every
day
• Some common applications related to electronic commerce are the following:
• Email
• Enterprise content management
• Enterprise Content Management (ECM) is a formalized means of organizing
and storing an organization's documents, and other content, that relate to the
organization's processes. The term encompasses strategies, methods, and
tools used throughout the lifecycle of the content
• Instant messaging
• Newsgroups
• Online shopping and order tracking
• Online banking
• Online office suites
• Domestic and international payment systems
• Shopping cart software
• Teleconferencing
• Electronic tickets
• Group Buying
 ANS 3:
• four major phases namely
• 1) Detailed discussions,
• 2) Design & Customisation,
• 3) Implementation
• 4) Production.
• Detailed Discussion Phase:
• Task :-
– Project initialization
– Evaluation of current processes, business practices
– Set-up project organization
• Deliverables :-
– Accepted norms and Conditions
– Project Organisation chart
– Identity work teams
• Design and customisation Phase:
• Task :-
– Map organisation
– Map business process
– Define functions and processes
– ERP software configuration and
– Build ERP system modifications.
• Deliverables :-
– Organisation structure
– Design specification
– Process Flow Diagrams
– Function Model
– Configuration recording
– System modification.
• Implementation Phase:
•
Task :-
– Create go-live plan and documentation
– Integrate applications
– Test the ERP customisation
– Train users
•
Deliverables :-
– Testing environment report
– Customisation Test Report
– Implementation report
• Production Phase:
• Task:-
– Run Trial Production
– Maintain Systems
• Deliverables:-
– Reconciliation reports
– Conversion Plan Execution