ERP – Enterprise Resource Planning
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ERP – Enterprise Resource Planning


ERP is a way to integrate the data and processes of an organization into one single system with modules that support core business areas such as manufacturing, distribution, financials and human resources.

ERP allows managers from most or all departments to look vertically and horizontally across the organization to see what they must see (information) to be productive in their managerial roles.

ERP captures data from historical activity and current operations . That data can be transformed into information that, along with external information, is useful in planning and controlling operations, and in developing business strategies.

ERP is evolving into a Multi-Module Application Software Package that automates inter-organizational business processes across the supply chain which involve business partners, suppliers, customers, and more.

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Enterprise Resource Planning

Taruna Kalra 0871364408 Ms lisha

What Is ERP?

Enterprise Resource Planning (ERP) is a business management system that integrates all facets of the business, including planning, manufacturing, sales and marketing

CRM - Customer Relationship Management

Is a customer-focused business strategy designed to optimize revenue, profitability, and customer loyalty.
Gives most value to customers by tightly integrating their sales, marketing and support efforts.

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Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources.
It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
How Will ERP Help in business
 Integrate financial information—
 As the CEO tries to understand the company’s overall performance, he may find many different versions of the truth. Finance has its own set of revenue numbers, sales has another version, and the different business units may each have their own version of how much they contributed to revenues. ERP creates a single version of the truth that cannot be questioned because everyone is using the same system.
 Integrate customer order information—
 ERP systems can become the place where the customer order lives from the time a customer service representative receives it until the loading dock ships the merchandise and finance sends an invoice. By having this information in one software system, rather than scattered among many different systems that can’t communicate with one another, companies can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time.
 Standardize and speed up manufacturing—
 Manufacturing companies—especially those with an appetite for mergers and acquisitions—often find that multiple business units across the company make the same widget using different methods and computer systems. ERP systems come with standard methods for automating some of the steps of a manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count.
The ERP application
• An integrated suite of business applications, which..
– Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money.
– Enables corporates to readily change their processes to adapt to the ever changing business scenario.
– Provides expertise in industry specific business processes.
Business process benefits clients expect from an ERP
• Integrated Supply Chain Management
• Leverage purchasing and vendor management
• Order cycle time/ customer service improvement
• Inventory reductions
• Reduced information systems costs on an ongoing basis
• Improved business management through worldwide integration and information
What results can be expected from an “ERP culture”?
 Reduced working capital requirements
 Improved customer service
 Improved direct labor productivity
 Reduced purchase costs
 Reduced obsolescence
 Reduced overtime
 Having the figures to make decisions
 Having accountability throughout the organization
 Improved quality of life
ERP example
TISCO(Tata Iron and steel company Limited)
The steel majors prompt response to market change and shifting to customer orientation from product coupled with the implementation of ERP will speak more than volumes of their success for the timely action.
The company decided to implement SAP ERP 3 after careful consideration for they matched best with their requirements.
ERP example
Problems in TISCO due to which there was a need for an ERP:
Not customer friendly
Less attention to customer demands
Outdated systems
Operations were complex and were full of errors
ERP example
The business process was divided into two main segments. The core functions were denoted to be major ones. Similarly the supporting functions were named minor ones.
A plan of action on the proposed ERP's impact was drafted depicting their relation to one another and to the business process. All of them were made to bear in mind the fact that ERP's implementation was imperative
ERP example
The company took all efforts to ensure that the change did not produce any sort of resentment in the organization. This was done by educating everyone on the need and desirability of change.
ERP example
Outcome by using ERP in TISCO:
Effective handling and speed delivery
System were more user friendly and less complex
Drastic fall in amount owed to creditors
Improved quality of work,decreased time rquired therfore increased productivity.
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Enterprise Resource Planning software, or ERP, doesn't live up to its acronym. Forget about planning—it doesn't do that—and forget about resource, a throwaway term. But remember the enterprise part. This is ERP's true ambition. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs.
That is a tall order, building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse. Each of those departments typically has its own computer system, each optimized for the particular ways that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other.
That integrated approach can have a tremendous payback if companies install the software correctly. Take a customer order, for example. Typically, when a customer places an order, that order begins a mostly paper-based journey from in-basket to in-basket around the company, often being keyed and re-keyed into different departments' computer systems along the way. All that lounging around in in-baskets causes delays and lost orders, and all the keying into different computer systems invites errors. Meanwhile, no one in the company truly knows what the status of the order is at any given point because there is no way for the finance department, for example, to get into the warehouse's computer system to see whether the item has been shipped.
ERP automates the tasks involved in performing a business process—such as order fulfillment, which involves taking an order from a customer, shipping it and billing for it. With ERP, when a customer service representative takes an order from a customer, he or she has all the information necessary to complete the order (the customer's credit rating and order history, the company's inventory levels and the shipping dock's trucking schedule). Everyone else in the company sees the same computer screen and has access to the single database that holds the customer's new order. When one department finishes with the order it is automatically routed via the ERP system to the next department. To find out where the order is at any point, one need only log into the ERP system and track it down. With luck, the order process moves like a bolt of lightning through the organization, and customers get their orders faster and with fewer errors than before. ERP can apply that same magic
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Purpose of the Research
The purpose of this research is to investigate which ERP applications are implemented and taught as part of university business curricula and what challenges are faced throughout such implementation.

The integration of information technologies into the business school curricula in the past concentrated on imparting IT skills to students and/or using it as a technology-based aid for improving the teaching and learning effectiveness and efficiencies (Seethamraju, 2007).
The academic literature discusses that using ERP systems to teach cross-functional integration is well founded. Additionally, the importance of ERP education has been recognized by many researchers, including Watson and Schneider (1999), Joseph and George (2002), and Selen (2001). The methodology to teach ERP to undergraduate students has also been investigated by researchers, such as Becerra-Fernandez, Murphy, and Simon (2000) and Guthrie and Guthrie (2000).
This paper will address which ERP software is used for teaching concepts of business process integration, which applications are most frequently taught, and which issues were most challenging for the instructors teaching these classes.

ERP Software Taught in Universities
The trend towards ERP systems in large and mid-sized businesses has a significant impact on Information Systems career paths. Consequently, more and more universities are beginning to implement some type of ERP software into specific business degree plans. Two of the main ERP software vendors, SAP R/3 and Oracle, have developed university alliance programs to help universities incorporate ERP software into their curricula (Rosemann and Watson, 2002). Within the last few years, Oracle has acquired PeopleSoft and JD Edwards, two other major ERP vendors (Forrester Research, 2005).
According to a 2006 study by Gartner Dataquest, Oracle was ranked the #1 database program, having 47.1% market share, with $7.5 billion in revenues (2006). Because of statistics like these, many universities have decided to integrate Oracle training and certification into certain business degree plans.
Oracle has developed a program that helps prepare students for IT careers while providing instructors with world-class training and professional development opportunities. Oracle Academy (also known as the Oracle Academic Initiative) grants colleges and universities with software, curriculum, and certification resources needed in order to complete the Oracle certification (, 2006).
SAP is the world’s largest business software company and the world’s third-largest independent software provider over all (SAP: The World’s Largest Business Software Company, 2007).

In order to train future employees who may work for businesses which have implemented SAP, the company created the SAP University Alliance Program. This program provides faculty members with the tools and resources necessary to teach students how technology can enable integrated business processes and strategic thinking (, 2007). According to a recent publication, universities that form these alliances are establishing “knowledge links, a form of strategic alliance that gives organizations access to the skills and capabilities of a partner and opportunity to create new capabilities together” (Badaracco, 1991). To date, about 400 universities worldwide have incorporated SAP in their business curriculum (Hawking et. al., 2004).

Which ERP Applications Are Taught
Because most university curriculums, especially in the College of Business, are designed according to the needs of local employers, research should be conducted within the local community to determine which ERP applications should be taught. The results of a research project and implimentation conducted in the summer of 2006 indicated that the petrochemical industry in Southeast Texas, the largest employer, used an extensive number of ERP applications. These applications are listed in Table 1 below (Barnes and Bandyopadhyay, 2007).
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Enterprise Resource Planning (ERP) covers the techniques and concepts employed for the integrated management of business as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise.
An Enterprise is a group of people with a common goal, which has certain resources as its disposal to achieve that goal. The group has some key functions to perform in order to achieve its goal.


To enable improved business performance
Cycle time reduction
Increased business agility
Inventory reduction
Order fulfillment improvement
To support business growth requirements
New products/product lines, new customers
Global requirements including multiple languages and currencies
To eliminate limitation in legacy systems
Century dating issues
Fragmentation of data and processing
Inflexibility to change
Insupportable technologies
To take advantage of the untapped mid-market (medium size organizations)
Increased functionality at a reasonable cost
Client server/open systems technology
Vertical market solutions


Managers cannot generate custom reports or queries without help from a programmer and this inhibits them from obtaining information quickly, which is essential for maintaining a competitive advantage.
ERP systems provide current status only, such as open orders. Managers often need to look past the current status to find trends and patterns that aid better decision making.
The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence.

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