Enterprise Resource Planning: Neetu Ganapathy SDM IMD September 2014 1
Enterprise Resource Planning: Neetu Ganapathy SDM IMD September 2014 1
Enterprise Resource Planning: Neetu Ganapathy SDM IMD September 2014 1
Planning
Session 2
Introduction
Contd...
Neetu Ganapathy SDM IMD September 2014
Today's Session
ERP System
Vendors
Benefits
ERP System
In the 90s, ERP a tightly integrated monolith
Entire package had to be bought even if you intended
to install only Finance module.
Large initial capital investment
SAP
Some Vendors
R/3, Business
One, Business by
Design
E-business suite
100
AX, NAV, GP, SL
11
ERP Needs
Strong executive support to implement
Process approach rather than silos
Change in business procedures (BPR)
Change in organizational structure,
culture, strategy
Technology change
12
ERP systems
Would relieve operating managers of routine
decisions.
Gives them time to think, plan and execute vital
long term decisions.
Leads to significant cost savings by
continuously monitoring organisation health.
Neetu Ganapathy SDM IMD September 2014
13
Bought off-the-shelf
COTS
Some Vendors: SAP, Oracle, MS, etc.
Rented
SaaS cloud computing, etc.
14
Implementation Approach
Implementation Approach
Single ERP Package
Single ERP package with other systems
Multiple ERP packages with other systems
Best of breed from several ERP packages
Totally in-house developed
In-house plus specialized packages
Neetu Ganapathy SDM IMD September 2014
ERP Expectations
Integrating all the functions
Integrating the systems running in all the locations
Transparency of information using a single
data source across the organization
Software must be responsive
Modular
Flexible
Easy to add functionalities
Provide growth path
Neetu Ganapathy SDM IMD September 2014
17
18
Potential Risks
Difficult to implement
Often easier to adapt business processes
to the software than vice versa
Inflexible
Overly hierarchical?
19
Mission
People
Process
Technology
Vision
Neetu Ganapathy SDM IMD September 2014
Strategy
20
21