Uses and Functions of ERP in Current Business Environment

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Uses and Functions of ERP in Business Environment

Prepared by :

Syed Aamir Hashmi2nd Semester, MBA (Marketing & IB)Jamia HamdardNew Delhi-110062INDIA

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Uses & Functions of ERP in Business Environment

A process which attempts to consolidate all of a company’s departments and functions into a single computer system that services each department’s specific needs

What is ERP ?

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• Supply and production chain information can be easily accessed

• Increased efficiency in customer management and company effectiveness in delivery on customer’s expectations

Primary Benefit

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• Single hardware system reduces power consumption operating off a single database which translates into savings on storage.

• Minimum of hardware and storage translates into measurable profit for the company

Other Advantages

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Improved business process efficiency drives everything else that is important to the success of any company

How ‘erp’ can help small

manufacturers to compete in

today’s global supply chain

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Customer satisfaction

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Innovative new products introduction

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Effective supplier relationship

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Positive employee morale

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Every one of the business challenges outlined below may not exist at your company, but the odds are that one or more will be familiar and this may indicate that implementing an ERP solution can have a significant positive effect on your business

When an erp system is right for

your business

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"Islands of Automation" impede communication and necessitate

duplicative effort

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You have to cut more costs, but don't know how

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You're losing the innovative edge that made you successful in the

first place

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You're not meeting customer demands for information

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ERP systems can level the playing field for manufacturers that find themselves in a pitched battle against competitors by delivering a wide range of business benefits.

What an ERP System Can Do To Improve Your Business Performance

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Streamlines your business processes

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Enables you to eliminate non-value add activities

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Creates a single dashboard for enhanced visibility

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Enables you to invest in innovation

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Reduces business risk

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There are three commonly used ways of installing ERP

How do companies organise ERP

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• COMPANIES CAST OFF ALL THEIR LEGACY SYSTEMS AT ONCE AND INSTALL A SINGLE ERP SYSTEM ACROSS ENTIRE COMPANY

• FEW COMPANIES DARE TO ATTEMPT IT ANYMORE BECAUSE IT CALLS FOR THE ENTIRE COMPANY TO MOBILISE AND CHANGE AT ONCE

• IN MOST CASES ERP OFFERS NEITHER THE RANGE OF FUNCTIONALITY NOR THE COMFORT OF FAMILIARITY THAT A CUSTOM LEGACY SYSTEM CAN OFFER

• THE SPEED OF THE NEW SYSTEM MAY SUFFER BECAUSE IT IS SERVING THE ENTIRE COMPANY RATHER THAN A SINGLE DEPARTMENT

THE BIG BANG

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• SUITS LARGE OR DIVERSE COMPANIES THAT DO NOT SHARE MANY COMMON PROCESSES ACROSS BUSINESS UNITS

• INDEPENDENT ERP SYSTEM ARE INSTALLED IN EACH UNIT BY LINKING COMMON PROCESSES EXAMPLE: FINANCIAL BOOK KEEPING

• THE SYSTEM LINKS TOGETHER TO SHARE THE COMMON INFORMATION ONLY

• PLAN FOR THIS STRATEGY TAKES LONG TIME

FRANCHISING STRATEGY

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• THE FOCUS IS ON A FEW KEY PROCESSES SUCH AS FINANCIAL MODULE

• GENERALLY FOR SMALLER COMPANIES • THE GOAL HERE IS TO GET ERP UP AND

RUNNING QUICKLY• MANY DISCOVER THAT A SLAMMED-IN

ERP SYSTEM IS LITTLE BETTER THAN A LEGACY SYSTEM BECAUSE IT DOES NOT FORCE EMPLOYEES TO CHANGE ANY OF THEIR OLD HABITS

SLAM DUNK

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Thanks to all of you !

Uses and Functions of ERP in Current Business Environment

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