This presentation is about how different functions in an organization interact with each other using Enterprise Resource planning (ERP) tool. What are the advantages and disadvantages of ERP tools.

1. ERP Final Evaluation
By,
Hari thirumal
Roll No. 16, PGPB’03

2. 1. How different functions in an organization
interact
• Marketing and Sales (M/S)
• Supply Chain Management (SCM)
• Accounting and Finance (A/F)
• Human Resources (HR)
There are majorly 4
functions in an
organization :
They are always interdependent in each other.
Better integration of functional areas leads to improvements in
communication, workflow, and success of company

3. How functional areas operate
Functional area
of operation
Marketing & Sales Supply Chain
Management
Accounting & Finance Human
Resource
Business
Functions
Marketing of a product Purchasing goods &
raw materials
Financial accounting of
payments from customers
and to suppliers
Recruiting and
Hiring
Taking Sales order Receiving goods and
Raw materials
Cost allocation and control Training
Customer Support Transportation &
Logistics
Planning and Budgeting Payroll
Customer Relationship
Management
Scheduling
production runs
Cash Flow management Benefits
Sales Forecasting Manufacturing goods Government
Compliance
Advertising Plant Maintenance

4. How different functions are interdependent
• Data from Accounting and Finance used by Marketing and Sales and
Supply Chain Management

5. Why interaction between functions important
• Request to Purchase
(IN)
• Order Generated
(OUT)
Marketing and
Sales
• Financial Help for
Purchase (IN)
• Customer finance to
the product firm
(OUT)
Accounting &
Finance • Technical Support
(IN)
• Customer’s technical
query is resolved
(OUT)
Marketing and
Sales
• Fulfilment of Order
(IN)
• Customer receives
product (OUT)
Supply Chain
Management
• Small example of How an e-commerce portal works, When we place an order.
This is how functions of an organization interact to product best output for customer
satisfaction.

6. Functions & their interactions
FOR MARKETING & SALES SUPPLY CHAIN MANAGEMENT

7. Functions & their interactions
FOR ACCOUNTS & FINANCE FOR HUMAN RESOURCE

8. How ERP like SAP makes an impact
SAP makes Impacts on a Positive & Negative way.
SAP ERP manages many of the world’s largest companies, the
company is also quick to remind that about 65% of SAP solutions
There are also many midmarket companies that use SAP ERP as
their primary enterprise software solution. And as we all know,
there is no one-size-fits-all ERP solution.

9. How it has impacted
Impact
Positive
Software Scope
Global Solution
Expandability
Mobility
Enterprise tools
Negative
Complex Pricing
Deployment Risk
Master data
management
Recurring Upgrades
Lack of Innovation

10. How SAP makes an Positive Impact ?
Software Scope
The application
breadth of SAP ERP,
and even wider scope
when considered
within the SAP
Business Suite,
provides a central and
enterprise-wide
system for the largest
of companies while
delivering some
consistent benefits
Global Solution
SAP supports global
functionality with 45
standard country
versions and eight
add-on country
editions. The
application is also
scalable to support
thousands of
concurrent users
across multiple
locations.
Expandability
SAP business
applications can be
procured modularly
for individual
functions such as CRM
or SCM, or customers
can acquire the SAP
Business Suite to
integrate all or most
of their business
processes.
Mobility
The 2010 acquisition
of Sybase
reinvigorated SAP’s
vision, technology and
commitment to
enterprise mobility
Enterprise tool
Enterprise tools
Enterprise grade tools such
as SAP PLM (Product
Lifecycle Management, an
information center for
developers with document
and code management and
collaborative engineering)
with supporting
technologies such as
NetWeaver empower IT
shops with the needed
tools to aid manageability
of complex business
systems.

11. Complex Pricing
SAP pricing is
unnecessarily
complex and lacks
transparency which
facilitates sales
gamesmanship.
Further, new SAP
software
maintenance models
have been very
controversial with
the customer base
Deployment Risk
Continuing one of
the prior points a
step further, ERP
buyers must
recognize SAP ERP
software is broad,
deep and complex,
thereby rendering
the conditions for a
perfect storm and a
very challenging and
costly deployment
Master Data Management
SAP’s Master Data
Management (MDM)
strategy still lacks
clarity, and SAP
customers are left to
procure and
implement up to three
MDM tools to achieve
their objectives,
including SAP
NetWeaver MDM (for
mixed application
environments)
Recurring Upgrades
TCO and budget
considerations are the
recurring nature of new
version releases. As is
typical of complex on
premise ERP systems,
new version releases are
regarded as Fork Lift
upgrades with
deployment costs that
often exceed the
purchase price of the
original ERP software.
Lack of Innovation
The company has
launched other
technology releases such
as NetWeaver in 2003,
but nothing that’s
achieved a leadership
position. Today when
discussing innovation all
conversations lead to
HANA, which is an
impressive technology
How SAP makes an Negative Impact ?

12. Preparation organization must take before ERP
implementation
ERP implementation to go smoothly and provide value, it is critical that a
company understand both its current processes and the desired state of the
processes after implementation.
• Project Preparation (15 to 20 days)
• Business Blueprint (25 to 40 days)
• Realization (55 to 80 days)
• Final Preparation (35 to 55 days)
• Go Live and Support (20 to 24 days)
The ERP implementation
project is presented in an
Implementation Roadmap,
consisting of the following five
phases:
The most successful implementation of is decided with how the
first 4 phases are planned before implementing ERP

13. ERP Implementation
Implementation of ERP is very expensive and it ranges between 10 million to 500 Million, which
includes the following cost:
• Software licensing fee
• Consulting fee
• Project Team Member Time
• Employee training
• Productivity Losses
A company must also manage the transfer of data from its old computer system to the new ERP
system.
Managing master data such as materials data, customer data, vendor data, and so on, a
company must also transfer transaction data, which includes sales orders and purchase orders,
many of which are likely to be in various stages of processing—a challenging task.

14. 4 Phases before ERP Implementation in an Organization
Project
Preparation
• Organizing
technical team
• Defining system
landscape
Business
Blueprint
• Documentation of
business process
• Critical Process
Mapping
• Technical team
determines
method of data
transfer.
Realization
• Team works with
consultants to
configure ERP
• SAP software to
match Business
blueprint, Which
has test system
and Production
System.
Final
Preparation
• Testing the system
throughput for
critical business
• Setting up help
desk
• Setting up
operation of the
production.

15. Reasons for ​ERP implementation failures
• You charge ahead, select a vendor, eschew due diligence, and fail
to define clear business requirements and goals. Perhaps you
even know you don’t understand your business processes as well
Setting unrealistic
expectations at the
outset
• Put a separate team together to tackle just this one aspect of the
install. You don’t need a bunch of fancy new tools to do this
often its just a matter of collecting all the data and then going
through it by hand. But, this is what ERP is all about so skipping
or skimping on this critical step is a big mistake.
Failure to manage
organizational
change
• The company is going in this new direction and using this new
technology and If you want to get and stay on board, then this is how
you can do it. If you are good leader, you are going to provide the
steps along the path that will get them there: training, coaching or
whatever it takes to get there. This is basic change management.”
Not involving key
stakeholders

16. Reasons for ​ERP implementation failures
• If you can’t find someone to hire, make sure you engage a qualified
third-party consultant — not the SI’s folks or the vendor’s folks — to
act in their stead. After all, the truth of the matter is its in the best
interest of the vendor and the SI for installs to go long since they
will have people on the ground the entire time billing for their
services.
Poor Project
management
• Most ERP installs don’t fail outright but by degrees of unrealized
business benefit. Huge failures like the ones outlined in the
introduction are really the exception. Most failure are incremental and
made up of small incidents that accumulate and amplify: Maybe you
are using the wrong software and only figure this out post-
implementation because of the rush to get the project going. Or maybe
you didn’t fully realize how your business processes work or that all of
that customization to get things to “look like they used to” caused too
many cost overruns
Failure to
manage
business
benefits

17. THANK YOU