Enterprise Resource Planning (ERP)

ERP Definition and Concepts

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What is ERP? Importance of ERP in Modern Businesses

Enterprise Resource Planning (ERP) is a software ERP systems are vital for modern businesses as
system that helps organizations manage they streamline operations, improve data
business processes, integrating various functions accuracy, and provide real- time information,
like finance, HR, and supply chain into a single, leading to better decision- making and
unified system. enhanced productivity.
Evolution of ERP Systems

History and Growth and Adoption Technological

Development over the Years Advancements
ERP systems originated in the The adoption of ERP systems Technological advancements
1960s as simple inventory has grown significantly, such as cloud computing,
management systems and especially in the 1990s and artificial intelligence, and
machine learning have
have evolved into complex, 2000s, as businesses
transformed ERP systems, making
comprehensive solutions for recognized the benefits of them more flexible, scalable, and
managing all business having integrated systems to capable of providing predictive
processes across various handle their expanding analytics.
departments. operations.
Core Components of ERP

Modules and Functions Integration and Interconnectivity

ERP systems include various modules such as Integration and interconnectivity are key
finance, HR, manufacturing, and sales, each features of ERP systems, allowing data to be
serving specific functions yet interconnected centralized and shared across departments,
to ensure seamless information flow across enhancing collaboration and eliminating data
the organization. silos.
Understanding ERP Architecture
Core ERP Modules

Human Resource Management

Financial Management (HRM)

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Manages the general ledger and all financial Keeps employee records with detailed
data. information.
Tracks transactions, reconciles accounts, and Analyzes workforce trends.
generates reports.

Supply Chain Management

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Oversees the flow of goods.
Schedules machinery and labor resources.
 Additional ERP Modules

Manufacturing Inventory Management Project Management Ecommerce

Coordinates production Shows current inventory Plans and tracks projects. Manages online stores'
steps. levels in real time. Simplifies client billing and back and front ends.
Monitors in- progress and Measures key inventory- collaboration. Updates site and product
finished items. related metrics. pages.

Marketing Automation Procurement Order Management Warehouse Management

Manages marketing efforts Manages purchasing of raw Monitors and prioritizes Directs activities like
across digital channels. materials or finished goods. customer orders. receiving, picking, packing,
Automates requests for quotes
Optimizes and personalizes and purchase orders.
Tracks progress through and shipping.
messaging. delivery. Identifies more efficient
ways to execute tasks.
ERP Deployment Options
ERP Deployment Options
Benefits of ERP Systems
Top Benefits of ERP

Process Automation Reduction of Redundancies

Implementing ERP systems automates repetitive tasks, thereby saving ERP systems help in streamlining processes by
time and reducing human error, which allows students to focus on
more critical and creative activities.
eliminating duplicate data and redundant efforts,
making operations smoother and more efficient.
Market Leaders – Demo Workday (Microsoft)

Process Automation
Implementing ERP systems automates repetitive tasks, thereby saving ERP systems help in streamlining processes by
time and reducing human error, which allows students to focus on
more critical and creative activities.
eliminating duplicate data and redundant efforts,
making operations smoother and more efficient.

Microsoft Workday – Video Link

ERP Implementation Process
Planning and Analysis

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Needs Feasibility Study
Assessment
Assessing the Evaluating the
specific needs of an practicality of the
organization to ERP implementation,
understand which including cost, time,
ERP solutions will fit and resource
best, ensuring all availability to
requirements are determine if it's
clearly documented. achievable.
Development and Configuration

Customization
Modifying the ERP software to meet the unique business processes and workflows of the organization.

System Integration
Ensuring that the ERP system can interact seamlessly with existing software systems, sharing data and
functionality.

Testing
Conducting various tests to ensure the ERP system operates correctly, identifying and fixing any issues
before go- live.
Deployment and Maintenance

Continuous Support
Offering ongoing assistance to users for
troubleshooting and optimization of the
ERP system post- implementation.

Training and Onboarding Updating and Upgrading

Educating users about the new ERP Regularly updating the system with the
system and providing essential training latest features and security patches,
to ensure smooth adoption and usage. and upgrading to newer versions as
needed.
Challenges in ERP Implementation
Organizational Challenges

Change Management User Resistance

Implementing ERP affects workflows, requiring effective Employees might resist the new ERP system due to fear
strategies to manage changes, ensuring smooth of the unknown or comfort with existing processes.
transitions, and minimizing disruptions. It's crucial for Overcoming this resistance involves training,
aligning the new system with organizational goals. communication, and highlighting the system's benefits.
Technical Challenges

Data Migration
Transferring data from old systems to the new ERP
system can be complex and risky. Ensuring data
integrity and minimizing quality issues is critical for
successful migration.

System Compatibility
ERP systems must integrate seamlessly with existing hardware
and software. Incompatibility issues can lead to extensive
troubleshooting and additional customization, impacting overall
implementation timelines.
Financial Considerations

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Initial Cost
ERP implementation involves significant upfront costs for software, licenses,
and initial setup. Proper budgeting and financial planning are essential to
handle these initial expenditures.

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Ongoing Maintenance Expenses
Beyond initial costs, ERP systems require regular updates, support, and
maintenance. Continuous financial investment ensures system functionality
and addresses any emerging issues.
Real-world Applications
ERP in Different Industries

Manufacturing Sector Healthcare Sector Retail Sector

ERP applications in the Healthcare providers use ERP ERP utilization in the retail industry,
manufacturing industry, focusing systems to manage patient enhancing sales, inventory
on production planning, inventory information, streamline management, and customer
control, and quality management administrative processes, and relationship management to drive
to boost efficiency. improve service delivery. growth and customer satisfaction.
ERP Trends and Future Directions
Mobile ERP Applications

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Accessibility and Mobility Real-time Data Access

Mobile ERP applications offer unparalleled accessibility and Real- time data access provided by mobile ERP
mobility, enabling employees to manage operations and ensures that employees can make informed
access critical data anywhere, fostering a more dynamic
learning environment. decisions swiftly, which is essential for effective
project management and accounting practices.
Block Chain & IoT

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Blockchain for Supply Chain Management Internet of Things (IoT) Integrations

Blockchain packages data securely and can increase IoT devices, like sensors, scanners, and cameras, that can feed
transparency among companies in a supply chain. This also
information back to the ERP and alert on any abnormalities
provides information from which the ERP can draw insights.
AI and Machine Learning in ERP

Predictive Analytics Process Automation and AI

Predictive analytics in ERP leverages AI to Process automation and AI enhance ERP
forecast trends and behaviors, helping systems by streamlining repetitive tasks, thus
employees master strategic planning and allowing employees to focus more on complex
decision- making processes through insightful problem- solving and innovative thinking.
data evaluation.
Questions ?