GDC MEMORIAL COLLEGE
BAHAL (BHIWANI)-127028
Lab Manual
E-Commerce (B.Com Vocational 3rd year)
Department of Computer Science
Index
Sr. no LIST OF EXPERIMENT
1 ERP Introduction
2 Slide 1 What is ERP?
3 Slide 2 What is ERP?
4 Slide 3 Graphical View
5 Slide 4 Example of ERP for student database
6 Slide 5 Major reasons for adopting ERP
7 Slide 6 Potential benefits of ERP
8 Slide 7 Potential benefits of ERP
9 Slide 8 ERP implementation approaches
10 Slide 9 Major phases of ERP implementation
11 Slide 10 Major phases of ERP implementation
12 Slide 11 Major challenges to ERP implementation
1. ERP Introduction
Enterprise resource planning (ERP) is a business management software—usually a suite of
integrated applications—that a company can use to collect, store, manage and interpret data from
many business activities, including:
Product planning, cost
Manufacturing or service delivery
Marketing and sales
Inventory management
Shipping and payment
ERP provides an integrated view of core business processes, often in real-time, using common
databases maintained by a database management system. ERP systems track business
resources—cash, raw materials, production capacity—and the status of business commitments:
orders, purchase orders, and payroll. The applications that make up the system share data across
the various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the
data. ERP facilitates information flow between all business functions, and manages connections
to outside stakeholders.
Enterprise system software is a multi-billion dollar industry that produces components that
support a variety of business functions. IT investments have become the largest category of
capital expenditure in United States-based businesses over the past decade. Though early ERP
systems focused on large enterprises, smaller enterprises increasingly use ERP systems.
The ERP system is considered a vital organizational tool because it integrates varied
organizational systems and facilitates error-free transactions and production. However, ERP
system development is different from traditional systems development. ERP systems run on a
variety of computer hardware and network configurations, typically using adatabase as
an information repository
Characteristics
ERP (Enterprise Resource Planning) systems typically include the following characteristics:
An integrated system that operates in (or near) real time without relying on periodic updates
A common database that supports all applications
A consistent look and feel across modules
Installation of the system with elaborate application/data integration by the Information
Technology (IT) department, provided the implementation is not done in small steps [15]
Functional areas
An ERP system covers the following common functional areas. In many ERP systems these are
called and grouped together as ERP modules:
Financial accounting: General ledger, fixed asset, payables including vouchering, matching
and payment, receivables cash application and collections, cash management,financial
consolidation
Management accounting: Budgeting, costing, cost management, activity based costing
Human resources: Recruiting, training, rostering, payroll, benefits, 401K, diversity
management, retirement, separation
Manufacturing: Engineering, bill of materials, work orders, scheduling, capacity, workflow
management, quality control, manufacturing process, manufacturing projects, manufacturing
flow, product life cycle management
Order Processing: Order to cash, order entry, credit checking, pricing, available to promise,
inventory, shipping, sales analysis and reporting, sales commissioning.
Supply chain management: Supply chain planning, supplier scheduling, product
configurator, order to cash, purchasing, inventory, claim processing, warehousing (receiving,
putaway, picking and packing).
Project management: Project planning, resource planning, project costing, work breakdown
structure, billing, time and expense, performance units, activity management
Customer relationship management: Sales and marketing, commissions, service, customer
contact, call center support - CRM systems are not always considered part of ERP systems
but rather Business Support systems (BSS).
Data services : Various "self–service" interfaces for customers, suppliers and/or employees
Slide 1: What is ERP?
What is ERP?
An ERP system is an attempt to integrate
all functions across a company to a single
computer system that can serve all those
functions’ specific needs.
“Integration” is the key word for ERP
implementation.
Slide2: What is ERP?
What is ERP?
It may also integrate key customers and
suppliers as part of the enterprise’s
operation.
It provides integrated database and custom-
designed report systems.
It adopts a set of “best practices” for
carrying out all business processes.
Slide 3: Graphical View
Slide 4: Example of ERP for student database
Example of ERP for student database
Slide 5: Major reasons for adopting ERP
Major Reasons for Adopting ERP
Integrate financial information
Integrate customer order information
Standardize and speed up operations
processes
Reduce inventory
Standardize Human Resources
information
Slide 6: Potential benefits of ERP
Potential Benefits of ERP
Internal Benefits
• Integration of a single source of data
• Common data definition
• A real-time system
• Increased productivity
• Reduced operating costs
• Improved internal communication
• Foundation for future improvement
Slide 7: Potential benefits of ERP
Potential Benefits of ERP
External Benefits
• Improved customer service and order
fulfillment
• Improved communication with suppliers and
customers
• Enhanced competitive position
• Increased sales and profits
Slide 8: ERP implementation approaches
ERP Implementation Approaches
The big bang – install a single ERP system
across the entire organization
Franchising – Independent ERP systems are
installed in different units linked by common
processes, e.g., bookkeeping.
Slam dunk – install one or several ERP
modules for phased implementation of key
business processes.
Slide 9,10: Major phases of ERP implementation
Major Phases of ERP Implementation
(Kent Sandoe, Enterprise Integration)
Initiation – develop business case, project
scope, and implementation strategy
Planning – establish implementation team,
determine goals and objectives, establish
metrics
Analysis and process design – analyze and
improve existing processes, map new
processes to be adopted by the system
Major Phases of ERP Implementation
(Kent Sandoe, Enterprise Integration)
Realization – install a base system,
customization, and test the system
Transition – replace the formal system with
the new system, data conversion
Operation – monitor and improve system
performance, provide continued training and
technical support
Slide 11: Major challenges to ERP implementation
Major Challenges to ERP Implementation
Limitations of ERP technical capabilities
Inconsistency with existing business
processes
Costs - implementation (hardware, software,
training, consulting) and maintenance
Impact on organizational structure (front
office vs. back office, product lines, etc.)
Changes in employee responsibilities
