ERP MODULES – Definition
ERP systems integrate core business processes. Major modules include:
• Finance & Accounting: General ledger, AR/AP, asset management
• Human Resources (HRM): Payroll, recruitment, training
• Supply Chain Management (SCM): Inventory, logistics, procurement
• Customer Relationship Management (CRM): Sales, service, marketing
• Manufacturing/Production: MRP, shop floor control
• Project Management: Planning, tracking, cost management
• Sales and Distribution: Order processing, shipping, billing
Pitfalls of ERP Planning
• Lack of clear objectives
• Inadequate requirements gathering
• Poor change management
• Underestimating training needs
• Resistance from employees
• Vendor lock-in
• Inflexible customization
Data Concepts in ERP
• Data Integrity: Accuracy and reliability of data
• Data Consistency: Uniform data across modules
• Data Redundancy: Duplication of data, often due to poor design
• Data Silos: Isolated data pools preventing full integration
Legacy vs New System
• Legacy Systems: Old, outdated, often isolated, difficult to maintain
• New ERP Systems: Modular, integrated, scalable, user-friendly, often cloud-based
Cloud ERP vs Web-Based ERP
• Cloud ERP: Hosted on third-party servers (SaaS), accessible anywhere
• Web-Based ERP: Accessed via browser, may be on-premises or cloud-hosted
• Differences: Deployment style, cost, control, scalability
ERP Implementation Challenges
• Misaligned business processes
• Data migration issues
• High costs and time overruns
• User resistance
• Poor project management
Correction Strategies:
• Clear communication and training
• Phased implementation
• Realistic timelines
• Engaged leadership
Operational vs Managerial Risks
• Operational Risks: System failures, incorrect data entries, process breakdowns
• Managerial Risks: Strategic misalignment, lack of user adoption, poor decision-making based
on bad data
Real-Time Data in ERP
• Enables immediate access to business insights
• Enhances responsiveness and decision-making
• Reduces errors and delays
Go-Live Process
• Final data migration
• User training completion
• Backup and rollback plan
• System performance monitoring
• Support team on standby
ERP Case Study – Key Elements
• Implementation: Stakeholder involvement, phased rollout
• Incident Management: Ticketing system, root cause analysis
• Control Mechanisms: Audit trails, approval workflows
• System Check: Testing, validations, UAT (User Acceptance Testing)
• Mitigation Steps: Contingency planning, re-training, system patches
ERP Vendor Selection Criteria
• Functional fit to business needs
• Scalability and customization options
• Industry experience
• Technical support and training
• Total Cost of Ownership (TCO)
• References and past implementations
Selection Process:
1. Requirement analysis
2. Market research
3. RFP issuance
4. Demo and evaluation
5. Final selection and contract
Software IPR (Intellectual Property Rights)
• ERP vendors retain ownership of source code
• Clients get a license to use
• Customizations may be owned by client or vendor depending on contract
• Critical for avoiding legal issues
RFP for ERP – Key Points for Mid Exam
• Clear project objectives and scope
• Company background and existing systems
• Functional requirements by module
• Technical environment and integration needs
• Support and training expectations
• Budget and timeline
• Vendor qualifications and references
• Evaluation criteria and scoring method
