Unit 1
ERP: -
Enterprise resource planning is a software system that integrates all core
business processes of an organization into a single unified system. It
ensures that information flows seamlessly across departments.
Evolution of ERP: -
1970- MRP (Material requirement planning) it was introduced for
manufacturing planning
1980- MRP II (Manufacturing resource planning) An Expansion of
MRP to include capacity planning and scheduling
1990- ERP (Entire Resource Planning) In 1990 the MRP II was
expanded beyond manufacturing to include Finance, HR, sales,
supply chain
2000s- Cloud ERP , Mobile ERP, AI-Driven ERP
ERP Vendors
1. SAP (System, Applications and Products in Data Processing) – SAP is the
Largest ERP Provider, Used by global companies
2. Oracle NetSuite - It is strong in Cloud ERP
3. Microsoft Dynamics 365 – It has easy integration with MS Office tools
like Excel, Word
4. Odoo – Open-source ERP, it is popular with small and medium
businesses
5. Cyborg ERP – It is a ERP for Higher Education Institutions based in
Dehradun, Uttarakhand India
Objectives of Business Processes
1. Integration of Business Processes: -
In traditional business departments like finance, sales, HR, and Production
often works in isolation, using separate software, ERP’s First objective is to
integrate these disconnected processes into a single system. This ensures
that all departments share one version of the truth.
2. Real-Time Information Flow: -
ERP ensures that data is updated instantly across all modules. This
eliminates delays in Communication between departments.
3. Standardization of Processes: -
Every department may have its own way of working, which causes
inconsistency. ERP enforces standardized procedures across the
departments
4. Improved Decision-Making
ERP Provides management dashboards, reports, and analytics. This helps
managers make data-driven decisions instead of relying on intuition.
5. Efficiency and Productivity Enhancement: -
ERP automates many routine tasks (e.g., billing, reporting, stock
management). This in turn reduces manual work, paperwork and errors.
ERP Modules
Core Modules (Most Essential)
1. Finance & Accounting – billing, accounts payable/receivable, taxation.
2. Human Resources (HRM) – payroll, recruitment, training, leave
management.
3. Manufacturing/ Production planning – Scheduling, Capacity Planning.
4. Sales and Marketing – order processing, customer service.
5. Inventory Management – Stock levels, warehouse management
Extended Modules (Advanced)
1. Customer relationship Management
2. Supply chain Management
3. Business Intelligence
4. E-Commerce and Digital Marketing
Extended Modules
1. CRM
CRM is a strategy, Process, and technology that companies use to manage
interactions with customers and potential customers. It is not just
software-It is a philosophy of putting the customer at the center of
business activities. CRM Systems record and analyze customer
Information to improve customer relationships and drive growth
Importance of CRM
1. Customers have power: -
Customers have many choices businesses must personalize interactions
so that customers do not switch from the businesses
2. Competitive Advantage: -
Businesses using CRM understand their customers better and can offer
targeted services to win loyalty of the customers.
3. Data Explosion; -
Customers interact through websites, emails, calls, and social media in
today’s era. CRM centralizes all data in one system.
4. Customer Retention: -
Acquiring a new customer costs more than retaining an existing one. CRM
helps keep customers happy and loyal.
Types of CRM
1. Operational CRM: -
Automates and streamline customer-facing processes such as sales,
marketing and services It helps maintain/handle daily interactions with
customers efficiently. For an organization features like
Marketing Automation: - Send targeted campaigns (emails, SMS,
push notification)
Service Automation: - Helps in complaint management, ticketing,
FAQs
Sales Force Automation: - Automates sales activities such as lead
generation.
2. Analytical CRM: -
It focuses on collecting, storing and analyzing customer data to make
data-driven decisions. It is less about automation and more about
understanding customer behavior
Customer segmentation: - based on Age, gender, location, Income,
Buying habits)
Data Mining and Predictive analytics: - Forecasting sales, churns,
trends
Measuring Campaign Effectiveness
3. Collaborative CRM
It focuses on seamless communication and coordination between
departments (sales, marketing, support) and sometimes even external
stakeholders ( suppliers,distributors)
2. SCM
A Supply Chain Management System is an integrated system that
manages the flow of goods, services, finance and information
Objectives of SCM
1. Integration of Supply Chain Partners: -
Connect suppliers, Manufacturers, warehouses, retailers in one ERP
2. Inventory Optimization: -
Avoid overstock
3. Process Efficiency: -
Automated Purchase orders, Invoices delivery notes.
4. Real time visibility: -
Track goods in transit, stock levels in real time
5. Customer satisfaction: -
Ensure faster, accurate deliveries through ERP order tracking
3. BI
BI refers to the technologies, tools and processes that analyze raw
business data and transform it into useful and meaningful insights for
decision-making. ERP collects huge data but data alone is not useful
unless it is analyzed
Key Features
1. Data Warehousing
2. Data Mining
3. Dashboard and Visualization
4. Reporting tools
5. Predictive Analytics
Types of Business Intelligence Analytics
1. Descriptive Analytics
It focuses on “What happened’ (Reporting, Dashboard) example: - Monthly
sales report told us that there was a drop in sales
2. Diagnostic Analytics
It focuses on “Why did it happened” (Root cause, Analysis) example: - The
drop in sales was because of later shipment
3. Predictive Analytics
It focuses on “What will happen” (Forecasting) example: - Predict demand
of winter clothing
4. Prescriptive Analytics
It focuses on “What we should do” example: - Suggest reorder points for
inventory
4. E-Commerce
It Means Integrating online sales channels directly into ERP systems. This
ensures that orders, inventory, payments, shipping, and customer data
flow seamlessly across business operations
Objectives of E-Commerce
1. Centralize Business Operations – Unify sales, inventory, payments and
customer data in ERP
2. Automate Order Management – Orders flow automatically to warehouse
and logistics
3. Real time Inventory updates – Avoid overstocking and stockouts
4. Seamless Customer Experience – Customers get accurate order
tracking, invoices, and returns.
5. Improve Decision-Making – Management can analyze product
performance, customer trends
Components of E-Commerce
1. Order Management – Online orders automatically captured in ERP
2. Inventory Synchronization – Stock updates instantly across warehouse
and online store.
3. Product Information Management – Centralized product details (Price,
description, images)
4. Payment gateway integration – Auto-update of payments in ERP
finance.
5. Shipping and logistics – ERP generate invoices, shipping labels, and
tracks deliveries
6. Customer Portal – Customers can view history, track orders, request
returns.
7. Analytics and Reporting – Real-time dashboards on sales, revenue, and
bestsellers.
5. Digital Marketing
Digital Marketing is a specialized module that integrates marketing
activities with enterprise resource planning.
Objectives of Digital Marketing
1. Streamline marketing and business data
2. Personalize and customer segmentation
3. Budget optimization
4. Campaign tracking
5. Real-time reporting
Types and channels if Digital Marketing
1. Search Engine Optimization (SEO) – Process of improving website
visibility on search engines like google.
On page – Content optimization, keywords, site structure
Off-page – Backlinks, guest blogging
Technical SEO – Site speed, mobile friendliness
2. Search Engine Marketing (SEM) – It is used to increase a website’s
visibility on search engines through paid advertising. Unlike SEO Which
focuses on organic rankings, SEM uses paid advertisements (Pay-per click)
to quickly drive targeted traffic to a site
3. Social media marketing
4. Email marketing
5. Content marketing
6. Influencer marketing
