ENTERPRISE RESOURSE PLANNING- SYNOPSIS

Rohit Madhavan Roll No -35 PGDM EBIZ 2013-15

Enterprise resource planning (ERP) is business process that allows an organization to use a system of integrated applications to manage the business. ERP software integrates all facets of an operation, including product planning, development, manufacturing processes, sales and marketing. It has four components People Process Technology Information

ERP implies the use of packaged software rather than proprietary software written by or for one customer. A business process follows a bottom up approach i.e. the business is divided into small modules and each module is integrated with each other. . A business process starts when the other business process ends. A business is a top-down process i.e. it takes the input and implements the output whereas the business process takes into consideration the inner complexities of how a business is run and broken into small processes. The output of a business is what the customer requires and the output through the business process is the value what it creates. Value Chain A value is the reflection about a processes that a business provides to the customers. A value is a reflection or perception created out of the business process which is incremental in nature. The value is derived from the requirement of the customer or market and it is the customer which decides what value it wants to seeks from its business processes. Value creates a value chain which is the collection of values. Value chain has to be substantiated and is a set of processes which creates, adds and values to the set of processes. A value chain creates a value proposition to customers which leads to market maturity. In any organization, all the processes that are carried out falls in the three below mentioned categories. a) Core Process b) Support Process c) Strategy Process

Business Process: A businessprocess is a set of activities that are focused towards achiving a set goal. Some of the key criteria for a business process are Customer focus Planning Continuous improvement A business process should not be resistant to change. There are three types of business process. Order to cash(O2C) Procure to pay (P2P) Hire to Retire ( H2R) Order to cash is customer oriented. In O2C the customer generates sales & the sales dept generates the sales plan Procure to pay is vendor & Supplier oriented. Once the requirement is determined Request for quotation (RFQ) is created to select the vendor. People People specifies who is the process owner, who all are involved in the process their roles, segregation of duties which avoids the conflict of interest. The process owner has the full responsibility of the performance. Process Process should have a start and end, it should be broken down into logical components. Process are usually triggered by a business event

Change Management Process In case the process deviates from the standard procedures, the change mgnt process needs to be implemented. The steps implemented are as follows
Request for change Authorize the change Develop the change Testing Implement the change