Seminar – II Report (536421)

Session: 2009-2010

Topic-1 : SEZ in Maharashtra

Topic-2 : ERP & SAP
Topic-3 : Commodity Market

Session: 2009 – 2010

Submitted To: Submitted

By:
Mrs. Astha Sharma Abhinav
Shrivastava
M.B.A IV Semester
Section – “A”
Roll No.-5143608068
Shri Shankaracharya Institute of Management and
Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)
Seminar – II Report (536421)
Session: 2009-2010

Enterprise resource planning(ERP)–

Enterprise Resource Planning (ERP) is a term usually used in conjunction with ERP software or an ERP
system which is intended to manage all the information and functions of a business or company from shared
data stores.ERP is a system or MIS that integrates all business processes in a central database.It automates
the business practices associated with productions ,operations & distribution of any organization engaged in
production of products & services.

An ERP system typically has modular hardware and software units and "services" that communicate on a
local area network. The modular design allows a business to add or reconfigure modules (perhaps from
different vendors) while preserving data integrity in one shared database that may be centralized or
distributed.

The initials ERP originated as an extension of MRP (Material Requirements Planning and Manufacturing
Resource Planning; later manufacturing resource planning) and CIM (Computer Integrated Manufacturing).
ERP systems now attempt to cover all core functions of an enterprise, regardless of the organization's
business or charter. These systems can now be found in non-manufacturing businesses, non-profit
organizations and governments.

To be considered an ERP system, a software package must provide the function of at least two systems. For
example, a software package that provides both payroll and accounting functions could technically be
considered an ERP software package.

Examples of modules in an ERP which formerly would have been stand-alone applications include:
Product lifecycle management, Supply chain management (e.g. Purchasing, Manufacturing and
Distribution), Warehouse Management, Customer Relationship Management (CRM), Sales Order
Processing, Online Sales, Financials, Human Resources, and Decision Support System.

Shri Shankaracharya Institute of Management and

Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)
Seminar – II Report (536421)
Session: 2009-2010

Some organizations typically those with sufficient in-house IT skills to integrate multiple software products
— choose to implement only portions of an ERP system and develop an external interface to other ERP or
stand-alone systems for their other application needs. For example, one may choose to use human resource
management system from one vendor, and perform the integration between the systems themselves.

This is common to retailers, where even a mid-sized retailer will have a discrete Point-of-Sale (POS)
product and financials application, then a series of specialized applications to handle business requirements
such as warehouse management, staff rostering, merchandising and logistics.

Ideally, ERP delivers a single database that contains all data for the various software modules that typically
address areas such as:–

Manufacturing–
Engineering, bills of material, scheduling, capacity, workflow management, quality control, cost
management, manufacturing process, manufacturing projects, manufacturing flow.

Supply chain management –

Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning,
supplier scheduling, inspection of goods, claim processing, commission calculation.

Financials –
General ledger, cash management, accounts payable, accounts receivable, fixed assets

Project management –
Costing, billing, time and expense, performance units, activity management

Human resources –
Human resources, payroll, training, time and attendance, rostering, benefits

Customer relationship management –

Sales and marketing, commissions, service, customer contact and call center support
Data services –

various "self-service" interfaces for customers, suppliers, and/or employees

Access control –
management of user privileges for various processes.

Shri Shankaracharya Institute of Management and

Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)
Seminar – II Report (536421)
Session: 2009-2010

The term "Enterprise resource planning" originally derived from manufacturing resource planning that
followed material requirements planning (MRP). MRP evolved into ERP when "routings" became a major
part of the software architecture and a company's capacity planning activity also became a part of the
standard software activity. ERP systems typically handle the manufacturing, logistics, distribution,
inventory, shipping, invoicing, and accounting for a company. ERP software can aid in the control of
many business activities, including sales, marketing, delivery, billing, production, inventory management,
quality management, and human resource management.

ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem (real or imagined)
in their "legacy" systems. Many companies took this opportunity to replace such information systems with
ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time most companies
had already implemented their Y2K solution.

ERP systems are often incorrectly called back office systems indicating that customers and the general
public are not directly involved. This is contrasted with front office systems like customer relationship
management (CRM) systems that deal directly with the customers, or the eBusiness systems such as
eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship management (SRM) systems.

ERP systems are cross-functional and enterprise-wide. All functional departments that are involved in
operations or production are integrated in one system. In addition to areas such as manufacturing,
warehousing, logistics, and information technology, this typically includes accounting, human resources,
marketing and strategic management.

ERP II, a term coined in the early 2000’s, is often used to describe what would be the next generation of
ERP software. This new generation of software is web-based and allows both employees and external
resources (such as suppliers and customers) real-time access to the system's data.

Shri Shankaracharya Institute of Management and

Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)
Seminar – II Report (536421)
Session: 2009-2010

SAP is a multinational software development and consulting corporation, which provides enterprise software
applications and support to businesses of all sizes globally. Headquartered in Walldorf, Germany, with regional
offices around the world, SAP is the largest software enterprise in Europe and the fourth largest software enterprise in
the world. The company's best known product is its SAP Enterprise Resource Planning (SAP ERP) software.

History

SAP was founded in 1972 as "System Analysis and Program Development" by five former IBM engineers.

As part of the Xerox exit strategy from the computer industry, Xerox retained IBM to migrate their business
systems to IBM technology. The acronym was later changed to stand for "Systems, Applications and
Products in Data Processing".

In 1976, "SAP GmbH" was founded and the following year, it moved its headquarters to Walldorf. SAP AG
became the company's official name after the 2005 annual general meeting.

In August 1988, SAP GmbH transferred into SAP AG, and public trading started November 4. Shares are
listed on the Frankfurt and Stuttgart stock exchanges.

Business and markets–

SAP is the world's largest business software company and the third-largest independent software provider in
terms of revenues.It operates in three geographic regions –Europe, Middle East and Africa; the Americas
(SAP America, headquartered in Newtown Square, Pennsylvania), which represents both North America
and Latin America; and Asia Pacific Japan (APJ), which represents Japan, Australia, India and parts of Asia.
In addition, SAP operates a network of 115 subsidiaries, and has R&D facilities around the globe in
Germany, Turkey, Canada, China, Hungary, India, Israel, Bulgaria, and North America.

Shri Shankaracharya Institute of Management and

Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)
Seminar – II Report (536421)
Session: 2009-2010

SAP focuses on six industry sectors: process industries, discrete industries, consumer industries, service
industries, financial services, and public services. It offers more than 25 industry solution portfolios for large
enterprises and more than 550 micro-vertical solutions for midsize companies and small businesses.

SAP and Enterprise Service-Oriented Architecture

Service-oriented architecture moves the ERP (Enterprise Resource Planning) landscape toward software-
based and web services-based business activities. This move increases adaptability, flexibility, openness and
efficiency. The move towards E-SOA helps companies reuse software components and not have to rely as
much on in-house ERP hardware technologies which helps make ERP adoption more attractive for small- or
mid-sized companies.

According to a press fact sheet from SAP, "SAP is the only enterprise applications software vendor that is
both building service-orientation directly into its solutions and providing a technology platform SAP Net
Weaver and guidance to support companies in the development of their own service-oriented architectures
spanning both SAP and non-SAP solutions."

Products–

SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP.
The current version is SAP ERP 7.0 and is part of the SAP Business Suite. Its previous name was called R/3.
The "R" of SAP R/3 stood for real-time - even though it is not a realtime solution. The number 3 related to
the 3-tier architecture: database, application server and client (SAPgui). R/2, which ran on a Mainframe
architecture, was the predecessor of R/3. Before R/2 came System RF, later dubbed R/1.

SAP ERP is one of five enterprise applications in SAP's Business Suite. The other four applications are:–

 Customer relationship management (CRM) - helps companies acquire and retain customers, gain
marketing and customer insight
 Product lifecycle management (PLM) - helps manufacturers with product-related information
 Supply chain management (SCM) - helps companies with the process of resourcing its
manufacturing and service processes
Shri Shankaracharya Institute of Management and
Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)
Seminar – II Report (536421)
Session: 2009-2010

 Supplier relationship management (SRM) - enables companies to procure from suppliers

Other major product offerings include: the NetWeaver platform, Governance, Risk and Compliance (GRC)
solutions, Duet (joint offering with Microsoft), Performance Management solutions and RFID. SAP offers
SOA capabilities (calling it Enterprise SOA) in the form of web services that are wrapped around its
applications.

While its original products were typically used by Fortune 500 companies.SAP is now also actively
targeting small and medium sized enterprises (SME) with its SAP Business One and SAP Business All-in-
One.
On 19 September 2007 SAP announced a new product named SAP Business By Design. SAP Business By
Design is a Software as a Service (SaaS) offering, and provides a fully integrated Enterprise Resource
Planning (ERP) solution, On Demand. SAP Business By Design was previously known under the code name
"A1S".

SAP officials say there are over 100,600 SAP installations serving more than 41,200 companies in more
than 25 industries in more than 120 countries.

Partnerships–

Partnerships are core to SAP’s strategy and in its 35 years of history the network of software solution
providers, value-added resellers, distributors, technology and services partners has developed into a broad
ecosystem that is among the industry's largest. Opened in June 2007, the SAP Co-Innovation Lab in Palo
Alto, Calif. provides an efficient work environment for joint projects with independent software vendors
(ISVs), such as Novell, Questra and Wonderware, system integrators (SIs) and technology partners to
work together with SAP around current and future technologies. Co-founded by Cisco, Hewlett-Packard,
Intel and NetApp, the lab offers a hands-on environment and real-world performance for Web-enabled and
Internet/intranet-accessible business applications based on Enterprise SOA.

SAP partners include Global Services Partners with cross-industry multinational consulting capabilities,
Global Software Partners providing integrated products that complement SAP Business Suite solutions, and
Global Technology Partners providing user companies with a wide range of products to support SAP

Shri Shankaracharya Institute of Management and

Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)
Seminar – II Report (536421)
Session: 2009-2010

technology, including vendors of hardware, database, storage systems, networks, and mobile computing
technology.

SAP partners with CSC, Capgemini, Cognizant Technology Solutions, Deloitte, IBM,
PricewaterhouseCoopers, Hewlett-Packard, Siemens IT Solutions and Services and Accenture in
offering services, including assessment, government and architecture for R3.

Vendors of ERP–

SAP
BAAN
Avalon
Oracle
MegiPro
Microsoft

Shri Shankaracharya Institute of Management and

Technology
(Managed by Shri Gangajali Education Society, Bhilai)
Junwani, P.O.Nehru Nagar, BHILAI-490020 (C.G) INDIA
(An ISO- 9001:2000 Certified Institution)