INTEGRATION OF E - BUSINESS WITH ERP SYSTEM P RESENTATION ON INTEGRATION OF E - BUSINESS WITH ERP SYSTEM Presenting by Presenting by, Shruti raj Anushree rani Nadeem khan Saurabh yadav

 What Is ERP ? – – An Enterprise Resource Planning System (ERP) is a software package that supports the traditional “back-office” functions of finance, manufacturing and distribution It integrates all the departments and functions across a company into a single computer system that can serve all those different departments’ particular needs. Those activities supported by multi-module application software that help a company manage the important parts of its business in an integrated fashion.

Order Entry System Manufacturing and Distribution System Procurement System Customer Sales Account Rec Production Scheduling Shipping Vendor Accts Pay Inventory Customer Database Manufacturing Database Procuremen t Database Business Enterprise Customer Supplier Produc ts Orders Purchase s Materials Traditional Information System with Closed Database Architecture

o An ERP system is analogous to the internal technological hub of a company. When fully implemented as an integrated suite, it can be thought of as a company's central repository. The five major processes in a typical ERP system are: finance, logistics, manufacturing, human resources and sales/marketing. o The focus of ERP systems is on the efficiency and effectiveness of the internal process. It offers a way to streamline and align business processes, increase operational efficiencies and bring order out of chaos.

5 ENTERPRISE SYSTEMS

o ERP Combines various department systems into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other. o The best part of ERP is the way in which it improves the order fulfillment process that is taking the customer order and process it into an invoice and revenue. o It doesn’t handle the front-end that is handled by CRM (Customer Relationship Management).

7 C ORE ERP F UNCTIONS Accounting Financial Manufacturing Production Transportation Sales and distribution Human resource Supply chain Customer relationship E-business Advantages… Reliable information access Avoid redundant data and operations Cost reduction Disadvantages Time-consuming Expensive

 e-ERP and Business : E-business stands for "electronic business," which involves communications and doing business electronically through the Internet. E-business is defined as "the use of electronically enabled communication networks that allow business enterprises to transmit and receive information"

o It can significantly improve business performance by strengthening the linkages in the value chain between businesses (B2B) and consumers (B2C). o Besides increasing efficiency in selling, marketing and purchasing, e-business achieves effectiveness through improved customer service, reduced costs and streamlined business processes. Furthermore, e-business creates a strategic, customer- focused business environment for shared business improvements, mutual benefits and joint rewards. One Database SUPPLY Chain Procurement Sales Marketing Financials Order Mgt Human Resources Web Services

By definitions and by their respective functions, traditional ERP systems take care of internal value chain (i.e., within a company) whereas e-businesses establish the value chain across the market and the industries. More and more companies construct their systems' architectures by integrating ERP systems with e-business. They use Web-based interface (corporate portals) with outside entities plus add-on modules such as CRM, SCM, etc. in the integration.  ERP From E-BUSINESS Perspective

o E-business is focused on efficiency and effectiveness of external, cross-enterprise processes. o While ERP technology supports business strategy, e-business opens the door to new strategic opportunities, which forces ERP to take one step further—to move from the single ERP system model to the extended ERP system model. o The Web technology provides the bridge between companies and their business partners to make e-business possible, while e-business makes the ERP system more transparent and outward. Instead of thinking about ERP within a company, we may view the ERP system along the value chain of companies in the same industry, or across industries.

o When e-business is integrated with ERP, the whole extended system provides a vision of business processes that span multiple businesses and enterprises. In the most ideal case, companies should be able to connect disparate platforms, applications and data formats across the value chain, including not only suppliers, but also customers as well. o Furthermore, companies should retain the flexibility to change and add functions to applications as business needs evolve. Companies need to be able to adapt their ERP systems to the emerging world of e-business.

 Advantage of ERP Systems  Improved scalability  Improved maintenance  Global Outreach  E-Commerce, E-Business  Structured and modular design with "add-ons"  Vendor supported long term contract as part of the system procurement.  Extended modules such as CRM and SCM  Internet Commerce, Collaborative culture.

 Disadvantages of ERP Systems  Time consuming  Expensive  Conformity of the modules  Vendor dependence Minimize sensitive issues, internal politics and raise general consensus. Cost may vary from thousands of dollars to millions. Business process re- engineering cost may be extremely high. The architecture and components of the selected system should conform to the business processes, culture and strategic goals of the organization. Single vendor vs multi-vendor consideration, options for "best of breeds", long term committed support. Disadvantages How to overcome

 Feature and complexity  Scalability and global outreach  Extended ERP capability ERP system may have too many features and modules that the user needs to consider carefully and implement the needful only. Look for vendor investment in R&D, long term commitment to product and services, consider Internet- enabled systems. Consider middle-ware "add-on" facilities and extended modules such as CRM and SCM.