- Presented by Rinkal Hirani
Session 2
Session 2
 Tangible and Intangible Benefits of an ERP
 Risks of ERP
 Risk Mitigation
 Technologies related to ERP
Tangible Benefits of an ERP
 Reduced Inventory costs
 Reduced Manpower costs
 Reduced Material costs
 Improved Sales and Customer service
 Efficient Financial Management
Intangible Benefits of an ERP
 Accounting
 Product and Process Design
 Production and Material Management
 Sales
 MIS Function
Risks of ERP
 People Issues
 Process Risks
 Technological Risks
 Implementation Risks
 Operation and Maintenance issues
People Issues
 Change management
 Internal staff adequacy
 Project team
 Training
 Employee re-location and re-training
 Staffing
 Top management support
 Consultants
 Discipline
Process Risks
 Program Management
 Business Process Reengineering
 Stage Transition
 Benefit Realization
Technological Risks
 Software Functionality
 Technological Obsolescence
 Application Portfolio Management
 Enhancement/Upgrades
Implementation Risks
 Project Size
 Length Implementation Time
 High Initial Investment
 Unreasonable Deadlines
 Insufficient Funding
 Interface
 Organizational Politics
 Scope Creep
 Unexpected Gaps
 Configuration Difficulties
Risk Mitigation
 Phased-out approach to migration
 Sufficient Training
 Legacy System planning
 Thorough testing
 Provide plenty of IT support
 Develop contingency plan
Technologies related to ERP
 Business Process Re-engineering (BPR)
 Data Warehousing
 Data Mining
 On-line Analytical Processing (OLAP)
 Product Life cycle Management (PLM)
 Supply Chain Management (SCM)
 Customer Relationship Management (CRM)
 ERP Security
 ERP Bolt-ons