VISVESVARAYA TECHNOLOGICAL

UNIVERSITY
JNANASANGAMA, BELGAVI-590018

INFORMATION MANAGEMENT SYSTEM

(18IS645)
ON
“Enterprise Resource Planning”
Submitted in partial fulfillment of the requirements for the 6th Semester.

INFORMATION SCIENCE AND ENGINEERING

Submitted by:
RAKSHA HP (1BI20IS069)
RAKSHITHA S (1BI20IS070)
SANJANA S (1BI20IS080)
RAKSHITHA (1BI21IS407)
SHREYA P REVANKAR (1BI20IS096)

Under the guidance of

Mrs Anupama KC
Assistant Professor
Dept of ISE
BIT, Bangalore-04

2022-2023

DEPARTMENT OF INFORMATION SCIENCE AND ENGINEERING

BANGALORE INSTITUTE OF TECHNOLOGY

K. R. Road, V. V. Puram, Bengaluru-560004
 TABLE OF CONTENT

SL NO CONTENT PG NO

1 What is ERP 1-2

2 Advantages and Disadvantages of ERP 3-4

3 Components o ERP 5-6

4 Current ERP trends 7

5 Best ERP software tools 8-12

6 Conclusion 13
 TABLE OF FIGURES

SL NO FIG NO CONTENT PG NO
1 1.1 Working of ERP 2
2 3.1 Components of ERP 5
3 5.1 NetSuit ERP 8
4 5.2 Acumatica ERP 9
5 5.3 Sage Intact ERP 10
6 5.4 SYSPRO ERP 11
7 5.5. Epicor ERP 11
8 5.6 Microsoft Dynamics ERP 12
9 5.7 Tally ERP 12
10 5.8 SAP ERP 13
5.6
ERP

CHAPTER 1
INTRODUCTION

1.1 WHAT IS ENTERPRISE RESOURCE PLANNING (ERP)

Enterprise resource planning (ERP) is a platform companies use to manage and integrate the
essential parts of their businesses. Many ERP software applications are critical to companies
because they help them implement resource planning by integrating all the processes needed to
run their companies with a single system. An ERP software system can also integrate planning,
purchasing inventory, sales, marketing, finance, human resources, and more.

ERP applications also allow the different departments to communicate and share information
more easily with the rest of the company. It collects information about the activity and state of
different divisions, making this information available to other parts, where it can be used
productively.

Enterprise resource planning (ERP) has become an indispensable tool for businesses of all sizes
and industries. With its comprehensive and integrated approach, ERP software applications
streamline operations and enable organizations to optimize their resources, increase efficiency,
and drive growth. Here, we will delve deeper into the various aspects and benefits of ERP
systems.

One of the key advantages of ERP is its ability to centralize and automate core business
processes. By consolidating data and operations into a single, unified system, companies can
eliminate the need for multiple standalone software solutions, manual data entry, and redundant
tasks. This integration leads to improved data accuracy, reduced errors, and enhanced
productivity across the entire organization.

ERP software encompasses a wide range of functionalities, spanning from financial management
and supply chain operations to customer relationship management (CRM) and human resources
(HR) management. These modules work in harmony, allowing for seamless information flow
and real-time visibility into critical business operations. For example, finance modules enable
companies to handle accounting, budgeting, invoicing, and financial reporting efficiently, while
supply chain modules optimize procurement, inventory management, and order fulfillment
processes.

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1.2 HOW DOES IT WORK?

 ERP has evolved over the years from traditional software models that made use of physical
client servers and manual entry systems to cloud-based software with remote, web-based access.
The platform is generally maintained by the company that created it, with client companies
renting services provided by the platform.
 Businesses select the applications they want to use. Then, the hosting company loads the
applications onto the server the client is renting, and both parties begin working to integrate the
client's processes and data into the platform.
 Once all departments are tied into the system, all data is collected on the server and becomes
instantly available to those with permission to use it. Reports can be generated with metrics,
graphs, or other visuals and aids a client might need to determine how the business and its
departments are performing.

1.1
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CHAPTER 2

ADVANTAGES AND DISADVANTAGES OF ERP

ADVANTAGES :

2.1 Integrated Information Among All Department

 By using the ERP system, the system can store all the information across all the departments in a
single database which means all the employee from the different department can use the
information from the database without other department approval.
 In old ways, the company used to store information in each department database. Thus, the
information would only be shared within the particular department. If the other department wish
to get the data/ information, they have to inquire with the respective department manager in
order to access the information.

2.2 More Efficient for the Business Process

 Before the implementation of the ERP system, all the information is stored in a different
database. This information may be duplicated and there is a high risk that the information may
not be the latest version. Hence, decision made based on this information may not be accurate.
 After the implementation of the ERP system, all the information stored in a single database
which means everyone can access and update the information from various department to reflect
the latest information in the system. This reduces the risk of a duplicate file because all the
information will be updated in a single database. Thus, the decision made would be more
accurate and reliable.

2.3 Total Visibility

 Another benefits of ERP, It allows total access to every important or major process in the
business by allowing data accessible from every department to the management. Through this,
management is able to control inventory level on a daily, weekly or monthly basis including
future consignments which are yet to be received.
 By knowing precisely where the company stand regarding inventory level, it helps management
to control working capital in a more précised way.
 Moreover, the availability of all company’s information in a centralized location allows for
increased collaboration and more streamlined completion of complex tasks. This complete
visibility provides better workflows and allows inter-departmental processes to be easily tracked
with maximum efficiency.

2.4 Improved Reporting & Planning

 Implementing an ERP software across all department, it means that the organization has a single
unified reporting system for every process. By having a single source of truth, an ERP system
are able to readily generate useful analytics and reports at any time.

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 ERP system provides management to have ability to compare and analyze functions across
departments and divisions without the bias of multiple emails and spreadsheets.

 One of the most popular and important reports involves finance. Standard financial reports such
as cash flow and income statements generally are in-built. ERP system allows management to
produce their own custom reports and they can be quickly generated without relying on the help
of IT.

DISADVANTAGES :

2.5 Cost of ERP Software

 The upfront cost of the software alone can be very high, especially for small and medium
companies. Even though this cost can be avoided using a cloud solution with a monthly basis
payment but that too has its own disadvantages, users can only continue to access the data if they
continue paying. This would make the cloud-based system slightly more expensive over a
product’s lifetime.

2.6 Customization Process

 Another disadvantage of an ERP, This process takes a lot of time, effort, money and expertise.
Businesses often completely underestimate how many resources are needed and either don’t
finish their customization or end up going way over the budget.
 Many companies may also lean on customization when their chosen system does not really fulfil
their business needs. This could lead to diminishing the best practices built into the system and
make it more difficult to upgrade in the future.

2.7 Users Participation Is Must

 For a successful implementation of an ERP system, there is a must that every employee in the
organization should participate in using the system. To use the system efficiently it requires
training and learning sessions for the employees in order to understand the system and work.
However, it may be hard for a certain group especially the older generation to learn the whole
process in the ERP system.
 Lack of participation from the employees in handling the system can lead to failure of
implementation and operation.

2.8 Decrease In Effectiveness While Completing Task

 Last one disadvantage of ERP, A company should understand that implementing the system
requires a long time. This is because it takes time to do a migration of data, organize the training
courses for employees and other tasks. This can bring a huge amount of loss to the company in
terms of time and cost. The process of implementation can take up from a month to years. If the
company did not handle properly on the possible risks, they likely cannot recover from the loss.

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CHAPTER 3
COMPONENTS OF ERP

3.1

3.1 Finance :
It keeps a track on all your financial data including Accounts receivable, Accounts payable,
General ledger, costs, budgets and forecasts. It helps to keep a record of cash flow, lower costs,
increase profits and make sure that all the bills are paid on time. The growing complexity of the
business makes important the need to have a single system to manage all of the financial
transactions and accounting for multiple business units or product lines.

3.2 Human Resources (HR) :

It is a software handling all personal-related tasks for managers and employees. Employees play
a very important role in any organization, without them business would not exist. This
component is responsible for automated payments to employees, payment of taxes, generating

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performance reports, attendance tracking, promotions, deciding working hours and holiday hours
of the staff.

3.3 Customer Relationship Management (CRM):

This component interacts with the customers using data analysis to study large amount of
information. They target the audience and observe what is beneficial for them. The component
gathers customer data from multiple channels. Hence, CRM stores detailed information on
overall purchase history, personal info, and even purchasing behaviour patterns. The benefit it
gains is by keeping a track on the customer’s buyer history and suggesting additional purchases.

3.4 Inventory and Procurement:

With the inventory ERP component, you can optimize materials management at a global level.
This ERP component streamlines working capital and inventory levels and helps to get complete
visibility across product flow.
In the below section, a brief overview of how the project is designed is given, including the
Entity- Relation diagram and Schema diagram which describes the various attributes used in the
design and their types.

3.5 Project Management:

This is yet another ERP component with which you can create project plans for critical projects
in a single point. You can allocate the correct resources to the correct people at the right time
and manage them effectively. This ERP component allows sharing of goals and project
schedules across your team and stakeholders. By using the existing data, you can quickly
generate accurate budgets.

3.6 Risk Management and Compliance:

Using this ERP component, you can build resilience in business processes by adapting to
constant and continuous changes. Here, the changes may occur because of many internal and
external factors. So, this ERP component supports tracking user activity, controlling user access,
and meeting compliance regulations and requirements.

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CHAPTER 4
CURRENT ERP SOFTWARE TRENDS & FORECASTS
FOR FUTURE

4.1 Data Cloud Acceleration:

Data cloud-based ERP is the game-changing trend. The ERP software is served at user location
with hardware and start-up costs, which can be a high cost for small firms. The emergence of
cloud computing helped users by major cost-cutting at the maintenance and upgrading of the
software system. Business firms are also going for a hybrid ERP option.

4.2 Artificial Intelligence:

AI that is an artificial intelligence with ERP, is termed as iERP. It helps businesses with fast
processing of complex unstructured data with innovative ways and actionable insights. iERP is
creating simplified workflows, reducing mistakes, reducing the data processing time & more.

4.3 Mobile Application:

Mobile had been earlier an “extra” belonging, but today it is a fixture. Today’s ERP tool
provides total mobile support by performing business processes anywhere and anytime with
exceptional total productivity. For changed to more personalized and vertical improvements at
companies as they will get the improved solution without the need to depend on IT consultants
or teams.

4.4 Additive Manufacturing:

The adoption of additive manufacturing is another new trend in ERP in manufacturing. ERP
provides the digitized data to the 3D printers with a single platform. ERP software monitors total
production material count starting from raw, in-process, finished goods, and final dispatch.
Sculpteo study says that 51% of companies are utilizing 3D printers in their manufacturing
process.

4.5 IoT:
IoT that is the Internet of Things, can offer smooth sensor connectivity in a data network with no
human involvement. IoT and ERP together collect, review, and process big data via network
sensors that further help to monitor the machine efficiency. In 2020 manufacturing industry has
projected an investment of $40 billion on IoT platforms, services, and systems (Finances online,
2020).

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CHAPTER 5
BEST ERP SOFTWARE AND TOOLS

1.NetSuit ERP:

5.1
 Accounting
 Cash management
 Purchasing management
 Financial consolidation

2. Acumatica:

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5.2

 Financial management
 Inventory and warehouse
 management
 Job costing
 Project management

3.Sage Intact

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5.3
 Accounting
 Cash management
 Purchasing management
 Financial consolidation

4.SYSP

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5.4

 Manufacturing Operations Management (MOM)

 Distribution and procurement management
 Supply chain management
 Accounts payable

5.Epicor ERP

5.5
 Customer relations management
 Financial management
 HR and payroll

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 Manufacturing
 Project management

6. Microsoft Dynamics GP

5.6
 Journal entries
 Purchase orders
 Payment processing
 Reporting and analytics

7.Tally ERP 9

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ERP

5.7

 Accounting management
 Inventory management
 Payment management
 Compliance management
 Banking support
8.SAP ERP

5.8
 Journal entries
 Audit trail
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ERP
 Custom invoicing
 Purchase orders
 Payment processing

CHAPTER 6

CONCLUSION AND FUTURE ENHANCEMENT

6.1 Conclusion

ERP software applications are vital tools that enable companies to integrate and manage their
essential business processes in a cohesive and efficient manner. From planning and procurement
to finance, sales, and human resources, ERP systems provide a unified platform for
organizations to streamline operations, improve collaboration, make data-driven decisions, and
drive overall growth. With their extensive capabilities, ERP solutions have become
indispensable assets for businesses navigating the complexities of the modern marketplace.

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Trip Planner 1BI20IS012

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