Question 1:

Discuss why it is important to conduct a prerequisite study before selecting the vendor
and type of ERP for the organization. Also, explain why SCEE was especially
concerned about selecting an ERP vendor?

Answer: -
Introduction: Importance of conducting a prerequisite study before selecting the
vendor and type of ERP for the organization.
SCEE (State Corporation of Education and Employment) is a company under the
state government which has been assigned with the responsibility of promoting
education and job. Since it is recently established company, the major objective of
SCEE is to take initiatives in promoting education and enhancing employability for the
youngsters of rural areas.
SCEE has also decided to restructure itself by implementing Enterprise Resource
Planning (ERP) software’s in the work processes. By having a long- term business
visions in mind, the organization realized the need to streamline and automate its
internal as well as external operations and took this decision. The main issue faced by
SCEE was selecting a suitable ERP vendor for implementation. They conducted a
prerequisite study before selecting the vendor and type of ERP for the corporation.
In this chapter let’s discuss more about importance of conducting a prerequisite study
before selecting the vendor and type of ERP for the organization.

Concept & Application:-

Choosing an (ERP) system is one of the vital decision that a business can make.
To be sure, there are a plenty to factors to be considered not only the ERP systems’
features, budget and model, but also the vendors who is going to implement the ERP
for the company. A thorough assessment consumes a lot of time but it will prove well
worth the investment in terms of operational and cost benefits, analysis and data
integration that helps real-time decision-making and support for future growth.
Enterprise resource planning (ERP) systems play a major role in streamlining
processes, resource optimization and enhancing efficiency. But, implementing ERP
successfully requires very careful planning, strategic alignment and execution.
Following are 10 key prerequisites essential for implementing a successful ERP.
1. Clear Business Objectives
Before implementing an ERP, it’s crucial to define a clear business objective. Identify the
specific problems that is being aimed to solve with ERP. It can be improving supply
chain visibility, enhancing customer relationships, or optimizing financial reporting, we
need to align ERP goals with organizational strategies.
2. Executive Sponsorship and Leadership
ERP proposals need a strong executive sponsorship and leadership. The support from
top-level is crucial to secure resources, managing the changes effectively and driving
the adoption across various departments.
3. Cross-functional Team Collaboration
It is important to form a cross-functional implementation team involving representatives
from key departments such as finance, IT, operations and human resources. This cross
functional team should closely collaborate throughout the ERP project lifecycle to
ensure diverse perspectives.
4. Comprehensive Business Process Review
A thorough review to be conducted on existing business processes before ERP
implementation. Identify the inefficiencies, dismissals and areas for improvement.
Streamline and optimize processes effectively to align with ERP functions with best
practices.
5. Data Quality and Integrity
Ensuring data quality and integrity are most important. Cleansing, validating and
migrating data precisely into the ERP system. Establish data governance policies to
maintain accuracy and security post-implementation.
6. Scalable Infrastructure and IT Readiness
Assess the organization’s IT infrastructure and readiness for ERP deployment. Evaluate
network capabilities, hardware requirements and other capabilities with existing
systems. Invest in necessary enhancements that supports ERP functionalities.
7. Change Management Strategy
Develop a strong change management strategy to prepare employees for ERP
adoption. Ensuring sufficient training by conducting workshops and resources to
facilitate smooth transitions.
8. Vendor Selection and Collaboration
Choosing an ERP vendor aligns with your organization’s industry, scale and specific
requirements. Close collaboration with the vendor during implementation is much
important to ensure clear communication, achievable timelines and milestones.
9. Customization vs. Standardization
Try for a balance between customization and regulation. While customizations may
tackle unique business needs, excessive revisions can complicate upgrades and
maintenance. Influence ERP best practices and industry standards where feasible.
10. Continuous Improvement and Evaluation
ERP implementation results the beginning of a continuous improvement journey.
Establishing a proper metrics and KPIs to monitor ERP performances post-
implementation is most important. Ask feedback from users and stakeholders regularly
to identify areas for enhancement and optimization.
Conclusion:-
Before choosing the vendor for ERP implementation, assess the experience and
capability of each and every shortlisted ERP vendor. Go through the track record of
successful implementations of the vendor within your industry and the ability to
understand your business needs specifically. Case studies and customer reviews can
also provide valuable insights of the vendor’s capabilities. A well experienced vendor
brings good industry knowledge and best practices ensuring a smooth implementation
and maximizing the ERP system's benefits for the organization.
Question 2:
Xrbia Telecom came across a lot of challenges while working with its legacy billing and
finance system as it only catered to a particular requirement with limited integration of
functionalities. Most of the processes were complex and time consuming. They decided
to reorganize its system and processes to improve its efficiency by replacing it with ERP
system which is automated system and is also integrated, flexible and scalable. Discuss
what are the benefits of ERP implementation and also discuss the challenges in its
implementation.

Answer:-
Introduction:
Xrbia Telecom have realized that the existing billing and finance system is
outdated and it is not supporting to meet the current business requirements as
processes were complex and time consuming. Hence they have decided to reorganize
its system and processes to improve its efficiency by replacing it with ERP system which
is automated system and is also integrated, flexible and scalable.
In this chapter let’s discuss about the benefits of ERP implementation and also discuss
the challenges in its implementation.

Concept & Application:-

ERP has gained importance in the market for its never-ending benefits to organisations.
Today many organisations are changing their key business systems and adopting new
ERP packages.
The main reasons for implementing ERP systems are given as follows:
● Increases performance of the business: ERP helps to decrease manufacturing
cycle time, reduce inventory storage issues and boost up order deliveries.
● Increases revenue: ERP allows to increase an organisation’s sales through sales
force automation processes.
● Increases productivity: ERP allows an organization to obtain more work done with
limited people, thus increases productivity.
● Improves the efficiency of business processes: An ERP system automates
business processes and reduces non-value added activities. In addition, an ERP
system follows an organization to match customer demands which helps to reduce
inventory carrying costs.
● Leverages the available resources: ERP leads to proper utilization of organizational
resources such as capital and human resource. An ERP system helps an organization
to benefit a clear insight of all resources that they can be utilized more effectively to
improve business efficiency.
● Provides high security: An ERP system, keeps security to the critical information of
an organization such as financial and customer’s details. An ERP system does not allow
unauthorized users to access any critical information that can damage the organization.
● Standardizes business practices: An ERP streamlines business practices of an
organization thus preventing inaccuracies, in-consistencies and delays in work
processes.
● Combines operational, financial and strategic insights: An ERP system combines
and analyses the data of all the departments of an organization and delivers crucial
operational, financial and strategic insight, which ultimately lead to effective decision
making.

ERP implementation challenges:

Every organization faces challenges during adapting to a new system. The
implementation of a new ERP system is not a technical job but it requires a lot of
planning and proper communication.
The common challenges that are faced during the implementation process are given as
follows:
• Stages to be followed: The ERP implementation process should follow all the
implementation phases. It leads to a chaotic situation if the sequence of phases is
not followed by an organization, it further leads to confusion in the organization.

● Training: It is important to impart training to employees during and after the

implementation stage. It is because training helps to enhance cooperation and build
trust among employees and prevent situations such as job insecurity or functional
inefficiencies.
● Lack of proper analysis: For a successful ERP implementation, an organization
must analyze its requirements. If the organization does not analyse its requirements, it
may not be able to choose the right ERP system.
● Lack of support from the top management: Support of top management is vital for
the implementation of an ERP system. Lack of support from top management may lead
to ineffectual decision making.
● Compatibility issues with ERP modules: Any incompatibility issues in ERP
processes with respect to existing systems pose a major problem for organizations.
Different companies come in partnership with different vendors of ERP this it is their
responsibility to solve any compatibility issues.
● Infrastructure investment: It is important for an organizations to make investments
in infrastructure development for ERP implementation. Lack of proper infrastructure
slows down the progress of application development. This further leads to the wastage
of resources.

Conclusion:-
Thus, we have seen the benefits of implementing ERP and challenges in
implementation in the above concept and application. Every organization irrespective of
industry would have come across these challenges in the implementation and also
attained the benefits of ERP as well. This ERP implementation will help Xrbia Telecom
to overcome the existing billing and finance system issues which is complex and time
consuming.
Question 3 (a):
BridgeSoft Technology is an IT Company with the motive of providing solutions to
different Organisations by catering to their specific product related requirements. They
have decided to implement SAP software in their organization to integrate the various
business processes and to enhance the efficiency of the organization.
Considering the above scenario, discuss the following:
a) Discuss the SAP architecture which BridgeSoft Technology has used for
implementation.

Answer 3(a):-
Introduction: SAP architecture which BridgeSoft Technology has used for
implementation.
SAP (Systems, Applications and Products) is a Data Processing software
company known for a leader in Enterprise Resource Planning (ERP) software. SAP is a
well-structured software package which provides business solutions to its client/server.
It has managed to acquire a large stake in the market despite strong competitors in the
market. This is because SAP is the most popular vendor for ERP solutions.
SAP has various software modules for processing different business functions.
These include the following
1. Finance
2. Sales, Marketing and Distribution
3. Materials Management
4. Production Planning
5. Supply chain management
6. Human resource management
7. Quality management
Let us discuss the architectures of SAP in the concept and application.
Concept & Application:-
The SAP architecture has three main layers:

● Presentation layer: This layer networks with the database layer through the
application layer. This layer also contains the SAP Graphical User Interface (GUI). The
user provides inputs to the GUI by using keystrokes, mouse-clicks and function keys,
which are passed on to the application server for processing. Likewise, the results sent
by the application server are formatted by the GUI so that the users can understand
them.
● Application layer: This layer intermingles with the presentation and database layers.
The application contains an application server that decodes the ABAP/4 language and
programs. The application server includes a set of executable functions which control
the input and output from the application layer.
● Database layer: This layer permits the data or information received to the application
layer. It saves all data of the ERP SAP systems. The layer contains a set of executables
which process the database requests that are received from the application server. It
moves these requests to the Relation Database Management System (RDBMS) which
provides the requested data to the database server.
Conclusion:-
From the above concept and application, we understand the architecture types
which a organization like BridgeSoft Technology can choose on its own based upon the
requirements on functionality and user interface as well. It will help an IT Company by
providing solutions by catering to their specific product related requirements. They can
also decide to implement SAP software in their organization to incorporate the various
business processes and to enhance the productivity of the organization.
Question 3 (b):
Discuss the benefits of SAP implementation by BridgeSoft Technology

Answer 3(b):-
Introduction: Benefits of SAP implementation by BridgeSoft Technology
By implementing SAP ERP software package Bridgesoft technology can obtain
vast benefits by improving the efficiency in the productivity by eliminating non value
added activities and by utilizing the manpower in a better way by making the tasks
simple and effective.
Concept & Application:-
The following are the key advantages of implementing SAP in Bridgesoft
Technologies:
1.Data centralisation
SAP sets the data from multiple processes and business functions at a single
consolidated location. This makes data sharing and information across business units
easier. Departments such as sales, inventory, finance, production and human resources
can access the informations from different departments and efficiently communicate the
needs of their department.
2.Automation
SAP permits the automation of workflows and builds processes streamlined. Data from
routes like accounts, order management and vendor management flows automatically
as per the approval and rejection guidelines are defined in the system. This helps
organizations to become more capable as the employees can focus on more productive
tasks.
3.Accessibility
In SAP there is a possibility to arrange SAP through cloud platform. This makes SAP
ERP highly handy and accessible. SAP also deals mobile-based applications for many
of its features and applications. SAP supports all the major operating systems and
devices like Windows, Linux, Android, iPhones and Mac.
4.Globalisation
SAP offers support for a variety of geographical locations. As an enterprise tool, SAP
supports all the global major currencies, making it useful for companies with
international operations.
5. Visualisation
SAP reports and dashboards functionality lets us to view all the important data pointers
in an easy-to-understand format. Graphs and charts are easier to understand and go
through comparing to large data files. This facility lets us to decide on the next course of
action swiftly and makes understanding the processes and related issues that much
easier.

Conclusion:-
Thus, we have seen the benefits of SAP implementation from the above concept
and application which is evident that the organisations of various industries can go
ahead with SAP implementation for the betterment of the organization as well as for
enabling an easy and smooth going process in the workplace for the employees.