Why ERP?

• ERP Allows you to integrate all the Business Processes in one single Platform.

• Just imagine any organization you know. It has got many divisions; Sales, Purchasing, Distribution,
Finance accounting, Warehousing, Human Resource, Planning etc.

• Now, everyone in here is using a different set of applications and provide you with different
services.

• This could be different silo systems running on different platforms, different interfaces, and
different databases

• Where does the role of ERP fit?

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What is ERP?
• Enterprise Resource Planning (ERP) is a business management practice that uses information
technology as a tool to integrate all core business processes. ERP it’s a vehicle that enables an
organization to achieve its business objectives.

• ERP is the planning of how business resources (materials, employees, customers etc.) are
acquired and moved from one state to another.

• Comprehensive software applications that integrate key business processes and functions across
departmental boundaries.

• Overcome the limitations of fragmented and incompatible legacy systems.

• by providing access to enterprise-wide data in a real-time environment
• by allowing the integration all the Business Processes in one single Platform

• In ERP, there is only one database through which all the departments of an organization – such as
production, sales, finance, logistics, shipping, human resources (HR), and customer service -
manage their business processes.

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What is ERP…
 Rather than being stored in separate places throughout the organization, all data relevant to the
organization and particular departments is stored in a centralized database.
• Data is captured once, so duplicates and errors are reduced

• ERP is cross-functional and enterprise wide.

• All functional departments that are involved in operations or production are integrated in
one system

• An ERP system is based on a common database and a modular software design.

• The common database can allow every department of a business to store and retrieve
information in real-time

• Mostly in real time. Once data is captured it is available.

• Although ERP systems update the database almost immediately as soon as a user has
entered information, and
• Very often there are automatic batch jobs that run after hours that also updates the
database.

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ERP Features & Benefits
• ERP is one of the most successful business software solutions because of its salient features,
which include:
• Integrated business processes
• Centralized data storage
• Centralized management

• The integration of business processes into one system provides many benefits to an organization:
• Reduction in process turnaround time
• Reduction in information loss due to human error
• Real-time business processing

• Centralized data storage provides many benefits:

• Efficient data management
• Increased data security
• Faster access to information
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Overall benefits of ERP
• For companies:
• Increased Revenues
• Collaboration with customers & suppliers
• Inventory and lead time reductions
• Improved on-time deliveries
• Reduced operating costs / TCO
• Enhanced customer relationships
• Improved decision making
• Leverage IT infrastructure and information assets

• For end-users:
• Faster processing
• Ease-of-use
• More secure
• Single sign-on

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ERP Market
• The ERP market is very competitive where each vendor’s objective is to satisfy and maintain their
customers and strive to match ERP system functionality to customer requirements.

• The future prospects for the ERP market are positive, where the demand for ERP products and
software will always exist. ERP will grow and enter one segment after the other.

• Segments in the ERP market refer to dividing the market into distinct subsets.

• The market can be divided in numerous ways, such as by industry or public versus private sector,
or by company sized based, which includes SME’s (Small-to-Medium Enterprises) and large
organizations.

• There are many other categories for segmentation, however for this purpose consideration is
made for the division of the ERP market into 4 segments i.e. Financial, Public, Manufacturing,
Services.

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ERP Market Segments
Segments Function of ERP Organizations
Financial
1 Banking Deliver products and services as quickly ABSA
as possible to gain a competitive Standard Bank
advantage.
2 Insurance Improve customer relationships and Old Mutual
responsiveness.
3 Healthcare Provide a solution for all administrative Healthcare Holdings
and clinical processes. Limited (Netcare)
Public

1 Government Provide responsive services while City of Cape Town

reducing spending and optimise
City of Johannesburg
personnel resources.
2 Budget management and financial
University reporting; the purchase to payment, University of Cape Town
process; sales, invoicing and receipting;
asset management; servicing of
buildings & equipment; and all human
resources functions from recruitment to
staff data to payroll.

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ERP Market Segments…
Segments Function of ERP Organizations

Manufacturing

1 Optimise and streamline dealer

Automotive interaction and integrate all Toyota
processes.
2 Assist with the challenges of
Oil and Gas unpredictable market forces by Sasol
delivering significant information.
Services

1 Provide a diverse shopping

experience that encourages
Retail customer loyalty. Meet the needs of Pick ‘n Pay
customers by controlling product
flow in the supply chain.
2 Manage resources and assets.
Railways Improve existing services and Transwerk
develop new services.
3 Integrate all distribution processes.
Wholesale
Reduce costs and streamline Makro
Distribution
stakeholder interaction.

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ERP Key Vendors/Partners/Competitors
• ERP market is a three legged pot

• ERP Vendors (competitors)

• Manufactures and providers of ERP solutions
• SAP, Oracle, Sage Group, Microsoft

• Service Partners
• Implement ERP solutions on behalf of clients/customers including planning, training,
testing, implementation, and delivery of any customized modules
• Zimele, EPI-USE, Accenture, etc

• Technology Partners
• Provide technology platforms (hardware & software), and solutions to support the ERP
solution
• IBM, Microsoft, Oracle, Microsoft

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ERP Markets & Role Players
• ERP Vendors
• SAP
• SAP ERP, SAP S/4 HANA, SAP All-in-One,

• ORACLE Applications (bought People Soft & JD Edwards)

• Oracle Financials, Oracle Logistics, Oracle CRM

• Sage Group
• Accpac ERP, Pro ERP, CRM

• Microsoft Dynamics
• Navision, Great Plains (GP), Solomon

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ERP Market Share

45% 43%
40%
35%
30% SAP
25% 23% Oracle
20% Sage Group
15% Microsoft
10% SSA Global
5% 4%
5% 3%
0%
Market Share

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ERP Capabilities

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Capability Score

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Platform & Industries

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Implementation

15
Financial Payback

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Benefits Realisation

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Operational disruption

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Length of Disruption

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