A Project Report On Awareness of ERP among SSI in Pune for iota technologies ltd., Pune By NILESH SUDAM PATIL Under the guidance of Prof. Mahesh Halale Submitted to University of Pune In partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA) Through 1
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A Project Report
On
Awareness of ERP among SSI in Pune
for
iota technologies ltd., Pune
By
NILESH SUDAM PATIL
Under the guidance of
Prof. Mahesh Halale
Submitted to
University of Pune
In partial fulfillment of the requirement for the award of the degree
of Master of Business Administration (MBA)
Through
Vishwakarma Institute Of Management
Pune-48.
1
ACKNOWLEDGEMENT
The project at iota technologies ltd. Pune was a great experience to me as far
as industry interface is concerned. I had to study the market potential for iota’s ERP
software ‘SIXTH SENSE’ in Pimpri-Chinchwad, Sinhagad Road & Hinjewadi
Industrial Area. I met many Senior Personnel of the companies while conducting the
market research, and tried to understand how Information technology has helped
them to conduct their businesses more efficiently.
I would like to thank my Company Guides Mr. Shailesh Ghatpande, Sr.
Manager Business Solutions and Mr. Milind Patil, Marketing Executive, without
whose support and guidance the project would not have been possible. They shared
their knowledge and expertise with me and advised me on the direction of the project
In addition, I would also like to thank my Institute Project Guide Prof..
Mahesh Halale, whose experience and guidance helped me in understanding how
market research should be conducted and in knowing the nuances of presenting the
project report.
.
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INDEX
Sr.
NO
Chapter Page no
1 Executive Summary 1-3
2 Company Profile 4-29
3 Objective of the study 30-32
4 Research Methodology 33-38
5 Project work undertaken 39-40
6 Analysis and data interpretation 41-49
7 Conclusion and suggesttions 51-55
3
EXECUTIVE SUMMARY
4
Chapter One
EXECUTIVE SUMMARY
This project titled as Awareness of ERP among the manufacturing units in Pune for
iota technology. This company is providing ERP solution that is known as six Sense.
Enterprise resource planning software, It attempts to integrate all departments and
functions across a company onto a single computer system that can serve all those
different departments' particular needs. Sixth Sense Enterprise software suite is a
family of information technology based solutions designed with a comprehensive
understanding of best business practices, business requirements, regional policies, tax
regimes & inputs from business gurus. Each module provides total control over
business function.
I had chosen this company because it was challenging job to do the study of
the product and to find awareness in Pune. Iota technology is mainly concentrating in
Pune. They have their office in Pune. They are interested to start their new branch in
mumbai. I prepared one questionnaire. I had targeted manufacturing units, in each
unit I
met to their Information technologies department’s head. I was collecting
information
about their turnover, software, etc.
The marketing research has to solve the problem to manage the day-to-day
business of the firm, which is applied and related to present and potential markets &
other areas of management. Marketing Research doesn’t implement decisions but
helps to take decision on the basis of research findings. It’s not restricted to specific
types of problems, but it’s extended to any phase of marketing activities.
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Here while doing research I have gathered information of 160
manufacturing companies. Iota technologies limited is a Pune-based company which
is in the development of innovative software solutions and has established its
reputation as an intelligent business solutions company in a cross section of
industries. Iota is a leading provider of Enterprise Resource Planning (ERP) system
for the built-up, sales and distribution industries.
Meaning of important terms
Enterprise Resource Planning
Enterprise Resource Planning (ERP) is a software system that integrates various
departments of an organization. This concept is with manufacturing industry. It is a
management-oriented concept and thus concentrates on the management rather than
the whole enterprise. ERP combines the different departments’ software 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. Such integrated approach can have a tremendous payback if companies install
the software correctly.
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Chapter Two
COMPANY PROFILE
COMPANY: -
iota technologies limited is a company involved in development of intelligent
business solutions for a cross section of industries including manufacturing, sales,
distribution and service sector.
iota has a strong customer base in the Indian manufacturing industry with its flagship
solution “Sixth Sense ERP System”. Sixth Sense enterprise product line has been
designed specifically for businesses in manufacturing, sales and distribution. The
system gives an organization complete insight to the sales, production, inventory and
financial data and makes it easy to identify the opportunities for cost savings and
efficiency improvements.
Setup: -
iota’s software development center and corporate office is located at Pune. A
Hundred member team possessing skills in diverse technologies and platforms works
under stringent quality requirements set by us.
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Internet based project & quality management software handles the complete
process of project planning, work distribution, task monitoring, timesheets, quality
assurance, release management and defect tracking.
Windows, Linux networks, web servers hosted with various ISPs and dedicated
high-speed internet connection cater to application development and testing
requirements of various project groups.
iota’s support centers at Mumbai, New Delhi, Nagpur and Chennai understand
customer requirements and provide implementation, customization and customer
support.
Functional Skills: -
Providing end-to-end solutions for manufacturing, sales, distribution and
logistics functions has been iota’s core business since inception.
Many electronics, engineering, automobile, components, chemical, garments,
transport, warehousing, retailing, food, pharmaceutical sector companies have been
serviced by iota.
iota technologies ltd .is founded with a vision of developing innovative software
solutions that enhance the productivity and effectiveness of an organization and keep
people working for it. It offers software solutions in ERP, SCM, distribution,
logistics and industrial automation.
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iota offers technology solutions in three areas; offshore, industrial and business
intelligence. At the spearhead is the Business Intelligence Group, which services a
wide range of customers both in India and abroad.
CUSTOMERS: -
Name of the Company Area of Operations
Sansui Electronics Pvt. Limited Weighing Scales
Schenectady Beck India Limited Chemicals
Vanaz Engineering Gas dispensing Machines/ Kit
Ador powetron Lte HCR/HVR
MRC India Limited Transport
Kishor Pumps Pumps
Syngenta India Limited (Novartis Group) Seed Division
Foods on Net Pvt. Limited Application Service Provider
Rajratan Gustav Wolf Limited Special Steel Wires
Proline Exports Limited Garments
Shamrock B. V. (Netherlands) Garment Manufacturer for FILA
SAR Silicon Systems Pvt. Ltd. Sales and Distribution
DGP Hinoday Auto Components
Luminous India Limited Home power appliances
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History of ERP
The concept of ERP has been around since the 1960's. Until 1972 ERP was just a
concept without a name or classification. It was concept that companies had to
integrate all departments and functions to increase revenues and strengthen the
business.
- In 1972, five (5) managers left their positions at IBM to start a company to realize
this vision of ERP. That company they started is what is known today as SAP.
- SAP eventually became the first company to develop and implement ERP specific
software and applications. Today SAP is the world’s leader in ERP software.
ERP systems aim to integrate all the departments and functions across a company on
a unified computer system and serve different needs of the various departments in the
enterprise.
ERP software primarily allows an organization to:
Automate and integrate the majority of its business processes
Share common data and practices across the entire enterprise
Produce and access information in a real-time environment
A major way in which the ERP systems are applied to business methods is to
allow them to automatically carry out the routine tasks involved in running the day-
to-day operation of the organization. This “Business Process Automation”
considerably frees the human resources of the enterprise to carry out more creative
tasks and offers smoother running of the processes.
The benefits and resulting efficiencies through this automation alone are
immense. However the true objective of any capital investment made by the
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organization is to see its effect on the bottom line, only then the investment will be
truly justified.
Fig. 1 – ERP System
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ERP System
Strategic & Operational Planning
Quality Management
Manufacturing
Materials Management
Maintenance Management
Logistics Management
Human Resources
Finance
Sales & Distribution
Key Players in the ERP market
SAP is the world leader in ERP Software. They hold 33% of the market share. Oracle
is a very up coming ERP Solutions provider that has not been in the market very long.
However because of its strong database software, it was able to develop an ERP
software utilizing its strong database. Oracle holds 15% of the market share. JD
Edwards is a fast and up coming ERP software developer. Its has a main focus in
customer relations, thus it decided to enter the ERP market and develop a ERP
Software with a strong CRM module. JD Edwards hold 5% of the market share. The
last key player holding 8% of the market share is People Soft. People soft has a
relative small market share compared to SAP however it a big contender in providing
solutions for smaller companies. SAP and Oracle have mostly marketed and
developed their software for large corporations. It has only been recently that ERP
solutions providers have looked into try to develop software for smaller companies.
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ERP Evaluation Tool
Purpose:
This tool provides a comparison between packaged and customized solutions based on
various project-critical characteristics. When an organization talks about Enterprise
Resource Planning (ERP), they are talking about a top-to-bottom transformation of the
way it operates, does business and faces the future. Changes are set in motion in how the
organization is managed, how it serves customers and how it reacts to the market
environment. Add in the fundamental ingredients of success that are directly involved:
greater customer satisfaction, reduced cycle time, and increased productivity. ERP
packaged software covers the primary back office of a business. ERP solutions
encompass the ERP software plus hardware, database, integration software, technical
processes and people.
Directions: Review and compare packaged and customized designs to determine what
offers the best fit for your organization
.
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Business Value
Business Value
(cont’d)
ERP packages frequently offer
“industry best practices” which
means that the processes and
solutions provided in their
package have been tested and
validated as the most efficient
and cost-effective method of
doing business. ERP packages
have focused their efforts and
extensively validated their
solutions in some industries,
while not in others.
A client may find that they do
not share similar requirements
with the industries that have had
the most focus and therefore
“best practices” may not be as
meaningful or provide as great a
business value.
Great care must be taken to
A customized design can offer the
greatest business value because
careful attention has been taken to
ensure the future business system
design incorporates the client’s
specific business requirements. A
caveat however is that if a client
does not support innovation or
encourage change, a customized
design may simply automate the
“old” method of doing things,
without offering much business
value.
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understand one’s own business
requirements and match them
with those provided in the
package.
If a client feels that the package
does not meet it’s requirements,
it may be tempted to adapt parts
of the solution to its own
requirements, thereby
eliminating most of the
efficiencies and benefits offered
by the package.
Cost Depends on the size and scope
of project. Costs include:
Software licenses (usually on a
per user basis)
Integration with existing legacy
systems
Implementation
Ongoing maintenance (usually
included with software updates)
Depends on the size and scope of
project. Costs include:
Requirements assessment
Design of future systems
Integration with existing legacy
systems
Implementation
Ongoing maintenance
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Staff
Training
Staff
Training
Time to
implement
Depends on the size and scope
of the project. Packaged
solutions generally take less
time to implement because
requirements gathering is not
usually as extensive.
Depends on the size and scope of
the project. Customized solutions
generally take more time to
implement in order to assess
requirements and build a future
design.
Organizational
Fit
Packaged solutions usually
require a client to abandon its
traditional methods and accept
those offered by the package.
Organizations that are not
readily willing or able to make
sweeping changes in their
current processes may not be
comfortable implementing a
packaged solution.
Frequently a client believes it is
ready to adopt the processes in
As long as business requirements
have been carefully gathered and the
future design incorporates them, the
customized design will generally
provide a good organizational fit.
However all transformation efforts,
whether packaged or customized,
usually encounter organizational
resistance. This resistance needs to
be managed with change
management techniques.
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the packaged solution, but once
it has entered implementation it
discovers that the package is
really not a good fit and
encounters strong organizational
resistance.
Look at interrelationships and
whether all processes are owned by
the organization.
Standardization Given the client accepts the
processes and solutions offered
by the package, an ERP could
provide the ability to quickly
standardize solutions across
multi-functional areas, gaining
efficiencies for the entire
organization.
Does not provide an easy way to
standardize across the organization.
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Sixth Sense Introduction
Iota Technologies Limited is a company involved in development of intelligent business
solutions for a cross section of industries including manufacturing, sales, distribution and
service sector.
Iota has a strong customer base in the Indian manufacturing industry with its flagship
solution “Sixth Sense ERP System”. Sixth Sense enterprise product line has been
designed specifically for businesses in manufacturing, sales and distribution. The system
gives an organization complete insight to the sales, production, inventory and financial
data and makes it easy to identify the opportunities for cost savings and efficiency
improvements.
Sixth Sense ERP System
Sixth Sense suite of Business Solutions is a family of Information Technology based
solutions designed with a comprehensive understanding of India specific operations,
business requirements, regional policies, regulations and tax regimes.
The ERP System is built to accommodate the needs of small and large manufacturing,
sales and distribution organizations. Offered in two versions, Premium and Standard,
Sixth Sense editions are focused on the functional requirements of companies which
differ in size and scale of operations and match there IT budgets.
Small enterprises can run their core functions on the Standard Business Edition at a basic
license cost of Rs. 5 lakhs. For Medium and large enterprises, Premium edition is offered
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at Rs 10 lakhs with core modules. In both premium and standard edition add on modules
are provided at and extra cost as per the requirement.
Sixth Sense ERP is a fully integrated suite of modules, which can be implemented as
whole or as individual modules and gives everyone in the company, complete control
over their work area. Complete functionality of the sixth sense is provided in the
following systems:
CORE ERP MODULES: -
1) Sales Management (SMS)
2) Inventory (INV)
3) Production Planning and Management (PPM)
4) Purchase (PUR)
5) Financial accounting (FAS)
EXTENDED ERP MODULES:-
6) Engineering (ENG)
7) Shop Floor Control (SFC)
8) Sub-Contracting (SUB)
9) Plant Maintenance
10) Quality Management (QMS)
11) Calibration (CAL)
12) Project Management (PMS)
13) Complaints Management (CMS)
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14) Facilities and Administration Management (FAM)
15) Human Resource Management (HRM)
16) Time Office and Payroll (TOP)
17) Finance Planning (FPM)
18) Costing (COS)
19) Enterprise Management (EMS)
COUNTRY SPECIFIC MODULES – INDIA: -
20) Export Documentation and Management (EDM)
21) Excise (EXC)
22) Imports Management (IMP)
23) Sales Tax
24) TDS (TDS)
25) Payroll related statutory compliance
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EXTENDED ENTERPRISE APPLICATIONS:-
26) Marketing Management (MMS)
27) Sales Force Automation (SFA)
28) Servicing Management (SRM)
29) Servicing force automation (SRF)
30) Advanced Planning and Scheduling (APS)
31) Supply Chain Tracking (SCM)
32) Distribution Chain Management (DCM)
System Architecture
Sixth Sense is a client server application designed with a focus to take full advantage of a
variety of technologies. Through a flexible and platform independent infrastructure Sixth
Sense facilitates the flow of information across any platform.
Sixth Sense has been developed using Microsoft Visual Basic and leverages the
capabilities of crystal reporting tool for building intelligent reports. All the business data
is stored securely on a central server using robust RDBMS like Microsoft SQL Server
2000 designed for speed, power and precision in mission critical heavy operations.
Technology
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Operating Systems Windows, Linux
Database Systems SQL Server, My SQL
Front End VB
COM, DCOM is the underlying software architecture that forms the foundation for
higher level software services like custom controls, automation and data transfer. This
provides a distinctly different functionality to the user. The model provides the ease to
add new business applications by reusing the existing business components.
ERP Implementation Lifecycle: -
Like any other project, the ERP implementation project has to go through
different phases. There are no clear separating lines between these phases and in many
cases, one phase will start before the previous one is completed. But, the logical order is
followed.
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Fig 2 – Steps in ERP
Pre-Selection Screening
Project Planning
Package Evaluation
GAP Analysis
Project Team Training
Re-Engineering
Testing End-User Training
Configuration
Post-Implementation
Going Live
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Pre-Evaluation Screening: Once the company has decided to go in for the ERP System,
the search for the perfect package starts. It is always better to do a through and detailed
evaluation of a small number of packages, than doing a superficial analysis of dozens of
packages. Hence, the company should do a pre-evaluation screening to limit the number
of packages that are to be evaluated by the committee.
1. Package Evaluation: The selection process is one of the most imp steps of the ERP
implementation, because the package that you select will decide the success or failure of
the project.
2. Project Planning Phase: This is the phase that designs the implementation process. It is
in this phase that the details of how to go about the implementation are decided. Time
Schedules, Project Plan, Roles are assigned. A committee constituted by the team leaders
of each implementation group usually does the project planning.
3. Gap Analysis: This is the most crucial phase for the success of the ERP implementation.
This is the process through which companies create a complete model of where there are
now, and in which direction they want to head in the future. The solution is to design a
model, which both anticipates and covers any functional gaps.
4. Re-Engineering: In this phase the human factors are taken into account.
5. Configuration: This is the main functional area of the ERP implementation. In this
phase existing company practices are synchronized with the ERP package.
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6. Implementation Team Training: In this phase company trains its employees to
implement and later, run the system.
7. Testing: This is phase where versatility, flexibility, robustness of the system is being
tested.
8. Going Live: Before this stage technical side work is almost complete – data conversion
is done, databases are up and running, and on functional side prototype is fully tested and
ready to go operational.
9. End-User Training: This is the stage where the actual users of the system will be given
training on how to use the system.
10. Post-Implementation: This is maintenance mode of the system. The system must be
upgraded as and when new versions or new technologies are introduced.
Benefits of ERP: -
Implementing an ERP System has many advantages – both direct and
indirect. The direct advantages include improved efficiency, information integrations for
better decision making, faster response time to customer queries, etc. The indirect
benefits include better corporate image, improved Customer goodwill, customer
satisfaction, and so on. The following are some of the direct benefits of an ERP System.
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1. Business Integration: The first and most important advantage lies in the
promotion of integration. The reason why ERP packages are considered to be integrated
is the automatic data up gradation that is possible among the related business
components.
2. Flexibility: Different languages, currencies, accounting standards and so on can
be covered in one system, and functions that comprehensively manage multiple locations
of a company can be packaged and implemented automatically. To cope with company
globalization and system unification, this flexibility is essential, and one can say that it
has major advantages, not simply for development and maintenance, but also in terms of
management.
3. Better Analysis and Planning Capabilities: ERP makes the boost to the
planning functions. By enabling the comprehensive and unified management of related
business and its data, it becomes possible to fully utilize much type of decision support
systems.
4. Use of latest Technology: The fourth advantage is the utilization of the latest of
the information Technology (IT).
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Some of other benefits are,
1. Reduction of Lead Time
2. On-Time Shipment
3. Reduction in Cycle Time
4. Better Customer Satisfaction
5. Improved Supplier Performance
6. Increased Flexibility
7. Reduction in Quality Costs
8. Improved Resource Utility
ERP Scenario in India: -
According to IDC, the ERP market in India
has been witnessing a CAGR of 20-30 percent
consistently over the last 5-6 years. As a result,
the market was already at Rs 250 crore in 1999-
2000, leapfrogging from Rs 12 crore in 1995-96,
Rs 27 crore in 1996-97, Rs 62 crore in 1997-98 and Rs134 crore in 1998-99. Therefore,
the Indian ERP market touching Rs 460 crore or $54 million, this year, accounting for
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nearly 8.4 percent of the total Asia-Pacific market for ERP solutions. Growing at this
rate, it is expected to reach Rs 650 crore or $120.7 million in 2001-02.
Vendor Major clients
SAP BPCL, IOCL, ONGC, Reliance, Coca-Cola, Pepsi, ITC, Colgate-