ITES Assignment

SUBMITTED TO DR.MURALI MANOHAR B PROFESSOR

M.Com., MBA., M.Phil., FDPM (IIMA), Ph.D Senior Professor

SUBMITTED BY
PV KANTHI REKHA 12MBA0133

November, 2013

VIT BUSINESS SCHOOL, VELLORE INSTITUTE OF TECHNOLOGY, VELLORE, TAMIL NADU

Selected IT Enabled Service: ERP (Enterprise Resources Planning)

ERP and Its Market Potentiality

ERP is management software which offers a pack of applications together with cross functional system. A Well becoming trend of system packages of multibillion dollar market share which shows the successful CAGR rate of 25.2 during the period of 2004-2009. As IT has developed rapidly from 2004 till date, the market started to thrive more by 85$ Million. In 2012, ERPs top ten vendors own almost 64% of the market. These highest revenue market vendors are Oracle Inc., Microsoft, SAP, Tally and Ramco. ERP Market contributes in larger volumes by playing a Major role in growth of small & medium size industries in India. As the research reports presented about the growth of ERP Market Potentiality since 2004, speaking about 2013, the market growth has been 2.2% only which shows the lazy movement of the growth. This can include many challenges to the growth of ERP Market where these challenges shall be addressed by the ERP Sector.

Challenges in ERP:
1. High cost of ERP Packages: Easy to use just by a click and scroll maybe, but the cost of owning ERP Package isnt that easy. Company has to shed a fair amount of money which it may have to sacrifice in other costs of the company. 2. No significant growth in cloud computing: Specially in India , the growth and implementation takes a turtle time to adapt for the new improvements in cloud computing. 3. Improper training of ERP: Hiring low expertise and unskilled people; leads to improper management and mishandling the operations. Lack of commitment which entails slow progress. 4. Difficulty in Upgrading/Compatibility issues with ERD Modules: Software keeps on upgrading and never gets old, hence this feature can give the issues of compatibility like old machine cant implement new software and vice versa. Frequent switching costs are another reason for the hesitation. 5. No allocation of suitable budget/budgetary constraints: When management is not able to predict the suitable budget , there comes unexpected , overseen expenses . Fully flexible budget is the solution for this. 6. Minimal project resources/ Incapable decision support resource: If resourcing is one serious issue then restricted resources is another issues which leads to the inadequate meetings of the requirements. Unskilled expertises incapable decision cannot become a support rather a threat to the company. 7. Unsuccessful ERP implementation: Happens when the management takes inappropriate/insensible choice of implementation plans.