Oracle Finacial||online training|| Oracial Financial Introduction part - 4 by SaiRam

Understanding Project Implementation Through Real-World Examples

Introduction to Project Concepts

• The speaker introduces the topic, noting that students often inquire about the meaning and importance of project implementation.

• Students express confusion regarding what constitutes a "project," particularly in relation to family members traveling abroad for work.

Case Study: Raymond's Group

• The speaker uses Raymond's Group, a textile company, as an example to explain project implementation.

• Raymond's Group produces fabric but does not sell directly to consumers; instead, they target distributors and wholesalers.

• The end consumer ultimately purchases the cloth from these distributors or retailers.

The Tailoring Process Explained

• After purchasing fabric, customers must take it to a tailor for alterations; simply having cloth is insufficient for practical use.

• Customers provide specific measurements and requirements to the tailor during fitting sessions.

• A trial fitting occurs before payment is made, allowing customers to request alterations if necessary.

Key Parties Involved in the Process

• Four key parties are identified in this process:

• Raymond's Group: Produces the fabric.

• Distributors/Wholesalers/Retailers: Sell the fabric to consumers.

• Consumers: Purchase and utilize the fabric.

• Tailor: Provides tailoring services for customization.

Payment Dynamics

• The speaker emphasizes that tailors charge for their services; thus, payments are made at different stages (for both fabric and tailoring).

Transitioning to Oracle Applications

• The discussion shifts towards Oracle Corporation as an example of software production similar to Raymond’s textile process.

• Oracle applications are produced in America but distributed through local companies like Astronaut Software in India rather than direct sales from headquarters.

Who Buys Software in India?

The Market for Software Purchases

• Discussion on the potential buyers of software in India, highlighting large companies like Tata, Birla, and Reliance that operate with significant turnovers.

• Emphasis on the limitations of traditional software delivery methods (CDs and DVDs), which do not meet the operational needs of these large organizations.

Role of Software Companies

• Introduction to major Indian software companies such as Satyam, Wipro, TCS, and Infosys that assist big corporations in implementing software solutions.

• Clarification that software engineers are responsible for executing projects rather than performing entertainment activities.

Project Implementation Process

• Explanation of how software companies conduct gap analysis and understand business processes to tailor solutions for clients like Tata and Reliance.

• Overview of various sectors within large conglomerates (e.g., Tata Steel, Reliance Power), indicating the need for customized software solutions.

Understanding ERP Systems

Types of ERP Available

• Mention of different ERP systems available in the market with a focus on two leading providers: SAP and Oracle Applications.

• Statistics showing SAP's dominance with 55% market share compared to Oracle's 45%, attributed to their earlier entry into the market.

Historical Context

• Insight into SAP's establishment in 1974 versus Oracle’s introduction in 1984, explaining why SAP has a larger market presence today.

Choosing an ERP System

Dilemma for New Businesses

• Discussion about new businesses facing challenges when selecting an ERP system among options like SAP, Oracle, or Microsoft Dynamics.

Database Utilization by ERPs

• Overview of database technologies used by different ERPs; Oracle applications utilize their own databases while SAP transitioned through several before settling on Oracle.

• Mentioning PeopleSoft and JD Edwards as examples that rely on Oracle databases despite having their own ERPs.

Cost Comparison of ERP Systems

Overview of ERP Options and Cost Factors

• The speaker recommends considering Ramp Commercial for ERP solutions, highlighting various available ERPs and their associated databases.

• Oracle offers discounts on its database when purchased alongside its ERP applications, making it a cost-effective option compared to others.

• In contrast, purchasing an Oracle database separately after acquiring other ERPs (like PeopleSoft or JD Edwards) does not yield any discounts; customers must pay a premium price.

Pricing Insights for Different ERPs

• When comparing pricing structures, buying Oracle applications provides significant discounts on the database, unlike other ERPs where no such pricing benefits exist.

• Specific costs are outlined: Oracle applications are approximately 90 lakhs in Indian currency (around $15,000), while SAP requires about $20,000 (1 crore), and PeopleSoft around $5,000 (25 lakhs).

Summary of Costs Across Various ERPs

• Additional costs include JD Edwards at about $30,000 (1.7 crores), while Ramp Commercial is noted as being suitable only for the cement business with a price point around $3,200 ($3,000).