Implementation of Erp in Ranbaxy

Topics: Business process reengineering, Supply chain management, Enterprise resource planning Pages: 7 (1716 words) Published: April 9, 2011

Ranbaxy Laboratories Limited (Ranbaxy), is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines. Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the world. The Company has a global footprint in 46 countries, world-class manufacturing facilities in 7 countries and serves customers in over 125 countries. Ranbaxy was incorporated in 1961 and went public in 1973. For the year 2009, the Company recorded Global Sales of US $ 1519 Millions. It has around 14,000 strong multicultural work forces comprising of over 50 nationalities. In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator companies, Daiichi Sankyo Company Ltd., and the combined entity now ranks among the top 20 pharmaceutical companies, globally and emerge stronger in terms of its global reach and in its capabilities in drug development and manufacturing. Ranbaxy is focused on increasing the momentum in the generics business in its key markets through organic and inorganic growth routes. Ranbaxy also views its R&D capabilities as a vital component of its business strategy that will provide a sustainable, long-term competitive advantage. There are various departments in Ranbaxy like Accounting and Finance, Human Resources, Information Technology, Sales and Marketing, Business Development and creative services. The company has witnessed huge growth in the past years and its effects are reflected on its database expanding at 45GB a month and putting tremendous pressure on its ERP. The average response time on its SAP servers was over 1200 milliseconds with capacity utilisation levels often hitting 90 to 100%. The systems began to crawl and impact the business and demanded an upgrade from current ERP systems to ERP II platform.


ERP II is defined as business strategy and asset of industry-domain-specific applications that build customer and shareholder value by enabling and optimizing enterprise and inter-enterprise, collaborative-operational and financial processes. ERP II is more than an extension of ERP. ERP did not cater to the individual elements but focussed more on macro parameters like departments, processes and procedures. Since the micro elements escaped attention, there was no proper remedy for defects. ERP II has some comprehensive features that not only concentrates on individual elements but also synergize them and makes the functioning of components more meaningful. ERP II provides flexibility in handling functions. ERP II not only integrates different functions from different departments but also different functions from different industries. ERP II operates superficially and facilitates better networks. ERP II facilitates access to internet and makes it a part of the working component and hence became totally a web friendly application. ERP II exploits the core strengths of the ERP and dwells on the future perceiving the potential changes in the market, user strategies, technological advancements and changes in enterprise operations. CONCEPTUAL FRAMEWORK OF ERP II

The conceptual framework of ERP II illustrated in below figure consists of four layers to be elaborated on in the following: LAYERCOMPONENTS
FoundationCoreIntegrated Database(DB)
Application Framework(AF)
ProcessCentralEnterprise Resource Planning (ERP)
Business Process Management(BPM)
AnalyticalCorporateSupply chain Management (SCM)
Customer Relationship Management(CRM)
Supplier Relationship Management(SRM)
Production Lifecycle Management(PLM)
Employee Lifecycle Management(ELM)
Corporate Performance Management(CPM)
PortalCollaborativeBusiness-to-Consumer (B2C)
Business-to-Business (B2B)
Business-to-Employee (B2E)
Enterprise Application Integration (EAI)

Ranbaxy Laboratories Limited is ranked amongst top 10 global generic drug companies and hopes to...
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