A large number of players are currently in the market today in the ERP segment. Though some of these ERP solutions are tailor-made for certain industry segments only, most solutions are designed to cover a range of industry segments. The extent of customization/configuration and modification of these packages mostly depend on the particular ERP solution short listed for implementation and its applicability for a particular organization, as well as the extent in which the organization is willing to change its business processes. ERP systems do not neatly fit the traditional distinction between custom-built software and 'off-the-shelf' package in several aspects.
For more information kindly visit: http://www.erp-products.com
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-products.com
Tuesday, May 25, 2010
ERP for SME
The leading players in the SME segment are keen to increase operational efficiencies, increase labour and capital productivity, reduce fixed and variable cost and integration with the implementation of effective ERP system in their organizations. The pressure from large Original Equipment Manufacturers (OEM) to streamline their supply chains is forcing SMEs to streamline their operations and drive the demand for ERP in the SME sector. As per some latest survey 50% of small to medium-sized businesses (SMBs) have yet to deploy enterprise resource planning (ERP) solutions because of concerns about the level of resources required to make such an implementation.
For more information kindly visit: http://www.erp-for-sme.com
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-for-sme.com
For more information kindly visit: http://www.erp-for-sme.com
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-for-sme.com
ERP in UAE
United Arab Emirates (UAE) is becoming the most sought after destination for all major enterprises and it is on the verge of becoming the world's business hub. Abu Dhabi, the capital and one of the seven emirates in the union, is emerging as a major global economic powerhouse and one of the world's top oil producers. The prominent Gulf state Dubai is the prime investment banking center and also the biggest exporting and re-exporting location in the Middle East. The Liberal government policies, world class infrastructure and cost-effective service sector are some of the important factors for the growth of this Gulf state which can envy any other developed countries in the world. Transforming into a paradise for trading and commerce, the number of enterprises and business houses establishing in this region is unimaginable. In this challenging scenario organizations should be equipped with effective business applications to make their mark on the soil. You cannot allow to slip away even a single opportunity that comes to you. Be vigilant on your mission. Be equipped with an effective trading business solution, an Enterprise Resource Planning (ERP) solution that can take care of your business and put you ahead of your competitors.
For more information kindly visit: http://www.erp-in-uae.com
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-in-uae.com
For more information kindly visit: http://www.erp-in-uae.com
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-in-uae.com
ERP in India
Today, all business houses in India are keen to have Enterprises Resource Planning (ERP) solution implemented in their organizations. Defined as an integrated, multi-module system that absorbs all the data and processes of an organization into a unified system, ERP has become an indispensable business tool for all major enterprises. Though initially the concept of ERP has been originated in the large industrial types of companies ERP has evolved as a more comprehensive system and now it is largely available to companies of all types and sizes. It serves and supports a wide range of business functions like manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation and human resources.
For more information kindly visit: http://www.erp-in-india.com
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-in-india.com.
For more information kindly visit: http://www.erp-in-india.com
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-in-india.com.
Wednesday, May 19, 2010
Reasons for ERP failures
ERP in India: Reasons for ERP failures
ONE of the major culprits in (http://www.erppandit.com/reasons-for-ERP-failure.html) ERP malfunction is the taxation system prevailing in India.The tax structure itself is complex and terms used by planners make it more complex. In fact many leading ERP vendors have included a Country India Module to address this situation.
Following is the case of a manufacturing company that suffered heavy losses because of the whims and fancies of tax authorities. The company used to buy certain goods from different state and normal sequence of calculation of tax incidents was Basic cost, Excise Tax, Sales Tax, Octroi, Loading/Unloading, Freight. The last two were independent components. The sales tax authorities, however, warned the company to add Excise and Octroi first and then calculate sales tax on the total value. On the other hand, the octroi authorities asked to pay octroi on the total value wherein sales tax is included.
This is a typical cyclic loop problem which the organization cannot control. To come out of this crisis, the organization started assuming standard rate of sales tax, added it to excise and determined the basic value of octroi calculation. Then the calculated octroi (on actual) is added back to the excise duty to determine the base for sales tax.
Standard ERP cannot support all these, and hence the company decided to exclude the tax incidents for inventory valuation and lost its real benefit of ERP. Consultants suggested some jugglery to overcome the problem, but the company stuck to its decision. The concept of ERP recommends some of the best practices of linking single item, single purchase requisition, single buyer, single line of purchase order and single supplier. When any company implement ERP this practice suggested by ERP is normally taken as irrelevant in India. Companies have a list of items attached to one requisition (indent number is the industrial parlance); companies may have in certain cases more than one purchaser for the same or similar items.
Also companies have multiple suppliers for one item. (About the multiple supplier phenomenons in India see what the project GM of a construction company says: "We never pay to our suppliers; when he refuses to supply further, we find another person to continue the supply, and hence our list of suppliers for an item goes up. In fact, to find out the outstanding accounts payables, one should only count the number of suppliers dealing with the organization.")
Another manufacturing company implemented ERP and the stores manager was demanding multiple lines for one purchase requisition. His views were typically nurtured in legacy system and he was looking at ERP as an advanced legacy system. Consultants somehow convinced him to adopt one item - one requisition policy, but the problem cropped up in another module. Stores started using multiple requisitions for different items.
The purchaser had to select one line for each individual item and hence his PO was becoming as lengthy as 35 to 40 lines per order. In one it was seen raising 80 lines of PO which when printed, took more than 20 pages. The real problem came when the stores department took the material receipt entries of these items. The items were similar with only a slight difference in the description, also because of the multiple lines; the user was selecting the wrong PO line for a particular item. If once such transaction took place, its effects could be realized only at the time of bill passing. Consultants were insisting on correct entries whereas users were shouting against ERP's incapacity to address such things automatically.
ERP persists on inbuilt quality than inspection. In India we hardly find these practices being followed, especially with non-BoM items. To address these requirements, a common idea used is to create a warehouse in ERP as "under inspection" and "rejected" etc. The parameter settings in such warehouses are tuned to restrict any issue transaction from these warehouses except transfer to accepted warehouses.
In reality, after setting these parameters the user later asks for immediate and urgent materials issue from these warehouses. ERP does not allow such transaction and hence physically the material is issued without entry. The problem aggravates when material is issued in part from inspection stock. The organization keeps separate tracing of these issue notes and later entered whenever time permits. In the whole process a wrong picture of inventory availability is shown in the system.
Some Indian companies follow the hierarchical organization structure. It basically supports the division of power and authority. Hence typical policies exists, such as one cannot sign PO having cost more than Rs, 50,000 or only a particular department can receive packing materials, and so on. The decision control flows from lower hierarchy to upper, and hence approval has to be taken to decide on any issue. ERP expects empowered and knowledgeable employees and hence found to be an unsuccessful in some of the Indian requirements.
For more information kindly visit: http://www.erppandit.com/reasons-for-ERP-failure.html
Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ONE of the major culprits in (http://www.erppandit.com/reasons-for-ERP-failure.html) ERP malfunction is the taxation system prevailing in India.The tax structure itself is complex and terms used by planners make it more complex. In fact many leading ERP vendors have included a Country India Module to address this situation.
Following is the case of a manufacturing company that suffered heavy losses because of the whims and fancies of tax authorities. The company used to buy certain goods from different state and normal sequence of calculation of tax incidents was Basic cost, Excise Tax, Sales Tax, Octroi, Loading/Unloading, Freight. The last two were independent components. The sales tax authorities, however, warned the company to add Excise and Octroi first and then calculate sales tax on the total value. On the other hand, the octroi authorities asked to pay octroi on the total value wherein sales tax is included.
This is a typical cyclic loop problem which the organization cannot control. To come out of this crisis, the organization started assuming standard rate of sales tax, added it to excise and determined the basic value of octroi calculation. Then the calculated octroi (on actual) is added back to the excise duty to determine the base for sales tax.
Standard ERP cannot support all these, and hence the company decided to exclude the tax incidents for inventory valuation and lost its real benefit of ERP. Consultants suggested some jugglery to overcome the problem, but the company stuck to its decision. The concept of ERP recommends some of the best practices of linking single item, single purchase requisition, single buyer, single line of purchase order and single supplier. When any company implement ERP this practice suggested by ERP is normally taken as irrelevant in India. Companies have a list of items attached to one requisition (indent number is the industrial parlance); companies may have in certain cases more than one purchaser for the same or similar items.
Also companies have multiple suppliers for one item. (About the multiple supplier phenomenons in India see what the project GM of a construction company says: "We never pay to our suppliers; when he refuses to supply further, we find another person to continue the supply, and hence our list of suppliers for an item goes up. In fact, to find out the outstanding accounts payables, one should only count the number of suppliers dealing with the organization.")
Another manufacturing company implemented ERP and the stores manager was demanding multiple lines for one purchase requisition. His views were typically nurtured in legacy system and he was looking at ERP as an advanced legacy system. Consultants somehow convinced him to adopt one item - one requisition policy, but the problem cropped up in another module. Stores started using multiple requisitions for different items.
The purchaser had to select one line for each individual item and hence his PO was becoming as lengthy as 35 to 40 lines per order. In one it was seen raising 80 lines of PO which when printed, took more than 20 pages. The real problem came when the stores department took the material receipt entries of these items. The items were similar with only a slight difference in the description, also because of the multiple lines; the user was selecting the wrong PO line for a particular item. If once such transaction took place, its effects could be realized only at the time of bill passing. Consultants were insisting on correct entries whereas users were shouting against ERP's incapacity to address such things automatically.
ERP persists on inbuilt quality than inspection. In India we hardly find these practices being followed, especially with non-BoM items. To address these requirements, a common idea used is to create a warehouse in ERP as "under inspection" and "rejected" etc. The parameter settings in such warehouses are tuned to restrict any issue transaction from these warehouses except transfer to accepted warehouses.
In reality, after setting these parameters the user later asks for immediate and urgent materials issue from these warehouses. ERP does not allow such transaction and hence physically the material is issued without entry. The problem aggravates when material is issued in part from inspection stock. The organization keeps separate tracing of these issue notes and later entered whenever time permits. In the whole process a wrong picture of inventory availability is shown in the system.
Some Indian companies follow the hierarchical organization structure. It basically supports the division of power and authority. Hence typical policies exists, such as one cannot sign PO having cost more than Rs, 50,000 or only a particular department can receive packing materials, and so on. The decision control flows from lower hierarchy to upper, and hence approval has to be taken to decide on any issue. ERP expects empowered and knowledgeable employees and hence found to be an unsuccessful in some of the Indian requirements.
For more information kindly visit: http://www.erppandit.com/reasons-for-ERP-failure.html
Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Understand ERP don't underrate it
ERP: Understand the technology and don't underrate it
MANAGEMENT too often plunges into ERP being less than fully informed or worse with very limited or no knowledge of what to expect. Often there is a misconception that the skills necessary to select ERP software and then implement it already exist in the organization.
Some skills may exist but rarely to the extent necessary to effectively implement ERP within a reasonable time frame. Enter the consulting 'experts' from a systems integration firm who helped sell you the system, with a software business partner.
Worse, when the implementation experts arrive, some of them are so inexperienced that it should make you quickly re-assess implementation risk. It is of paramount importance with such a high-risk/reward ratio that you be absolutely certain the necessary knowledge and skills are present to your implementation team.
Another commonly overlooked and therefore not well prepared for, is the issue of information technology change. Often the IT infrastructure changes required to enable the implementation of a new ERP system are not given the high priority these technology issues deserve. Certainly, business issues and not those of technology should drive the implementation of ERP.
However, it is the understanding and skills of the IT personnel that supports the technology that enables the business process issues to be improved. To not consider that new information technology is going to require preparation through education, in order to understand the new technology, is asking for trouble.
IT personnel's understanding of the new technology is an absolute requirement for a successful ERP implementation. Furthermore, the IT personnel have to make the technology transition fast. If the necessary technology adoption and infrastructure transition are not done well it will at the very least, delay the project.
One of the biggest problems that many have had with implementing ERP is misunderstanding what ERP is all about the underestimating what it takes to effectively implement. Driving ERP preparation and implementation, senior operating management cannot relegate critical decisions to workers who may not have the background and or the temperament for this type of decision-making. Companies need a well thought out and comprehensive process that will help plan, guide and control the entire ERP implementation effort. Starting an implementation with an undocumented, skimpy or untailored implementation methodology is open invitation to disaster and at the very least, a long drawn out implementation.
Everyone from the boardroom to the stockroom needs to clearly understand their role and responsibilities for implementation, and above all, encourage dialogue that will get people focused on the business objectives as well as early identification and, or correction of any problems. In addition, and no small matter, the questions of how, when and who will be accountable for results must be an integral part of this understanding.
An implementation that is going astray becomes recognizable when repeated schedule slippages surface. As times moves on the schedule miss problems starts to compound the implementation quality, as the invariable response is to start taking short-cut and by-passing critical business issues.
For more information kindly visit: http://www.erppandit.com/understand-ERP-dont-underrate-it.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: + 91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
MANAGEMENT too often plunges into ERP being less than fully informed or worse with very limited or no knowledge of what to expect. Often there is a misconception that the skills necessary to select ERP software and then implement it already exist in the organization.
Some skills may exist but rarely to the extent necessary to effectively implement ERP within a reasonable time frame. Enter the consulting 'experts' from a systems integration firm who helped sell you the system, with a software business partner.
Worse, when the implementation experts arrive, some of them are so inexperienced that it should make you quickly re-assess implementation risk. It is of paramount importance with such a high-risk/reward ratio that you be absolutely certain the necessary knowledge and skills are present to your implementation team.
Another commonly overlooked and therefore not well prepared for, is the issue of information technology change. Often the IT infrastructure changes required to enable the implementation of a new ERP system are not given the high priority these technology issues deserve. Certainly, business issues and not those of technology should drive the implementation of ERP.
However, it is the understanding and skills of the IT personnel that supports the technology that enables the business process issues to be improved. To not consider that new information technology is going to require preparation through education, in order to understand the new technology, is asking for trouble.
IT personnel's understanding of the new technology is an absolute requirement for a successful ERP implementation. Furthermore, the IT personnel have to make the technology transition fast. If the necessary technology adoption and infrastructure transition are not done well it will at the very least, delay the project.
One of the biggest problems that many have had with implementing ERP is misunderstanding what ERP is all about the underestimating what it takes to effectively implement. Driving ERP preparation and implementation, senior operating management cannot relegate critical decisions to workers who may not have the background and or the temperament for this type of decision-making. Companies need a well thought out and comprehensive process that will help plan, guide and control the entire ERP implementation effort. Starting an implementation with an undocumented, skimpy or untailored implementation methodology is open invitation to disaster and at the very least, a long drawn out implementation.
Everyone from the boardroom to the stockroom needs to clearly understand their role and responsibilities for implementation, and above all, encourage dialogue that will get people focused on the business objectives as well as early identification and, or correction of any problems. In addition, and no small matter, the questions of how, when and who will be accountable for results must be an integral part of this understanding.
An implementation that is going astray becomes recognizable when repeated schedule slippages surface. As times moves on the schedule miss problems starts to compound the implementation quality, as the invariable response is to start taking short-cut and by-passing critical business issues.
For more information kindly visit: http://www.erppandit.com/understand-ERP-dont-underrate-it.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: + 91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Success factors of an ERP implementation
IMPLEMENTATION of an ERP system is a major investment and commitment for any organizations.The size and complexity of ERP projects are the major factors that impact the cost of ERP implementations. Different companies may implement the same ERP software in total different approaches and the same company may integrate different ERP software applications by following the same procedures.
However, there are factors common to the success or failure of ERP implementation regardless of the ERP systems they implement and the methodologies they use.
Starting with this article we will discuss the various success and failure factors of an ERP implementation. So when you are planning to implement the ERP system in your company, try to follow as many success factors as possible and avoid the failure factors.
SUCCESS FACTORS
Project Planning: ERP implementation starts with project planning - setting project goals, identifying high-level business requirements, establishing project teams and estimating the project costs. Project planning offers the opportunity to re-evaluate the project in great details. If the ERP project is not justified at the planning phase, organization should not hesitate to cancel the project. For every successful ERP project there are projects that are cancelled before implementation.
Align the organization on the true destination: You should make sure that everyone in the organization has the same vision about the original motivations for implementation ERP-enabled processes: what the targeted capabilities were, as well as the targeted benefits. Only then can an organization really know how close its ERP program is to being complete. This alignment needs special focus on people: communicating, expectations, education, and top management support.
Architectural Design: While high-level architectural decision is made in the process of ERP vendor selection, it remains a crucial successful factor in integrating ERP with other eBusiness applications, e-commerce applications or legacy systems. Choice of middleware interface software or programming languages drastically impact the implementation cost and release date.
Transition project roles to a way of life: Information technology people, ERP expert, process expert, site leaders, the project manager and the steering committee - going live can involve hundreds of people, in dozens of roles. But at go-live, once the program is operational, the way roles change and the way such change is orchestrated can be an even larger undertaking. Companies successful in the post-implementation phase are simply better at mobilizing and guiding such efforts. They are also better at preparing people for the critical shift, moving from being team members to champions.
Data Requirements: Unlike in-house eBusiness applications, much of the packaged ERP implementation involves the integration of ERP systems with existing eBusiness software (CRM, SCM and SFA) and legacy information systems. Appropriate level of data requirements is critical for an ERP to interact with other applications. Data requirements usually reflect details of business requirements. It costs ten times to correct a mistake at later phase of ERP implementation than the effort to correctly define requirements at analysis and design phase.
Apply planning and program management practices throughout the program life cycle: If there is one thing that companies should master by the time they go-live, it is program management and planning. Companies that will succeed are those that accept the fact that if they are to achieve their benefits, the operation and maintenance phase demands at least as much planning as the implementation phase did.
Achieve balanced people, progress and technology chances across all areas: Companies undertaking the ERP journey must make changes and take action in all areas of the modern enterprise. They need the best-of-breed technology tools, the most effective work processes using world-class practices and people who are trained and motivated. They will also need strategies that fully leverage these new organizational abilities. Far from being a one-dimensional project, the ERP journey must keep change in play and in balance, in all these areas - a fact that successful companies never forget.
ERP must b e driven by business case: In other words, the work must be directed toward improving specific business metrics: improved cash flow, faster hiring, reduced costs and accelerated shipments. Both line and IT managers must identify the processes that need improvement. Focusing on business process improvement is the only way to know whether you have got your money's worth.
Active executive direction: Executive direction in this case means more than just oversight or support. People do not adapt to doing work in new ways without some inspiration from the top. ERP systems are huge, influencing thousands of people, processes, practices and policies. There are thousands of decisions to be made - both large and small. Someone at the top of the organization has to make the call.
Focus on capabilities and benefits, not just going live: The ERP implementation was initiated because of its benefits. So it will not matter much if a schedule is missed by a few days or even weeks. However, if you miss out on an expected feature or benefit, then it is going to hurt. So make sure that all the features that were planned are implemented.
For more information kindly visit: http://www.erppandit.com/Success-factors-of-an-ERP-implementation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: + 91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
However, there are factors common to the success or failure of ERP implementation regardless of the ERP systems they implement and the methodologies they use.
Starting with this article we will discuss the various success and failure factors of an ERP implementation. So when you are planning to implement the ERP system in your company, try to follow as many success factors as possible and avoid the failure factors.
SUCCESS FACTORS
Project Planning: ERP implementation starts with project planning - setting project goals, identifying high-level business requirements, establishing project teams and estimating the project costs. Project planning offers the opportunity to re-evaluate the project in great details. If the ERP project is not justified at the planning phase, organization should not hesitate to cancel the project. For every successful ERP project there are projects that are cancelled before implementation.
Align the organization on the true destination: You should make sure that everyone in the organization has the same vision about the original motivations for implementation ERP-enabled processes: what the targeted capabilities were, as well as the targeted benefits. Only then can an organization really know how close its ERP program is to being complete. This alignment needs special focus on people: communicating, expectations, education, and top management support.
Architectural Design: While high-level architectural decision is made in the process of ERP vendor selection, it remains a crucial successful factor in integrating ERP with other eBusiness applications, e-commerce applications or legacy systems. Choice of middleware interface software or programming languages drastically impact the implementation cost and release date.
Transition project roles to a way of life: Information technology people, ERP expert, process expert, site leaders, the project manager and the steering committee - going live can involve hundreds of people, in dozens of roles. But at go-live, once the program is operational, the way roles change and the way such change is orchestrated can be an even larger undertaking. Companies successful in the post-implementation phase are simply better at mobilizing and guiding such efforts. They are also better at preparing people for the critical shift, moving from being team members to champions.
Data Requirements: Unlike in-house eBusiness applications, much of the packaged ERP implementation involves the integration of ERP systems with existing eBusiness software (CRM, SCM and SFA) and legacy information systems. Appropriate level of data requirements is critical for an ERP to interact with other applications. Data requirements usually reflect details of business requirements. It costs ten times to correct a mistake at later phase of ERP implementation than the effort to correctly define requirements at analysis and design phase.
Apply planning and program management practices throughout the program life cycle: If there is one thing that companies should master by the time they go-live, it is program management and planning. Companies that will succeed are those that accept the fact that if they are to achieve their benefits, the operation and maintenance phase demands at least as much planning as the implementation phase did.
Achieve balanced people, progress and technology chances across all areas: Companies undertaking the ERP journey must make changes and take action in all areas of the modern enterprise. They need the best-of-breed technology tools, the most effective work processes using world-class practices and people who are trained and motivated. They will also need strategies that fully leverage these new organizational abilities. Far from being a one-dimensional project, the ERP journey must keep change in play and in balance, in all these areas - a fact that successful companies never forget.
ERP must b e driven by business case: In other words, the work must be directed toward improving specific business metrics: improved cash flow, faster hiring, reduced costs and accelerated shipments. Both line and IT managers must identify the processes that need improvement. Focusing on business process improvement is the only way to know whether you have got your money's worth.
Active executive direction: Executive direction in this case means more than just oversight or support. People do not adapt to doing work in new ways without some inspiration from the top. ERP systems are huge, influencing thousands of people, processes, practices and policies. There are thousands of decisions to be made - both large and small. Someone at the top of the organization has to make the call.
Focus on capabilities and benefits, not just going live: The ERP implementation was initiated because of its benefits. So it will not matter much if a schedule is missed by a few days or even weeks. However, if you miss out on an expected feature or benefit, then it is going to hurt. So make sure that all the features that were planned are implemented.
For more information kindly visit: http://www.erppandit.com/Success-factors-of-an-ERP-implementation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: + 91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Some good reasons to implement ERP system
ERP system,good reasons to implementation
WHEN the head of an organization tries to evaluate the performance of his firm,he may come across many different versions of the truth.Each and every department from his organizations may have their own version of reason or truth to be presented which they may claim had led to the growth of revenue. It could be right or it could be wrong.
But if the organization had their ERP system in place, a single version of truth or the reason for the increase in revenue would have been emerged and there had no chance of mistrust of anyone. As everyone is using the same ERP system there was no chances of an undue claim by any department or a person. This is the one reason why an organization must implement an ERP system.
Having more information in one software system is another advantage of an ERP package. For instance, by integrating customer-order information ERP systems can become the place where the customer-order lives from the time a customer service representative receive it until the loading dock ships the goods and finance sends an invoice. By having this information in one system, rather than scattered among many different systems that can't communicate with one another, companies can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time. Yet another good reason to go for an ERP solution.
ERP systems come with standard methods for automating some of the steps of manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count. This is also a good reason to implement an effective ERP System.
ERP helps a smooth flow of manufacturing process which ultimately improves the transparency of order fulfillment process inside the organization. This can help to reduce inventories of manufacturing materials as well as help better plan of deliveries to customers, reduces the finished-goods inventory at the warehouses and shipping docks. Though to improve the flow of supply chain SCM is better software its integration with ERP system will contribute more functionality.
Standardizing HR Information with ERP system has its own benefit. In companies with multiple business units, HR may not have a unified, simple method for tracking employees' time and communicating with them about benefits and services. ERP can fix that.
In the race to fix these problems, companies often lose sight of the fact that ERP packages are nothing more than generic representations of the ways a typical company does business. While most packages are exhaustively comprehensive, each industry has its quirks that make it unique.
For more information kindly visit: http://erppandit.com/Some-good-reason-to-implement-ERP-system.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
WHEN the head of an organization tries to evaluate the performance of his firm,he may come across many different versions of the truth.Each and every department from his organizations may have their own version of reason or truth to be presented which they may claim had led to the growth of revenue. It could be right or it could be wrong.
But if the organization had their ERP system in place, a single version of truth or the reason for the increase in revenue would have been emerged and there had no chance of mistrust of anyone. As everyone is using the same ERP system there was no chances of an undue claim by any department or a person. This is the one reason why an organization must implement an ERP system.
Having more information in one software system is another advantage of an ERP package. For instance, by integrating customer-order information ERP systems can become the place where the customer-order lives from the time a customer service representative receive it until the loading dock ships the goods and finance sends an invoice. By having this information in one system, rather than scattered among many different systems that can't communicate with one another, companies can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time. Yet another good reason to go for an ERP solution.
ERP systems come with standard methods for automating some of the steps of manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count. This is also a good reason to implement an effective ERP System.
ERP helps a smooth flow of manufacturing process which ultimately improves the transparency of order fulfillment process inside the organization. This can help to reduce inventories of manufacturing materials as well as help better plan of deliveries to customers, reduces the finished-goods inventory at the warehouses and shipping docks. Though to improve the flow of supply chain SCM is better software its integration with ERP system will contribute more functionality.
Standardizing HR Information with ERP system has its own benefit. In companies with multiple business units, HR may not have a unified, simple method for tracking employees' time and communicating with them about benefits and services. ERP can fix that.
In the race to fix these problems, companies often lose sight of the fact that ERP packages are nothing more than generic representations of the ways a typical company does business. While most packages are exhaustively comprehensive, each industry has its quirks that make it unique.
For more information kindly visit: http://erppandit.com/Some-good-reason-to-implement-ERP-system.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP must for midmarket company
ERP within reach of any midsize company
FOR mid-sized enterprises, an ERP (Enterprise Resource Planning) system promises big gains, helping to grow revenue, increase productivity companywide, improve efficiency throughout the enterprise and manage costs.
ERP integrates a variety of disparate systems, such as financials, SCM (Supply Chain Management) and CRM, automating time-consuming processes and streamlining operations. With a unified view of cross-company information, executives can ultimately make better decisions about corporate objectives and strategies.
Today more and more midsize companies are looking to replace outdated ERP systems or jump into the technology for the first time. A recent research survey says, "in the small and midsize business (SMB) segment, which continues to outgrow the overall market, companies are buying new ERP systems in response to new customer requirements and the desire to participate in the global market."
ERP solutions tailored to the midmarket abound, making it a buyer's market. In this age of mergers and acquisitions, many of these organizations were once small companies, and now, as midmarket organizations, they need to consolidate various software systems and standardize business processes. Most companies in this space are coping with increasingly complex operating environments, aging technology - including outmoded ERP systems - proliferating business-management software and, of course, the need to grow revenue.
Midsize companies also face challenges specific to their industries. Businesses that make consumer product goods are concerned about regulations and reporting requirements, while public-sector organizations are worried about maintaining customer loyalty. Also, manufacturers are concerned about the commoditization of their products. A robust ERP package can help address these issues, as well.
As most of the midsized companies have implemented an ERP or MRP (Material Requirements Planning, the precursor to ERP) system, there is still a few numbers of others who don't already have an ERP or MRP. For those businesses, the reasons to take a leap into ERP, which is largely considered necessary infrastructure for midsize companies, are many and compelling.
At the same time, it is also to be noted that many ERP implementations in the midmarket are quite mature and ripe for replacement.
Many midmarket companies must now also choose an ERP system on which to standardize after multiple systems were installed, perhaps through mergers, across the enterprise. Although it's not necessary, midsize companies seem to prefer consolidating their business-management applications in one ERP package, at least in part to cut down on integration headaches.
Vendors are aggressively vying for customers, launching new ERP solutions designed to meet needs particular to the midmarket and pricing them to meet a midmarket company's budget. To further entice midmarket customers, vendors are also developing vertical solutions that target certain industries, such as manufacturing, pharmaceuticals, fleet management and construction, with built-in functionality that cuts down on customization.
In an effort to simplify the notoriously difficult implementation process, vendors are also developing ERP systems that can be delivered in ways friendly to organizations with limited IT resources; some vendors now offer web-based solutions, and some are figuring out ways to offer this complex technology on demand.
Factored together, the decreasing costs of hardware, infrastructure technology and ERP software put a modern version of these once-epic business-management packages within reach of any midsize company.
For more information kindly visit: http://www.erppandit.com/ERP-must-for-midmarket-company.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
FOR mid-sized enterprises, an ERP (Enterprise Resource Planning) system promises big gains, helping to grow revenue, increase productivity companywide, improve efficiency throughout the enterprise and manage costs.
ERP integrates a variety of disparate systems, such as financials, SCM (Supply Chain Management) and CRM, automating time-consuming processes and streamlining operations. With a unified view of cross-company information, executives can ultimately make better decisions about corporate objectives and strategies.
Today more and more midsize companies are looking to replace outdated ERP systems or jump into the technology for the first time. A recent research survey says, "in the small and midsize business (SMB) segment, which continues to outgrow the overall market, companies are buying new ERP systems in response to new customer requirements and the desire to participate in the global market."
ERP solutions tailored to the midmarket abound, making it a buyer's market. In this age of mergers and acquisitions, many of these organizations were once small companies, and now, as midmarket organizations, they need to consolidate various software systems and standardize business processes. Most companies in this space are coping with increasingly complex operating environments, aging technology - including outmoded ERP systems - proliferating business-management software and, of course, the need to grow revenue.
Midsize companies also face challenges specific to their industries. Businesses that make consumer product goods are concerned about regulations and reporting requirements, while public-sector organizations are worried about maintaining customer loyalty. Also, manufacturers are concerned about the commoditization of their products. A robust ERP package can help address these issues, as well.
As most of the midsized companies have implemented an ERP or MRP (Material Requirements Planning, the precursor to ERP) system, there is still a few numbers of others who don't already have an ERP or MRP. For those businesses, the reasons to take a leap into ERP, which is largely considered necessary infrastructure for midsize companies, are many and compelling.
At the same time, it is also to be noted that many ERP implementations in the midmarket are quite mature and ripe for replacement.
Many midmarket companies must now also choose an ERP system on which to standardize after multiple systems were installed, perhaps through mergers, across the enterprise. Although it's not necessary, midsize companies seem to prefer consolidating their business-management applications in one ERP package, at least in part to cut down on integration headaches.
Vendors are aggressively vying for customers, launching new ERP solutions designed to meet needs particular to the midmarket and pricing them to meet a midmarket company's budget. To further entice midmarket customers, vendors are also developing vertical solutions that target certain industries, such as manufacturing, pharmaceuticals, fleet management and construction, with built-in functionality that cuts down on customization.
In an effort to simplify the notoriously difficult implementation process, vendors are also developing ERP systems that can be delivered in ways friendly to organizations with limited IT resources; some vendors now offer web-based solutions, and some are figuring out ways to offer this complex technology on demand.
Factored together, the decreasing costs of hardware, infrastructure technology and ERP software put a modern version of these once-epic business-management packages within reach of any midsize company.
For more information kindly visit: http://www.erppandit.com/ERP-must-for-midmarket-company.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP package evaluation
IF you think that all ERP packages are the same then think again, because they are not. Of the many ERP packages available in the market today, the features they offer vary, as do the technologies they support, the technologies they use, the architecture on which they are built and the available platforms.
Each tool has its own strengths and weaknesses. For example, some are better at human resources, whereas others have excellent production and production planning capabilities.
Over the years ERP systems have gained popularity and their usefulness has increased to a point where organizations without an ERP system are almost non-existent. ERP systems are now available in all sizes and shapes for all platforms and development environments. Selecting the right ERP system for your organization is critical part of the process. This decision can make or break an organization.
ERP packages have different architectures, concepts and sets of functionality and they are designed to address a variety of user requirement. The marketing literature from ERP vendors will no doubt give the impression that their tool is just as good as any other. Such literature is valuable for giving the reader an overview of functionality and a glimpse at the differentiator for that vendor's offering. But, if you compare the literature or listen to a vendor's presentation, it would be very difficult to evaluate which package is the best or which would be most suitable for your organization.
So if you go by what is written in the product brochure or what the salespeople say, you will find it very difficult to make a decision and might end up with the wrong choice. So package selection is something that should be done on a systematic and scientific manner.
The most important factor to keep in mind when analyzing the different packages is, none of them are perfect. The idea that there is no perfect package needs to be understood by everyone in the decision-making team. The objective of the selection process is not to identify a package that covers each and every requirement. The objective is to find a package that is flexible enough to meet the company's needs.
While studying the history of ERP packages and finds out how each package evolved, it becomes evident that every ERP package grew out of the experience or opportunity of a group of people working in a specific business who created systems that could deal with certain business segments. It is generally accepted that most ERP packages are stronger in certain areas than in others and each one is trying hard to add functionality in areas where they have been lacking.
The experience gained from implementation, the feedback by the users, the need to enter into new markets and the pressure from competitors forced most ERP vendors to re-define and expand the scope of the activities and functionality of their products. The concepts were expanded upon, new functions were introduced, and good ideas were copied from others and so on. But still each package has a history that determines the type of business it is best suited for.
Originally, ERP packages were targeted at the manufacturing industry and consisted mainly of functions for generally planning and managing the core businesses such as sales management, production management, accounting and financial affairs, etc. However, in recent years, adaptation not only to the manufacturing industry, but also to diverse types of industry has become possible and the expansion of implementation and use has been progressing on a global level.
So while making the analysis it is a good idea to investigate the origins of the different packages. Now, almost all packages cater to most business and service sectors. It would be wrong to say that a system that was developed initially for manufacturing is now not capable of catering to the needs of another business sector. The system must have been thoroughly revamped and re-designed to meet the needs of the diverse business sectors that it is catering to. But it should be remembered that many ERP packages are still very good in some areas, even though they are capable of catering to the needs of other sectors.
So after the decision to go for an ERP package is taken, the company needs to develop the selection criteria that will permit evaluation of all the available packages on the same scale. To choose the best system, the company should identify the system that meets the business needs, matches the business profile and identifies with the business practices of the company. It is impossible to get a system that will perform, exactly as the company does business, but the aim should be to get the system that has the least number of differences.
For more information kindly visit: http://www.erppandit.com/ERP-package-evaluation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Each tool has its own strengths and weaknesses. For example, some are better at human resources, whereas others have excellent production and production planning capabilities.
Over the years ERP systems have gained popularity and their usefulness has increased to a point where organizations without an ERP system are almost non-existent. ERP systems are now available in all sizes and shapes for all platforms and development environments. Selecting the right ERP system for your organization is critical part of the process. This decision can make or break an organization.
ERP packages have different architectures, concepts and sets of functionality and they are designed to address a variety of user requirement. The marketing literature from ERP vendors will no doubt give the impression that their tool is just as good as any other. Such literature is valuable for giving the reader an overview of functionality and a glimpse at the differentiator for that vendor's offering. But, if you compare the literature or listen to a vendor's presentation, it would be very difficult to evaluate which package is the best or which would be most suitable for your organization.
So if you go by what is written in the product brochure or what the salespeople say, you will find it very difficult to make a decision and might end up with the wrong choice. So package selection is something that should be done on a systematic and scientific manner.
The most important factor to keep in mind when analyzing the different packages is, none of them are perfect. The idea that there is no perfect package needs to be understood by everyone in the decision-making team. The objective of the selection process is not to identify a package that covers each and every requirement. The objective is to find a package that is flexible enough to meet the company's needs.
While studying the history of ERP packages and finds out how each package evolved, it becomes evident that every ERP package grew out of the experience or opportunity of a group of people working in a specific business who created systems that could deal with certain business segments. It is generally accepted that most ERP packages are stronger in certain areas than in others and each one is trying hard to add functionality in areas where they have been lacking.
The experience gained from implementation, the feedback by the users, the need to enter into new markets and the pressure from competitors forced most ERP vendors to re-define and expand the scope of the activities and functionality of their products. The concepts were expanded upon, new functions were introduced, and good ideas were copied from others and so on. But still each package has a history that determines the type of business it is best suited for.
Originally, ERP packages were targeted at the manufacturing industry and consisted mainly of functions for generally planning and managing the core businesses such as sales management, production management, accounting and financial affairs, etc. However, in recent years, adaptation not only to the manufacturing industry, but also to diverse types of industry has become possible and the expansion of implementation and use has been progressing on a global level.
So while making the analysis it is a good idea to investigate the origins of the different packages. Now, almost all packages cater to most business and service sectors. It would be wrong to say that a system that was developed initially for manufacturing is now not capable of catering to the needs of another business sector. The system must have been thoroughly revamped and re-designed to meet the needs of the diverse business sectors that it is catering to. But it should be remembered that many ERP packages are still very good in some areas, even though they are capable of catering to the needs of other sectors.
So after the decision to go for an ERP package is taken, the company needs to develop the selection criteria that will permit evaluation of all the available packages on the same scale. To choose the best system, the company should identify the system that meets the business needs, matches the business profile and identifies with the business practices of the company. It is impossible to get a system that will perform, exactly as the company does business, but the aim should be to get the system that has the least number of differences.
For more information kindly visit: http://www.erppandit.com/ERP-package-evaluation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP is a powerful computer tool
ERP is a powerful tool, but look before you leap
AN ERP system is a very powerful computer tool and organizations can gain a lot of competitive advantage by implementing an ERP system.Unfortunately, it is observed that many ERP projects have not been effective and hence unable to achieve the results envisaged.
As the cost of an ERP implementation project is high, it is critical for an organization to make the project a success and start deriving benefits out of it as far as possible. But what is it that makes an ERP implementation project successful?
A well-defined project organization structure that details the project planning, execution and monitoring mechanism
An attitude that stresses on business transformation instead of process automation
An approach that brings about the proper integration of people, process and technology through effective management of change
Companies need a well thought out, comprehensive process to help plan, guide and control the entire ERP implementation effort. Before the entity-gritty of software selection begins, management should know how current strategy, process and supporting system work and if any changes should be made before the new information system is introduced. The pre-implementation stage is the time to re-consider the way you do business and to make a detailed analysis of the requirements and the expectations of the new information system.
Optimization of business process rather than technical innovation should stand in the focus of an ERP implementation project. Start defining software needs by examining current process that govern your flow of information and material throughout the order-to-delivery process and ultimately the entire supply chain. There is a common tendency to shortcut this very important activity but you will pay - sometimes dearly - in time and money for avoiding this essential step.
Take the time to evaluate your ERP plan before you commit to software acquisition and installation. Doing it right the first time is the only way to go. There are many people eout there who wish they had taken a brief pause to evaluate their direction.
For more information kindly visit: http://www.erppandit.com/ERP-is-a-powerful-computer-tool.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
AN ERP system is a very powerful computer tool and organizations can gain a lot of competitive advantage by implementing an ERP system.Unfortunately, it is observed that many ERP projects have not been effective and hence unable to achieve the results envisaged.
As the cost of an ERP implementation project is high, it is critical for an organization to make the project a success and start deriving benefits out of it as far as possible. But what is it that makes an ERP implementation project successful?
A well-defined project organization structure that details the project planning, execution and monitoring mechanism
An attitude that stresses on business transformation instead of process automation
An approach that brings about the proper integration of people, process and technology through effective management of change
Companies need a well thought out, comprehensive process to help plan, guide and control the entire ERP implementation effort. Before the entity-gritty of software selection begins, management should know how current strategy, process and supporting system work and if any changes should be made before the new information system is introduced. The pre-implementation stage is the time to re-consider the way you do business and to make a detailed analysis of the requirements and the expectations of the new information system.
Optimization of business process rather than technical innovation should stand in the focus of an ERP implementation project. Start defining software needs by examining current process that govern your flow of information and material throughout the order-to-delivery process and ultimately the entire supply chain. There is a common tendency to shortcut this very important activity but you will pay - sometimes dearly - in time and money for avoiding this essential step.
Take the time to evaluate your ERP plan before you commit to software acquisition and installation. Doing it right the first time is the only way to go. There are many people eout there who wish they had taken a brief pause to evaluate their direction.
For more information kindly visit: http://www.erppandit.com/ERP-is-a-powerful-computer-tool.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP system Don't develop; buy it
ORGANIZATIONS planning to implement ERP system must realize that developing an ERP package is a very complex and time-consuming process that requires a lot of skilled manpower and other resources.Though they may have personnel on their payrolls who can absorb the necessary knowledge and who have experience in developing sophisticated systems, the problem is that ERP package development is not the main business of these companies. By developing the ERP package by themselves they will be directing all of their available resources into improving their own products or services so that they can remain competitive and better serve their customers.
What these organizations must understand is that the ERP system vendors are people who have invested huge amounts of time and effort in research and development to create packaged solutions. ERP vendors spend billions in research and come up with innovations that make the package more efficient, flexible and easy to implement and use. Also with the evolution of new technologies the vendors will be able to constantly upgrade their product to take advantage of the best and latest advancements in technology because their main focus is on improving the capabilities of their tools.
Since designing and implementing ERP systems is not the business of most companies, or focus of their executives, the systems developed by the team will never equal in quality, scope, functionality, or technology with those created by software firms. These software firms or ERP package vendors can produce sophisticated packages and provide their clients with products that allow them to maintain a focus on their own chief activities, thus improving revenues, profits and shareholder returns.
In older times there were not many vendors that were producing ERP packages; hence, quite often a company needing a specialized ERP system was left to their devices and ingenuity to develop something that would suit their needs. In today's marketplace, there are many ERP package vendors and they are actively pursuing all the niches and circumstances where ERP systems can solve problems of organizations.
Thus, it always better to buy ERP packages. ERP systems are getting better, bigger and have more features. Also, people who are specialized in developing such types of tools have developed them. Most of the tools would be customized to suit your needs. So unless and until your project or organization has a need that cannot be fulfilled by the available tools, it is better to buy the tools rather than make them.
For more information kindly visit: http://www.erppandit.com/make-or-buy-ERP-system.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
What these organizations must understand is that the ERP system vendors are people who have invested huge amounts of time and effort in research and development to create packaged solutions. ERP vendors spend billions in research and come up with innovations that make the package more efficient, flexible and easy to implement and use. Also with the evolution of new technologies the vendors will be able to constantly upgrade their product to take advantage of the best and latest advancements in technology because their main focus is on improving the capabilities of their tools.
Since designing and implementing ERP systems is not the business of most companies, or focus of their executives, the systems developed by the team will never equal in quality, scope, functionality, or technology with those created by software firms. These software firms or ERP package vendors can produce sophisticated packages and provide their clients with products that allow them to maintain a focus on their own chief activities, thus improving revenues, profits and shareholder returns.
In older times there were not many vendors that were producing ERP packages; hence, quite often a company needing a specialized ERP system was left to their devices and ingenuity to develop something that would suit their needs. In today's marketplace, there are many ERP package vendors and they are actively pursuing all the niches and circumstances where ERP systems can solve problems of organizations.
Thus, it always better to buy ERP packages. ERP systems are getting better, bigger and have more features. Also, people who are specialized in developing such types of tools have developed them. Most of the tools would be customized to suit your needs. So unless and until your project or organization has a need that cannot be fulfilled by the available tools, it is better to buy the tools rather than make them.
For more information kindly visit: http://www.erppandit.com/make-or-buy-ERP-system.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Role of ERP consultants
ERP consultants should guarantee success of the project
THE role of the ERP consultants is very familiar to all of us because we have seen many of them in action.The company places its trust in the consultants for the achievement of its business objectives. In fact, it is a better practice that the contract between the company and the consultants should have all the performance clauses in place.
The consultants should guarantee the success of the project and should be able to show results (quantifiable results like reduction in cycle time, increased response time, improved productivity and so on) to the satisfaction of the company management.
Consultants are responsible for administering each of the phase of the implementation so that the required activities occur at the scheduled time and at the desired level of quality and with effective participation of all those who must participate.
For keeping the promises that the consultants have made during the negotiations, they have to transform their approaches and methodologies into detailed work plans. The methodology will have to be converted into tasks and should be allocated to the right people. The time schedule for each phase and each task has to be determined and the project plan has been finalized.
Consultants should value to the project. They bring know-how about the package and about implementation - know-how that is not included in the standard documentation. This practical knowledge is derived from their expertise, which stems from practical experience, because the consultants have seen many projects and have made or seen many mistakes, they can avoid many of the mistakes bound to occur during the implementation period. They will know what will work and what will not. Thus, by eliminating the trial and error method of implementation and doing it right the first time the consultants help in saving huge amounts of money, time and effort.
Consultants should also know how to remain impartial while questioning current company processes in an effort to promote better businesses practices and better implementation results. They should strive to improve the company's business process so that the software package can be used as it was originally intended to, by its developers. Refining the company's processes can only optimize the performance of the system and maximize future user satisfaction.
Consultants are also responsible for analyzing and clearly addressing the customization issues. They must be able to distinguish between the must have and nice to have items and decide on the level of customization. This is an area where the consultants have to use their diplomatic skills, as the company people might want to customize all the aspects.
It is the duty of the consultants to present the advantages and drawbacks of each area and reach a consensus decision, which should also be the right one. Consultants need to position themselves in such a way as to balance their loyalty to the client and the project, with that of defending the package vendor, when such defense is technically correct. This is indeed a very difficult job and that is why consultants are paid such huge amounts for their services.
It is also the duty of the consultants to understand the total context and scope of the envisioned work and to know when to alert the company management about actions and decisions that must be undertaken so that the job will not be compromised and the implementation will not be jeopardized.
Maintaining technical documentation on the project also falls within the duty of the consultants. The consultants will leave once the project is complete, but the knowledge of the project cannot depart with them. So the consultants should create a knowledge base and should train enough people so that the work they have started is continued.
For more information kindly visit: http://www.erppandit.com/role-of-ERP-consultants.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: + 91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
THE role of the ERP consultants is very familiar to all of us because we have seen many of them in action.The company places its trust in the consultants for the achievement of its business objectives. In fact, it is a better practice that the contract between the company and the consultants should have all the performance clauses in place.
The consultants should guarantee the success of the project and should be able to show results (quantifiable results like reduction in cycle time, increased response time, improved productivity and so on) to the satisfaction of the company management.
Consultants are responsible for administering each of the phase of the implementation so that the required activities occur at the scheduled time and at the desired level of quality and with effective participation of all those who must participate.
For keeping the promises that the consultants have made during the negotiations, they have to transform their approaches and methodologies into detailed work plans. The methodology will have to be converted into tasks and should be allocated to the right people. The time schedule for each phase and each task has to be determined and the project plan has been finalized.
Consultants should value to the project. They bring know-how about the package and about implementation - know-how that is not included in the standard documentation. This practical knowledge is derived from their expertise, which stems from practical experience, because the consultants have seen many projects and have made or seen many mistakes, they can avoid many of the mistakes bound to occur during the implementation period. They will know what will work and what will not. Thus, by eliminating the trial and error method of implementation and doing it right the first time the consultants help in saving huge amounts of money, time and effort.
Consultants should also know how to remain impartial while questioning current company processes in an effort to promote better businesses practices and better implementation results. They should strive to improve the company's business process so that the software package can be used as it was originally intended to, by its developers. Refining the company's processes can only optimize the performance of the system and maximize future user satisfaction.
Consultants are also responsible for analyzing and clearly addressing the customization issues. They must be able to distinguish between the must have and nice to have items and decide on the level of customization. This is an area where the consultants have to use their diplomatic skills, as the company people might want to customize all the aspects.
It is the duty of the consultants to present the advantages and drawbacks of each area and reach a consensus decision, which should also be the right one. Consultants need to position themselves in such a way as to balance their loyalty to the client and the project, with that of defending the package vendor, when such defense is technically correct. This is indeed a very difficult job and that is why consultants are paid such huge amounts for their services.
It is also the duty of the consultants to understand the total context and scope of the envisioned work and to know when to alert the company management about actions and decisions that must be undertaken so that the job will not be compromised and the implementation will not be jeopardized.
Maintaining technical documentation on the project also falls within the duty of the consultants. The consultants will leave once the project is complete, but the knowledge of the project cannot depart with them. So the consultants should create a knowledge base and should train enough people so that the work they have started is continued.
For more information kindly visit: http://www.erppandit.com/role-of-ERP-consultants.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: + 91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP business intelligence
Erp - A Business Intelligence Application
ERP (Enterprise Resource Planning) is a way to integrate the data and processes of an organization into one single system, using sub-systems that include hardware, software and a unified database in order to achieve integration,to store the data for various functions found throughout the organization.
The term ERP used to refer about how large organizations of the industrial type planned to use organizational wide resources. Today ERP is used in almost any type of organization it doesn't matter whether its large, small or what industry it falls in. How do we know what software system can be considered ERP? First, it must provide an organization with functionality for at least two systems or more.
However, many of today's ERP systems can cover more than just two functions and integrate them into one unified Data Base. Human Resources, Supply Chain Management, Customer Relations Management, Financial, Manufacturing functions and Warehouse Management functions can be found on modern companies under one umbrella - the ERP system.
The Key to ERP is integration. Its main goal is to integrate data and processes from all areas of the organization and unify it, to provide ease of access and an efficient work flow. ERP Systems usually accomplish this through one single database that employs multiple software modules.
The ideal configuration is then to have one ERP system for an entire organization, but organizations that are very large have been known to create an ERP system and then add external interfaces for other stand alone systems considered more powerful or able to fulfill the organization's needs in a better way.
The Ideal ERP System
The ideal ERP system would have a single database for all areas of the company and contain all of the data for various software modules, such as:
Workflow management, quality control, bills of material, manufacturing process, engineering, etc.
Accounts (payable & receivable), general ledger and cash management, fixed assets.
Training, payroll, time and attendance, benefits.
Purchasing, Inventory, supplier scheduling, claim processing, order entry, supply chain planning.
Activity management, time and expense, billing, costing.
Call Center Support, service, commissions, customer contact, sales & marketing.
ERP and Productivity
Before ERP systems appeared, in most organizations each department had their own operating system, data and database. The problem was that many of those systems would not be able to communicate with each other, so for example the financial of a company would have been on a separate computer system than the Human Resources information, thus complicating the processing of certain functions.
When a company sets up an ERP system, all aspects of the organization can work in harmony. As a result the organization enjoys increased productivity and may use less types of software.
Implementation of an ERP System
Implementing an ERP system is not an easy task. It takes considerable planning and consulting. The timeline for an ERP implementation may range between 3 months and more than 1 year.
ERP systems are extraordinarily wide in scope and can be extremely complex for many organizations. For instance, Changes on staff and work practices might be required. It is advisable (and more cost effective) to use specially trained ERP implementation consultants and not only the "in-house" IT staff.
Ownership of the project of the most important traits that an organization should have when implementing an ERP system. So many changes take place and it has such an effect on almost every individual in the organization, that it is important to make sure everyone is on board and will help make the new ERP system a success.
Organizations may implement their customized ERP system using ERP vendors or consulting companies. 3 types of professional services are needed when implementing an ERP system: Consulting, Customization and Support.
Consulting: responsible for the initial stages of ERP implementation, training, workflow, etc.
Customization: extend the use of the new ERP system or change its use creating customized interfaces and/or underlying application code. Some things may still need to be built or customized for an organization's specific needs. Support: Technical support and maintenance of ERP systems.
Advantages of ERP Systems
There are many advantages of implementing an EPR system:
It's totally integrated.
It has the ability to streamline different processes and workflows.
It is easy to share data across various departments in an organization.
It improves efficiency and productivity levels.
It provides better tracking and forecasting.
Its costs are lower.
It provides improved customer service.
Disadvantages of ERP Systems
ERP's advantages outweigh disadvantages but here are some of the most common obstacles experienced by organizations:
Lack of skills and the inexperience of the workforce may delay its adaptation to the new system.
Customization can be limited.
The organization might need to reengineer some business processes.
For more information kindly visit: http://www.erppandit.com/erp-business-intelligence.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP (Enterprise Resource Planning) is a way to integrate the data and processes of an organization into one single system, using sub-systems that include hardware, software and a unified database in order to achieve integration,to store the data for various functions found throughout the organization.
The term ERP used to refer about how large organizations of the industrial type planned to use organizational wide resources. Today ERP is used in almost any type of organization it doesn't matter whether its large, small or what industry it falls in. How do we know what software system can be considered ERP? First, it must provide an organization with functionality for at least two systems or more.
However, many of today's ERP systems can cover more than just two functions and integrate them into one unified Data Base. Human Resources, Supply Chain Management, Customer Relations Management, Financial, Manufacturing functions and Warehouse Management functions can be found on modern companies under one umbrella - the ERP system.
The Key to ERP is integration. Its main goal is to integrate data and processes from all areas of the organization and unify it, to provide ease of access and an efficient work flow. ERP Systems usually accomplish this through one single database that employs multiple software modules.
The ideal configuration is then to have one ERP system for an entire organization, but organizations that are very large have been known to create an ERP system and then add external interfaces for other stand alone systems considered more powerful or able to fulfill the organization's needs in a better way.
The Ideal ERP System
The ideal ERP system would have a single database for all areas of the company and contain all of the data for various software modules, such as:
Workflow management, quality control, bills of material, manufacturing process, engineering, etc.
Accounts (payable & receivable), general ledger and cash management, fixed assets.
Training, payroll, time and attendance, benefits.
Purchasing, Inventory, supplier scheduling, claim processing, order entry, supply chain planning.
Activity management, time and expense, billing, costing.
Call Center Support, service, commissions, customer contact, sales & marketing.
ERP and Productivity
Before ERP systems appeared, in most organizations each department had their own operating system, data and database. The problem was that many of those systems would not be able to communicate with each other, so for example the financial of a company would have been on a separate computer system than the Human Resources information, thus complicating the processing of certain functions.
When a company sets up an ERP system, all aspects of the organization can work in harmony. As a result the organization enjoys increased productivity and may use less types of software.
Implementation of an ERP System
Implementing an ERP system is not an easy task. It takes considerable planning and consulting. The timeline for an ERP implementation may range between 3 months and more than 1 year.
ERP systems are extraordinarily wide in scope and can be extremely complex for many organizations. For instance, Changes on staff and work practices might be required. It is advisable (and more cost effective) to use specially trained ERP implementation consultants and not only the "in-house" IT staff.
Ownership of the project of the most important traits that an organization should have when implementing an ERP system. So many changes take place and it has such an effect on almost every individual in the organization, that it is important to make sure everyone is on board and will help make the new ERP system a success.
Organizations may implement their customized ERP system using ERP vendors or consulting companies. 3 types of professional services are needed when implementing an ERP system: Consulting, Customization and Support.
Consulting: responsible for the initial stages of ERP implementation, training, workflow, etc.
Customization: extend the use of the new ERP system or change its use creating customized interfaces and/or underlying application code. Some things may still need to be built or customized for an organization's specific needs. Support: Technical support and maintenance of ERP systems.
Advantages of ERP Systems
There are many advantages of implementing an EPR system:
It's totally integrated.
It has the ability to streamline different processes and workflows.
It is easy to share data across various departments in an organization.
It improves efficiency and productivity levels.
It provides better tracking and forecasting.
Its costs are lower.
It provides improved customer service.
Disadvantages of ERP Systems
ERP's advantages outweigh disadvantages but here are some of the most common obstacles experienced by organizations:
Lack of skills and the inexperience of the workforce may delay its adaptation to the new system.
Customization can be limited.
The organization might need to reengineer some business processes.
For more information kindly visit: http://www.erppandit.com/erp-business-intelligence.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP is an indispensable business tool
ERP - an indispensable 'back-office' software
ERP is most important to businesses because of their improvement in the way your company takes a customer order and processes it into an invoice and revenue - otherwise known as the order fulfillment process. That is why ERP is often referred to as back-office software.It does not handle the up-front selling process (although most ERP vendors have recently developed CRM software to do this); rather, ERP takes a customer order and provides a software roadmap for automating the different steps along the path to fulfilling it.
This roadmap shares the identical information at all stages of the transition, from the sales representative to the loading deck, each able to view and input the data. When one department finished with the order it is automatically routed via the ERP system to the next department. To find out where the order is at any point of time, you need only log-in to the ERP system and track it down.
The truth about ERP is that it unifies a company, it allows the customer service team to understand the financial background for a client or to check if there is stock in the warehouse. It allows the warehouse to update the system of whether something is in stock or not, without having to send emails or documents. It minimizes inventory time. There is however a catch. People don't like to change and ERP asks them to change the way they do their jobs. That is why the value of ERP is so hard to pin down.
The software is less important than the changes companies make in the ways they do business. If you use ERP to improve the ways your people take orders, manufacture goods, ship them and bill for them, you will see value from the software. If you simply install the software without changing the way people do their job, you may not see any value at all - indeed, the new software could slow you down by simply replacing the old software that everyone knew with new software that no one does.
ERP systems are transforming the way organizations do business. They are indispensable tools with a huge impact on both the business and information technology worlds. An ERP system does the following:
Affects almost all organization - irrespective of their size and nature
Forces the competition to change their strategies and processes
Influences business partners to become more competitive
Improves the profits of the consulting organizations
Is the most important tool for business process re-engineering.
Enforces best practice business process in organizations
Fully utilizes the true potential of client server computing to deliver an enterprise product
Change the nature of the information system function and IT professionals
Changes the nature of jobs in all functional business areas
For more information kindly visit: http://www.erppandit.com/ERP-is-an-indispensable-business-tool.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP is most important to businesses because of their improvement in the way your company takes a customer order and processes it into an invoice and revenue - otherwise known as the order fulfillment process. That is why ERP is often referred to as back-office software.It does not handle the up-front selling process (although most ERP vendors have recently developed CRM software to do this); rather, ERP takes a customer order and provides a software roadmap for automating the different steps along the path to fulfilling it.
This roadmap shares the identical information at all stages of the transition, from the sales representative to the loading deck, each able to view and input the data. When one department finished with the order it is automatically routed via the ERP system to the next department. To find out where the order is at any point of time, you need only log-in to the ERP system and track it down.
The truth about ERP is that it unifies a company, it allows the customer service team to understand the financial background for a client or to check if there is stock in the warehouse. It allows the warehouse to update the system of whether something is in stock or not, without having to send emails or documents. It minimizes inventory time. There is however a catch. People don't like to change and ERP asks them to change the way they do their jobs. That is why the value of ERP is so hard to pin down.
The software is less important than the changes companies make in the ways they do business. If you use ERP to improve the ways your people take orders, manufacture goods, ship them and bill for them, you will see value from the software. If you simply install the software without changing the way people do their job, you may not see any value at all - indeed, the new software could slow you down by simply replacing the old software that everyone knew with new software that no one does.
ERP systems are transforming the way organizations do business. They are indispensable tools with a huge impact on both the business and information technology worlds. An ERP system does the following:
Affects almost all organization - irrespective of their size and nature
Forces the competition to change their strategies and processes
Influences business partners to become more competitive
Improves the profits of the consulting organizations
Is the most important tool for business process re-engineering.
Enforces best practice business process in organizations
Fully utilizes the true potential of client server computing to deliver an enterprise product
Change the nature of the information system function and IT professionals
Changes the nature of jobs in all functional business areas
For more information kindly visit: http://www.erppandit.com/ERP-is-an-indispensable-business-tool.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Dealing with employee resistance
CHANGE is happening faster that most people care to think about. What is more important, change is happening faster that most people care to accept.In fact, most people do not want change! The premise is that change is not always good - that somehow it will have a negative impact.
Today, technology is exponentially advancing. It is very difficult to keep pace and stay abreast with these technological developments. We are in a constant state of change and continuous change and continuous improvements in the abilities of companies to do things better, faster and cheaper is an absolute must for survival in this brutally competitive world.
The main reason for the resistance towards change are fear of failure, fear of being redundant and fear about the uncertain future.
Fear of being Redundant
The biggest fear shared by people in companies going in for ERP implementation is the loss of their jobs. As soon as the decision about the ERP implementation is announced rumours about the new system automating all the tasks and making people redundant will start floating around. When a company talks about ERP and automation, the immediate reaction is that computers will replace people.
There is some truth in this fear. There are many instances where computers have made people redundant. But what most people fail to hear is that the people who are doing manual jobs before computerization were able to get better jobs with higher salaries once they learned the new system and how to use the computers. So if a person is willing to adapt to the changes and is willing to learn the new system and new way of doing business, then he or she does not have anything to fear. There is a very good chance of getting better jobs with higher salaries.
Fear of failure
Another fear that must be addressed is people's fear of failure - the fear of not understanding or being able to work within an automated environment. Many companies make the serious mistake of not insisting on a very thorough training program that will insure the employees have the knowledge and a confidence level of adapting and using the new system to the maximum benefit of the company.
Many view training as an expense to be cut. Beware of those that claim they can reduce this expensive as the results have proven increases the hidden costs to the firm that often exceeds the perceived savings. Training is an item that should receive the most serious attention by professional implementers.
Fear of future
Openly discussing and announcing the purpose of implementation and what it means to the employees of the firm can help to address the fear of the future. Normally ERP implementation investment is made so the firm can compete and grow the business. It may be implemented to survive, thrive and become competitive.
Whatever, the future expected from the implementation, it must be made openly clear to all who are expected to participate in making it successful. A feeling of excitement must be built from the ground up, in order for people to enthusiastically embrace the ERP system as the key to their futures. Without a feeling of confidence that things are going to be good, they may never try it at all. If they decide not to give the system their full support, you will not be successful in your implementation.
For more information kindly visit: http://www.erppandit.com/employee-resistance-to-ERP-implemenattion.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com ,Web site: www.erppandit.com.
Today, technology is exponentially advancing. It is very difficult to keep pace and stay abreast with these technological developments. We are in a constant state of change and continuous change and continuous improvements in the abilities of companies to do things better, faster and cheaper is an absolute must for survival in this brutally competitive world.
The main reason for the resistance towards change are fear of failure, fear of being redundant and fear about the uncertain future.
Fear of being Redundant
The biggest fear shared by people in companies going in for ERP implementation is the loss of their jobs. As soon as the decision about the ERP implementation is announced rumours about the new system automating all the tasks and making people redundant will start floating around. When a company talks about ERP and automation, the immediate reaction is that computers will replace people.
There is some truth in this fear. There are many instances where computers have made people redundant. But what most people fail to hear is that the people who are doing manual jobs before computerization were able to get better jobs with higher salaries once they learned the new system and how to use the computers. So if a person is willing to adapt to the changes and is willing to learn the new system and new way of doing business, then he or she does not have anything to fear. There is a very good chance of getting better jobs with higher salaries.
Fear of failure
Another fear that must be addressed is people's fear of failure - the fear of not understanding or being able to work within an automated environment. Many companies make the serious mistake of not insisting on a very thorough training program that will insure the employees have the knowledge and a confidence level of adapting and using the new system to the maximum benefit of the company.
Many view training as an expense to be cut. Beware of those that claim they can reduce this expensive as the results have proven increases the hidden costs to the firm that often exceeds the perceived savings. Training is an item that should receive the most serious attention by professional implementers.
Fear of future
Openly discussing and announcing the purpose of implementation and what it means to the employees of the firm can help to address the fear of the future. Normally ERP implementation investment is made so the firm can compete and grow the business. It may be implemented to survive, thrive and become competitive.
Whatever, the future expected from the implementation, it must be made openly clear to all who are expected to participate in making it successful. A feeling of excitement must be built from the ground up, in order for people to enthusiastically embrace the ERP system as the key to their futures. Without a feeling of confidence that things are going to be good, they may never try it at all. If they decide not to give the system their full support, you will not be successful in your implementation.
For more information kindly visit: http://www.erppandit.com/employee-resistance-to-ERP-implemenattion.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com ,Web site: www.erppandit.com.
Cost of ERP
How much is too much?
THE cost of packaged ERP depends on the number of ERP modules, number of end-users, complexity of software and ERP vendors.The total cost of ERP ownership includes the costs of packaged software, hardware, professional services (maintenance, upgrades and optimization) and internal costs.
ERP software that involves the integration with external business entitles generally costs more. ERP vendors offer discounts to organizations that invest in a suite of ERP software systems. Though many mid-sized organizations typically commit a few millions in packaged ERP software, there are number of result-oriented low-budget packages are available in the market today.
Implementation of ERP system sometimes demands purchase of new computer hardware, system software, network equipment and security software. The costs of hardware vary in a wide range depending upon the scope of implementation and platforms. The hardware typically takes a big bite in the cost for mid-sized organizations that implement ERP systems.
Implementing ERP system requires the services of many professionals. These services cost money. The major costs under this category are customization, integration, data conversion, data migration, testing and training.
It is unlikely that a financial director would support the idea of unlimited funding for the ERP implementation project. Instead, from a control stance, a budget needs to be established. This will be based upon an estimate of the likely costs. In identifying where the costs are likely to arise, consideration should be given to:
Hardware
Operating system
Database license fee
Core software license fee
Additional module license fee
Additional seat license fee
Third-party software license fee
Integration of third-party software
Software customization
Project management
Consultancy
Training
Upgrades
Much of the cost information could be obtained from the vendor. While it is likely that the vendor will provide a specific figure for each item, this may only be an estimate. This is likely to be the case for such items as consultancy, which history suggests is an area for potential overspending. In this case, an upper and lower value, and the expected value should be sought to give a fairer reflection of the potential cost exposure.
While some of these costs will be one off (i.e. hardware, training and consultancy) other will be ongoing (e.g. maintenance). To get a better picture of the cost exposure, a long-term perspective should be taken. A meaningful time horizon is five years. By the time that five years has passed it is quite possible that the application has been reviewed and a new budget established for additional work, such as an upgrade or additional functionality.
For more information kindly visit: http://www.erppandit.com/cost-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
THE cost of packaged ERP depends on the number of ERP modules, number of end-users, complexity of software and ERP vendors.The total cost of ERP ownership includes the costs of packaged software, hardware, professional services (maintenance, upgrades and optimization) and internal costs.
ERP software that involves the integration with external business entitles generally costs more. ERP vendors offer discounts to organizations that invest in a suite of ERP software systems. Though many mid-sized organizations typically commit a few millions in packaged ERP software, there are number of result-oriented low-budget packages are available in the market today.
Implementation of ERP system sometimes demands purchase of new computer hardware, system software, network equipment and security software. The costs of hardware vary in a wide range depending upon the scope of implementation and platforms. The hardware typically takes a big bite in the cost for mid-sized organizations that implement ERP systems.
Implementing ERP system requires the services of many professionals. These services cost money. The major costs under this category are customization, integration, data conversion, data migration, testing and training.
It is unlikely that a financial director would support the idea of unlimited funding for the ERP implementation project. Instead, from a control stance, a budget needs to be established. This will be based upon an estimate of the likely costs. In identifying where the costs are likely to arise, consideration should be given to:
Hardware
Operating system
Database license fee
Core software license fee
Additional module license fee
Additional seat license fee
Third-party software license fee
Integration of third-party software
Software customization
Project management
Consultancy
Training
Upgrades
Much of the cost information could be obtained from the vendor. While it is likely that the vendor will provide a specific figure for each item, this may only be an estimate. This is likely to be the case for such items as consultancy, which history suggests is an area for potential overspending. In this case, an upper and lower value, and the expected value should be sought to give a fairer reflection of the potential cost exposure.
While some of these costs will be one off (i.e. hardware, training and consultancy) other will be ongoing (e.g. maintenance). To get a better picture of the cost exposure, a long-term perspective should be taken. A meaningful time horizon is five years. By the time that five years has passed it is quite possible that the application has been reviewed and a new budget established for additional work, such as an upgrade or additional functionality.
For more information kindly visit: http://www.erppandit.com/cost-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Monday, May 17, 2010
ERP Vendors
VENDORS are the people who have developed the ERP packages. They are the people who have invested huge amounts of time and effort in research and development, to create the packaged solutions.If one studies the history of ERP packages and finds out how each package evolved, then it soon becomes evident that every ERP package grew out of the experience or opportunity of a group of people working in a specific business who created systems that could deal with certain business segments.
Now with the ERP marketplace become crowded with more and more players entering the market and the competition increasing, today's ERP packages have features and functionality to cater to the needs of businesses in almost all sectors.
ERP vendors spend crores of rupees in research and come up with innovations that make the packages more efficient, flexible and easy to implement and use. Also, with the evolution of new technologies the vendors have to constantly upgrade their products to use the best and latest advancements in technology.
Choosing the right software vendor goes beyond evaluating software functionality. There has been a gradual movement among a handful of the largest software vendors to take a one-size-fits-all posture. Some vendors believe functionality ratings are no longer important since all software systems are beginning to look alike. While appearances may tend to support this theory, reality paints a different picture.
Merely having a particular function does not guarantee that users will be able to capably work with it. If two vendors offer a function required in a specific industry segment, and one specializes in deploying it in that segment while the other does not, the difference can be dramatic. The one-size-fits-all garment may fit everybody, but the question is does it look good to everyone?
Vendor selection is not a popularity contest and bigger does not always mean better. While the financial stability, ensured longevity and broad spectrum of offerings provided by the top vendors are good reasons for selecting them, size is not without its downside. Size breeds bureaucracy and bureaucracy hamper personal attention and agility.
While small vendors that are not quite household names may carry increased risks in the area of long-term longevity, they may actually provide a better solution if they specialize in your industry segment rather than covering a broad spectrum of industries.
You have the greatest leverage with your vendor once you have made the decision to buy their software but have not yet issued the purchase order. Waiting for the end of their quarter can help you get the best price.
Also view the financial stability of your future relationship as important - you will receive positive support from your vendor as long as it is profitable for them to do so. The relationship is a balancing act. Interest your vendors to get the job done right, on-time and within budget, but watch out for penalties that may increase project pressure and sour the relationship.
It is important to remember that the vendor, as long as they provide working software and capable personnel, really as very little responsibility for your overall success. Responsibility for success of failure lies within the four walls of your business, and if you import failure in the form of a third-party, it's still your responsibility.
For more information kindly visit: http://www.erppandit.com/ERP-Vendors.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com , e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-for-sme.com
Now with the ERP marketplace become crowded with more and more players entering the market and the competition increasing, today's ERP packages have features and functionality to cater to the needs of businesses in almost all sectors.
ERP vendors spend crores of rupees in research and come up with innovations that make the packages more efficient, flexible and easy to implement and use. Also, with the evolution of new technologies the vendors have to constantly upgrade their products to use the best and latest advancements in technology.
Choosing the right software vendor goes beyond evaluating software functionality. There has been a gradual movement among a handful of the largest software vendors to take a one-size-fits-all posture. Some vendors believe functionality ratings are no longer important since all software systems are beginning to look alike. While appearances may tend to support this theory, reality paints a different picture.
Merely having a particular function does not guarantee that users will be able to capably work with it. If two vendors offer a function required in a specific industry segment, and one specializes in deploying it in that segment while the other does not, the difference can be dramatic. The one-size-fits-all garment may fit everybody, but the question is does it look good to everyone?
Vendor selection is not a popularity contest and bigger does not always mean better. While the financial stability, ensured longevity and broad spectrum of offerings provided by the top vendors are good reasons for selecting them, size is not without its downside. Size breeds bureaucracy and bureaucracy hamper personal attention and agility.
While small vendors that are not quite household names may carry increased risks in the area of long-term longevity, they may actually provide a better solution if they specialize in your industry segment rather than covering a broad spectrum of industries.
You have the greatest leverage with your vendor once you have made the decision to buy their software but have not yet issued the purchase order. Waiting for the end of their quarter can help you get the best price.
Also view the financial stability of your future relationship as important - you will receive positive support from your vendor as long as it is profitable for them to do so. The relationship is a balancing act. Interest your vendors to get the job done right, on-time and within budget, but watch out for penalties that may increase project pressure and sour the relationship.
It is important to remember that the vendor, as long as they provide working software and capable personnel, really as very little responsibility for your overall success. Responsibility for success of failure lies within the four walls of your business, and if you import failure in the form of a third-party, it's still your responsibility.
For more information kindly visit: http://www.erppandit.com/ERP-Vendors.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com , e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-for-sme.com
ERP Consultants
ERP consultants are professionals who specialize in developing techniques and methodologies for dealing with the implementation and the various problems that will crop up during the implementation.They are experts in the administration, management and control of these types of projects.
Each of them will have many man-years of implementation experience with various industries and have knowledge of time-tested methodologies and business practices that will ensure successful implementation. They will be good at all phases of the implementation life cycle right from package evaluation to end-user training.
Consultants provide a wide variety of functions often filling in the gaps. Some of the positions that consultants can fill include project manager, team leader, team member, service representative and end-user. A consultant's success depends upon a number of factors including computer literacy, conceptual, skills, software knowledge, industry knowledge, maturity, problem-solving capability, communication skills and organizational skills.
The success of any particular consultant can vary tremendously from company to company and from situation to situation. Surprisingly, a consultant's industry and software knowledge does not correlate strongly with his or her success or capability to help a company.
Many cases have been identified where consultants lacking in software and industry knowledge who were able to consistently out-perform other consultants considered the most knowledgeable in software and industry. These consultants showed strong interpersonal communication skills, were self-starters requiring little or no training, had good computer literacy, problem-solving capability and conceptual skills.
Many of the big consulting firms, having forecasted the ERP boom, invested a great deal of money in developing a range of consulting services in this field and assigned many of their professionals to become specialists in the various aspects of ERP packages and their implementation.
These firms researched various products, developed an in-depth understanding of each product's strengths and weaknesses, worked by the side of the ERP vendors, confirmed that the vendor's package worked and learned the tricks and techniques of the trade, found out the pitfalls and mistakes that should be avoided and thus created a pool of experts who could handle the ERP implementation without failure.
For more information kindly visit: http://www.erppandit.com/ERP-Consultants.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Each of them will have many man-years of implementation experience with various industries and have knowledge of time-tested methodologies and business practices that will ensure successful implementation. They will be good at all phases of the implementation life cycle right from package evaluation to end-user training.
Consultants provide a wide variety of functions often filling in the gaps. Some of the positions that consultants can fill include project manager, team leader, team member, service representative and end-user. A consultant's success depends upon a number of factors including computer literacy, conceptual, skills, software knowledge, industry knowledge, maturity, problem-solving capability, communication skills and organizational skills.
The success of any particular consultant can vary tremendously from company to company and from situation to situation. Surprisingly, a consultant's industry and software knowledge does not correlate strongly with his or her success or capability to help a company.
Many cases have been identified where consultants lacking in software and industry knowledge who were able to consistently out-perform other consultants considered the most knowledgeable in software and industry. These consultants showed strong interpersonal communication skills, were self-starters requiring little or no training, had good computer literacy, problem-solving capability and conceptual skills.
Many of the big consulting firms, having forecasted the ERP boom, invested a great deal of money in developing a range of consulting services in this field and assigned many of their professionals to become specialists in the various aspects of ERP packages and their implementation.
These firms researched various products, developed an in-depth understanding of each product's strengths and weaknesses, worked by the side of the ERP vendors, confirmed that the vendor's package worked and learned the tricks and techniques of the trade, found out the pitfalls and mistakes that should be avoided and thus created a pool of experts who could handle the ERP implementation without failure.
For more information kindly visit: http://www.erppandit.com/ERP-Consultants.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP Architecture
ERP applications are most commonly deployed in a distributed and often widely dispersed manner. While the servers may be centralized, the clients are usually spread to multiple locations throughout the enterprise.
Generally there are three functional areas of responsibility that is distributed among the servers and the clients. First, there is the database component - the central repository for all of the data that is transferred to and from the clients. Then, of course, the clients - here raw data gets inputted, requests for information are submitted, and the data satisfying these requests is presented. Lastly, we have the application component that acts as the intermediary between the client and the database. Where these components physically reside and how the processes get distributed will vary somewhat from one implementation to the next. The two most commonly implemented architectures are outlined below.
Two-tier Implementations
In typical two-tier architecture, the server handles both application and database duties. The clients are responsible for presenting the data and passing user input back to the server. While there may be multiple servers and the clients may be distributed across several types of local and wide area links, this distribution of processing responsibilities remains the same.
Three-tier Client/Server Implementations
In three-tier architectures, the database and application functions are separated. This is very typical of large production ERP deployments. In this scenario, satisfying client requests requires two or more network connections. Initially, the client establishes communications with the application server. The application server then creates a second connection to the database server.
For more information kindly visit: http://www.erppandit.com/erp-architecture.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Generally there are three functional areas of responsibility that is distributed among the servers and the clients. First, there is the database component - the central repository for all of the data that is transferred to and from the clients. Then, of course, the clients - here raw data gets inputted, requests for information are submitted, and the data satisfying these requests is presented. Lastly, we have the application component that acts as the intermediary between the client and the database. Where these components physically reside and how the processes get distributed will vary somewhat from one implementation to the next. The two most commonly implemented architectures are outlined below.
Two-tier Implementations
In typical two-tier architecture, the server handles both application and database duties. The clients are responsible for presenting the data and passing user input back to the server. While there may be multiple servers and the clients may be distributed across several types of local and wide area links, this distribution of processing responsibilities remains the same.
Three-tier Client/Server Implementations
In three-tier architectures, the database and application functions are separated. This is very typical of large production ERP deployments. In this scenario, satisfying client requests requires two or more network connections. Initially, the client establishes communications with the application server. The application server then creates a second connection to the database server.
For more information kindly visit: http://www.erppandit.com/erp-architecture.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP and CRM
There are a number of potential benefits in following the CRM (Customer Relationship Management) route.These are increased automation facilities, better use of existing resources, better quality of information, faster response time, improved customer targeting, better customer retention and increases sales.
The CRM application enhances the company's 'front office', focusing on sales, marketing and customer service. However, in order to be truly successful CRM must be seen as a combination of people processes and system rather than as a narrowly defined IT application. CRM is one piece of the new wave of ERP that focuses on outward facing processes, tying them together with the inside-the-enterprise transaction processing engine of the original ERP systems.
With the popularity of the Web and Web-based business, companies operating in a mass production world were able to truly personalize relationships with customers. The ability to build strong relationships with customers is causing renewed efforts among businesses to achieve lifetime value from current customers and to put strategic plans in place to go after lifetime value for new customers in new markets.
Companies are increasingly waking up to the fact that they can create new value by working creatively with business partners in the distribution chain and with consumers to reduce costs and cycle times of products, and to provide better order tracking information to customers.
Research has shown that only happy and satisfied customers are truly loyal and loyal customers keep coming back. Using information technology (IT), nimble companies can strengthen customer relationships by integrating sales, product configuration, planning and design processes with customers through existing and new channels.
Typically, a company has a set of preferred customers but welcomes orders from any qualified buyer. Since the industrial revolution companies have viewed orders as nothing more than a demand for their product or service. As the source of revenue, customers are treated with respect in hopes of getting repeat business.
In the world of eBusiness, companies can replicate the personal customer relationship that existed prior to mass markets by using knowledge of the customer to personalize customer service while continuing to sell standard products.
For more information kindly visit: http://www.erppandit.com/erp-and-crm.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
The CRM application enhances the company's 'front office', focusing on sales, marketing and customer service. However, in order to be truly successful CRM must be seen as a combination of people processes and system rather than as a narrowly defined IT application. CRM is one piece of the new wave of ERP that focuses on outward facing processes, tying them together with the inside-the-enterprise transaction processing engine of the original ERP systems.
With the popularity of the Web and Web-based business, companies operating in a mass production world were able to truly personalize relationships with customers. The ability to build strong relationships with customers is causing renewed efforts among businesses to achieve lifetime value from current customers and to put strategic plans in place to go after lifetime value for new customers in new markets.
Companies are increasingly waking up to the fact that they can create new value by working creatively with business partners in the distribution chain and with consumers to reduce costs and cycle times of products, and to provide better order tracking information to customers.
Research has shown that only happy and satisfied customers are truly loyal and loyal customers keep coming back. Using information technology (IT), nimble companies can strengthen customer relationships by integrating sales, product configuration, planning and design processes with customers through existing and new channels.
Typically, a company has a set of preferred customers but welcomes orders from any qualified buyer. Since the industrial revolution companies have viewed orders as nothing more than a demand for their product or service. As the source of revenue, customers are treated with respect in hopes of getting repeat business.
In the world of eBusiness, companies can replicate the personal customer relationship that existed prior to mass markets by using knowledge of the customer to personalize customer service while continuing to sell standard products.
For more information kindly visit: http://www.erppandit.com/erp-and-crm.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP Advantages
Installing an ERP system has many advantages - both direct and indirect.The direct advantages include improved efficiency information integration 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. Some of the benefits are quantitative (tangible) while others are non-quantitative (intangible).
Tangible benefits are those measured in monetary terms and intangible benefits cannot be measured in monetary terms but they do have a very significant business impact.
Tangible benefits:
Improves the productivity of process and personnel
Lowering the cost of products and services purchased
Paper and postage cost reductions
Inventory reduction
Lead time reduction
Reduced stock obsolescence
Faster product / service look-up and ordering saving time and money
Automated ordering and payment, lowering payment processing and paper costs
Intangible benefits:
Increases organizational transparency and responsibility
Accurate and faster access to data for timely decisions
Can reach more vendors, producing more competitive bids ;
Improved customer response
Saves enormous time and effort in data entry ;
More controls thereby lowering the risk of mis-utilization of resources
Facilitates strategic planning
Uniform reporting according to global standards
For more information kindly visit: http://www.erppandit.com/erp-advantages.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-for-sme.com
The indirect benefits include better corporate image, improved customer goodwill, customer satisfaction and so on. Some of the benefits are quantitative (tangible) while others are non-quantitative (intangible).
Tangible benefits are those measured in monetary terms and intangible benefits cannot be measured in monetary terms but they do have a very significant business impact.
Tangible benefits:
Improves the productivity of process and personnel
Lowering the cost of products and services purchased
Paper and postage cost reductions
Inventory reduction
Lead time reduction
Reduced stock obsolescence
Faster product / service look-up and ordering saving time and money
Automated ordering and payment, lowering payment processing and paper costs
Intangible benefits:
Increases organizational transparency and responsibility
Accurate and faster access to data for timely decisions
Can reach more vendors, producing more competitive bids ;
Improved customer response
Saves enormous time and effort in data entry ;
More controls thereby lowering the risk of mis-utilization of resources
Facilitates strategic planning
Uniform reporting according to global standards
For more information kindly visit: http://www.erppandit.com/erp-advantages.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: http://www.erp-for-sme.com
Best Practices in ERP
ONE of the definitions of ERP is "the amalgamation of world-class (best) practices together".
It is said that, if ERP is implemented successfully, the company automatically becomes world class in terms of its practices. This statement is true for most of the ERP products.
Right from the industrial revolution and even further, we can see the efforts put in to improve existing practices.
Typically, the classical industrial engineering principle says: there is always a better method available than the existing. Here the 'better' ultimately means improved efficiency, effectiveness and economics. If we understand the motto of this principle deeply, we may find the basic motivation of the kaizen in it. In fact, this principle clearly supports the view that nothing is the best forever.
In this context, let us see what is the best practice in ERP environment. ERP assumes the fundamental set-ups as "Pillars of ERP". The best practice in ERP then can be defined as the utilization of these set-ups to the maximum possible to produce the desired performance in terms of customer focus, zero waste of all the resources, and value creation. Tangibly, it leads to increase in quality and service, and reduction of cost and response time.
ERP enjoys having a strong skeleton based on these best practices. All the workflows in ERP are so thoughtfully maintained that it ensures that the user automatically follows the best practice. It won't allow the user to bypass or modify the predetermined course of actions that may create nonvalue added activity.
For more information kindly visit: http://www.erppandit.com/Best-Practices-in-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
It is said that, if ERP is implemented successfully, the company automatically becomes world class in terms of its practices. This statement is true for most of the ERP products.
Right from the industrial revolution and even further, we can see the efforts put in to improve existing practices.
Typically, the classical industrial engineering principle says: there is always a better method available than the existing. Here the 'better' ultimately means improved efficiency, effectiveness and economics. If we understand the motto of this principle deeply, we may find the basic motivation of the kaizen in it. In fact, this principle clearly supports the view that nothing is the best forever.
In this context, let us see what is the best practice in ERP environment. ERP assumes the fundamental set-ups as "Pillars of ERP". The best practice in ERP then can be defined as the utilization of these set-ups to the maximum possible to produce the desired performance in terms of customer focus, zero waste of all the resources, and value creation. Tangibly, it leads to increase in quality and service, and reduction of cost and response time.
ERP enjoys having a strong skeleton based on these best practices. All the workflows in ERP are so thoughtfully maintained that it ensures that the user automatically follows the best practice. It won't allow the user to bypass or modify the predetermined course of actions that may create nonvalue added activity.
For more information kindly visit: http://www.erppandit.com/Best-Practices-in-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP Training Strategy
THE ERP training strategy has two objectives - the transfer of knowledge from the vendor's personnel and external consultants to the organization's key personnel and the dissemination of this knowledge through the organization. More precisely, the learning objectives establish what the learner should be able to do as a result of the training. Knowledge may be sought, particularly if related to operational best practices.
A training strategy can be developed defining the training policy and outlining the training program. Each steam will be identified and outlined in terms of the above stages. The strategy will provide an overview of the training objectives, identifying the people involved, the different streams and the content of each steam, organized into courses and sessions.
A plan will provide an overview of where, when and how the training will be delivered. Preliminary consideration will be given to the assessment of the learners. How can other knowledge and skill competencies be assessed? Furthermore, consideration is given to the effectiveness of the training and how this is assessed. The resultant strategy provides a framework within which to go about the training activity.
If the company accepts the strategy, it can be implemented. If the strategy is not accepted then it needs to be reviewed. A core issue is the company's commitment to training. The right balance needs to be struck between getting the training right and the training being cost-effective.
The executive committee need to have sufficient understanding of what is involved in an implementation project so that they appreciate the potential problems and are able to give the commitment and support that is required.
The members of the project team need to develop such knowledge and skills that will enable them to establish how to best use the functionality for the operation and maintenance phase. Since the members of the project team will become the trainers of other employees, they need to develop the skill to be able to formulate and deliver a training course.
The users need to have the skill for using the functionality relevant to their roles. They should understand the basic concepts of ERP and also how to perform the day-to-day activities in the ERP system. Others who require training include managers, who should have at least an appreciation of what the system does. Ideally, the project manager should have a good understanding o fall aspects of the system so that he can be effective in dealing with any issues raised.
A select number of people will require more specific technical training so that they can design databases, write scripts, manage users, generate reports and query the database for specific requirements.
The system administrators need to be able to setup the system and then maintain it. They will require knowledge about how to handle system security and deal with technical problems. They will need to develop a level of understanding of the functionality so that, at some stage after implementation when the project team is disbanded, they are able to manage the system smoothly.
Additionally, over the period it can be expected that the ERP tool will evolve to some degree along with the company and projects that it serves. From time to time it may be necessary to conduct additional training sessions to keep everyone abreast of the changes that have been implemented.
For more information kindly visit: http://www.erppandit.com/ERP-training-strategy.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: + 91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
A training strategy can be developed defining the training policy and outlining the training program. Each steam will be identified and outlined in terms of the above stages. The strategy will provide an overview of the training objectives, identifying the people involved, the different streams and the content of each steam, organized into courses and sessions.
A plan will provide an overview of where, when and how the training will be delivered. Preliminary consideration will be given to the assessment of the learners. How can other knowledge and skill competencies be assessed? Furthermore, consideration is given to the effectiveness of the training and how this is assessed. The resultant strategy provides a framework within which to go about the training activity.
If the company accepts the strategy, it can be implemented. If the strategy is not accepted then it needs to be reviewed. A core issue is the company's commitment to training. The right balance needs to be struck between getting the training right and the training being cost-effective.
The executive committee need to have sufficient understanding of what is involved in an implementation project so that they appreciate the potential problems and are able to give the commitment and support that is required.
The members of the project team need to develop such knowledge and skills that will enable them to establish how to best use the functionality for the operation and maintenance phase. Since the members of the project team will become the trainers of other employees, they need to develop the skill to be able to formulate and deliver a training course.
The users need to have the skill for using the functionality relevant to their roles. They should understand the basic concepts of ERP and also how to perform the day-to-day activities in the ERP system. Others who require training include managers, who should have at least an appreciation of what the system does. Ideally, the project manager should have a good understanding o fall aspects of the system so that he can be effective in dealing with any issues raised.
A select number of people will require more specific technical training so that they can design databases, write scripts, manage users, generate reports and query the database for specific requirements.
The system administrators need to be able to setup the system and then maintain it. They will require knowledge about how to handle system security and deal with technical problems. They will need to develop a level of understanding of the functionality so that, at some stage after implementation when the project team is disbanded, they are able to manage the system smoothly.
Additionally, over the period it can be expected that the ERP tool will evolve to some degree along with the company and projects that it serves. From time to time it may be necessary to conduct additional training sessions to keep everyone abreast of the changes that have been implemented.
For more information kindly visit: http://www.erppandit.com/ERP-training-strategy.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: + 91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Structure of ERP
The essence of ERP is the fundamental approach which takes a holistic view of the subject.The traditional application system, which the organizations generally employ, treats each transaction separately. ERP Structure are built around the strong boundaries of specific functions that a specific application is meant to cater.
ERP considers them to be the part of the interlinked processes that make up the total business and financial impact. Almost all the typical application systems are nothing but the data manipulation tools. They store data, process them, and present them in the appropriate form whenever requested by the user. In this process, the only problem is that there is no link between the application systems being used by different departments.
An ERP system also does the same thing, but generated as a result of diverse transactions, but they are not confined to any departmental or functional boundaries. These are rather integrated for the speedy and accurate results required by multiple users, for multiple purposes, for multiple sites, and at multiple times.
Thus ERP solution implies that it be:
Flexible: An ERP system should be flexible to respond to the changing needs of an enterprise. The client server technology enables ERP to run across various database backend through Open Data Base Connectivity (ODBC).
Modular: The ERP system has to have modular application architecture. This means that various functionalities are logically clubbed into different business processes and structured into a module which can be interfaced or detached whenever required without affecting the other modules. It should support multiple hardware platforms for the companies having heterogeneous collection of systems. It must support some third party add-ons also.
Comprehensive: It should be able to support variety of organizational functions and must be suitable for a wide range of business organizations.
Beyond the company: It should not be confined to the organizational boundaries; rather, it should support the on-line connectivity to the other business entities of the organization. This feature is the recent development and such ERP situation is referred to as Web-enabled ERP.
Belong to the best business practices: It must have a collection of the best business processes applicable worldwide.
To make use of the above advantage, ERP Architecture must be designed using the advanced information technologies and environments. Thus, ERP is typically implemented through a client-server environment. This technology divides the applications fundamentally into two or more components, called Server and Clients. The client portion uses the functions of the server. Servers are centralized while clients tend to be spread out in multiple locations.
For more information kindly visit: http://www.erppandit.com/erpstructure.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP considers them to be the part of the interlinked processes that make up the total business and financial impact. Almost all the typical application systems are nothing but the data manipulation tools. They store data, process them, and present them in the appropriate form whenever requested by the user. In this process, the only problem is that there is no link between the application systems being used by different departments.
An ERP system also does the same thing, but generated as a result of diverse transactions, but they are not confined to any departmental or functional boundaries. These are rather integrated for the speedy and accurate results required by multiple users, for multiple purposes, for multiple sites, and at multiple times.
Thus ERP solution implies that it be:
Flexible: An ERP system should be flexible to respond to the changing needs of an enterprise. The client server technology enables ERP to run across various database backend through Open Data Base Connectivity (ODBC).
Modular: The ERP system has to have modular application architecture. This means that various functionalities are logically clubbed into different business processes and structured into a module which can be interfaced or detached whenever required without affecting the other modules. It should support multiple hardware platforms for the companies having heterogeneous collection of systems. It must support some third party add-ons also.
Comprehensive: It should be able to support variety of organizational functions and must be suitable for a wide range of business organizations.
Beyond the company: It should not be confined to the organizational boundaries; rather, it should support the on-line connectivity to the other business entities of the organization. This feature is the recent development and such ERP situation is referred to as Web-enabled ERP.
Belong to the best business practices: It must have a collection of the best business processes applicable worldwide.
To make use of the above advantage, ERP Architecture must be designed using the advanced information technologies and environments. Thus, ERP is typically implemented through a client-server environment. This technology divides the applications fundamentally into two or more components, called Server and Clients. The client portion uses the functions of the server. Servers are centralized while clients tend to be spread out in multiple locations.
For more information kindly visit: http://www.erppandit.com/erpstructure.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,
Tel: +91 22 25827692/+91 22 25828775,
e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Security and ERP
SECURITY is one of the most important issues for an organization.Knowledge of enemy plans has been critical in influencing the course of human history. In classical business operation, just as an governmental and military operations, there have long been security issues concerned with physical protection.
This physical protection could be of human access to buildings and information stored in critical rooms in much the way as banks are secured. With the advent of computer systems this security expanded to data.
Computer systems involve a new level of detailed complexity, providing many opportunities to obtain key competitive information. This is stored on computers and with the advent of networks, is in most cases accessible by networks. There are many threats to the security of information found on ERP systems. Threats across all three forms of access include theft, damage, copying, unauthorized access to information, natural disasters or accidents, sabotage, etc.
The traditional forms of physical spying can still be applied. This can include any forms of unauthorized access to information. The most common forms of security threats to ERP are those made possible because of computer technology, including invasive electronic entry through some form of tapping or hacking. In addition to these security risk faced by all computer systems, two aspects of security are critical to ERP. One aspect concerns the quality of data generated and housed on the ERP.
The other aspect is control over who can access data. One major benefit of a Web delivered system is the flexibility afforded to users through the ability to log on to the ERP system from any terminal. One difficulty is that providers use forms of caching to improve performance. There is a serious risk arising software designed to turn off caches once the need for them has gone. Another form of control is a log-in page showing only those applications that the user is authorized to view. A digital certificate sign-on can act as one security measure with log-on to a directory protocol permitting access to authorized ERP applications. The ability to maintain ERP security in a Web environment is mandatory, given that majority of ERP vendors are responding to demand to provide Web products.
For more information kindly visit: http://www.erppandit.com/security-and-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
This physical protection could be of human access to buildings and information stored in critical rooms in much the way as banks are secured. With the advent of computer systems this security expanded to data.
Computer systems involve a new level of detailed complexity, providing many opportunities to obtain key competitive information. This is stored on computers and with the advent of networks, is in most cases accessible by networks. There are many threats to the security of information found on ERP systems. Threats across all three forms of access include theft, damage, copying, unauthorized access to information, natural disasters or accidents, sabotage, etc.
The traditional forms of physical spying can still be applied. This can include any forms of unauthorized access to information. The most common forms of security threats to ERP are those made possible because of computer technology, including invasive electronic entry through some form of tapping or hacking. In addition to these security risk faced by all computer systems, two aspects of security are critical to ERP. One aspect concerns the quality of data generated and housed on the ERP.
The other aspect is control over who can access data. One major benefit of a Web delivered system is the flexibility afforded to users through the ability to log on to the ERP system from any terminal. One difficulty is that providers use forms of caching to improve performance. There is a serious risk arising software designed to turn off caches once the need for them has gone. Another form of control is a log-in page showing only those applications that the user is authorized to view. A digital certificate sign-on can act as one security measure with log-on to a directory protocol permitting access to authorized ERP applications. The ability to maintain ERP security in a Web environment is mandatory, given that majority of ERP vendors are responding to demand to provide Web products.
For more information kindly visit: http://www.erppandit.com/security-and-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
ERP Risk
ALL applications software projects involve risk.Even the simplest effort probably has only a 90 per cent chance of success - i.e. the project is on-time within budget and attains all the planned benefits. As projects increase in scope, the odds of achieving success diminish rapidly.
Implementation projects require companies to strike a balance between the desires to satisfy everyone's functionality needs and the need to keep things simple enough to ensure success. If you implement a package with no software modifications, you are more likely to succeed than if you make major software and structural operating adjustments. But without customization you may end up with a system that executes flawlessly, but does not support your business adequately. It is necessary to balance risk and results at a level comfortable for your company.
Many managers understand the risks involved with new software and put all their efforts into minimizing them. What many fail to realize is the high-risk associated with existing applications that will be retained - the most onerous of these being bad data in the current system. It is common that many problems with a company's existing system are more related to inaccurate data than to faulty systems. Yet, the system usually takes the blame. Converting to a shiny, new system replete with the latest features and functions and then populating it with rusty, broken-down data does little more than continue yesterday's problems.
Is there is any way to minimize risk? Obviously, you could do less in less time, but this is generally not a viable solution. One of the best hedges against risk is the use of a proven methodology. The simpler this is the better. Going into battle without a firm plan of attack will only invite more trouble for your side. One blanket methodology is not necessary - software selection, acceptance testing and implementation can each have tailored methodologies.
A methodology will help ward off risk, but a contingency plan is still absolutely necessary. Virtually all planning for such projects has a positive spin to it - the assumption is made that the project will unfold as planned. Ugly surprises that surface during the course of the project can devastate the project and even the entire company. Having a working contingency plan, agreed up in advance, can come to the project team's rescue.
Implementing an ERP project involves a certain amount of risk. The ERP system cannot be implemented in a totally risk free environment. The only thing that differentiates successful and flawed or failed implementations is the way in which the risk were anticipated, handled and mitigated.
For more information kindly visit: http://www.erppandit.com/risks-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Implementation projects require companies to strike a balance between the desires to satisfy everyone's functionality needs and the need to keep things simple enough to ensure success. If you implement a package with no software modifications, you are more likely to succeed than if you make major software and structural operating adjustments. But without customization you may end up with a system that executes flawlessly, but does not support your business adequately. It is necessary to balance risk and results at a level comfortable for your company.
Many managers understand the risks involved with new software and put all their efforts into minimizing them. What many fail to realize is the high-risk associated with existing applications that will be retained - the most onerous of these being bad data in the current system. It is common that many problems with a company's existing system are more related to inaccurate data than to faulty systems. Yet, the system usually takes the blame. Converting to a shiny, new system replete with the latest features and functions and then populating it with rusty, broken-down data does little more than continue yesterday's problems.
Is there is any way to minimize risk? Obviously, you could do less in less time, but this is generally not a viable solution. One of the best hedges against risk is the use of a proven methodology. The simpler this is the better. Going into battle without a firm plan of attack will only invite more trouble for your side. One blanket methodology is not necessary - software selection, acceptance testing and implementation can each have tailored methodologies.
A methodology will help ward off risk, but a contingency plan is still absolutely necessary. Virtually all planning for such projects has a positive spin to it - the assumption is made that the project will unfold as planned. Ugly surprises that surface during the course of the project can devastate the project and even the entire company. Having a working contingency plan, agreed up in advance, can come to the project team's rescue.
Implementing an ERP project involves a certain amount of risk. The ERP system cannot be implemented in a totally risk free environment. The only thing that differentiates successful and flawed or failed implementations is the way in which the risk were anticipated, handled and mitigated.
For more information kindly visit: http://www.erppandit.com/risks-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com
Web site: www.erppandit.com.
Evolution of ERP
ERP is an outcome of 40 years of trial and error. It has evolved as a strategic tool because of continuous improvement in the available techniques to manage business and the fast growth of information technology.
Prior to 1960s, business had to rely on the traditional ways of inventory management to ensure smooth functioning of the organization. These theories are called classical inventory management of scientific inventory control methods. The most popularly known amongst them is EOQ (Economic Order Quantity).
In this method, each item in the stock is analyzed for its ordering cost and the inventory carrying cost. A trade off is established on a phased out expected demand of one year, and this way the most economic ordering quantity can be decided. This technique in principle is a deterministic way of managing inventory.
Along with EOQ, we find various inventory models such as fixed order quantity, periodic order method, optional replenishment method, etc., which were in practice earlier. These theories were very popular in pre-MRP era.
In 1960s, a new technique of Material Requirements Planning, popularly known as MRP, was evolved. This was a proactive manner of inventory management. This technique fundamentally explodes the end product demand obtained from the Master Production Schedule (MPS) for a specified product structure (which is taken from Bill of Material) into a detailed schedule of purchase orders or production orders, taking into account the inventory on hand.
MRP is a simple logic but the magnitude of data involved in a realistic situation makes it computationally cumbersome. If undertaken manually, the entire process is highly time-consuming.
MRP successfully demonstrated its effectiveness in reduction of inventory, production, and delivery lead times by improving coordination and avoiding delays, thus making commitments more realistic. MRP proved to be a very good technique for managing inventory, but it did not take into account other resources of an organization. In 1970s, this gave birth to a modified MRP logic, popularly known as closed loop MRP. In this technique, the capacity of the organization to produce a particular product is also taken into account by incorporating a module called capacity requirements planning (CRP).
In 1980s, the need was felt to integrate the financial resource with the manufacturing activities. From this evolved an integrated manufacturing management system called Manufacturng Resource Planning (MRP II).
Transition from MRPII to ERP happened during 1980-90. The basic MRP II system design was suffering from a few inherent drawbacks such as limited focus to manufacturing activities, assumption of the mass or repetitive production set ups, and poor budgetary and costing controls.
The shortcomings of MRP II and the need to integrate new techniques led to the development of a total integrated solution called ERP, which attempts to integrate the transactions of the organization to produce the best possible plan. Today we see further development in the ERP concept and evolution web-based ERP.
For more information kindly visit: http://www.erppandit.com/Evolution-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: +91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Prior to 1960s, business had to rely on the traditional ways of inventory management to ensure smooth functioning of the organization. These theories are called classical inventory management of scientific inventory control methods. The most popularly known amongst them is EOQ (Economic Order Quantity).
In this method, each item in the stock is analyzed for its ordering cost and the inventory carrying cost. A trade off is established on a phased out expected demand of one year, and this way the most economic ordering quantity can be decided. This technique in principle is a deterministic way of managing inventory.
Along with EOQ, we find various inventory models such as fixed order quantity, periodic order method, optional replenishment method, etc., which were in practice earlier. These theories were very popular in pre-MRP era.
In 1960s, a new technique of Material Requirements Planning, popularly known as MRP, was evolved. This was a proactive manner of inventory management. This technique fundamentally explodes the end product demand obtained from the Master Production Schedule (MPS) for a specified product structure (which is taken from Bill of Material) into a detailed schedule of purchase orders or production orders, taking into account the inventory on hand.
MRP is a simple logic but the magnitude of data involved in a realistic situation makes it computationally cumbersome. If undertaken manually, the entire process is highly time-consuming.
MRP successfully demonstrated its effectiveness in reduction of inventory, production, and delivery lead times by improving coordination and avoiding delays, thus making commitments more realistic. MRP proved to be a very good technique for managing inventory, but it did not take into account other resources of an organization. In 1970s, this gave birth to a modified MRP logic, popularly known as closed loop MRP. In this technique, the capacity of the organization to produce a particular product is also taken into account by incorporating a module called capacity requirements planning (CRP).
In 1980s, the need was felt to integrate the financial resource with the manufacturing activities. From this evolved an integrated manufacturing management system called Manufacturng Resource Planning (MRP II).
Transition from MRPII to ERP happened during 1980-90. The basic MRP II system design was suffering from a few inherent drawbacks such as limited focus to manufacturing activities, assumption of the mass or repetitive production set ups, and poor budgetary and costing controls.
The shortcomings of MRP II and the need to integrate new techniques led to the development of a total integrated solution called ERP, which attempts to integrate the transactions of the organization to produce the best possible plan. Today we see further development in the ERP concept and evolution web-based ERP.
For more information kindly visit: http://www.erppandit.com/Evolution-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: +91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
ERP Investment
WHILE most vendors have been able to construct comprehensive Return on Investment models for their products, these models largely fall short in their ability to accurately measure the total value of an enterprise software investment. This is due to the fact that most return on investment models are focused on quantifiable measures of return. While this is a useful and often necessary function, it leaves a little difficult to fit into a fixed economic model.
Looking at the overall payback that enterprise software can offer to a company gives a more complete analysis of return of investment. Enterprise software payback includes not only quantifiable improvements in bottom and top-line functionality, but also more qualitative measures such as new business opportunities, improves customer and customer goodwill, better relationships with partners, suppliers and other business associates, improved time to market etc.
These intangible benefits also contribute significantly to the success of a company's enterprise software implementation and use. Enterprise software buyers who understand the overall payback that a given product suite can offer their company will be able to make more informed choices that lead to success not just in software deployment but tin overall business functionality.
The ability to define a broad range of payback benefits can be an important addition to understanding how enterprise software provides value across an organization. The broader value of an enterprise software investment defined by payback allows the software buyer to better understand not only the direct financial impact of the investment - the domain of traditional Return on Investment analysis - but also the impact on such areas as new opportunity development, improved customer and partner relations, better business process management and improvements in other organizational and structural factors.
For more information kindly visit: http://www.erppandit.com/ERP-Investments.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: +91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Looking at the overall payback that enterprise software can offer to a company gives a more complete analysis of return of investment. Enterprise software payback includes not only quantifiable improvements in bottom and top-line functionality, but also more qualitative measures such as new business opportunities, improves customer and customer goodwill, better relationships with partners, suppliers and other business associates, improved time to market etc.
These intangible benefits also contribute significantly to the success of a company's enterprise software implementation and use. Enterprise software buyers who understand the overall payback that a given product suite can offer their company will be able to make more informed choices that lead to success not just in software deployment but tin overall business functionality.
The ability to define a broad range of payback benefits can be an important addition to understanding how enterprise software provides value across an organization. The broader value of an enterprise software investment defined by payback allows the software buyer to better understand not only the direct financial impact of the investment - the domain of traditional Return on Investment analysis - but also the impact on such areas as new opportunity development, improved customer and partner relations, better business process management and improvements in other organizational and structural factors.
For more information kindly visit: http://www.erppandit.com/ERP-Investments.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: +91 22 25827692/+91 22 25828775, e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
ERP and Total Quality Management
THE effective use of TQM provides a much higher quality ERP implementation that function properly upon first time, with less cost and more overall value. More importantly, TQM ensures satisfaction of all participants, including ERP vendors, service providers, system integrators, team members who implement the software and the company that purchased the software. Characteristics of TQM are fundamentally common to all different types of business process flows and ERP functional modules.
The important characteristics of TQM include customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation and a TQM culture.
TQM has a customer-first orientation. The customer, not internal activities and constrains, comes first. Customer satisfaction is seen as the company's highest priority. The company believes it will only be successful if customers are satisfied. The company that implements TQM is sensitive to customer requirements' goes beyond defect and error reduction, and merely meeting specifications or reducing customer complaints.
The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements, but also those that enhance and differentiate them for competitive advantage.
Each part of the company is involved in total quality, operating as a customer to some functions and as a supplier to others. The engineering department is a supplier to downstream function such as manufacturing and field service, and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers.
TQM is a way of life for a company. It has to be introduced and led by top management. This is a key point. Attempts to implement TQM often fail because top management does not lead and get committed but just delegates and pays lip service.
Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well-defined systems, methods and performance measures for achieving those goals.
These systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is linked, directly or indirectly, to customer requirements and satisfaction, and to management and employee remuneration.
For more information kindly visit: http://www.erppandit.com/ERP-and-TQM.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: +91 22 25827692/+91 22 25828775,e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
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