There are few information systems whose design and implementation challenge an organization like enterprise resource planning (ERP). Done right, a new ERP implementation can dramatically improve business processes. But when an implementation fails huge amounts of money and effort could be misspent.
It is important to be aware of how ERP as a technology evolved, what its strengths and weaknesses are and the nature of important implementation challenges. Further, understanding of how ERP and legacy system metadata can be used to simplify implementation and help organizations best plan for this exciting new challenge.
ERP solutions provide integrated applications that access standardized enterprise data – replacing the unorganized legacy system.
1. Inadequate definition of requirements
2. Resistance to Change
3. Inadequate Resources
4. Inadequate Training and Education
5. Lack of Top Management support
6. Unrealistic expectations of benefits and ROI
7. Miscalculation of time and effort
8. Poor communications
9. Software business process incompatibility
10. Poor project design and management
11. Poor ERP Package selection
In the early years of ERP, the implementation process took more time. In some cases the implantation took years to complete and involved a huge financial investment by the companies. However, with the changing technology scenario the implementation of ERP system also become an easy process. Now the web-based ERP solution such as eresource could complete the implementation within a short period under its guaranteed on-time implementation method.
Nowadays the ERP system software has become much cheaper and affordable to any kind of organization within their limited budget. The affordable eresource ERP solution has helped many smaller companies go for ERP solution and started benefiting from its effectiveness in a big way.
Having said that, we would also like to remind all the companies that would be planning an ERP implementation must be careful in their selection of the right ERP solution. An ERP system can also bring negative result due to poor selection process or a poor ERP implementation.
ERP in Textile Industries : Traditionally the textile industry is highly concerned with the design or manufacture of clothing as well as the distribution and use of textiles. However, the industry has been changed extremely in the last few years.
Flexibility and rapid response has become essential qualities for any successful textile business. Achieving them requires dynamic management of the entire organization.
Eresource ERP system maintains the benefits of a standard package with a high level of adaptability, ensuring that the solution can be tailored to almost any requirement. Its modules could be configured to the needs of any textile business, whatever its size.
Eresource ERP provides a framework within which textile industries can organize their business and manufacturing know-how to create a vital management resource. Of course industry decision makers have to have rapid access to company data, but the most pressing need is to have answers to critical questions such as “What happens if…?”, “How can we…?”
It is here that eresouece ERP demonstrates its superiority as an ERP tool.
ERP Consultant 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 to be finalized.
Consultants should add value to the project. They bring know-how about the package and about implementation. This also known as practical knowledge is derived from their expertise, which stems from practical experience, because the consultants have seen many project and have made or seen many mistakes, they can avoid the phenomenon of ‘re-inventing the wheel’.
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.
Backbone of e-business – Business enterprises in India are in the process of a major transformation due to globalization and the deregulation of Indian economy, coupled with fundamental changes in the business models due to the emergence of Information Technology based business practices.
Most of the enterprises in developing countries, such as India, are in the process of implementing Enterprise Resource Planning (ERP) system in alignment with organizational transformation and process of re-engineering initiatives. ERP system promise benefits that range from increased efficiency to transformation of quality, productivity and profitability.
However, its implementation poses some unexpected organizational challenges and changes that can be structural as well as cultural in nature. ERP not only helps establish world-class best business practices and brings transparency to the organization but also demands for empowerment and flexibility in decision making process.
The most promising argument is that, to thrive in the e-commerce world companies need to transform their internal business process with the deployment of ERP system. Hence, ERP is considered to be the backbone of e-business.
Applications such as supply chain management (SCM), customer relationship management (CRM), business intelligence (BI) and integrated collaboration environments have become imperative for organizations that need to maintain their competitive advantage. Enterprise Application Integration (EAI) is the process of linking these applications and others in order to realize financial and operational competitive advantages.
One of the challenges facing modern organizations is giving all their workers complete, transparent and real-time access to information. Many of the legacy applications still in use did not support seamless movement of information from one application to the other. Enterprise Application Integration (EAI), as a discipline, aims to alleviate many of these problems as well as create new paradigms for truly lean proactive organizations.
EAI intends to transcend the simple goal of linking applications and attempts to enable new and innovative ways of leveraging organizational knowledge to create further competitive advantages for the enterprise.
When different systems cannot share their data effectively, they create information bottlenecks that require human intervention in the form of decision-making or data entry. With a properly deployed EAI architecture, organizations are able to focus most of their efforts on their value creating core competencies instead of focusing on workflow management.
Enterprise Resource Planning (ERP) system is used in almost any type of organization. It doesn’t matter whether it’s large, small or what industry it falls in. The main goal of ERP 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.
ERP systems can cover more than 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.
In today’s competitive business environment ERP is becoming a essential business application for most of the organizations.
The reason behind this is, for any business success depends on having the ability to keep pace with rapidly changing customer and industry demands and execute in a short amount of time, the ability to quickly seize new opportunities and the flexibility to achieve sustainable business growth.
In the changing business environment, the time available for an organization to react to the market trend is very short. To survive, the organization must act quickly, gathering and analyzing the data – both internal and external. Any mechanism that will automate this information gathering and analysis process will enhance the chances of the organization to beat the competition.
Different companies have different ERP requirements therefore there are many ways to implement a solution. But collectively the term ERP refers to large applications that replace a multitude of independent applications or legacy system of an organization which caters to the need of all departments.
Some companies limit the scope of their ERP software to a few vital applications that will help them streamline processes or make information more easily available. A company that wanted to just integrate accounting and finance with payroll, for example, also could use an ERP solution.
In such cases, organizations might prefer to use ERP to integrate certain systems and leave legacy systems in place that are better able to handle specific tasks.
Manufacturing Industries engaged in the production of goods (finished products) that have value in the marketplace. These industries are further classified into two as Process Industries (Flow production or continuous process production industries) and Discrete Manufacturing Industries.
Service Industries include those industries that do not produce goods, but provide certain services. The peculiarity of these industries is that often the consumption of the service takes place while it is in the generation. Typically, this sector includes hospitality, advertising, banking, insurance, consultancy, logistics, etc.
The significant difference between the various types of industries is observed when we analyze the manufacturing or service environment in which they operate. Elements of the manufacturing environment include external environmental forces, corporate strategy, business unit strategy, other functional strategies (marketing, engineering, finance, etc.), product selection, product/process design, product/process technology and management of competencies.
Ultimately, what matters is the framework in which the overall manufacturing or service strategy is developed and implemented.
ERP and Tools for ERP – One has to clearly understand here that ERP is not SAP, or Baan or anything else, but these are the tools of ERP. The concepts that ERP believes in should ideally get reflected in these products. But we see that not everything is observed in the same way because of many reasons, primarily attributed to marketing strategy.
Every ERP company offers its brand with different marketing strategies. Hence we find significant difference in procedures, forms, looks, reporting structures, facilities, architecture, database designs, and also the prices for different ERP products.
Since these products vary in their functional and technical efficiencies, it is crucial for the client side to decide which product to opt for. Of course, most of these products are based on common theory but different implementation experience at their clients.
They are evolved from the state of small automation and planning software that was addressing a particular business process. Thus we find that the strengths of these products are different in addressing various business processes. For example, one popular ERP brand is evolved from inventory management system. Hence we find it very strong in all materials transaction functionalities.
Another brand is evolved from maintenance management system, which handles maintenance planning in a unique way with excellent efficiency. One brand is evolved from highly focused area of human resource management. Thus we find different strengths and weaknesses of these products.
