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.
Developing an ERP package is a very complex and time-consuming process that requires a lot of skilled manpower and other resources. Many companies 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 man business of these companies. They should 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 and continue to grow.
ERP package vendors are people who have invested huge amounts of time and effort in research and development to create packaged solutions. ERP vendors spend billions 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 revolution of new technologies the vendors will be able to constantly upgrade their product to take advantage of the best and latest advancements of 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 a focus of their management, the systems an in-house team comes up with will never equal in quality, scope functionality, or technology with those created by software firms who are exclusively into these business.
ERP package vendors can produce sophisticated packages and provide their clients with products that allow them to main a focus on their own chief activities, thus improving revenues, profits and shareholder returns.
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 software 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.
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.
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.
With the information technology evolution, most of the companies have started using software application for their business operational purpose. However, these applications were all created for a common use and not particular purpose. Over the time companies have realized the shortcomings in these applications that advertently affecting their business process.
This is because when a company is in a rapid growth phase, processes and software applications that were in use can be find ineffective. Many of their operations were done manually and these processes cannot be continued. With implementing an ERP system replacing the these type of old operational methods will help organizations to organize and store data. Many of the old legacy system often do not communicate with one another and information is not shared across the organization. When this happens, retrieval of information is difficult and the organization suffers.
When you feel that your current software application doesn’t perform as your business demands and also looking at your current processes and the quality of communication between processes if you realized about its effectiveness, you probably are in need of an ERP software.
Organizations should not wait for an embarrassing and potentially devastating event to find out that security controls in their ERP systems are inadequate. To overcome this risk organizations need to implement an appropriate access strategy.
As businesses grow, information systems support whole communities of users like customers, suppliers, partners and employees, who all count on the secure exchange of a wide variety of information to place orders, pay bills and keep records up to date.
Customers, vendors, partners and employees all need access to the right ERP software information at the right time and, increasingly, from anywhere. Yet these users work on many different systems and access data from multiple locations. All have different passwords and authorizations.
Organizations must not only manage the security issues of your own employees, but also increasingly those of customers, suppliers and other business partners.
eresource ERP addresses your security needs in authentication, access control and user management. An integrated solution identifies the user, determines what the user can do, determine the level of trust the user should receive, protects your data.
Our ERP security specialists have the expertise, tools and methodologies to make sure that your eresource ERP system includes a cost-effective security approach that dovetails with your firewall, virus scanner, spam control and tape backup systems.
ERP is 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 in a different manner. There are hundreds of such data tables which store data generated as a result of diverse transactions. These rather integrated for the speedy and accurate results required by multiple users, for multiple purposes, for multiple sites, and at multiple times.
Therefore, ERP solution implies that it be:
Flexible: An ERP system has to have modular application architecture. This means that various functionalities are logically clubbed into different business process and structured into a module which can be interfaced or detached whenever required without affecting the other modules. Comprehensive: It should be able to support variety of organizational functions and must be suitable for a wide range of business organizations.
Web-enabled capability: 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.
Best business practice: It must have a collection of the best business processes applicable worldwide.
Mail Us at sales@eresourceinfotech.com for Live ERP Software Demo
Be it enterprise resource planning or software programs the chances of errors are often very high. These errors not only undermine the working of the software but also disturb the whole process in an organization.
No platform (including dot net ) can be guaranteed for controlling errors. However the unique codes set in dot net helps in knowing as and when errors occur and that too at the early stage. This is an important issue especially for ERP as the functioning of ERP has to be constantly monitored to ensure accountability and performance. Since the platform immediately points out what is going wrong it is easier for the company to freeze the whole process rectify the errors and set back things to motion properly.
As far as ERP software is concerned it has the simultaneous function which leads to lot of collusions and confusions. Even though they work separately the functioning of one will clash with that of the other. Dot net will neither have interference nor an influence with other applications/platforms unless they are desired in the course of work. Even in such cases dot net will only act as an inducer. This explains the reason for preferring dot net platform.
Dot net also facilitates faster communication and renders many additional services to companies availing them.
Vendor-managed inventory (VMI) is a process where the manufacturer generates orders for the distributor based on demand information sent by the distributor using Enterprise Resource Planning (ERP) system. During this process, the manufacturer is guided by mutually agreed objectives for inventory levels, fill rates and transaction costs.
VMI is a planning and management system that is not directly tied to inventory ownership. Under VMI instead of the distributor monitoring sales and inventory for the purpose of triggering replenishment orders, the vendor assumes responsibility for these activities.
In the past, many manufacturers operated vendor-stocking programmes where a representative visited a distributor a few times a month and restocked their suppliers up to an agreed level. VMI replaces these visits with information gathered from cash registers and transmitted directly to a manufacturer’s computer system via ERP. Now, manufacturers can monitor sales of their products and decide when to initiate the replenishing procedure.
To understand VMI, let us look at to business models:
The Conventional Business Model: When a distributor needs a product, they place an order against a manufacturer. The distributor is in total control of the timing and size of the order being placed. Under this model, the distributor maintains their inventory plan.
Vendor Managed Inventory Model: The manufacturer receives electronic data that informs it about the distributor’s sales and stock levels. The manufacturer can view every item that the distributor stocks as well as the true point of sale data. The manufacturer is responsible for creating and maintaining the inventory plan. Under VMI, the manufacturer generates the order, not the distributor.
ROI and ERP
If your business is suffering due to customer complaints about poor service or finding difficulty in expanding the business due to your outdated information system it is time you must go for implementation of eresource ERP.
eresource ERP system will help deliver solid customer satisfaction by automating clerical tasks, improving on-time shipments, reducing inventory and providing information to make quick decisions.
eresource ERP offers the functionality, technology platform and implementation expertise to help you realize the full benefits of an ERP solution
What is more exciting about eresource ERP is, it not only addresses all your day to day business challenges, you will also get a healthy return on your investment quickly and faster than you probably thought. eresource ERP can yield higher net profits by:
Streamlining your supply chain
Improving customer relationship
Reducing operational cost
Allowing real-time access to information
Providing foundation to growth
The ERP market in India has been growing steadily in recent years. This growth mainly happened because older systems couldn’t handle the change to the year 2000. Other factors, such as adopting industry best practices, faster implementation, and better cost predictions, have also played a role.
Many businesses that already use ERP systems are adding more licenses and modules. The number of employees using these systems is increasing. Clients who started with basic modules are now expanding to additional applications. There’s also a trend of replacing customized systems with standard ERP packages.
ERP providers are increasingly focusing on India as many manufacturing companies invest in technology to improve their operations.
Experts have observed steady growth in the ERP market since 2004, driven by higher IT spending.
Between 2004 and 2009, the ERP market in India grew at a rate of 25.2% per year.
In 2004, the ERP market valued at $83 million. By 2009, it was exceed $250 million, driven by the increasing adoption of ERP systems by manufacturers in India. These systems enabled decision-makers to access important information more easily.
Many smaller manufacturers in India rely on easy-to-use ERP systems tailored to their specific needs. These systems must also handle local changes in taxes and laws. Small and medium businesses in industries like automotive, healthcare, and textiles are adopting ERP solutions to stay competitive.
