Friday, May 6, 2016

ERP success in India

ERP success in India



Is the 'flexible' attitude of users hampering ERP success in Republic of India

ERP in India.Success of ERP performance is directly proportional to the adherence to standard operative procedures. However,we notice that quite common grievance against ERP is its rigid structure and disciplined commonplace operative procedures. Often there area unit ridiculous demands and expectations from users, which area unit conflicting with commonplace operative procedures. Hence ERP is either everlasting or created to fail. When the user says he needs flexibility in ERP, actually he needs the official allowance to deviate from standards set for worth generation. The repercussions of such flexibility are tremendous, including the loss of worth. 

For example, here goes a typical style of client negotiations. The sales people of a producing company every which way mounted unit worth and raised sales orders against customers. After physical material dispatches, suddenly the customer started negotiating with sales and the rates were modified. The sales person then wanted to pass these entries in ERP. No good system can support such ironic needs. Here, the user wants flexibility in addressing these problems from ERP and conjointly expected that everything ought to happen mechanically. To settle and account for such changes, one has to pass variety of reverse entries in ERP. 

Unfortunately, some consulting companies charge further from purchasers for automating such absurd provisions. The same thing happened with the higher than company conjointly and that they landed up with 'auto reverse entry module' supporting the present system. More ironically, this feature of ERP thereforeon became so widespread that the company asked the same module for purchase transactions. The ultimate chaos is usually discovered in finance and cost accounting modules wherever multiple figures of profits, inventory values, sales income, taxes, etc. linked to the same dealing area unit found. Nobody may very gather any meaty info from such sets of information over a amount of your time. At the end the user gets flexibility and also the organization gets penalization. 

There are conjointly some cases wherever flexibility aiming to the extent of unethical business practices and in such cases nonlegal transactions may also be allotted. 

Here is one peculiar requirement that once discovered from a user. He asked for various choices of choosing report sizes (A3 or A4) to use with totally different printers for printing a similar reports. ERP was expected to be flexible enough to accommodate multiple report sizes based mostly on printer choice. The same user never employed in his earlier tenure any computerised output and failed to even shrewdness to load paper into printer. 

The major flexibility expected by Indian ERP users are often summarized as "I want to try and do transactions any means, later on it should get corrected." Hence we tend to notice demand of provisionary entries, temporary databases, notional requirements, etc. The fundamental principle of ERP is doing right things right initially time isn't understood and deviations area unit expected to be regularised. We notice several of such cases, ultimately making ERP as unused ornament lying in the bank locker.

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