Is the 'flexible' attitude of users hampering ERP success in India?
Success of ERP performance is directly proportional to the adherence to standard operating procedures. However, we find that very common complaint against ERP is its rigid structure and disciplined standard operating procedures. Often there are ridiculous demands and expectations from users, which are conflicting with standard operating procedures. Hence ERP is either blamed or made to fail. When the user says he wants flexibility in ERP, actually he wants the official allowance to deviate from standards set for value generation. The repercussions of such flexibility are tremendous, including the loss of value.
For example, here goes a typical style of customer negotiations. The sales people of a manufacturing company arbitrarily fixed unit price and raised sales orders against customers. After physical material dispatches, suddenly the customer started negotiating with sales and the rates were changed. The sales person then wanted to pass these entries in ERP. No good system will support such incongruous requirements. Here, the user wants flexibility in addressing these issues from ERP and also expected that everything should happen automatically. To settle and account for such changes, one has to pass a number of reverse entries in ERP.
Unfortunately, some consulting companies charge extra from clients for automating such absurd provisions. The same thing happened with the above company also and they landed up with 'auto reverse entry module' supporting the existing system. More ironically, this feature of ERP soon became so popular that the company asked a similar module for purchase transactions. The ultimate chaos is always observed in finance and costing modules where multiple figures of profits, inventory values, sales income, taxes, etc. linked to the same transaction are found. Nobody could really gather any meaningful information from such sets of data over a period of time. At the end the user gets flexibility and the organization gets punishment.
There are also some cases where flexibility going to the extent of unethical business practices and in such cases illegal transactions can also be carried out.
Here is one peculiar requirement that once observed from a user. He asked for various options of selecting report sizes (A3 or A4) to use with different printers for printing the same reports. ERP was expected to be flexible enough to accommodate multiple report sizes based on printer selection. The same user never used in his earlier tenure any computerized output and did not even know how to load paper into printer.
The major flexibility expected by Indian ERP users can be summarized as "I want to do transactions any way, later on it should get corrected." Hence we find demand of provisional entries, temporary databases, notional requirements, etc. The fundamental principle of ERP is doing right things right at first time is not understood and deviations are expected to be regularized. We find many of such cases, ultimately making ERP as unused ornament lying in the bank locker.
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Showing posts with label RP business. Show all posts
Showing posts with label RP business. Show all posts
Saturday, June 11, 2016
Friday, May 6, 2016
ERP business performance
Enterprises Resource Planning (ERP) resolution allows the task concerned in performing arts a business method quickly and expeditiously.
With ERP, when a client service representative takes an order from a client, he or she has all the necessary information to complete the order. Everyone else in the company sees identical video display and has access to the only info that holds the customer's new order. As and when a department completes their work with the order, it is automatically routed via the ERP system to subsequent department for subsequent method.
The order can be half-track any time of purpose by any department by work into the system. The order process moves thus quickly through the organization, and customers get their orders faster and with fewer errors than before. ERP can extent that application to the alternative major business method, such as employees' benefits or monetary reportage.
The entire gamut of ERP activities are summarized below
ERP facilitates a company-wide integrated Information Systems covering all purposeful areas such as producing, sales and distribution, accounts, payables, receivables, inventory, human resources. Etc.
ERP integrates and automates most business processes and share information enterprise-wide in period of time, thereby improving client service and the company image.
ERP provides complete integration of the system not only across departments however additionally across firms underneath the same management.
ERP bridges information gaps across a company and focuses on key problems like productivity sweetening, customer service, cash management, inventory, quality control and prompt delivery. Etc.
ERP is the solution for higher project management.
ERP provides business intelligence tools like decision support system, executive info system, reporting, data-mining, early-warning system, enabling individuals to build higher choices and improve business processes.
ERP not only addresses the current needs of the corporate however additionally provides a chance for improvement and refinement within the business method on endless method.
MUMBAI
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra Tel: +91 22 41118000 / 8049 (50 lines), +91 22 25828775
UAE
eresource Middle East FZE,P.O Box: 513071, Sharjah, United Arab Emirates ,Contact Person: Sudheer Soman Nair, CEO,
Mob: 00 97155 9018499 eresource Middle East FZE,P.O Box: 513071, Sharjah, United Arab Emirates
email: sudheer.nair@eresourceinfotech.com
OMAN
eresource,P.O BOX No 1046, PC-130, CPO,Al-Azaiba, Muscat, Oman
Tel + 968 2 459 7226/7/8 Mob: + 968 90157499 Contact Mr. Sudheer Nair / Mr. R. Ramesh
email: sudheer.nair@eresourceinfotech.com
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