What is the reason for ERP market growth in India?

What is the reason for ERP market growth in India?


ERP market in India steadily growing for the last few years and the main reason for this enormous growth can be attributed to the inability of order system to manage the conversion to year 2000. There are also other factors such as industry best practices, easy and faster implementation and good cost predictions.

Another factor behind the growth is that already existing clients acquire more licences and modules. The number of employees using the ERP system is increasing and the ERP clients who have started with the basic modules are going for subsequent applications. There is also a trend to replace customized system with standard application packages, like an ERP system.

India is expected to present ERP suppliers an important marketplace as manufacturing companies are significantly investing in technology solutions to improve their manufacturing operations.

According to observation made by some experts in the field, the ERP market started showing solid organic growth since 2004 as IT spending improved.

The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 during the period of 2004-2009. The market was $83 million in 2004, and is projected to be over $250 million in 2009, according to a research report.

The report further clarifies that manufacturers in India are increasingly implementing ERP solutions to ensure that decision makers have the required information visibility across the value chain.

Majority of Indian manufacturers are small by global standards, requiring easy-to-use ERP solutions to meet their specific process requirements, including localisation needs to address the continually evolving tax and statutory requirements. Small and medium enterprises across industry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles, are leveraging ERP solutions to gain sustainable competitive advantages.


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

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.


http://www.eresourceerp.com

Contact Us

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
e-mail (Sales): sales@eresourceerp.com


Middle East UAE
eresource Middle East FZE
P.O Box: 513071, Sharjah,
United Arab Emirates
Contact Person: Sudheer Soman Nair, CEO
Mob: 00 97155 9018499
email: sudheer.nair@eresourceinfotech.com

Sales and Distribution Management

This Module comprises of Contact Management and Sales Order Processing Management. It is an integrated solution comprising of marketing and sales activities. Organization can act immediately to improve sales, service and marketing effectiveness by using this Module. Eresource Sales Management module is all about retaining customers, improving customer loyalty and gaining customer insight.

This module also help to you getting your customer order management easier day by day. Whether it is maintaining customer information, quickly creating a quote or migrating them to sales order or being responsive to your customers, we provide you right solution and efficient flow of information.

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http://www.eresourceerp.com 

Contact Us

REGISTERED OFFICE

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

e-mail (Sales): sales@eresourceerp.com

Middle East  UAE

eresource Middle East FZE

P.O Box: 513071, Sharjah,

United Arab Emirates

Contact Person: Sudheer Soman Nair, CEO

Mob: 00 97155 9018499

email: sudheer.nair@eresourceinfotech.com