27427012-ERP-by-Ramesh-Kumar

INTRODUCTION

ORIGIN, EVOLUTION AND STRUCTURE

ERP VENDOR ANALYSIS

ERP IMPLEMENTATION

INTRODUCTION

What is ERP Concept?

An Enterprise is a group of people with a common goal having resources to achieve that goal. Resources include money, manpower, materials, machines, technologies, etc. Planning is outing necessary functions in place and putting them together.

Enterprises resource planning (ERP) is a planning philosophy enabled with software that attempts to integrate all the business processes of different departments and functions across a company onto a single computer system that can serve particular needs of the different departments.

ERP combines all the business requirements of the company together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other

ERP

Enterprise-wide system which integrates the business functions and processes of an organization

Integration of business functions into one seamless application

Usually runs on a RDBMS

Replaces Countless Departmental and Workgroup Information Systems

Links business processes

Maintains audit trail

Utilizes a common information system

Implementation normally involves BPR: Business Process Reengineering

Organisation Without an ERP system

Enterprise With an ERP system

Reasons for the Growth of ERP Market

To enable improved business performance through:1. Cycle time reduction- Cycle time is the time available at each station for the performance of the work allocated or the time elapsing between completed units coming of an assembly line. 2. Increased business agility3. Inventory reduction4. Order fulfillment improvement

To support business growth requirement through:1. New products / product lines, new customers2. Global requirements including multiple languages and currencies

To provide flexible, integrated, real-time decision support in:Improving responsiveness across the organization

Reasons for the Growth of ERP Market To eliminate the following limitations of legacy system:

1. By fragmentation of data and processing2. Inflexibility to change3. Insupportable technologies

To take advantage of the untapped mid-market (medium size organizations) through:1. Increased functionality at a reasonable cost2. Client server/open system technology3. Vertical market solutions

ORIGIN, EVOLUTION AND STRUCTURE

ERP Concept

ERP concept defines the five measures that govern business policies.

1. Process based flat organization

2. Assemble to-order or Make- to-order philosophy.

3. Empowered employees

4. Customer and supplier integration

5. Sophisticated IT systems

ERP - system based business solution To understand how ERP is a system based business solution, we have to first

critically examine the two key words “System” and “solution”.

System: According to Webster’s Dictionary, a system is “a combination of elements or parts achieving a unique goal”. In the present context, we can say that to accomplish a pre-defined goal though processing of information. This could be to support existing business function, improve the transparency of data, improve efficiency in business, improve decision making, and provide improved customer (internal as well as external) satisfaction. The key resource elements of such a system are hardware (switches, V-sat, router, server, etc.) software (languages ABAP, VB), users, databases, etc.

Solution: The dictionary meaning of solution is “an explanation or answer to a problem”. But here we are specifically speaking about business solutions. A business solution can be interpreted as a framework encompassing strategy, organization structure, key performance indicators, measurements and IT, which must be aligned to the business processes, Conventionally, there are three kinds of business processes-acquiring and paying for input resources, converting inputs into finished goods and services, and selling and collecting payment from customers for the goods and services provided.

Thus, ERP as a combination of system and business solution provides the user with an effective planning tool.

The Evolution of ERP

ERP is an outcome of 40 years of trial and error. It has evolved as strategic tool because of continues improvement in the available techniques to manage business and the fast growth of information technology

1960’s: Systems just for Inventory Control

1970’s: MRP: Material Requirement Planning i.e. Inventory with Material Planning & Procurement

1980’s: MRPII: Manufacturing Resource Planning i.e. Extended MRP to Shop Floor & Distribution Management.

1990’s: ERP: Enterprise Resource Planning i.e. Covering all the activities of the Enterprise

2000 Onwards – ERP II – Collaborative Commerce i.e. Extended ERP to external business entities (CRM)

The Structure of ERP

The essence of ERP is the fundamental approach which takes a holistic view of the subject. The traditional application systems, which the organizations generally employ, treat each transaction separately. They are built around the strong boundaries of specific functions that a specific application is meant to cater. ERP considers them to be 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, but they are not confined to any departmental or functional boundaries. These are rather integrated for the speedy and accurate results required by multiple users, for multiple purposes, for multiple sites, and at multiple times.

Two-tier Architecture

In this type, the server handles application and database duties. The clients present the data and pass user input back to the server. While there may be multiple servers and the clients may be distributed across several types of local and wide are links, this distribution of processing responsibilities remains the same.

Three-tier ArchitectureIn three-tier architectures, the database and application functions are separated. In this scenario, satisfying client requests require two or more network connections. Initially, the client established communications with the application server. The application server then creates a second connection to the database server.

As we have seen from the above discussions, any ERP Architecture has to be designed for three basic functional areas:

Database. The central responsibility for all the data transferred to and from the client.

Clients: Here raw data gets inputted, request for information is submitted, and data satisfying this request are presented.

Application component. Acts as an intermediary between the client and the database.

ERP VENDOR ANALYSIS

ERP Vendor analysis

We find today number of ERP suite of products. Popular examples of worldwide brands are SAP, Baan, Oracle, J.D. Edwards, PeopleSoft, and the like, Apart from these, we can also see specialized brands like Algorithm, Reteck, and JDA, which cater to the specific industries.

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 ideally should 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 differences in procedures, forms, looks, nomenclatures, 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 huge investment. Of course, most of these products are based on common theory but different implementation experience at their (gin pig) 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 transactions functionalities. Another brand is evolved from maintenance management system, which handles maintenance handling 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.

SAP AG

Founded in 1972 in Waldrof, Germany, SAP AG (Systems, Applications and Products in Data Processing) is a leading global provider of client/server business application solutions [SAP]. Most prominent among SAP’s product range are the enterprise application suites R/2 and R/3: R/2 applications for the mainframe environment and the more recent R/3 applications for open client/server applications. With both R/2 and R/3, SAP customers can choose to install the core system and one or more of the component sub-systems, or purchase the software as a complete package.

With over 1000 business processes and applications built into the software, SAP R/3 can integrate a company’s entire organization. A company’s business information is shared real-time with employees, suppliers and distributors- applications are composed of several tightly components called modules.

SAP Modules

FI Financial Accounting - essentially your regulatory 'books of record‘.

CO Controlling - basically your internal cost/management accounting, including

AM Asset Management - track, value and depreciate your assets

PS Project Systems - manage your projects, large and small

HR Human Resources – Payroll, salary management etc

PM Plant Maintenance - maintain your equipment (e.g. a machine, an oil rig, an aircraft etc)

MM Materials Management - underpins the supply chain

QM Quality Management - improve the quality of your goods

PP Production Planning - manages your production process

SD Sales and Distribution - from order to delivery

CA Cross Application - these lie on top of the individual modules

SAP Solutions for SME’S

A single integrated application to manage your entire business: Supports 10 - 100 employees On-premise deployment Go live in 6 - 8 weeks More than 550 add-on solutions, many industry specific, in 40 countries

The best of SAP, delivered on-demand: Supports 100 - 500 employees Software-as-a-service (SaaS) deployment Go live in 4 - 8 weeks Available in United States, Germany, France, United Kingdom, China, and India

A comprehensive, integrated industry solution to power your business end-to-end: Supports 100 - 2,500 employees On-premise deployment with option for hosting Go live in 8 - 16 weeks, with fast-start 6 - 8 week go-live option More than 700 industry-specific solutions in more than 50 countries

ORACLE

Oracle, the world’s second-largest software company, has an enterprise package solution in almost all business areas: the Oracle applications include oracle financial, oracle manufacturing, oracle HRMS (payroll, personnel), and oracle supply chain management. More than 4000 customers in over in 60 countries world wide use oracle’s applications. Oracle’s revenue from applications software licenses and application-related services is growing rapidly.

Oracle financials is a full function financial management and accounting solution that includes: general ledger, fixed assets, order entry, accounts payable, purchasing, accounts receivable inventory revenue accounting, and project accounting. Oracle also provides solutions for the financial services industry, which allows customers to access any provider’s executives and account managers with immediate access to the critical information they need.

Oracle e-Business suit is a complete set of business application that enables you to efficiently mange the customer interactions, deliver services, manufacture products, ship orders, collect payments and more- all from a system built on a unfired information architecture. The various functions modules under e- business suit are:Manufacturing – Marketing - Order Management – Procurement – Projects – Sales – Service - Contracts – Financials - Human resources - Learning management - Maintenance management

Oracle Modules

In December 2004, the Company acquired PeopleSoft, doubling the Company’s share of the ERP market. PeopleSoft had acquired JD Edwards in 2003. The PeopleSoft acquisition will require Oracle to support multiple product lines while simultaneously pursuing a significant effort to merge the diverse ERP products

Applications Oracle E-Business Suite PeopleSoft Enterprise Siebel - Customer Relationship Management (CRM) Applications JD Edwards EnterpriseOne JD Edwards World Agile- Product Lifecycle Management Solutions AutoVue- Enterprise Visualization Solutions Oracle Fusion Applications Master Data Management Application Integration Architecture User Productivity Kit and Tutor

RAMCO

Ramco Systems was founded in1989 by P.R. Ramasubrahmaneya Rajha with expertise in Enterprise Solution and Services, Custom Solutions, CRM, Networking and Information Security.

More than 1200 IT professionals of Ramco Systems operating in 15 offices across seven countries are engaged in R&D, Application Research, Development and Implementation to serve 1000 customer installations worldwide. Ramco systems provide multiple options for solution engagement as required by the needs of the customer. Specific choice of engagement model can be decided once the project scope boundaries are finalized.

The main product of company has been branded as Ramco Marshall, which provides a unique approach featuring distributed computing, breadth of applications, and flexibility. It divides the processing load between the client and the server. Application logic that does not require any external data and the graphical user interface are placed on the client.

Marshall consists of 35 applications in nine functional areas namely, Process Production - Discrete Production – Sales – Treasury – Financials - Human Resources – Logistics - Plant Maintenance - Statistical Process and Quality Control

Each application module is capable of working alone or with other Marshall or third party applications in any configuration, in order to meet specific business need

List of Clients

Western Thomson (India) Ltd – Chennai, Hindustan Motors Limited - (MP), Coimbatore Compressor Engineering Company Pvt Ltd – Coimbatore, Pearl Polymers Ltd – Gurgaon, Pegasus International – Mumbai, Welcon Equipments India Pvt. Ltd – Chennai, Engineering Arun Engineering – Chennai, Iyappan Engineering Industries PVT Ltd – Chennai, Plant Engineering Services – Chennai, YuFlow Engineering Private Limited – Chennai, Desfab Engineers & Builders –Gurgaon (Haryana), Leather United India Shoe Corporation Pvt. Ltd – Chennai, Associated Broadcasting Company (P) Ltd – Hyderabad, NEC India Pvt Ltd – Mumbai, Sricity P Limited - Gollavaripalem Village (AP),  Bharath Rubber (India) Limited – Madurai,  Accord Advertising Private Limited- Kolkata, Ideal Publication Trust – Calicut, Jalan Infotech Private Limited – Kolkata, Sara Plast Private Limited – Pune, SIP Academy India Private Limited Chennai,  JVS Export-Madurai,  Blue Coats Pvt Ltd – Ahmedabad, Elite Brands Private Limited – Mumbai, JVS Export – Madurai, Kothari Medical Subscription Ser Pvt Ltd – Mumbai, Parry Enterprises India Limited – Chennai, Petrolube (T) Limited - Dar Es Salaam, Tanzania , T V Sundaram Iyengar & Sons Limited – Madurai, The Zigma Technologies India (P) Ltd – Chennai,  Singer India Ltd - New Delhi

RAMCO

QAD Inc.

QAD was founded in 1979 and now has its presence in 21 countries. The company’s major product offering include MFG/PRO, ON/Q, Service/Support management, Decision support, and Qwizard.

The company’s flagship product is the ERP solution branded as MFG/PRO. It is available in 26 languages and has more than 4000 installed sites.

Products QAD offers a variety of Supply Chain and ERP software products to manufacturing

industries within the automotive, consumer products, electronics, industrial products and medical sector.

MFG/PRO software provides, along with it, an integrated Global Supply Chain Management solution that includes manufacturing, distribution, financial and support management application within an open system environment. It is claimed to be one of the most successful Client/Server ERP applications as it dramatically increases the internal efficiencies of distributed operations within month of purchase. The software is comprehensive, open, flexible, scalable, and interactive and is designed to address the operations requirements of the industries.

MFG/PRO uses either Oracle or progress database, and runs in UNIX, Windows and Windows NT. It is available with GUI or character user interface. MFG/PRO’s supply function includes centralized order processing, centralized purchasing, enterprise operations planning, and enterprise material transfer. It addresses the entire manufacturing spectrum from repetitive to configure-to-order and batch process to make-to-stock. With this system, one can manage supplies within the enterprise more effectively, no matter how widely distributed the sites are.

QAD Inc.

The various modules in MFG/PRO are:

Distribution: This module of MFG/PRO is used to monitor inventory balances and purchasing and sales order activities.

Manufacturing: This Manufacturing module of MFG/PRO is to regulate all manufacturing activities within various types of production environments.

Financial: The financial module interface with the Distribution, Manufacturing planning modules to assess the financial implication of company’s activities.

Services/Support: This module is designed for companies while not only manufacture and sell their products but also provide after sales service and support.

Supply Chain: This module is for the control of goods and information from supplier to customer.

Master Files: Master file function provides access to a series of foundation modules that are used by the rest of the MFG/PRO applications. These master files include Item/Sites, Address/Taxes, Inventory control settings, physical inventory, multiple databases, and managerial functions.

QAD Inc.

QAD Enterprise Applications 2009 - The latest release of the QAD ERP: QAD Enterprise Applications 2009 contains new features and valuable enhancements and that improve operations and elevate the user experience

QAD enterprise resource planning (ERP) system includes the following solution suites: QAD Financials – Provides the ability to manage and control businesses at a local, regional and

global level with solutions for accounting, regulatory compliance, financial reporting and other critical business requirements

QAD Customer Management – Provides improved responsiveness through collaboration and management of customers and demand

QAD Manufacturing – Enables companies to reduce costs and increase throughput using the latest manufacturing scheduling techniques, including the capability to fully support lean adoption

QAD Supply Chain – Includes modules that help improve the management of supply and suppliers through real-time collaboration

QAD Service & Support – Provides the capability for after sale service and support of products. Manages Warranty Tracking, Services Calls and Returns & Repairs

QAD Enterprise Asset Management – Manages the entire life cycle of capital assets from planning to installation and then preventative maintenance and repair

QAD Analytics – Helps companies analyze data to measure business performance in key areas QAD Interoperability – Allows database portability and operating system flexibility, and works

with QAD QXtend integration layer to enable access to all elements of QAD Enterprise Applications.

QAD was founded on expertise in six specific markets: Automotive - Consumer Products - Food and Beverage - High Technology - Industrial Manufacturing - Life Sciences

INFOR

The Baan Corporation was created by Jan Baan in 1978 in Barneveld, Netherlands, to provide financial and administrative consulting services. With the development of his first software package, Jan Baan and his brother Paul Baan entered what was to become the ERP industry. The Baan company focused on the creation of enterprise resource planning (ERP) software.

Jan Baan developed his first computer program on Durango F-85 computers in BASIC language. In the early '80s, Baan Company began to develop application on Unix computers with C and self-developed Baan-C language, which syntax was very similar to BASIC language. Baan gained its popularity in the early nineties. Baan software is famous for its Dynamic Enterprise Modeler (DEM), technical architecture and its 4GL language. Baan 4GL and Tools nowadays is still considered to be one of the most efficient and productive database application development platforms. Baan became a real threat to market leader SAP after winning a large Boeing deal in 1994. It went IPO in 1995 and became a public listed company in Amsterdam and US Nasdaq. Several large consulting firms throughout the world partnered to implement Baan IV for multi-national companies. It acquired several other software companies to enrich its product porfolio, including Aurum, Berclain, Coda and Caps Logistics. Sales growth rate was once claimed to reach 91% per year.

However the fall of the Baan Company began in 1998. In June 2000, facing worsening financial difficulties, law suits and reporting seven consecutive quarterly losses and bleak prospects, Baan was sold at a price of US$700 million to Invensys, a UK automation, controls, and process solutions group to become a unit of its Software and Services Division. Laurens van der Tang was the president of this unit. With the acquisition of Baan, Invensys's CEO Allen Yurko began to offer "Sensor to Boardroom" solutions to customers.

In June 2003, after Allen Yurko stepped down, Invensys sold its Baan unit to SSA Global Technologies for US$ 135 million.

Upon acquiring the Baan software, SSA renamed Baan as SSA ERP Ln. In August 2005, SSA Global released a new version of Baan, named SSA ERP LN 6.1. In May 2006, SSA was acquired by Infor Global Solutions of Atlanta, which was a major ERP consolidator in the market.

Today Baan ERP software is still used by thousands of mid-range companies in the world, the majority on version BaanIVc4 and ERP LN.

Microsoft Dynamics

Microsoft Dynamics (formerly Microsoft Business Solutions) is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software to help your people be more productive. The following products automate and streamline financial, customer relationship, and supply chain management to help you drive business success

Microsoft Dynamics is a line of ERP (enterprise resource planning) and CRM (customer relationship management) applications developed by the Microsoft Business Solutions group within Microsoft. Microsoft Dynamics applications are delivered through a network of reselling partners who provide specialized services. There are 300,000 businesses that use Microsoft Dynamics applications and 10,000 Microsoft Dynamics reselling partners worldwide

Microsoft Dynamics - Products

Microsoft Dynamics AX A comprehensive business-management solution that provides midsize and larger

organizations end-to-end, industry-specific functionality, Microsoft Dynamics AX also is built to make it easier to do business across locations and countries. With Microsoft Dynamics AX, you can be confident that your solution is relevant to the demands of your industry and business.

Microsoft Dynamics CRM Microsoft Dynamics CRM is a customer relationship management (CRM) solution that

provides the tools and capabilities needed to create and maintain a clear picture of customers, from first contact through to purchase and post-sale. With sales, marketing, and customer service modules, Microsoft Dynamics CRM delivers a fast, flexible, and affordable solution that enables closer relationships with customers and helps you achieve new levels of profitability

Microsoft Dynamics GP Microsoft Dynamics GP is a complete and scalable business-management solution that

helps growing and midsize organizations get up and running quickly while maximizing the productivity of your people. It includes robust financial and operational functionality, such as business intelligence, reporting, budgeting, and forecasting, so you can be confident that your solution will adapt to the changing needs of your business

Microsoft Dynamics NAV Microsoft Dynamics NAV is a business-management solution for small and midsize

organizations that helps you simplify and streamline your highly specialized business processes by rapidly adapting to the unique way you do business, enabling your people to be effective and your business to be competitive

Microsoft Dynamics - Products

Microsoft Dynamics POS Microsoft Dynamics POS 2009 is a flexible, scalable store management solution that

empowers you and your people to provide outstanding customer service and make business decisions with confidence

Microsoft Dynamics Retail Management System (RMS) Microsoft Dynamics Retail Management System (RMS) offers a complete point-of-sale

(POS) solution that can be adapted to meet unique retail requirements. This powerful software package automates POS processes and store operations, provides centralized control for multi-store retailers, and integrates with Microsoft Office system programs, Microsoft Dynamics GP, and other popular applications.

Microsoft Dynamics Retail Management System (RMS) Microsoft Dynamics Retail Management System (RMS) offers a complete point-of-sale

(POS) solution that can be adapted to meet unique retail requirements. This powerful software package automates POS processes and store operations, provides centralized control for multi-store retailers, and integrates with Microsoft Office system programs, Microsoft Dynamics GP, and other popular applications.

Microsoft Dynamics SL Microsoft Dynamics SL is a business-management solution specialized to help project-

driven midsize organizations obtain reports and business analysis while helping to increase efficiency, accuracy, and customer satisfaction. With powerful solutions for professional services, operations, field services, and construction management, you can be confident that projects are estimated correctly, completed on time, and meet your customers' requirements

ERP IMPLEMENTATION

ERP Implementation

Successful implementation is the obvious goal of any organization that has chosen to go in for enterprise resource planning (ERP). Any ERP implementation is a special event since it involves the entries organization over a period of time. It brings together different functionality people procedures and ideologies, and leads to sweeping changes throughout the organization.

Given this kind of complexity coupled with time constraints that are inherent in almost all such projects, the risks involved are considerable. But what does it take to sail smoothly through the apparent rough weather of an implementation? How does one sustain the enthusiasm of the users? How do we reap the benefits of ERP in the shortest possible time? Company can have the best package, knowledgeable users, substantial resources, but although these things all play a part, they are not enough to guarantee the success of ERP.

Role of Consultants, Vendors and usersInitially, organizations were skeptical about ERP since they felt that their business were unique

and their cultures different. As time passed and their business problems became more pressing, they started looking at ERP as the solution for their woes. In their urgency, they were expecting miracles. Unfortunately, this doesn’t happen most of the time, leaving users frustrated which in turn, lead to poor participation and costly delays. It is important to understand that an ERP package cannot fit in completely with the existing business practices of an organization.

The onus to appreciate this fact is on the users and they have to work with the implementation consultants to adapt to the package. In order to avoid setbacks in an EPR project, a consultant plays a useful role. The consultants by virtue of their industry, experience and package expertise should pitch in and set the expectations of users at various levels keeping in mind the overall business objectives of the client. They can do so by working closely with key users, understanding their needs, analyzing the business realities and designing solutions that meet the basic objectives of the company. At this point, it is also important to understand the distinction between the roles of the consultants and the users. It is the users who will be driving the implementation, and their active involvement at all levels and across all business functions is absolutely critical.

An ERP package is expected to improve the flow of information and formalize all the business processes and workflow that exist in an organization. Many users expect their workload to decrease after an ERP implementation, but this may not always happen. The important thing to understand is that the ERP package is an enabling tool to help the users do their job better, which may call for additional efforts.

If one has to have more information in a system, it entails more work for some users, but the benefit is that this information if properly stored, can fruitfully used by other users in making better decisions. As the flow of information throughout the organization improves, the company starts performing better, and this in turn benefits the users who have collectively improved their way of working

Customization During the course of ERP implementation, the demand for changing the core package is a common phenomenon. The scope of change may vary from a simple “cosmetic” change to a major “functionality” change. The consultant has to care carefully weigh the impact of such changes and convey this to the users. In some cases it may be impossible to proceed with the overall project without carrying out certain alterations.

In such cases, it may be deemed necessary to customize. However, it is important to understand that customization is not expected to be the focus area of an implementation. One should try to satisfy user requirements and overall business objectives within the existing frame work of the standard package because any change in an integrated system has an adverse impact on the functioning of the other modules of the package.

Besides, during the up gradation of the system, the customization exercise has to be repeated and maintenance of consistency in changes becomes a problem. This makes it more difficult to implement the package and considerably increases the risks and throws the costs and schedules out of gear. However, it must also be emphasis that implementation without any customization is easier said than done, especially when it leaves some users dissatisfied, because they feel the ERP program has not met their requirements.

It is the responsibility of the consultant to help users appreciate the fact that it is they who are ultimately benefited by implementing the standard package. This can serve to motivate and reinforce confidence among the users, who are the driving force behind any successful implementation. The success of an information system should be measured in terms of how completely it is accepted by its users. Many positive changes come about as a result of user acceptance and this becomes visible over a period of time. However, some of the benefits are instantaneous. the consultant has to drive home this fact so that the users appreciate this reality and continue to contribute positively. Ultimately, the users are certain to get a feeling that ERP is an integrator and not an intruder and as a result of this, the entire business is catapulted to newer heights and results in enhanced performance.

Key IssuesThe three key issues that could determine the success of an ERP implementation and work towards delivering quicker and better ROI ARE:

1. Functionality: The ability of the package to support the best business practices followed in the company’s line of business would be crucial factor in determining the smoothness of implementation customizations that could put time schedules and budgets off track. A focused evaluation exercise at the selection stage would help eliminate incompatible choices. The quality and commitment of business consultants and product consultants involved in the ERP implementation would also be a very critical factor in ensuring its success.2. Technology. Scalable ERP solutions that support open, non proprietary technology standards would provide for protection of investment and ensure minimal risk. They should support different kinds of operating systems, databases and operate on moist major client/server hardware platforms, local area networks (LAN) and user interfaces (ASCII Motif, Windows 95, etc) so as to minimize risk towards technology obsolescence. The ERP package’s programming language; software development tools should permit ready adaptation of the system in response to ongoing changes in production and operational processes. To minimize customization effort and time, the development tool-set for the application should be easy to use.3. Implement ability of the solution. This would be the most crucial and significant factor as customer satisfaction and the benefit of ERP would depend not only on functionality but also on ease of configuration and the software’s flexibility to support optimization of business processes.

Much of the complexity of a software implementation process has also to do with setting of parameters, designing menus and authorizations. The roles and responsibilities of different employees have to be clearly identified, understood and configured in the system. The involvement and willingness of the employees to accept and use these new procedures laid by the ERP would, to a great extent, determine the success of the implementation. Simple, easy to use processes and procedures go a long way in creating user trust and confident. There have been instances of large and complex packages failing to deliver on implementations because of the misgivings users had in terms of difficulty of configuration and usage.

When organizational changes takes place the software solution should grow and adapt to the change in demands of information needs. The ability of ERP package to mange and support dynamically changing business processes is a critical and vital requirement for the organization.

ERP: Post-Implementation

After an ERP implementation, organization should not sit back and relax. Depending on the scope of the ERP implementation exercises, several options can be explored tom further maximize the gains.

The first thing that an organization should look forward to, after an ERP implementation, is improved morale of the workforce. Needless to say, it would have a cascade effect in terms of increased productivity and better customer response.

On the monetary side, depending on the level of success, ROI should also be on the way up. It is estimated that a well managed ERP project can have up to 200 percent return on investment within a short period of time while a poorly managed ERP project can yield a return on investment as low as 25 percent.

During the phase of minimization, organizations move closer to best practices. Depending on the target environment design, which is governed by the ability to change, this effort could be a natural extension of the ERP implementation or it could be a separate project in itself. Process optimizations, and thus performance improvement, are a continuous exercise

ERP Implementation Methodology

Broadly, the steps involved in a total ERP implementation can be listed as follows:

1. Pre-evaluation Screening – to limit the no: of packages

2. Package Evaluation – ‘do the right the first time’

3. Project Planning Phase – design the implementation process

4. Gap analysis – crucial phase

5. Reengineering – Human factor taken into account

6. Configuration – main functional area

7. Implementation Team Training

8. Testing

9. Going Live

10. End User Training

11. Post Implementation

ERP Implementation Lifecycle

Guidelines for ERP Implementation

Understand your corporate needs and culture.

Complete business process changes.

Communicate across the organization.

Provide strong leadership.

Ensure an efficient and capable project

Choose a balanced team.

Select a good implementation methodology.

Train everyone.

Commitment to adapt and change.