Monday, May 20, 2013

Making ERP success: Identifying the right elements - Part II


ERP Software TrainingIt was discussed earlier how an (http://www.eresourceerp.com/ERP-software-training-holds-key.html) ERP implementation could turn success or failure depend upon the user. There are different views expressed by Indian users towards ERP, but mostly it is based on organizational culture. The word 'culture' is used here to connote the average IT acquaintance of the overall users. In India, normally four different cultural transformations prevailed during ERP implementation.

1) From no system to ERP system; 2) From manual system to ERP system; 3) From computerized system to ERP system; 4) From ERP system to ERP system

In the normal circumstances at least two scenarios do exist in most of the Indian companies and sometimes all the four types exist in one organization itself. As the characteristics of the users differ in all the four cases the situation must be managed accordingly.

An assessment of ERP by the users is that ERP is a 'job killer'; hence attempts are made to kill ERP first. Most of the users of this school of thought found successful in their mission but unsuccessful in retaining their job. ERP has nothing to do with the downsizing of employment, but it may possibility recommend redeployment of people in appropriate areas. We have to agree on certain issues like so many years the organization had built a mentality of not owning responsibility in the employees, which immediately cannot be changed within a year or so.

ERP expects boundary-less flat organization structure where every employee is a decision maker and not a mere follower. Secondly, the decision-making must be scientific than based on 'gut feel'. Thirdly, ERP assumes that the user has an in-depth knowledge of the process he is associated with. He has to work in a team as a key resource element. The objective of the user is to pass maximum value to the customer than to create his own convenience. The user must be analytical in his thinking and be able to use information generated through data iterations for more effective and informed decisions.

eresource ERP plays successfully when it comes to the training part and our hardcore training session makes the user fully equipped with handling of the system independently.

The solution provider must pay attention while providing training to the user in the right manner. To become a good user, one has to get trained and trained well, and later self trained. But what is the disappointing factor is, unlike eresource ERP, most of the ERP training in India is more of software training rather than going deeply into the functionality and technicality of the ERP system. Normally the user is shown various screens of the ERP system and taught how to enter what he was doing previously.

Actually the trainer must explain to the user why he should enter there, what are the repercussions of his entries in other modules, how to use the best out of multiple settings, why a particular setting is made like that, etc. In fact, the reality that every entry is the financial entry and ultimately gets posted into General Ledger and posted in turn into Profit & Loss Account or Balance Sheet is never realized by the user during training or even after implementation. This feel of responsibility is extremely essential for the user to become a mature ERP user.

To enhance the interest of users Indian companies must make a point of user training, focusing on ERP functionalities and not merely on tools for ERP. Ideally, the training programme should be designed to cater to individual needs and hence carefully planned.

Secondly, the empowerment has to be planned slowly but positively over a period. This should include removing ridiculous and conflicting targets, thus helping the users to participate in making ERP a success.



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Making ERP success: Identifying the right elements

In our last article we have discussed what makes a business grow. (http://www.eresourceerp.com/making-ERP-success.html) It was explained in details the basic qualities, applications and dedicated efforts are necessary to succeed in a business field. What we would like emphasis in coming series of articles are that just implementing ERP solution won't make your business grow.

To make ERP implementation sensible, we have to consider some other elements along with its focusing styles and then formulate the overall plan of actions. Let us now get to know what the important elements of ERP are and how can ERP be used in a rightful manner that will contribute largely into the growth of an organization. There are five important elements that have been identified and these are analyzed in details in the following articles.

The Client: The first and foremost element

The client is, who suggests focusing on the organization's main line of business. As ERP implementation is more of business strategy than IT strategy, one has to analyze the key business driver's specific to the industry and also for the company. It is customary to redefine the business processes with proper synchronization of these drivers along with improved customer interactions. The term 'customer ' includes internal as well as external. The organization must plan for leaving traditional functional set-ups and reconfiguring its resources across pull type process set-ups where every transaction has specified supplier, customer, and the activities known in all aspects.

What is happening in most of the Indian companies is that even after adopting ERP, the organization continues with traditional functional style of departmentalization. This is mainly because of the absence of customer driven strategic plan or its incomplete implementation. In such set-ups or typically in make-to-stock environment, we find the traditional atmosphere of rivalry between various functional departments. For example, Marketing is the main 'culprit' for the production planning inefficiencies because of the dynamic, non-standard requirements which do not make sense.

Similarly, production planning department is regarded as the 'worst' ever planner by the purchase department. The accounts department is the common enemy of all. Such culture is the outgrowth of the multi-hierarchy organization structure in which cohesive and common language for business performance is missing. The organization is operating with fragmented departmental optimum results and no orientation is observed for the integrated business strategies. ERP completely fails to address such environment the underlying reason being misunderstanding and lack of coordination between different departments. ERP cannot 'fulfill' the requirements of these users.

For example, a sudden change in released marketing plan without consent of planning and purchase will create complete nervousness in the organization. Also, the targets given to purchase will conflict with production and maintenance targets. Such local optimum objectives lead to overall fragmentation and underutilization of organizational resources. ERP never supports these practices and the corresponding deviation between the ERP concept and the organization practice will make ERP a costlier affair for the organization.

If the client is not able to switch over to lean products and still wishes to eliminate these problems, then S&OP (Sales and Operations Planning - will discussed in details later) must be followed sincerely. It is the only way out for the Indian companies to improve their existing ERP performance.

A few organizations already started this, but it should become a general feature across all sectors. The main idea of S&OP is to collaborate internally and find out workable and naturally optimistic plans for particular planning horizons. Participating regularly in such meetings will boost the morale of participants for driving ERP towards success. An important point to be noted here is that this recommendation is applicable to each and every industrial sector including manufacturing and service.



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What makes your business grow

Indian currencyThis is the one question many (http://www.eresourceerp.com/erp_implementation_fundamentals_function.html) businessmen ask themselves. What makes the business grow? We have the answer. It is the Planning. Planning makes a business grow and yield good profit. You may think it is simple. But is it? No. Do you want to find out why it is not simple?

For a good planning in business you need to get proper guidance. Are you getting proper guidance or you being misguided?

Let us begin from the beginning.

It is said that, well begun is half done. This punch line best suited as far as a business enterprise is concerned.

In today's hypercompetitive markets, small and midsize companies are faced with ever-growing challenges and they could overcome these challenges if only they are fully prepared. Business enterprises must be occupied with the infrastructure, whether it is in the form of man power strength or the software system, which could streamline and handle the workload successfully and help deliver the result in a desired manner.

Success of a business lies in the faith their customers keep with them. To gain the customers' faith, organizations must fulfill their commitment. Is your organization able to keep the commitment? If not, why? You must have searched for the reasons many a time without getting an answer.

In spite of having dedicated personnel who are ready to carry out orders successfully and enough man power strength to bring out required product from the factory, most of the time you have failed to achieve the desired result. You have failed to deliver goods to your customers as per the commitment made. What went wrong when everything seems going right?

We can say nothing went wrong. But you failed in your planning or things weren't turned out as you and your personnel anticipated. Production department need the raw material to produce the product. You need to provide the raw material. Have you made sure your production department had enough stock in their hand? Have you made arrangement of these materials with your delivery sources? No. Isn't?

And because of the some human error you failed to deliver the goods and you could not keep the promise made to your customers. Will these customers approach you again for their requirements? Can your business survive if the customers don't come back?

But you could have avoided this entire scenario if you had implemented eresource ERP in your organization.

Eresource ERP identifies the requirement of production in advance, from the raw material requirement, stock available, stock to be ordered, delivery time, production details, man power required, time required for production and all that need to bring out the product on time on a required manner and also it intimates the concerned departments though email alerts.

It is just a small example of how eresource ERP could contribute to your business function.

Eresource ERP, a reliable and affordable ERP solution from eresource Infotech, identifies and supports every function of an organization including its branches, departments and its sub-sections.

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.

So don't wait further. Implement eresource ERP today to give a boost your business. Because the time is always right to do what is right!



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Tel:  +91 22 25827692
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Value for Money Eresource ERP implementation can deliver ROI

A flexible ERP, a reliable ERP, a user-friendly ERP, (http://www.eresourceerp.com/return_on_investment_with_eresource_erp.html) an affordable ERP, these are some of the features that make eresource ERP stands out from the rest. It is a known fact that due to the economic slowdown it has become a question of survival for majority of the small and medium scale industries in India. The rapid functionality changes in the business environment forces them to be more aggressive, competitive and intelligent.

To keep pace with the rivals in the field every organization need to make some smart moves to take their business ahead and help yield a pre-conceived profit. A good resource planning system required to support any smart move to make the desired results. This is the juncture where eresource ERP plays a major role by conceiving and implementing a most reliable and suitable ERP system in place, which obviously results in good ROI (Return on Investment).

It is not surprising that eresource ERP has bagged the prestigious UDYOG RATTAN AWARD for Excellence for its services. We are very proud to be the number one in our field in the country. Being the only exclusive home-grown WEB-BASED ERP, our customers are bound to yield a good return on their investment and tremendous growth in their business without any worrying factors.

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 think. 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


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Tel:  +91 22 25827692
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Brain of you planning activities - eresource ERP scope


eresource ERP is a modular solution built for vertical enterprises, (http://www.eresourceerp.com/scope.html) which supports Sales, Purchasing, Supply Chain, Inventory and Material Management, Quality, Research and Development, Production, Quality, Finance, Human Resource, and service functions, amongst others.

eresource ERP's major strength lies in the manufacturing modules that provide multiple benefits. eresource, ERP is key to business process automation. eresource ERP helps you control your day-to-day business, irrespective of whether the day is spent on the shop floor or around the board table. Once implemented, eresource ERP will be the heart of your manufacturing business, the wheels of your distribution channel and the brain of your planning activities

eresource ERP is the most reliable enterprise resource planning application, providing organizations with the strategic insight, ability to differentiate, increased productivity and flexibility they need to succeed. Eresource ERP helps drive innovation and supports future of your organization.

Eresource ERP benefits at a glance

    eresource ERP offers the functionality you need to increase efficiently across your enterprise.
    Completing daily task efficiently - Business automation
    Integrating department for real time collaboration and security.
    Linking branches, factory, sales, purchase, despatch/delivery, supply chain management spreaded across different geographical location at real time.
    Uniform monitoring system for customer, suppliers, vendors and partners
    Managing organized and streamlined business process - purchase, sales, Inventory, billing, production, receipt, payment, HR, Taxation, Excise and Exports.
    Maintaining efficient product catalogue.
    Keeping day-to-day track sales, dispatch & payments
    Calculating accurate production costing
    Accessing consolidation financial information
    Accessing daily report without depending on anyone.
    Timely Delivery and reducing inventory yet maintaining production cost.
    Maintaining best practices and introducing Industry best practices
    Ensuring that everyone in the organization is responsible and accountable



Please Contact us at:
Tel:  +91 22 25827692
      +91 22 25828775
      +91 22 41118000 / 8049 (50 lines)

ERP System and Manufacturing Industry

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