Monday, January 20, 2014

Case studies reveal impact of ERP

THERE are enough studies on the impact of ERP. Majority of these studies are research reports, case studies or collections of case studies and industry surveys. Most of these studies reported substantial performance improvement in several areas as a result of their ERP implementation, including their ability to provide information to customers, cycle times and on-time completion rates.

The earlier studies carried out on the impact of ERP systems covering both adopters as well as non-adopters of ERP systems. The study reveals that ERP adopters are consistently higher in performance across a wide variety of productivity measures such as sales per employee, profit margins, return on assets, inventory turnover, asset utilization and accounts receivable turnover than non-adopters.

The study results suggest that most of the gains occur during the implementation period, although there is some evidence of a reduction in business performance and productivity shortly after the implementation is complete. However, the financial market consistently rewards the adopters with higher market valuation both during and after the adoption, consistent with the presence of both short-term and long-term benefits.

A well-performed ERP system can be maintained till about 15-20 years. In the later stages the package will have old architecture. It will become very difficult to make changes in the program code without inflicting hazardous damage to the system's stability. It is possible to give older systems a 'facelift' with modern tools. Though those 'facelift' can extend the life cycle of the package for some years, they will certainly speed up the appearance of the useless codes.

It is very important while selection of new ERP packages to suit the organization's needs. Ideal ERP packages be selected from a wide range of packages available in the market today. Organizations must take extra care that the remaining life for the package is satisfactory and most of the bugs are gone. The appearance of new system design and technology often means that new things can be done that would give users many advantages. There is no easy way to include new technology in older systems.

Organizations must recognize the three most important aspect of ERP implementation. Project Management, Change Management and IT Management. An executive committee and steering committee were set up for the effective project management.


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ERP Software Providers

All over the world, the one factor which is accorded top priority for any Industry or Enterprise is Growth and Development. This is true for industries which are involved in all possible domains, such as Pharma, Construction, Finance, Manufacturing, etc. Now, with the inevitable lust for growth also comes the quest for the best possible means to achieve this task, and that is where the possibility of an involvement of ERP software providers, comes into the picture.

All industries as mentioned above, have different departments, and each and every department has a different function, or in layman terms, a task to be done. For any enterprise to function in a very smooth and co-ordinated manner, there has to be a universality, or in other words, a common platform where all these departments can meet. An ERP achieves this function. It prepares the groundwork so that all the departments are inter-related with each other, and thus any individual who accesses one department, can access any other department as well.

Now, the ERP which achieves this task is not in-built in the organization. It has to be implemented by an ERP Software Provider, which is essentially a third-party, external source. The ERP Software providers are many, and each one has its own plus and minus points. It is the job of the enterprise in question, which wants to implement the ERP, to sift through these various Software providers and zero in on the right one. There are many ERP software providers which provide an ERP at the client site itself. These ERP's are essentially windows-based and have to be installed at the client site. There are other ERP Software providers too, which do not implement the ERP at the client site, but can be accessed through the internet, and they are thus web-based ERP solutions. These ERP Software providers do so via means of a server which is placed at the client site, and has an internet connectivity to the ERP which is implemented via the server. The ERP developed can be controlled over the server by the developer as well. This aids in trouble-shooting in case any problem arises.

One of the leading ERP Software providers in India as well as the Middle-East, and Asia, is the Mumbai-based EResource ERP, which is one of the front-runners in web-based ERP solutions.

Thus, as we can see, ERP Software providers are many, but it is only a few which can give any enterprise the best possible implementation and value for money invested in the ERP application.

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