ERP & Beyond – Part 1

erp & beyond

Should we stay happy forever after successful implementation of ERP?

Yes successful ERP implementation is essential for any business user to take day-to-day operational decisions. E.g. real time information of inventory, bank balances, sales booking, recovery etc can help decision makers to take quick decisions especially if those figures are not as per the expectations.

But decision makers should also be able to take strategic decisions with the help of ERP data. E.g. reduce cost, improve profitability, decide product price etc.

Recently I got the opportunity to handle an interesting project of a very large, well known Indian company where management is now able to save crores of rupees in a short span of time through effective usage of SAP data.

Isn’t it amazing?

Stay tuned for the next blog to know how….


+91 9321327575 | sales@bigbangconsultancy.com | http://www.bigbangconsultancy.com

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Select ERP wisely through these 6 Golden Steps to ERP selection:

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Buying ERP is a common trend with small and medium businesses. However decision makers are often confused as to which ERP they should buy, what is the difference between SAP and ERP, should we build our own ERP, buy branded ERP or local ERP etc.

This topic has many dimensions and is difficult to answer for any particular industry. However you cannot go wrong if you follow these 6 Golden Steps during decision making:

1. Budgeting – ERP or a white elephant?

ERP can become a white elephant or extremely expensive if not budgeted properly. Budget should consider two components – One time buying cost such as hardware, license, implementation etc and another is recurring cost such as customisation, report development, additional licenses etc. One should consider these two costs and not just one time cost. This can help in deciding options such as on-premise server bases ERP vs cloud based ERP etc.

2. SAP vs other ERP

SAP is world’s no 1 ERP product. It is the most popular ERP among all top global and Indian companies with largest functionalities. But in spite of all good things, SAP is not for everyone. Explanation for this is too lengthy to write here. In short, it needs skilled human and financial resources to implement and maintain it. I would strongly recommend to take this decision with the help of SAP professionals.

3. Are branded ERP not for SMEs?

Are Branded low priced ERP available? – the answer is Yes. E.g. SAP has another ERP product SAP B1. This is much more cost effective and a useful SAP product specially designed for SMEs. Similarly Microsoft has an ERP called Navision specifically designed for SMEs.

4. Are Indian ERPs not good enough?

Are local good Indian ERPs available? – Yes. This is the area where one should be really careful. There are many ERPs available and most local ERP products are developed for niche markets such as Manufacturing, Real Estate, Infrastructure etc. Most important part is to check credibility of such ERPs from their existing clients on various parameters – coverage of functionality, tax compliance, post implementation support, customer base, customer testimonial, background of the company, etc. There are good Indian IT companies having ERP products for SMEs such as TCS, Ramco etc.

5. Confused with ERP features?

In recent years ERP has evolved into a feature rich product such as dashboard, workflow approval system, document management system etc. Hence compare all features while deciding ERP. Take help of neutral Subject matter experts who are not selling any ERP.

6. Let’s build our own ERP

Should we create our own ERP?

NO – avoid creating your own ERP if your core business is something else. Creating ERP is a very intense process and can divert your attention from core business. Instead buy time tested ERP and if necessary integrate it with products, such as Microsoft’s SharePoint, to make it really useful.

There is much more than these 6 Golden Steps before making the final choice of the perfect ERP system.

Call us on ‭+91 93213 27575‬ or mail us on sales@bigbangconsultancy.com to get detailed advice on ERP selection.


 

To keep Tally or ERP or both?

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Tally is one of the most popular accounting softwares in India. Small and medium enterprises (SME)s just can’t think accounting without Tally.

Whenever organisations are deciding to buy ERP, common doubt is whether to keep Tally after ERP Or keep both ERP and Tally?

Straight answer to this question is ‘keep either ERP or Tally but not both. Avoid running two systems’.

However this answer is not sufficient to address anxiety of Tally users.

So let’s analyse as to why this answer is no and what are the alternatives if anyone still insists on Tally along with ERP?

Try to understand the main real purpose of any ERP. ERP is a decision making system based on a single database. For business owners, the most important decisions often are related to finance.

E.g. most important information is cash inflow and outflow. Inflow is triggered mainly through Sales and outflow through purchasing of material or services.

In Tally the data feeding for Voluminous transactions for Sales and Purchase, such as invoices/cheques, Vendor bills etc, are entered manually and hence its time consuming. It affects decision making.

Whereas ERP has the capability to automate this complex process from its original source of transaction and thus MIS gets generated instantly. This can help management to take important business decisions quickly.

So the best option is to have ERP with built-in Accouting system.

So what if, someone still requires Tally with ERP. There are few ERP systems, which are tightly integrated with Tally. But in such ERP systems one should ensure no direct access to Tally. Data should flow to Tally only through ERP and use Tally for MIS purpose.

Don’t buy ERP randomly and never try to build ERP.

Why so and what are the guidelines to buy ERP? Read my next blog to get these answers.


 

How to avoid ERP failure?


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After implementing large number of ERP projects, including SAP, I can confidently say that ERP is the most misunderstood technology in India. Hence ERP failures in India are very high. Thus business owners are either afraid of buying new ERP or are frustrated with existing ERP.

So can we avoid ERP failures or revive existing ERP?
Answer is ‘Yes’.

Let’s try to understand as to why decision makers need ERP. Is the purpose of ERP is to act as a single database for entire organisation or is it just another fad?

Objective to have ERP is different. ERP system should be able to help business owners to take important business decisions quickly. Word ‘quickly’ is important. After ERP implementation, if MIS team is taking too long time to download data in spreadsheets and then do data massaging then ERP implementation can be considered as a failure.

So how to avoid ERP failure?

Use following 5 steps to ensure successful ERP

  1. First decide as which few but important information can help you in taking routine business decisions e.g. how much cash outflow is expected in next one month and against it how much inflow is required, how much is cumulative sales as on today, how much is value of inventory etc.
  2. Ensure that ERP is able to give answers to identified questions
  3. Get ERP system configure to get those answers
  4. Test system thoroughly before Go Live
  5. After Go Live of ERP, use only this system data to take decisions, avoid running any other systems simultaneously

All the best for successful ERP

 


 

Project Management in the times of Globally Disruptive Market


This year PMI India’s Project Management National Conference 2018 has a very interesting theme – ‘India In 2022 – Leading In A Globally Disruptive Market’.

Disruption is happening across the world. Electrical cars are disrupting the traditional automobile industry. Artificial Intelligence (AI) is likely to disrupt traditional IT industry, as large IT teams are no more required to support backend operations. Ola and Uber has already replaced the traditional taxi market. Shell oil has started challenging the well established Oil & Gas industry.

With this background let’s see how India can make a difference in Project Management and can ultimately become the global leader.

A vast country like India with large 1.2 billion population and with 600 million productive youth is hungry to grow. Government is under tremendous pressure to address the needs of youth to deliver results through infrastructure projects such as constructing roads, airports, factories, power plants etc. and has already initiated it in a big way.

However this task is not so easy because of the intricacies involved between State Government, Central Government, court judgments, environment concerns, archaic laws etc.

So on one side a young India is looking for actual results and on the other side there are hurdles in achieving delivery through traditional methods.

This tussle or challenge is forcing Government and private sectors to find alternative ways through innovative solutions.

Indian Government has started developing close relationships with two of the most innovative nations – Japan and Israel. Recently launched ‘India-Israel Innovation bridge’ program is targeted at three core sectors – water, agriculture and health.

Few days’ back I was listening to speech by Cabinet Minister Nitin Gadkari on innovative approach which Govt. has initiated in various sectors.

All such efforts have started showing results. Following are few examples,

  • Effective use of plastic in road construction
  • Use of toilet water in power plant
  • Application of solar power and sea water for desalination of sea water for drinking water and agriculture purpose
  • Application of Drone technology for agriculture development and monitoring mass housing projects
  • Extensive use of Hyperloop technology for faster transportation
  • Water conservation initiative for drought prevention and watershed management in the state of Maharashtra through Paani movement

These are few examples demonstrating non-traditional routes India have started exploring. This is just a beginning and may become way of life for Indians. Imagine what can happen even if 25% of manpower i.e. 300 million is involved in innovative solutions to solve our own problems. These innovations are mini disruptions for traditional business models but can set examples for rest of the world and make India a leading force for the world to mange disruption.