ERP

“ ERP IS ABOUT REALIZING THE

POWERFUL, ALL PERVASIVE MAGIC-
MAKER GENIE FROM WITHIN YOUR
ORGANIZATION TO HARNESS THE KNOWN
AND HIDDEN RESOURCES SPREAD ALL
ACROSS YOUR ENTERPRISE, BY FIRST
IDENTIFYING THEM, CLASSIFYING THEM,
MARSHALLING THEM , PACKAGING THEM
AND DELIVERING THEM TO YOUR DESK SO
THAT YOUR DECISION MAKING PROCESS
BECOMES MORE MEANINGFUL”
IT IS NOT ENOUGH TO BE PREPARED
TO SPEND MILLIONS AND IT IS NOT
EVEN ENOUGH TO SPARE SOME OF
YOUR BEST BRAINS FOR
IMPLEMENTING THE CATCH-ALL
PROJECT BUT SHOULD FIRST KNOW
WHAT YOU WANT OUT OF THE
WHOLE EXERCISE
BPR IS THE FUNDAMENTAL
RETHINKING AND RADICAL
REDESIGN OF PROCESSES TO
ACHIEVE DRAMATIC IMPROVEMENT
IN CRITICAL , CONTEMPORARY
MEASURES OF PERFORMANCE SUCH
AS COST , QUALITY , SERVICE AND
SPEED
 DO ONLY WHEN THERE IS A NEED

 DECISION IS NOT OF IT PEOPLE

 WHEN TO GO FOR ERP

 EXTERNAL FACTORS
 BUSINESS CYCLES
 COMPETITIONS
 DEBT
 DIVERSIFICATIONS&MERGERS
 DIVESTMENT
 ORGANISATIONAL GOVERNANCE
 PRESSURE TO PERFORM
 PUBLIC SECTOR BLUES
“ ERP MAY NOT BE A PANACEA
FOR ALL ILLS BUT IT CERTAINLY
COULD PASS AS EFFECTIVE
STIMULI FOR WHATEVER YOU
HAVE IN MIND FOR YOUR
ORGANIZATION”
 CHCEKLIST FOR IT
PREPAREDNESS
 BUDGET
 IT BUDGET AS % OF SALES
 RATE OF CHANGE IN IT BUDGET
 TRAINING BUDGET FOR IT
 IT SHARE IN BUSINESS INVESTMENT
 IT SPENDING
 CHCEKLIST FOR IT
PREPAREDNESS
 TECHNOLOGY PORTFOLIO
 TYPE OF IT PLATFORMS YOU USE
 TYPE OF PACKAGES YOU USE
 RATE OF INDUCTION OF NEW TECH
 TRAINING
 REDUNDANCY,REPLACEMENT RATE
 R&D INVESTMENT
 CHCEKLIST FOR IT
PREPAREDNESS
 ORGANISATION SUPPORT
 NO OF IT EMPLOYEES
 NO OF IT USERS PER IT EMPLOYEE
 % OF IT EMP TO TOTAL STRENGTH
 IT SPENDING PER EMPLOYEE

 LEGACY SYSTEM
 CAUTION
“ONCE ERP IS FULLY IMPLEMENTED, THE
TEST OF ANY GOOD ERP SYSTEM IS TO
ENABLE YOU TO LITERALLY SKIM
THROUGH THE ENTIRE NOOK AND
CRANNIES OF ORGANISATION TO
FERRET OUT ANY SORT OF
INFORMATION FROM THE DESKTOP
WORKSTATION AT THE PRESS OF A
BUTTON ”
 WHAT WILL YOU GO
THROUGH
 COMPLEX & EXPENSIVE DATA
COLLECTION PHASE
 ENDLESS HOURS OF TRG & LEARNING
 LOT OF ACTIVITY
 EXPECT TOTAL SHAKE-UP
 IS ERP
A TECHNOLOGY DECISION?
 CORE TEAM
 DIRECTORS
 BUSINESS MANAGERS
 IMPLEMENTATION TASK GROUP
 PROJECT MANAGERS
 TECH SUPPORT REPS
 GENERAL ADMINISTRATION
 UNION REPS
 START UP TIPS
 ANNUAL SAVINGS ESTIMATE FROM ERP
 PREPARE IT ROAD MAP
 RE-ENGG PLAN
 ORGANISATION RE-STRUCTURE PLAN
 STEERING COMMITTEE
 ERP LEADER
 ERP TRAINING
 KNOW YOUR REUIREMENTS
 KNOW YOUR ERP PACKAGES
 PEOPLE- FIRST

 IMPLMENTATION ASPECTS-NEXT

 PACKAGE - LAST
 ERP FAILURES
 ORGANISATIONAL EXIGENCIES

 LACK OF PREPAREDNESS

 OVERKILL
 MUST DO LIST
 INTROSPECTION-WHY ERP?
 BIG BANG OR GRADUAL
 CUSTOMISED OR PACKAGED
 HAND PICK THE CORE TEAM
 IDENTIFY HOT SPOTS
 CHOOSE YOUR CONSULTANT
 BE DISCREET
 STAFF INTO CONFIDENCE
 MAKE FIRST CUT OF VENDORS
 FINAL SELECTION
 DRAW CONTRACT & PROJECT CHARTER
 KEY BENEFITS OF ERP
•GIVES YOU SUSTAINABLE COMPETITIVE ADVANTAGE

•REDUCES OVERALL CYCLE TIME AND HENCE COST OF YOUR

FINANCES

•HOMOGENISES THE ORGANISATION PROCESS IN SUCH A WAY

THAT EVERY POINT IN YOUR ORGANISATION WOULD HAVE THE
FULL BACKING OF THE ORGANISATION, A CRUCIAL FACTOR
WHILE DEALING WITH VENDORS AND CUSTOMERS

•DRAMATIC RISE IN YOUR RESPONSE TO COMPETITION AND

CUSTOMER CARE

•TOTAL TRANSPARENCY AND INFORMATION LEADS TO BETTER

EXTERNAL AND INTERNAL COMMUNICATION
 KEY BENEFITS OF ERP
HIGH CUSTOMER RESPONSIVENESS WOULD BUILD BETTER
RELATIONSHIP

YOUR BRAND POSITIONING AND CUSTOMER SERVICE COSTS

WOULD BE DRASTICALLY REDUCED

YOUR SCENARIO PLANNING AND OTHER FORECASTING MODEL

WILL BE MORE SCIENTIFIC

YOUR LONG-TERM SURVIVABILITY WILL BE TRULY ENHANCED

YOUR CAPACITY UTILISATION BECOMES BETTER

YOUR INVENTORY MANAGEMENT MAY BECOME MORE OPTIMUM

THERE WOULD INCREASED ACCURACY OF YOUR DECISIONS.

 QUESTIONS TO ASK
HOW RISK PRONE IS YOUR ORGANISATION IN THE CURRENT
BUSINESS ENVIRONMENT ?

IN TERMS OF PERFORMANCE HOW WOULD YOU RATE YOUR

ORGANISATION ? DO YOU REALLY THINK A MAJOR OVERHAUL
WOULD IMPROVE PERFORMANCE?

HOW RISK PREPARED IS YOUR TOP MANAGEMENT TEAM ?

FIND OUT WHETHER YOUR TOP MANAGEMENT IS PRO-CHANGE

OR ANTI-CHANGE, AND WHETHER IT ENCOURAGES INNOVATION.

IS YOUR ORGANISATION CULTURE AND MANAGEMENT STYLE

HIDEBOUND TRADITIONAL OR IS IT PROFESSIONAL WITH YOUR
EMPLOYEES EMPOWERED AND DECISION MAKING
DECENTRALISED?
 QUESTIONS TO ASK
INCASE YOUR ORGANISATION IS FAMILY OWNED, WILL THERE BE
ANY CULTURE PROBLEMS?

DOES COMMUNICATION IN YOUR ORGANISATION CUT THROUGH

HIERARCHY OR IS IT STILL TOP DOWN.

HOW SOUND IS YOUR RELATIONSHIP WITH THE WORKFORCE?

WHAT IS THE LEVEL OF JOB MOTIVATION, WHAT ARE THE
CURRENT SKILL-SETS POSSESSED BY THE EMPLOYEES AND
WHAT ARE THE NEWS ONES REQUIRED?

HOW PROFITABLE IS YOUR ORGANISATION AND HOW MUCH DEBT

LEVERAGING YOU HAVE DONE? IS YOUR ORGANISATION CASH
STRAPPED? CAN IT AFFORD EXPENSIVE SOLUTIONS LIKE ERP OR
BPR?
 QUESTIONS TO ASK
HOW DIVERSIFIED IS YOUR ORGANISATION?

HOW MUCH IS IT SPREAD IN TERMS OF NATIONAL AND

INTERNATIONAL SPREAD?

HOW SERIOUSLY DOES YOUR ORGANISATION GET AFFECTED BY

BUSINESS CYCLE CHANGES?

WHAT ABOUT EXTERNAL EXIGENCIES LIKE CURRENCY RISK?

POLITICAL RISK?

ARE YOU CONSTRAINED BY ANY LEGAL SHACKLES SUCH AS

THOSE IN THE GOVERNMENT SECTOR?

HOW STRONG IS YOUR COMPETITION?

AND FINALLY, ARE YOU THE ONE WITH A PENCHANT TO GO FOR A

BIG BANG OR WOULD LIKE CHANGES SINK IN THE TIME-
HONOURED WAY?
 CORE PROCESSES
1. FORECASTING

2. FUND MANAGEMENT

3. AUDITING

4. PRODUCT PLANNING

5. PLACE PLANNING, THE USE OF EDI, ETC.

6. PROMOTIONAL

7. PRICE

8. BUDGET

9. PRODUCT DESIGN

10. FACILITIES DESIGN

11. PRODUCTION SCHEDULING, MRP, MATERIALS PLANNING

12. QUALITY CONTROL

 CORE PROCESSES
13. ORDER INFORMATION

14. VERIFICATION OF ORDERS

15. CREDIT AUTHENTICATION

16. CUSTOMER NOTIFICATION

17. FILLING ORDERS

18. REORDERING STOCK

19. INVOICE PREPARATION

20. SHIPPING GOODS

21. RECEIVABLE DATA

22. OUTSTANDINGS AND REMAINDERS

 CORE PROCESSES
23. VENDER SELECTION

24. ORDER COMMITMENTS

25. PURCHASE ORDERS

26. INVENTORY

27. SHIPPERS’ DATA

28. PURCHASE COMMITMENTS

29. PAYROLL DATA

30. GENERAL LEDGER