05-27-2004, 05:18 PM
ERP has been a buzzword in the circles for long. But I really wonder
does it really work. It definitely requires a lot of investment and time.
Does a company really gain from such heavy investment? Please
contribute your examples.
What is the future of the companies who have failed to gain leverage
from implementing such concepts?
05-27-2004, 05:19 PM
This is a good question that Apar has raised.
We are trying to find some sort of an answer to precisely that query,
by conducting a course module on ERP at our institute. The module
will run mostly by ERP practitioners, so we hope their insights will
help us know whether the phenomenon has been worth all the hype and
if it has really been a value add.
05-27-2004, 05:20 PM
As ERP practitioner , our experience is a mixed one. we had initially
thought that implementation would not pose big problems ,
however we find that reality is otherwise. . Although the current
processes were aligned fully , the power of ERP package could not be
felt even after 1 year of implementation wonder whether there is some
problem with way we INDIAN do our business or some inherent lacuna in
the ERP package ( customized for Indian conditions ) itself ?
05-27-2004, 05:21 PM
ERP is a technological and strategic enhancement to the concept of MRP II
that drove profitability in the 80s and 90s.
The investment and time is but a consequence of integration and phase out
issues related to existing systems.
Many companies have had major problems with their systems primarily for lack
of any alignment in their operations culture and for reasons of improper
processes. furthermore they adopt the cold turkey approach or big bang
approach to implement the ERP software. Culture, adherence to old practices
and power mongering is also a big issue that harms migration to the new
it is always wise to get the corporation to reengineer or improve its
current processes, develop aligned thinking as far as the direction of the
ERP implementation is concerned and support a formal cultural system.
05-27-2004, 05:22 PM
I am a technology consultant and a business author having
written various books on the business and technology subjects.
This whole discussion on the effectivity of the ERP packages is as
old as the technology domain itself.
Often organisation spend huge amount of money only to reliase that
the systems on which they have invested have little or no
consequential effect on their existing processes.
This is what can be termed as prespective mismatch. ERP vendors
sell their products as if they will solve all the business
problems . They often oversell because overselling helps them .
Buyers often dont do a proper homeworking as to what exactly are
their requirements and are they really buying the right
Often companies also overestimate the ERP process thinking it to
be a pancea of all the present problems, which is not so.
ERP is effective only and only if you know what it is , how it
fits in your requirements and what exactly you want from it.
It is always better to do your homeowrk beforehand rather than
reliasing later that the investment has gone down the drain.
Just to mention I have helped more than 15 odd comapnies both
small and middle size in their ERP and Knowledge Management
Implementation but all of them have a great degree of satisfaction
with their implementations.
05-27-2004, 05:24 PM
'm sure all will agree that for an ERP to be successful...
>1. It takes time ( typically about an yr) to recognize the
>2. Most importantly we need to look back @ the basics, BPR being
>3. Its 1 thing having a gr8 system in place & totally another
>realizing the benefits. we need to have a dedicated &
>competitive team to work,maintain & modify the same as per the
>4. Evaluate these points & u'll have the answers for ur