ERP in India – Some of the first Indian companies to have adopted ERP practices are HLL, ONGC, ESSAR, Godrej Soaps, Cadburys, BASF, Telco, Maruti Udyog Ltd., Century Rayon, Citibank, ACC, ANZ Grindlays, German Remedies, Blue Star, Mahindra & Mahindra, Rallis India, Sony India Pvt. Ltd., Ceat Ltd., Indal, Ford Motors, Kirloskar, Knoll Pharmaceuticals, and Glaxo. First tier companies (those with a turnover greater than Rs.10 billion) implement ERP to increase internal efficiency and external competitiveness. Once ERP is established at this level, these large companies begin to desire similarly increased efficiency from their suppliers. Hence, second tier companies are pressured to implement ERP, and a trickle-down effect ensues. Powered by the axiom that a chain is only as strong as its weakest link, Indian industry quickly has recognized that in order to work at maximum efficiency, ERP must be implemented at all levels. Initially, the majority of ERP solutions have been marketed to companies with greater than Rs. 2 billion, and generally, according to industry reports, the total cost of deploying ERP has ranged between 1 and 2 percent of companies’ gross sales. Lower cost solutions are available for comparatively smaller sized companies. Though the market seems to be very encouraging for ERP implementation, the time-frame for deployment may be an issue. However, since many companies that have not yet implemented ERP are leaders in their markets, it reasonably can be assumed that they will go for it within next five years. In fact, the ERP market should grow at a rate somewhere near the industrial growth rate. Some industry categories, such as Automotive, Steel, Consumer Durables, Engineering, and Textiles have shown a very high ERP penetration. This means that these categories represent the greatest potential markets in next two years – other industries will follow. Figure 1 illustrates the market across various industries. Also Read – ERP Software for Construction >> Survey of Industry ERP Implementations ERP implementations completed between 1995 and 1998 in India can give a sense of specific hurdles that companies may encounter in ERP deployment. Several companies were surveyed, and numerous ERP professionals were interviewed in order to assess the state of ERP in India. The results indicate that Indian companies are moving forward with ERP implementation primarily in response to thrusts from parent collaborators, to revamp in order to meet increased load, or to reduce lead times and inventory levels, and improve customer satisfaction. Resistance to change – in the form of fear of the unknown, reluctance to learn new techniques, or IT department reluctance to change due to attachment to its product – was a major hurdle faced during many ERP implementations. Additionally, the duplication required in the initial stage, and the intense pressure exerted on manpower proved to be problematic, as did the level of customization necessitated by disparities between company requirements and solutions offered by ERP software. This problem is diminishing due to advances in the software facility models. Cost overruns also proved to be a pervasive problem with ERP implementations. Since most consultants charge on a man-hour basis, project time overruns substantially inflate incurred costs. To avoid this problem, top management must develop the necessary commitment to ERP, and all employees should be prepared for the change before the ERP implementation process is started. This model should help to eliminate needless project time and cost ballooning. >> ERP in the Service SectorTransportation, medical care, hospitality, courier service, telecommunication, banking and financial services, and entertainment represent the major components of India’s service sector, and on probing into the various needs of these groups, it becomes apparent that the courier, transportation, and entertainment industries do not have specific current needs for ERP. Banking and telecommunication each have very specialized requirements that the manufacturing-inclined software solutions on the market would not effectively address. The same holds true for the medical care and hospitality industries. The service sector has the potential to become an important ERP market within a few years. At this time ERP implementation in the services sector is very limited – only a few hospitals and banks have done small-scale experiments. New software and processes will need to be developed to meet the specific demands of the service industries, so ERP players should begin now to prepare themselves for the tremendous potential of this future market. >> Assessment The Indian economy has reached a level of maturity that demands advanced technology. Although the Indian agricultural sector has not yet mechanized and there is little potential need for agriculture-based ERP in the foreseeable future, the services sector offers a largely untapped potential. With the pace of developments in the services sector continuing at 7 percent, there is a large scope for ERP in these markets. Many Indian industries already have realized the need for ERP solutions, and the industry-related market growth should match the expansion of the sector as a whole. The maximum potential growth of the ERP market rests with companies that have a greater than Rs. 2 billion turnover, with smaller companies positioned to follow directly. India is developing its infrastructure, ERP manpower requirements can be met, and the Indian mindset is changing with the times. Certainly, if the national railways could computerize operations, ERP does not seem an insurmountable challenge. In fact, the Indian ERP market looks very much like a $7.5 billion opportunity that has decided to take the plunge. Also Read – ERP Software for Manufacturing
Advanced Features of Web-based ERP As complex and customizable as even midmarket ERP solutions are, they don’t share many advanced features – that’s where the industry-specific functionality often comes into play. But the below advanced features do set some midmarket ERP solutions above the rest: support for lean manufacturing & SOA capabilities. Lean Manufacturing SupportAs the name implies, lean manufacturing is essentially using less of everything. For midsize manufacturers with limited resources, this waste reduction in production and business processes can be an especially critical cost saver. With lean manufacturing, an organization can avoid overproduction, excess inventory, wasted motion, unnecessary processes and idle time. Lean manufacturing can also help an organization deliver products more quickly to customers, be more flexible and, ultimately, succeed in a global marketplace. SOASOA – also called Web services – has been called the next big thing in enterprise architecture. SOA allows software capabilities to be easily connected and reused, making it quicker and cheaper to assemble, deploy and sustain enterprise-grade technology. With an SOA, organizations can more quickly adapt to changing business processes. Web-based ERP solution :>> A clear advantage of the web-based ERP solution is that remote users like executives and sales representatives can access the company system with any browser, which is much more convenient than going through a laptop configured for Terminal Services. >> A quick and on-time implementation of the solution can be done on your existing configuration set up. That means you do not need to upgrade your network for Windows/Exchange Server and SQL Server database. >> As you would have come across more suggestions on ERP, selecting the right one is crucial. The term “Hosted Solution” is rapidly catching up, on account of its own benefits. A web-hosted solution ensures a lower outlay and predictive spread of cost over time. You have a substantial saving in cost (on both the software and hardware, licensing) that can be better invested in your business process. >> Web-based ERP Software removes your headache from the Investment made towards Time and Cost in the maintenance of the server & other hardware. >> Web-based ERP also removes your worry about the new functions and features (service packs and fixes). >> When you go in for a web-based ERP, you can start using it from day one (avoids the worry towards implementation time, which has been cited as one major reason for ERP failure). >> Optimized performance & Support. Access through hand-held devices made easy. >> Most of the hosted applications are like off-the-shelf software. The web-based ERP application is available to you anywhere and at anytime from a simple browser. Also Read – ERP in civil engineering Best practice of ERP is best suited for Lean organizations In today’s highly competitive business world, industries need a strong and reliable software application that will support their complete business process. In this scenario, web-based eresource ERP is becoming a driving force for these companies. eresource ERP system is getting smarter with its new innovations and each implementations. The recent introduction of exclusive ERP systems for different industrial verticals such as Manufacturing, Construction, Pharmaceuticals, Sales and Trading and Logistic Management have acclaimed acceptance among the large and small companies in these respective industry space. It is a widely accepted that with the use of eresource ERP, there is a tremendous change in the way organizations used to operate. The concept of using ERP system only by big companies faded away with the wide usage of user-friendly affordable ERP system like eresource ERP. Earlier It was believed that ERP was meant only for the big companies. That is because almost all the leading ERP system available in the market were mainly developed their application to suit these big organizations. eresource has developed its products such as Nfra ERP, Xcel ERP, LifeScience ERP, eTrade ERP and other PMS and HRMS system keeping view of all industrial verticals and its working specifications in mind. Although all our ERP system are developed to suit every type of industry irrespective of its size, our main target audience are the Medium and Small Scale industries from almost all industrial verticals. Our products, which are all Web-based applications, have unique functionality with its dynamic modeling. All our systems have been incorporated with all the necessary modules that are required for the functioning of each organization’s department with its latest functionalities. It is also important that small and medium sized organizations must consider using the web-based ERP solution instead of outdated legacy systems or other traditional ERP system. While selecting an ERP, the manager must make decisions based not only on vendors supply and customer’s demand, but on vendor’s projections and customers’ expectations. Small and medium-sized businesses are the major beneficiaries of ERP system and they are the main force that pushed the ERP growth in India. Today, companies are moving from best-of-breed to a best-for-business approach, implying that they prefer extensions to their existing ERP for applications like planning and optimization, business intelligence and knowledge management. This has resulted in emergence of ERP systems that we developed, an effective web-based ERP package. The requirements of each company differ in terms of standard industry practices and unique practices. eresource caters to every need of an organization. All our systems are integrated with componentized solutions with standard modules and specific functionality to address the unique process. Also Read – ERP Software for Manufacturing Industry
