ERP (Enterprise Resource Planning) is now not a new system in India. This is a management information system that automates several business processes. Many companies are now looking for implementing this system and also started providing training to there people.
There are many software’s are available now. The most common (from well known vendors) are SAP, Oracle e-business suite and Navision from Microsoft. Apart from these many Indian Software development companies too joined the chorus and offering “Business Solutionsâ€. Even Tally is also coming up with a Mini ERP package called Tally Ascent. Most of them claim it suits best for any business organization.
What do you think?
Is this a really a practicle smart tool that truly meet the requirements of day to day business needs, or a professional CA along with his team can do it better. Does “automation†sound well to CA’s and it is best suited for present business practice in India?
I am sharing one of my experiences with you about implementation of a mid size ERP package at a company where I use to work as director of one of their associated company.
I was in charge of implementing the ERP at our company. I was provided with a team of four CA’s and five junior accountants. Apart from this there was a senior person from the Vendor of the software developers. It took almost three months to implement the system, with sad note that few key accountants and CA’s leave the job (as they don’t feel comfortable with new system).
Here are few interesting points which may be helpful to analyze the difference between “claims†and reality.
1. The system was very much expensive and it created an extra burden on company. The cost of this system was some where around Rs. 1 Crores.
2. The workforce was not equipped enough to adopt this new system easily., though there was one month’s training provided, still they need to develop there specific skills towards using the software.
3. Most of the computers were not compatible with software’s minimum hardware requirements, so there was up gradation of PC’s done on mass level.
4. The work load on Chartered accountants increased as there was triple accounting methods followed, i.e. manual accounting, Accounts with Tally and the New ERP system. Reason old accounts were not migrated to system, due to technical difficulties.
5. In day today operations lot of problems as some departments unable to use it effectively. In this system if one department fails to perform, will affect the entire system.
6. It was difficult to adopt the work flow of business process followed by company. The software was designed for a general point of view, which was customized by the vendor on our requests.
7. There are additional cost involves if developer will customize the same for individual requirement.
8. There was heavy annual maintenance cost as well as software licensing cost involved.
Above are few! There were many more difficulties which occur when you practically do it. I like to collect views of the board on this subject.
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Sounds like the implementation from hell but then I suspect a lot of it came down to change management issues not being adequately addressed and an inadequate appreciation of the TCO.
These are the biggest reasons that implementations fail. There is a huge difference between what senior management expects, what gets delivered and the expectations of the staff who have to live with the software.
Evaluations are much more than technical ticklists. In many cases a certain software just isn’t a right fit for the business.
Customisations that replicate pre-existing processes is a very bad idea. You’re almost always re-building inefficiency.