ERP: To-Be or Not-To-Be

  • Date: 24-November-2011
    Author By: Dr. Kalpesh Parikh

  •  What is ERP?

    Enterprise Resource Planning (ERP) is an ICT (Information and Communication Technology) solution to manage business in an effective manner by providing common framework to everyone in the company. ERP offers services through a common database. It facilitates the business transaction processing capabilities, capturing and storing all relevant and applicable data in database to use throughout the life-cycle of transaction. ERP does not operate just within the boundary of an organisation, but stretches its domain to clients, customers and suppliers as well. Thus, extended organisation also gets integrated and only one version of transaction is available to all from single source.

    ERP is not a technology initiative, but a business initiative to put the systems in place. In addition, it also brings control, process orientation, standardisation of business rules, centralisation, system orientation, and person independent systems.


    ERP’s current status among SMEs

    SMEs in general have high level of dilemma whether to opt for ERP solutions. The typical stages for ERP implementations are usage of office automation tools like MS office, DTP software, MS project. For accounting, tools like Tally are being adopted to fulfill accountants’ requirement. Some of the SMEs are bit forward in getting developed application software for specific purpose like billing. In fact there is an acute need for enterprise wide initiative or a system which will bring operations and activities under one umbrella.

    ERP: Not-To-Be

    SMEs fear that ERP implementation will take away their liberty and convenience and hence are skeptical on adopting the same. Technology decisions are equally important and unavoidable and possibly no one in the team is capable to address that. Budget overruns are frequent and that scares the management and they fail to decide if they need ERP.  

    Making ERP-To-Be

    Top management has to get to a level from where they can take initiative to create a positive environment about ERP. This may be achieved by convincing the employees about ERP benefits.

    Considering the limitations and concerns it is better to plot a well defined process to approach an ERP. Much detailed homework is expected and expectation matrix needs to be frozen for the very first phase (Vanilla Implementation). Also, it is important to stick to that during the implementation. ERP scoping for the organisation is crucial to keep the project timeline, cost and manageability.

    Attributes that lead to success

    For successful To-Be, ERP should be a clarity and continuity based journey. Communication cuts the cost and satisfies the curiosity. It also offers transparency to seamlessly draw more cooperation from SMEs. It is sincerity rather than knowledge of these SMEs that will bring success to the organisation. Adapt is the solution to all queries. Finally it is not the dilemma To-Be or Not-To-Be; it’s a dilemma When-To-Be and of course sooner the better To-Be. 

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