Updation of ERP Systems in India
1Divya Tuteja, 2Dr. Aman Jain
1Research Scholar (Singhania University), Pacheri Bari, Jhunjhunu, Rajasthan. E-Mail : divyatuteja001@gmail.com
2Professor at Deepshikha College of Technical Education, Jaipur, Rajasthan, E- mail:- amanjain.jpr@gmail.com
Abstract - In recent years there has been an increase in using Enterprise Resource Planning (ERP) systems in large companies and government corporations mainly in developed countries. However, due to recent economic growth, developing countries such as India are increasingly becoming major targets of ERP vendors. There is an urgent need for understanding ERP implementation issues in developing countries, as ERP systems are still in their early stages in
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1. WHAT IS ERP?
An ERP system is a packaged business software system that allows a company to [3]:
• automate and integrate the majority of its business processes,
• share common data and practices across the entire enterprise, and
• produce and access information in a real-time environment
An ERP system as “a packaged software product that can be bought `off-the-shelf ' by an organisation in order to integrate and share its information and related business processes within and across functional areas"[2][3]. This definition emphasizes the integration, laid by ERP, between various organisational networks, in particular functional divisions within organisations like finance, marketing, procurement, inventory, sales and distribution, human resources planning and payroll while downplaying the implicit side of the ERP systems, for example business processes embedded in the ERP.
2. UPGRADATION MODEL FOR ERP SYSTEMS
• Upgrade and Improvement
This category refers to activities undertaken by organisation to optimise ERP systems and the decision leading to ERP system upgrade.
Two properties were identified namely: upgrade cycle and upgrade decisions.
Upgrade cycle
This refers to the length of period between ERP system upgrade in an organisation. The period can be short (less than 2 years) or long (more than 3 years).
The research findings reveal that long upgrade cycles are likely to add additional risks. Upgrades tend to
In business, it is important for companies to be able to communicate effectively. Each department of a company relies on the other departments as they add to the value chain. One way for a company to integrate its different departments is enterprise resource planning. ERPs are software programs that allow companies to join together data across operations on a company wide basis (Jessup and Valacich 248). ERPs store company information in a common database and allow all departments to access it from one central location (Koch). Companies without ERPS may contain many legacy systems, each operating with different
Upon his arrival in 1993, Pete Solvik, the company’s CIO at the time was objected to the idea of implementing ERP because he termed it as being “mega.’ Also, the CIO wanted the company to stick to its traditional standardization mechanism that required the use of universal database architecture. At the time, the company was using a UNIX based system that could not support the unexpected growth. The system could only efficiently handle financing, manufacturing, and order entry functions (Austin, Nolan, & Cotteller,
Within this case the Comp Group are looking towards implementing Enterprise resource Planning (ERP) packages with the aim to build strong capabilities, improve performance, undertake better decision making and achieve a competitive advantage(Al‐Mashari and Al‐Mudimigh, 2003).
The success of any business lies in effective communication and proper data exchange within internal departments. Delayed in latest information is a remarkable obstacle in failure of any business. To overcome this problem, a proficient solution "ERP" came into existence. The vast tool, capable of integrating internal business processes of any organization, is so called termed as Enterprise Resource Planning. ERP is an approach of amalgamating the various departments of an enterprise such as Sales, HR, Finance, Marketing, Production, Warehouse, etc. The single source where internal departments can share and access information quickly is ERP. In actual, ERP is a wide centralized database where all the inter-departmental data is stored. It is capable of performing multiple operations in a single time and can be used by various enterprise units at the same time.
In this world with a high level of competition at the top, companies have turned to ERP to gain a competitive advantage over rivals. ERP systems are an instrument used to “build strong capabilities, improve performance, undertake better decision making and achieve competitive advantage” (Keong, Ramayah, Kurnia and Chiun, 2012) (Al-Mashari and Al-Mudimigh, 2003) (2 and 3)
The main SAP’s core business offer was an enterprise resource planning system shortly called ERP system. When they manage to successfully implement the ERP system it linked all fields of a company including human resources, management, manufacturing, financial systems and distribution with suppliers and customers. The companies that used their system have felt and “drastic decline in inventory, breakthrough reductions in working capital, abundant information about customer wants and
described the ERP system as packaged (but customisable) software applications, which manage data from various organizational activities and provide a fully integrated solution to major organizational data management problems. They provide for both the core administrative functions, such as human resource management and accounting, as well as integrated modules which can be selected to support key business processes, such as warehousing, production and client management.
Some businesses are apprehensive about the time and costs involved in implementing an ERP system. That’s understandable, as traditional ERP software can be inflexible and take a significant amount of resources to implement.
Industries globally, whether public or private sector are shifting way out from developing Information Systems in-house and are implementing ERP systems and many readymade software packages. ERP packages are known for business operating system that enable better resource planning and deliver value-added products and services to customers. ERP automate core corporate activities such as manufacturing and the management of financial and human resources and the supply chain.
Enterprise Resource Planning systems are integrated, enterprise-wide, software application packages with a shared database that manage a business’s resources efficiently and effectively regardless of their size. They consist of different functional modules in the departmental structure of a firm. (E.g. Accounting Department, Procurement, Sales Department, Production Department, Warehouse, etc.). The information in ERP systems can be accessed by
ERP application is the most common means for corporations of all measurements to face their particular day-to-day businesses. When ERP application should go appropriate, it can save a business hundreds of thousands on account of greater output, greater supply in addition to increased purchaser following. ERP application automates the task regarding syncing multiple features, such as gross sales, producing, customer relationship management in addition to sales, to produce a a single item option for many of your company 's desires. Almost all ERP application roll-outs are actually comparatively even, and also the organizations engaged have reported the pretty much quick beneficial effect on their particular enterprise. In fact, with
Another benefit companies receive from using an ERP is standardized processes and consistent data. This is important in the energy sector and the oil and gas industry because it allows the business to move rapidly to new markets as well as adjust workloads among offices. (Anderson et al., 119) an ERP system will provide managers with pertinent and timely information on when assets need to be replaced among others which will improve the quality of their decisions. (Anderson et al. 119)
The ERP was invented between the 1960s and 1990s. It gives the opportunity for supplier and manufacturing companies to keep updated records of customers. So they can hold sufficient inventory of products satisfying the customer demand (Polychronopoulos, 2005).
ERP systems allow for integration between business organizations to be accomplished effectively and without making mistakes. Because of this, a productive ERP system needs the different features of businesses to be connected with one another. As stated above, there are many sections of an ERP System. The manufacturing sector includes the resource and material planning, engineering, bills of material, and the quality of the information being transferred. The Finance area of ERP can help Accounts Receivables, Accounts Payables, and managing the cash as it comes in and leaves the organization. The human resources area of an ERP System takes care of the employment, advantages of employees, payroll, and the labor rules. The supply chain management looks over the
For years, small businesses have been looking for solutions to monitor the overall system of operation. Inevitably, if a business is developing and growing, it would reach a point where the actual information technology (IT) infrastructure becomes obsolete. For Forrest Burnson (2015), when a business attends that point, the first move is to renovate the Enterprise Resource Planning (ERP) system. ERP supports management in monitoring the critical operations as sales, accounting, human resources, supply chain management, customer relationship management and more.