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Evaluating
ERP Systems
Enterprise
Resource Planning is a set of integrated software that encompasses
variousfunctions
of the organisation. While it provides operational independence
to the people invarious
functions, it also maintains the integration among them,
enabling the decisionmakers
to have a single view of information.Today,
a customer has a wide variety of ERP solutions to choose
from, international aswell
as Indian.In evaluating, some of the critical parameters
are as below:
Product Functionality
While most ERP products offer a similar set of features,
there are wide variations in theway
the features are designed, and the level of depth to which
they are modelled. It is atthe
nuts and bolts level, that a lot of packages fail. These
issues come out only whenimplementation
starts, and often leads to delays in terms of customisation,
or worse still,the
customer making do with a convoluted ‘work around’.Since
it is impossible to evaluate the features and functions
of a product at this level ofdetail
(unless one wants to spend a couple of ye ars in this process)
, the functionality isbest
evaluated by the vendor’s track record and success
of the product in a similarorganisation.
Fitness for India
Some
international products fail in catering to the unique statutory
and business practicerequirements
in India.If
the base transactions, which need to address these regulations,
cannot be conveniently,the
entire system is likely to fail.While some of the international
vendors ‘localize’ theproduct
, these changes are so fundamental that they take a long
time.(In
quite a few cases, the time taken to ‘localize/customize’
the product has been longerthan
what it would have taken to develop from scratch.)This
also throws up issues of reliabilty of the software and
rule out the quick availabilityof
new versions and features which the vendor may announce.In
evaluationg ERP products, looking at successful Indian installations,
therefore,becomes
a must, rather than relying on the track record elsewhere
in the world.
Implementation Support
Any ERP software is of no value unless it is implemented
well. Implementation isexpensive
and normally costs 2-3 times the product value.While a no.
of products havethird
party consultants who implement the product, getting the
support directly from thevendor
is obviously better, from the prespective of a better understanding
of how toimplement
the product to take full advantage of its capabilities.Given
that people trained in some of these products have good
demand world wide, it iscritical
to ensure stability of the implementation team to carry
through the entire exercise.Lastly,
the stability of the vendor, his commitment to this market
and comiitment to Indiaare
of vital importance.By implementing ERP solutions, and given
the competitivecontext,
an ERP system may become as much part of the necessary infrastructure
toremain
viable, as the telephone! |
