Advantages and Disadvantages of ERP - Enterpriese Resource Planning

Advantages of ERP Systems
There are many advantages of implementing an EPR system. Few of them are listed below:

• A perfectly integrated system chaining all the functional areas together
• The capability to streamline different organizational processes and workflows
• The ability to effortlessly communicate information across various departments.
• Improved efficiency, performance and productivity levels
• Enhanced tracking and forecasting
• Improved customer service and satisfaction

Disadvantages of ERP Systems
While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

• The scope of customization is limited in several circumstances
• The present business processes have to be rethought to make them synchronize with the ERP
• ERP systems can be extremely expensive to implement
• There could be lack of continuous technical support
• ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future

Simple Fact: -

STD Code of Hyderabad, India is 040

Implementation of Enterprise Resource Planning

Implementing an ERP system in an organization is an extremely complex process. It takes lot of systematic planning, expert consultation and well structured approach. Due to its extensive scope it may even take years to implement in a large organization. Implementing an ERP system will eventually necessitate significant changes on staff and work processes. While it may seem practical for an in-house IT administration to head the project, it is commonly advised that special ERP implementation experts be consulted, since they are specially trained in deploying these kinds of systems.
Organizations generally use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

• Consulting Services - are responsible for the initial stages of ERP implementation where they help an organization go live with their new system, with product training, workflow, improve ERP's use in the specific organization, etc.
• Customization Services - work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code. While ERP systems are made for many core routines, there are still some needs that need to be built or customized for a particular organization.
• Support Services - include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

ERP implementation process goes through five major stages which are Structured Planning, Process Assessment, Data Compilation & Cleanup, Education & Testing and Usage & Evaluation.

• Structured Planning: is the foremost and the most crucial stage where an capable project team is selected, present business processes are studied, information flow within and outside the organization is scrutinized, vital objectives are set and a comprehensive implementation plan is formulated.
• Process Assessment: is the next important stage where the prospective software capabilities are examined, manual business processes are recognized and standard working procedures are constructed.
• Data Compilation & Cleanup: helps in identifying data which is to be converted and the new information that would be needed. The compiled data is then analyzed for accuracy and completeness, throwing away the worthless/unwanted information.
• Education & Testing: aids in proofing the system and educating the users with ERP mechanisms. The complete database is tested and verified by the project team using multiple testing methods and processes. A broad in-house training is held where all the concerned users are oriented with the functioning of the new ERP system.
• Usage & Evaluation: is the final and an ongoing stage for the ERP. The lately implemented ERP is deployed live within the organization and is regularly checked by the project team for any flaw or error detection.

Simple Fact: -

Climate is Tropical and Dry in Hyderabad, India.

ERP System Improves Productivity, Speed and Performance

Prior to evolution of the ERP model, each department in an enterprise had their own isolated software application which did not interface with any other system. Such isolated framework could not synchronize the inter-department processes and hence hampered the productivity, speed and performance of the overall organization. These led to issues such as incompatible exchange standards, lack of synchronization, incomplete understanding of the enterprise functioning, unproductive decisions and many more.
For example: The financials could not coordinate with the procurement team to plan out purchases as per the availability of money.
Hence, deploying a comprehensive ERP system across an organization leads to performance increase, workflow synchronization, standardized information exchange formats, complete overview of the enterprise functioning, global decision optimization, speed enhancement and much more.

Simple Facts: -

Altitute of Hyderabad, India is 536 Meters

Ideal ERP - Enterprise Resource Planning System

An ERP system would qualify as the best model for enterprise wide solution architecture, if it chains all the below organizational processes together with a central database repository and a fused computing platform.

• Manufacturing: - Engineering, resource & capacity planning, material planning, workflow management, shop floor management, quality control, bills of material, manufacturing process, etc.
• Financials: - Accounts payable, accounts receivable, fixed assets, general ledger, cash management, and billing (contract/service)
• Human Resources: - Recruitment, benefits, compensations, training, payroll, time and attendance, labour rules, people management
• Supply Chain Management: - Inventory management, supply chain planning, supplier scheduling, claim processing, sales order administration, procurement planning, transportation and distribution
• Projects: -Costing, billing, activity management, time and expense
• Customer Relationship Management: - Sales and marketing, service, commissions, customer contact and after sales support
• Data Warehouse: - Generally, this is an information storehouse that can be accessed by organizations, customers, suppliers and employees for their learning and orientation

Simple Facts: -

Hyderabad, India area is 217 Sq Km

Integration is Key to ERP - Enterprise Resource Planning System

Integration is an exceptionally significant ingredient to ERP systems. The integration between business processes helps develop communication and information distribution, leading to remarkable increase in productivity, speed and performance.
The key objective of an ERP system is to integrate information and processes from all functional divisions of an organization and merge it for effortless access and structured workflow. The integration is typically accomplished by constructing a single database repository that communicates with multiple software applications providing different divisions of an organization with various business statistics and information.
Although the perfect configuration would be a single ERP system for an entire organization, but many organizations usually deploy a single functional system and slowly interface it with other functional divisions.

Simple Fact: -

Hyderabad, India is also known as "City of Pearls"

What is ERP - Enterprise Resource Planning

ERP, which is an abbreviation for Enterprise Resource Planning, is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with the core business processes of a corporate house to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components; Business Management Practices, Information Technology and Specific Business Objectives.
In simpler words, an ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise wide information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business execution which in turn influences their decisions in a productive way. At the core of ERP is a well managed centralized data repository which acquires information from and supply information into the fragmented applications operating on a universal computing platform.
Information in business organizations is accumulated on various servers across many functional units and sometimes separated by geographical boundaries. Such information islands can possibly service individual organizational units but fail to enhance enterprise wide performance, speed and competence.
The term ERP originally referred to the way a large organization planned to use its organizational wide resources. Formerly, ERP systems were used in larger and more industrial types of companies. However, the use of ERP has changed radically over a period of few years. Today the term can be applied to any type of company, operating in any kind of field and of any magnitude.
Today's ERP software architecture can possibly envelop a broad range of enterprise wide functions and integrate them into a single unified database repository. For instance, functions such as Human Resources, Supply Chain Management, Customer Relationship Management, Finance, Manufacturing Warehouse Management and Logistics were all previously stand alone software applications, generally housed with their own applications, database and network, but today, they can all work under a single umbrella - the ERP architecture.
In order for a software system to be considered ERP, it must provide a business with wide collection of functionalities supported by features like flexibility, modularity & openness, widespread, finest business processes and global focus.

Simple Facts: -

Hyderabad, Capital of Andhra Pradesh, India.

How Biometrics Work

A biometric system can operate in the following two modes:

Verification – A one to one comparison of a captured biometric with a stored template to verify that the individual is who he claims to be. Can be done in conjunction with a smart card, username or ID number.
Identification – A one to many comparison of the captured biometric against a biometric database in attempt to identify an unknown individual. The identification only succeeds in identifying the individual if the comparison of the biometric sample to a template in the database falls within a previously set threshold.

The first time an individual uses a biometric system is called an enrollment. During the enrollment, biometric information from an individual is stored. In subsequent uses, biometric information is detected and compared with the information stored at the time of enrollment. Note that it is crucial that storage and retrieval of such systems themselves be secure if the biometric system is to be robust. The first block (sensor) is the interface between the real world and the system; it has to acquire all the necessary data. Most of the times it is an image acquisition system, but it can change according to the characteristics desired. The second block performs all the necessary pre-processing: it has to remove artifacts from the sensor, to enhance the input (e.g. removing background noise), to use some kind of normalization, etc. In the third block features needed are extracted. This step is an important step as the correct features need to be extracted in the optimal way. A vector of numbers or an image with particular properties is used to create a template. A template is a synthesis of the relevant characteristics extracted from the source. Elements of the biometric measurement that are not used in the comparison algorithm are discarded in the template to reduce the filesize and to protect the identity of the enrollee.

If enrollment is being performed the template is simply stored somewhere (on a card or within a database or both). If a matching phase is being performed, the obtained template is passed to a matcher that compares it with other existing templates, estimating the distance between them using any algorithm (e.g. Hamming distance). The matching program will analyze the template with the input. This will then be output for any specified use or purpose (e.g. entrance in a restricted area).

Biometrics Basics

Biometrics comprises methods for uniquely recognizing humans based upon one or more intrinsic physical or behavioral traits. In information technology, in particular, biometrics is used as a form of identity access management and access control. It is also used to identify individuals in groups that are under surveillance.

Biometric characteristics can be divided in two main classes:
Physiological are related to the shape of the body. Examples include, but are not limited to fingerprint, face recognition, DNA, hand and palm geometry, iris recognition, which has largely replaced retina, and odor/scent.

Behavioral are related to the behavior of a person. Examples include, but are not limited to typing rhythm, gait, and voice. Some researcher have coined the term behaviometrics for this class of biometrics.

Strictly speaking, voice is also a physiological trait because every person has a different vocal tract, but voice recognition is mainly based on the study of the way a person speaks, commonly classified as behavioral.

It is possible to understand if a human characteristic can be used for biometrics in terms of the following parameters:

• Universality – each person should have the characteristic.
• Uniqueness – is how well the biometric separates individuals from another.
• Permanence – measures how well a biometric resists aging and other variance over time.
• Collectability – ease of acquisition for measurement.
• Performance – accuracy, speed, and robustness of technology used.
• Acceptability – degree of approval of a technology.
• Circumvention – ease of use of a substitute.

Biometric Technologies Available: -
· Fingerprint
· Iris
· Retina
· Palm Vein Pattern
· Hand Geometry
· Finger Geometry
· Face Recognition
· Voice Recognition

Biometric Technology Adoption Application: -

Biometric Technology Adoption in Very High Risk (Related to social safety): - Nuclear Plants, Mint Bureau, Arms and other.
Biometric Technology Adoption in High Risk Areas (Related to social trust): - Banking, Immigration, Medical Health Care etc.
Biometric Technology Adoption in Low Risk Areas: - Employee Attendance Recording, Office Area Access Control, User Tracking and observation.
Biometric Technology Adoption in Logical Access control Computer Logins, Information Access Control, protect computer network, etc.

Compete by Creating a Well-Run Company

Building a work team that runs like a well-oiled machine is one of the most surefire ways to protect your company from competition today and in the future. Efficiency and productivity emerge in organizations that focus on making sure that teamwork is possible and that information sharing is routine across an organization. The tight-knit work teams in these companies share information freely and broadly across the organization and, therefore, tend to have happier customers, better employee retention and higher productivity.

Use the following tips to oil the gears of your machine and compete more effectively.

Evaluate information flow
Informed teams are competitive teams. With this in mind, create a system to ease the sharing and flow of information across your teams. Do you have an information “blockage” with one employee? Do you lack technology to make it easy for your team members to coordinate efforts? Weaknesses like these can prevent even the most satisfied and well-intentioned teams from collaborating in a way that is essential to retain and increase competitiveness.

Research and implement best practices
Give your team the opportunity to do their best work by educating them about how things are done best. Each industry and discipline has best practices. Management best practices are also readily available. Regularly gather and share information on best practices in order to give your team the information they need to build their skills.

Two implementation details can help with the success of this information sharing. One, determine if your team needs support in building the skills needed to attain the level of expertise required to do these best practices. Two, ensure that best practices are presented to your team as something to strive for as a means of improving their work experience. This is a better approach than holding up best practices as an example of team shortcomings.

Provide a flexible working environment
Well-run companies tend to have programs in place that provide training, career advancement and flexibility. Whether these programs are formal or not, employee satisfaction, improved morale and the associated productivity increases can be tied to how a workplace accommodates an employee’s needs and preferences. Staff members who have the opportunity for advancement or skill building are more likely to feel satisfied with their jobs and more likely to do their best work. Likewise, those who are allowed some flexibility — whether it is time off for personal responsibilities or occasional telecommuting to manage a long commute — are also likely to be happier.

A line can be drawn for many teams between satisfaction and the ability to focus, work hard and share information required for the company to do great work.

Create an environment that encourages mutual respect
Another way to describe this is to “limit the number of annoying people on your team.” One or two people who horde information, speak negatively or ignore deadlines or otherwise challenge team work can derail your productivity and diminish your competitiveness.

It’s quite easy to justify keeping these staffers in place if they contribute intellectually, creatively or otherwise. Their contribution equation though, needs to include the cost they extract from the team. One way to arrive at this cost is to determine how many incidents (missed deadlines, comments, etc.) occur over a given period of time. Arrive at a time or financial cost for each incident and do the math. Also keep in mind that each time this person “strikes,” other team members are affected and lose productivity because of frustration.

Focus on retention
Team strength builds over time and the stronger your team, the more competitive your company. Learn what is required to keep your teams intact and employed with you and then create a retention system. You can conduct research within your company to learn what changes can positively affect retention. Speaking with key team influencers in your organization to get an on-the-ground perspective may also help.

Tool you need to become Best Run Business: -

Affordable Business Management Solution

Be Bold and Learn To Think Big

Big Think Strategy: How to Leverage Bold Ideas and Leave Small Thinking Behind
By Bernd H. Schmitt, Harvard Business School Press, Boston.

The goal of Big Think strategy is to leverage bold ideas and leave small thinking behind. Moreover, we must create the organizational structures and processes to support individual projects and keep the organization focused on Big Think.

The Big Think strategy process consists of six interrelated tasks. The first three tasks concern strategy formulation:
· Sourcing new ideas
· Evaluating the ideas
· Turning the ideas into a Big Think strategy

The following three tasks concern strategy implementation:
· Executing Big Think
· Leading Big Think
· Sustaining Big Think in the organization

While these strategy and implementation tasks may seem familiar, Big Think offers a unique approach, incorporating new methodologies and tools, for each of the six tasks. To remain focused on Big Think, we must employ this approach and not fall back into a Small Think mentality.

Sourcing New Ideas
Small Think strategic planning tries to source new ideas solely by analyzing a host of market and competitive factors. But for Big Think, sourcing really new ideas requires that we go far beyond this simple analytical toolbox. The creative tools used as part of Big Think idea sourcing are all about seeking new connections. We must find new associations by connecting seemingly unrelated concepts. We must benchmark outside our industry (not only within), question long-held assumptions (the sacred cows) of a business, and step out of the timeframe of the present. We must strip down our business strategy to its very core to get more radical ideas. Most important, we cannot source ideas only from within the organization; we must include customers in the idea-sourcing process.

Evaluating the ideas
Effective idea sourcing should generate multiple ideas, which then must be evaluated before we choose which to pursue. Small Think asks a number of decision makers within the organization to evaluate new ideas according to their familiarity and similarity to past initiatives but never asks whether the idea will radically impact the business. To remain focused on Big Think, we should cluster and evaluate new ideas first in terms of their potential for lasting impact and whether they will change markets. Only then should we ask whether new ideas are doable. Ideally, the evaluation process should be as broad as possible, not only including expert decision makers.

Turning the ideas into a Big Think strategy
Too often, a strategic brief gets bogged down in corporate mission-speak, irrelevant data, and linear strategy maps, until the core idea is diluted by Small Think. Instead, Big Think demands that you capture your bold ideas in a crisp image that you further develop using our Big Think strategy quadrants: organizational capabilities required, opportunities and challenges in the business networks, the customer value created by the strategy, and the role of the market ecosystem in bringing it to life. The strategy development process of Big Think resembles the score of a Mahler symphony: you are weaving your bold ideas into a dynamic whole that provides a clear plan for achieving your goals.

Executing Big Think
With Small Think, even the best new strategy can get bogged down in the execution: inertia slows the launch, the rollout is divided between silos (manufacturing, marketing, service) that never communicate, and the customer is nowhere to be found. Executing a Big Think strategy demands tremendous effort; it can feel as if you have to pull a ship over a mountain. Rather than getting buy-in from your employees, you must tap into their dreams. Rather than wasting time on aligning the entire organization perfectly around the strategy, you must organize flexibly. Finally, you must attract your customers’ attention through bold communications.

Leading Big Think
Big Think requires leadership. It cannot succeed with Small Think’s aversion to risk and focus on short-term results. Leaders at various levels of the organization must have the guts to take on the Big Think project, the passion to stand behind it, and the perseverance to see it through to ultimate success. Otherwise, you may just as well let robots do the work. Big Think leaders have a broad view of how to instill fundamental change. They do not just have a plan; they have an agenda. To stay motivated on the way, they consult a diverse group of experts and move in different circles in their professional and social lives.

Sustaining Big Think in the organization
The ultimate challenge of Big Think is not just to set up one successful Big Think project but to implant Big Think into the organizational tissue. For that to happen, we must break down Small Think’s organizational silos to assume an interdisciplinary mind-set. Moreover, employees must view work as play, and play as work, and be entrepreneurial. We need employees who are what I call “Big Thinky Heads.” These are people who radiate a childlike excitement about new ideas. To keep them excited, we constantly expose them to new information that is relevant to their projects and stimulates their thoughts.

Bernd H. Schmitt is Robert D. Calkin Professor of International Business at Columbia Business School. He advises business executives on strategy, creativity and innovation, and he is a frequent keynote speaker at conferences worldwide.

Link to get the book: -
Excerpted from Big Think Strategy: How to Leverage Bold Ideas and Leave Small Thinking BehindBernd H. Schmitt; Harvard Business School Press, Boston.