ERP AND THE CHANGING SCENARIO OF THE INDIAN CORPORATE
ERP or Enterprise resource planning can be defined as an integrated, multi-module system that assimilates all the data and processes of an organization into a unified system. To attain this goal, it is essential to strike a successful combination of both hardware and software. Having ERP in India is like an investment that most business houses look up to but it is a valuable asset for any organization. Though having ERP in companies of India provides a profitable source of income and quality customer service, there where the several challenges to the introduction of ERP in India. This includes change management, organizational intervention, replacing outdated software, shifting from function view to process view, hiring ERP-literate staff and faith in package software in the place of custom-built software. Keeping in view the advantages and constraints in implementation of ERP application for an organization. This paper would highlight and focus about some Indian companies which successfully implemented this solution for the betterment of their business process and also about how they benefited from this implementation.
Indian industry initially had legacy systems working on different platform, which were developed in-house, and tailor made to their method of working. Since the legacy system took care of data processing, only, the system generated some operational reports. Real MIS resided on Excel sheets along with different kind of analysis. Therefore, information was fragmented and authenticity was questionable. Over a period of time, the systems underwent changes and represented a patchwork of several additions and modifications. They were loosely integrated across functional areas and there was duplication and information inconsistency. It was, therefore, important to migrate from this platform to something more stable and futuristic. The management vision was to align IT with business. IT was to be used as a strategic business tool rather than for limited purpose of data processing. An information systems plan was drawn up, which besides other things, stated that the organization would go for common system across the organization which would also achieve integration between all systems, emphasis would be on improving business processes, to adopt best practices and to cover the entire supply chain. Another important factor that is driving the demand for ERP solutions is the changing characteristics of customers. Customers, who have become more knowledgeable of the various choices, have come to expect better quality, faster delivery, highly customized products, and enhanced support services. Delivering all these to customers is getting more difficult with the consistent entry of new players in the market space, stiffer competition and loss of regional domination because of globalization. Last decade has seen the organizations around the world spending a large amount of money to adopt ERP systems due to six main reasons. Firstly, companies require a common database; secondly, they want to improve and standardize their process; thirdly, they require ongoing monitoring; fourthly, cutting down the operating cost; fifthly, improving relations with customers and suppliers and finally, improving their decision-making capability. With the help of ERP solutions, enterprises are increasingly looking at sharing relevant business process related information with business partners. This not only allows all the partners involved to take decisions quickly and plan out actions according to the changing market compulsions, but also decreases the overall risk factor. The whole concept of enterprise resource planning originated in the large industrial types of companies where the system was used to simplify their processes and workflow. However, with the passage of time, ERP has evolved as a more comprehensive system and now it is largely available to...
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