After ERP is installed

ERP Vs Groupware:

In ERP installed companies, there is a lot of paper work related to ISO 9000 compliance. Paper work can be reduced by restructuring the organization, say by making it flatter rather than taller. The infotech solution to reduced paper work in a cost effective manner is the use of groupware which configures the work flows to any business process. The paper documents are converted into electronic documents. They are pushed into pre-assigned post boxes. Paper is not circulated. This can be done at a fraction of a cost of an ERP solution. ERP is passive about the action taken by the managers on information sought. Groupware alerts the managers by charting a route a document should take to create a specific workflow creating an awareness regarding action. ERP solution is customized, hard and expensive to install. Groupware is compatible with different hardware system. It is quicker, cheaper and less disruptive.

Efficient Consumer Response (ECR):

This is a holistic strategy between the manufacturer and retailer to increase consumer value by removing non-value added cost from the entire supply chain.

ECR has four elements:

1) Sorting of SKUs meaningfully to classify just extensions or flankers and those that form an essential part of the product category.
2) Strategy of efficient replacement: Here the consumer demand pulls product through the chain. It is like just in time inventory management.
3) Strategy of efficient promotion: Maximize the total efficiency of trade and consumer promotions.
4) Strategy of new product introduction: make innovations effectively.

ERP Journal:

The Indian Express Group’s business publication division has added ERP journal to its product portfolio. It is priced at Rs 30 a copy. ERP is not covered adequately in mass media. Internet provides ERP information not relevant for India. Most ERP books are expensive. ERP seminars are held at metros. Marketing literature is available for specific product of a particular company. ERP journal has been launched (1999) to satisfy the need from authentic India related in depth low cost information about ERP. It is not positioned as an IT magazine. Its target audience is business mangers, and not IT professionals. ERP may become outdated a term but integrated information system will not. There will be several industry specific issues. The sales will be subscription based.

B2B site for ERP:

In Internet, B2C (business to consumer) model is difficult to make cost effective. However, B2B (business to business) model ensures disintermediation and consequent cost savings ensuring its success. Eastern software systems (ESS) is one of the first software companies to out ERP software on the Net under the brand name MakESS to cater specifically to small and medium enterprises. They are backed be venture capitalists. The software was launched in September 1999 and became the first ASP (Application Service Provider) in India. Ispat Steel, Indonesia is their largest customer on the Net. The rent is about Rs 9,000 per month for MakESS. They have lunched a site that caters to ERP on the Net called They have just added Net enabled applications to ERP, and they are renting it out for around Rs 30,000 per customer per server.

Most Implemented ERP Modules:

1) Finance and Accounts
2) Materials management
3) Inventory Control & Management
4) Production Planning and control
5) Sales and distribution
6) Supply Chain management
7) Logistics
8) Quality management
9) Human Resources management
10) Plant Maintenance
11) Treasury
12) Project Management

ERP market shares

Package Percentage

SAP 20
JD Edwards 10
Mfg/Pro 10
Marshal 9
Oracle Financials 7
BaaN 4
Others 22

Components of ERP Expenditure

Components Expenditure (%)

Software 53
Implementation 35
Pre-Implementation 9
Post Implementation 3