Mahesh Y. Sathe
Small and Medium Enterprise Consultant
AUTHOR
maysathe@gmail.com
“ERP should have this basic featureā
“You should have asked before placing an order”. I have heard similar dialogues many times.
‘m SME consultant for last 15 years. I have seen various issues with respect to ERP utilization. I am on both sides of these issues as I have clients which are ERP users and ERP companies as well. It’s always interesting to learn and resolve these issues. Many a times I have seen that ERP Company and user company, both are correct with respect to their sides.
I categorise these issues into three types :
(I) Lack of clarity in the features
(II) Continuation of old practices
Avoidance of ERP use due to heavy data entry First type happen in the first phase and normally get resolved during implementation. However, I have seen lack of clarity with senior management even after using ERP for a decade. This hampers ERP utilisation and operational efficiency of the company. This can be sorted out by training on MIS and ERP in particular. I have conducted such programs named as ‘I learn, my MIS’ program. This program is done in coordination with ERP company and ERP user company. It helps both companies in saving time and efforts as well as increase ERP utilisation. This issue sometimes crop up due to company growth or change in management style. Program helps in Change management to reduce the transition time. Whenever an ERP company adds a new feature, it’s observed that they make their clients aware of these new features. Clients also respond well to such efforts.
Second type is ‘Continuation of old practices ‘. This can continue for decades!!!!! Typically it’s said, ‘We do like this only ‘. Such companies can increase their Operational efficiency by making necessary changes. Changes may be small or major, depending on the deviation. A small change like to start using ERP screen for daily meeting can bring a big benefit. ERP companies are generally reluctant during this period as they don’t see any commercial benefit. However, due to increased ERP utilisation may generate some revenue. I help User Company to increase ERP utilisation for their margin improvement, higher manpower utilisation, schedule adherence for manufacturing and service companies, synchronisation of facilities and real time data management. Managers resist to change is a big issue. I showcase their comfort and easy interpretation. These expedite the process of acceptance.
For example, a client had a practice to first visit the plant and then looks at the MIS reports. I suggested going through reports and then having a walk around. Client was hesitant. He told me that MIS report doesn’t produce complete picture. It was correct. I asked this question in one of my sessions with CII, Godrej Centre for excellence, Mumbai, and I got similar answer. Almost everyone mentioned that MIS reports from ERP does not present complete picture. I agree because even I have same experience. When I go through ERP MIS reports at client end I get some idea, however I get more information when I interact with line managers. ERP companies can make certain changes to have more clarity. ERP users can make certain changes like what we are discussing. The client, to whom I advised to go through MIS reports first and then take a round, was not convinced. During one of my physical visit at his factory, I checked MIS reports with him and then took a round along with him. I demonstrated the time saved and his effective questioning as well as the advanced instructions passed on by him. Client convinced as I demonstrated his benefits.
Similar small changes can bring big benefits.
Third type is ‘Avoidance of ERP use due to heavy data entry’. This issue can start from implementation or at any point of time and continue for very long. ERP companies can make have automation in data entry using bar code , IoT or screen skip feature so as to reduce data entry. Client can reduce on feature so that relevant data entry can be reduced. Looking at the application, we can have packaged data to save huge same and repetitive data entries.
Ultimately ERP is not expenditure, it’s an investment. Let’s have the best experience out of our investment. If you have lower ERP utilization, let’s come together and increase it so that it results in margin improvement, comforts in daily operations, better visibility and higher delivery from the same team. The only addition to the team may be myself!!!!!
9422682814
maysathe@gmail.com
