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Topic : ERP & BPR - The Change Agents....
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Tech World

 
Industry : IT ServicesFunctional Area : New Technologies(Technology)
Keywords : erp smb
Activity:  33 views;  last activity : 07 12 2010 03:14:34 +0000

Enterprise Resource Planing, even though in its evolving stage is yet to mature amongst SMB, With a base of 10 million in India many SMB's are yet to realize the advantage as ERP comes as an costly and unmanageable affair. In majority of the SMB businesses, demand and supply are highly unpredictable. These factors have their own impact in production and downstream operations.

ERP implementation needs skillful handling to give the desired results, and requires standard business processes to be in place already. But today, for most of the mid-market organizations, the complexity of managing an ERP system is a constraint, as the smaller the organization, the bigger is the constraint. Their outlook is to have a system that helps them in doing business without bothering much about what is happening at the back-end.

So users, how do ERP and SMB get along?

 
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1 2 3 4
1 Hosted ERP is changing the game for SMBs
2 ERP needs of SMBs are not still adequately addressed
3 Hosted ERP services is not a good idea
4 Flank on-premise ERP with hosted Best of Breed Applications

Hosted ERP is changing the game for SMBs

idea posted by Prarthana Devi Database Architect/Designer, Leading IT Company

ERP on a hosted/ SaaS platform with its varied benefits seems to be the right choice for small businesses. Since the application is delivered on a subscription model, they need not invest in OS, database, hardware, IT staff and the ongoing overhead. Enterprises with on-premises model will shift to the SaaS delivery model for non core areas. Also some enterprises will look at a hybrid model where non core applications will be on SaaS and the core applications like production, financial, order management will still be On Premises model. Mid-size enterprises are poised to drive the next wave of economic growth for the country. With this platform, organizations can stick to their focuses on the core business rather than dealing with the back-end applications.

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ERP has already set benchmark for its utility and versatility. Though in its infantile stage, it has already marked its presence. One needs to understand the power of ERP and use in its right perspective. inferred Data Management is very important for all organizations. It is the core. Hosted software provide ample scope for this. Reach is fantastic, redundancy is minimized. Simultaneous multi-level data process at multi-division is enabling business-houses to take optimum advantage of the facility. One thing is sure, the days are not far where it will emerge with more user-friendly and flexible ability.      

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by Nishant Avasthi, Director - Ops  | 06 29 2010 08:48:23 +0000

I support the idea. One might also add to this, the multitudes of Open source tools available to cater to the various needs of an SMB in terms of managing there business. Although they need some skill to setup and configure, they can significantly add to the reduction of costs for SMBs.

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by Om Deshpande, Business Consultant, JobsXS  | 06 29 2010 08:31:11 +0000

I completely agree with you.

"Cloud based" IT infrastructure is the best available IT solution with SME's. It gives them an opportunity to compete with the biggies, in terms of both cost and efficiency. Because implementing an in house ERP was just not feasible for small organizations because the volume of data and the number of people accessing the data is low, so it can be easily managed by someone who is proficient in say MS Excel etc. and it did not make sense spending so heavily on automation when the volume of data is not much. "Cloud computing" is the perfect solution. Platforms like Zoho even provide a plethora or online softwares which are free for upto 2-3 users.

The only issue with "cloud computing" is data security. I am saying this from my organizations perspective. Cloud based services do provide application level security i.e requires users to log in using a password. But, one can access this data from anywhere, that is the only worry. We cannot restrict someone from accessing the application from say home or anywhere outside the organization.

Regards,

Om Deshpande

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ERP needs of SMBs are not still adequately addressed

idea posted by MVS Rao Director, Sai-Sudir PG College, Hyderabad

 ERP needs of SMBs  are not still  adequately addressed, so the idea per say is good. While providing solution one should bear in mind the cost sensitivity of SMB and ease of use. My experience is that they depend more on personal contact on phone rather on Desk top computer. Now mobile phone with SMS and MMS can serve them well. However much depends on the data security on the remote hosting end. Perhaps a combination will be a good bet

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Hosted ERP services is not a good idea

idea posted by Pankaj Mitra Managing Director, MIDAS Automation & Telecommunications Pvt. Ltd.
ERP runs a compny's core business. Most ERP software companies have developed economically priced packeges for SMBs. ERP hosted services require you to park your business driving information and data in the service providers infrastructure. Can you afford to pass on your business information and strategy to a third party. Further hosted ERP services are connected through public domain networks or those with public domain access. This is again not a good idea as it exposes your ERP data to hacking / cracking with continuous physical access from the public domain.
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Flank on-premise ERP with hosted Best of Breed Applications

idea posted by Puneesh Lamba Head - Enterprise Applications, Punj Lloyd

Data Security is still an issue that is playing as a roadblock for more companies to adopt SaaS model and the best way to go forward at least for today is to have your ERP on an on-premise model so that the classsified data is secure and flank the ERP with best of breed niche applications that act as differentiators for their company on SaaS model based on clouds.

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