ERP Know More - Practical Understanding and Adherence to Processes

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Practical understanding of the system means that a person should have a good appreciation of the Function (purchase or sales etc), a fundamental appreciation of how IT can enable the function in question, and finally good systems training on as many business scenarios as possible.

In purchase for instance, every buyer is made familiar about the nature of goods and services procured by the value / volume aspects (typically), quotations processing and in involving the right people in certifying the best quote. IT’s capability to run FSN/XYZ analysis of the inventory provides the buyer with an appreciation of the first.

IT can also processes quotations that it receives from vendors in terms of product, quality, price and payment terms when the purchase process is template-ized. Finally the processed information can be shared with a group of decision makers for a joint validation of the best vendor.

If you are still having trouble distinguishing between traditional systems delivery and the cloud based model, consider the fact that the inherent difference is the ‘time critical’ availability of software, provisioning and the associated services. Through the points outlined above it is possible to discern that the adoption of technology capacities, product capabilities, scope of services happens as and when the business finds the compulsion. Technology capacities include basic data storage capabilities, transacting, reporting, extending the ERP, mobile computing, etc. Product capabilities include the domains they may cover – finance, inventory, etc. Services include basic provisioning, maintenance, upgrade, extensions, changes, etc. to conclude, if IT is the means to an end, then it should shape itself to suit the business. If IT initiatives are handled as time critical interventions to support business shifts, there are major victories to be had.

Click here to read the article published by A&D in their Anniversary Issue in April/May 2011.

To more on Ramco’s ERP on the cloud.

Contributed by : K. Shyaam Sunder, Chief Knowledge Officer, Ramco Systems