In the statement below I will be studying how Satyam-Venture anatomist services pvt ltd (SATVEN) company can be benefited from utilizing ERP II in their firm and how a BPR process can help for the successful implementation of ERP II, the potential risks involved if no BPR process is taken into consideration before implementing ERP II and also what sort of Business Cleverness system with ERP II will help speed up company's functional and decision procedures and finally I will talk about how exactly ERP II can help the organization in recognizing the benefits associated with lean beliefs.
The ERP II facilitates to improve internal business process by integrating all the departments in the business. It brings about increase in the interdependence level among the many departments in the organization which in turn helps to reduce the waiting time for information. With the help of ERP II, SATVEN can automate the back office operations like payroll, billing and budgeting.
ERP II applications are web centric. With an benefit of web empowered applications, organization can connect the inner systems with the systems of suppliers, customers and everything the branches across the world. It also helps the empowered employees to gain access to their information from all over the world which is crucial for their job. This makes the business stand on the list of competitors.
The sophisticated management system components like CRM and SCM of ERP II help the business in preserving better relationships with the customers and suppliers. CRM helps functionalities like customer support management and customer id process and SCM helps the corporate and commercial office to choose the affective suppliers; it also assists manager with the facts of when to order and what to order.
The firm must undergo a BPR process to analyse firm's capabilities and risks engaged for successful implementation of ERP II. Executing a BPR process prior to ERP II execution helps the organization to reduce issues during implementation and also helps realize all the huge benefits from applying ERP II.
Failure to undertake BPR process during the early stages of ERP II implementation can result in integration problems and also may cause customer ambiguity which may also be the reason for not realizing all the benefits from ERP II.
By combining ERP II with business intellect system, company can enjoy abnormal results in generating business reviews. The adoption of ERP II also plays a significant role in putting into action lean philosophy over the organization. The slim philosophy in the organization helps to provide customer centric services.
Satyam Venture Engineering Services Pvt Ltd - popularly known as SATVEN is a Joint Venture between Satyam Computer Services and Endeavor. SATVEN is a global player in the Anatomist Services Sector centered on the Automotive Industry. SATVEN has about 700 affiliates working in USA, UK, Germany and India with a turnover of around $25 million. SATVEN has prestigious customers like BMW, Ford, JLR, VW group (Audi & Seating), Nissan-Renault, TRW, Magna, Denso etc.
As the major region of business for the business lies in executive services in addition to the developing software's like Catia v5, Pro-e est. , company does not have any superior ICT that combines complete business. SATVEN has its own Intranet facility in head office Hyderabad, India. The systems division is responsible for developing and maintaining the intranet applications. These intranet applications have only the essential functionalities like LMS (Leave Management System), PMS (Project Management System), e-Time (Online timesheet admittance). Employees can access these applications with an individual URL. Finance department is using payroll system produced by the local software company and The intranet applications are being used by senior professionals and HOD's to see and mange their data successfully.
The current ICT was not able to combine all the departments and also could not support the sophisticated management systems like CRM (Customer relationship Management), SCM (Supply String Management), KM (Knowledge Management), Project Management and Source Management which are crucial for retaining better relationships with customers and suppliers. To meet the growing business requirements also to maintain better relation with stakeholders, company must adopt an organization wide system which utilizes internet and links every part of value chain.
The organization system which includes the above capacities and which can help SATVEN stand out among the opponents is ERP II. ERP II is a set of cooperative financial and functional procedures that build stakeholder romantic relationship value by working internal and external world of venture (Gartner Group 2002).
I am using the construction produced by Moller (2005) to analyze the potential benefits that SATVEN can infer from applying ERP II. The abstract construction of ERP II illustrated in figure 1 has four layers.
(Adopted from Moller 2005)
The core element of ERP II is Centralised Database.
With a centralised databases across the company, SATVEN can perform data integrity i. e. no redundancy of data.
Maintaining one system is simple than the preserving multiple systems.
Empowered users can gain access to their information across the organization which leads to decrease the response time for customer needs.
The central component of the ERP II has traditional ERP and additional functionalities like QMS (Quality Management Systems), PMS (Project Management System) and web centric services.
The ERP II facilitates to improve inner business process by integrating all the departments in the organization. It brings about increase in the interdependence level among the various departments in the business which in turn helps to reduce the ready time for information. By using ERP II, SATVEN can automate the trunk office functions like payroll, billing and budgeting.
QMS will drive the SATVEN in enhancing the efficiency and success of its performance in achieving customer and organizational requirements. It will help quality division in automating auditing process, quality improvement process and also they can use QMS as a portal to provide quality checklists for the employees. The product quality manager can keep tabs on and warn the operational managers for the closures of NC (Non Conformance) and QSI (Quality System Improvement).
The PMS can help the functions managers of SATVEN in arranging of work, tool allocation and monitoring the deliverables and project deadlines. Although the existing intranet applications have these features PMS should come with more security.
With an advantage of web enabled applications, business can connect the internal systems with the systems of suppliers, customers and all the branches around the world. It also helps empowered employees to work from anywhere.
The corporate the different parts of ERP II are decision support systems like CRM (Customer Relationship Management), CPM (Corporate Performance Management), SCM (Source Chain Management), HRM (Human Source Management) and SRM (Source Relationship Management).
The CRM with functionalities like customer support management and customer id process facilitates SATVEN to keep up better relations with customers.
The SRM is the company version of CRM it can help the SATVEN to manage their suppliers effectively.
The SCM facilitates to lessen the order processing costs. The SCM helps the corporate and commercial team to choose the affective supplier; it also aids manager with the facts of when to order and what things to order.
HRM helps the HR team of SATVEN to increase the recruitment process and also helps to conduct online training and performance appraisals.
The CPM helps the older managers and section HOD's of SATVEN to monitor and control the overall performance of the organization.
One of the Collaborative the different parts of ERP II is e-procurement (B2B).
E-procurement facilitates SATVEN to automate the traditional procurement process by carrying out process through web which helps to improve efficiency.
The intranet service throughout the organization provides the employee with a personalized portal.
The web allowed applications enable authorized employees to access data and make quick decisions.
To enjoy all all these advantages from the implementation of ERP II, SATVEN must experience some process advancement. BPR (Business Process Reengineering) is one of the process management tools for completing dramatic improvements with redesign of processes.
"BPR is the radical redesign of business procedures, incorporating steps to cut waste material and eliminate repetitive, paper-intensive tasks to boost cost, quality and service and also to maximise the great things about I. T. " (Koh and Stuart 2009)
Implementing an organization wide system is a major change in the business. With the help of BPR, a firm can understand and evaluate its capabilities before undertaking such a significant change in the business. BPR assists the organization to investigate its current functions and ensure that they are effective in the current business environment or not (Koh and Stuart 2009). By carrying out the BPR process SATVEN can identify new means of undertaking business functions. (Koh and Stuart 2009). BPR will assist SATVEN to increase the efficiency and success of business process and management set ups which exist across corporation. (Hooshang 2006). By considering a BPR process SATVEN can transfer from function-oriented thinking to process-oriented thinking. The last execution of BPR reduces the conflicts during ERP II implementation which eventually brings about revel all the huge benefits from ERP II. BPR acts as an instrument to lessen the strategic gap in the organization as" what it can do versus what it should do" (Subramoniam et al 2009).
Let us look at how the Procedure for BPR takes place in the organization. Davenport and short (1998) described the seven step process for IT aimed BPR implementation. Number 2 shows the seven step process for BPR execution.
(Modified from Davenport and brief 1998)
In the first rung on the ladder of the BPR we must define the objective of the process. The main aim of BPR in SATVEN is to improve client satisfaction by minimizing the turnaround time and better working conditions to boost productivity. Secondly, we have to identify the process to be redesigned. The decision of the procedure can be achieved by two approaches, "exhaustive and high-impact" (Subramoniam et al 2009). By implementing high impact strategy we can select the process that infringe with business and process targets.
The functions like service delivery process, recruiting process, knowledge platform process and QMS process need to be redesigned.
Need to build up a fresh process for e-procurement and enterprise extensive included system.
Third, we must set the benchmark expectations for the processes. The criteria should be possible and goal oriented. Within the fourth step the in depth research of ERP II components and functionalities will help to finalize the functionalities which have to be modified with regards to the processes. In the fifth step build the prototype of redesigned and recently build processes. Within the 6th step test the functions by implementing in a single sector of the organization. The successful pilot implementation leads to execute of changed procedures across the firm.
It is vital that company has to undergo some type of BPR before applying ERP II. Inability to undertake BPR during the early stages can result in major problems after the system runs live. The following points shows what may happen when the BPR does not take place.
The ERP software programs encapsulates with an array of business processes. Firm has to modify these processes regarding to their business, failing to do leads to serious problems.
The integration of systems will be a problem. Without the prior design of enterprise extensive system process which shows how the information must flow between departments, customers and suppliers, company can't be benefited from putting into action enterprise large system.
When you are implementing the enterprise extensive system, there should be a process for data specifications. Failure of building such process causes an ambiguity while producing reports.
The impediments will be higher than benefits when you yourself have not been through BPR before ERP II implementation.
The knowledge platform, QMS, recruiting processes differs from company to company without prior customization company cannot revel all the benefits from these procedures.
Business Brains (BI) is the building blocks of any ERP II system. The success of the business depends upon how you understand your customer needs and exactly how well you understand your competitors. BI enables the organization in collecting data of customers and rivals, converting accumulated data into information and help the mangers while decision making. (Stuart and Habibu 2008)
With the help of business brains SATVEN can identify it's potential hazards and opportunities (Frates and Seena 2005).
Adoption of Business cleverness system will substantially reduce the control time for making business reports which help in decision making. Boots company machines have to generate around 400 accounts in every minute adopting a small business intelligence system helped company to boost his business accounts (Thomson 2008).
The Business cleverness system plays a significant role in studying the financial data of the business which in turn provides overall picture of financial performance to its financial directors. This article in the computer weekly facilitates the above mentioned point by showing how financial directors forcing organizations in adopting business brains system (www. computerweekly. com 2008).
By implementing business brains system SATVEN can put into action some computerised procedures to perform background work and foreground work simultaneously. For example sending an alert e-mails to the sellers and customers. In addition, it assists SATVEN to build up customer-centric views which eventually help take full advantage of client satisfaction.
With the help of BI SATVEN can review the data with regards to new sector business, employee performance and merchant performance.
When we apply BI with supply management, the system will be prompting user what product to buy, when to buy and where you can buy. With this we can reduce the price of good by buying it at right amount of time in right amount.
The fundamental idea of low fat process is to understand customer better; it means identifying the procedure or system which is adding value to customer and which is not. Then eliminate all waste to develop an operation that produces high quality services with low priced. (Slack et al 2007). Low fat viewpoint helps people determine, value of the service from the customer's perspective rather than service provider's viewpoint.
To guide organizations in achieving the popular words of slim "High Quality and LOW PRICED" analysts have determined five ideas.
Value: Determine the customer value (customer prepared to pay) of service.
Value Stream: how much value you have delivered to the client. The difference between value stream and value should be taken out. The processes which are not adding value to the client should be eradicated.
Flow: Ensure free movement of information across the organization. All the bottlenecks need to be eliminated.
Pull: Deliver the service according to requirements.
Perfection: Continuously screen and improve the techniques to meet above concepts.
(Piercy and Nick 2009)
The functions in the business can be split into three categories,
Value Adding: The techniques that are adding value directly to the customer and also essential for the organization.
Non-value Adding: The techniques that aren't adding any value to the client but essential for the business.
Waste: The procedures that are not adding any value to the customer and also not needed for the organization to perform.
Most of the processes in the business come under Non-value adding. We can't eliminate these procedures but we can increase the control time. ICT takes on a significant role in accelerating these processes. With the implementation of ERP II we can reduce the difference between value sent to customer and value customer wants. The following points show how ERP II really helps to implement lean viewpoint in our organization
The legacy systems cannot assimilate the departments in the organization which brings about increased longing time for information required by the user. To reduce this waiting time company has to implement an organization wide system like ERP II.
The trim process says that organizations has to entail customers in the development process i. e. customer has to know what is going on in the business. The complex system like CRM helps serve customer better.
The finance division has to collect data from other departments and then make reports to see the organization performance. This technique is not adding value directly to the client but it is vital for organization. This process must be accelerated by applying BI systems.
The traditional procurement process consists of a lot of paper work. E-procurement helps the organization to automate the traditional procurement process by carrying out process through web which helps improve efficiency.
The fundamental process of organization like recruiting, payroll, budgeting that are not adding value directly to the client can be computerized by putting into action ERP II.
By examining all the great things about ERP II we can say SATVEN can go for the implementation of ERP II. It helps organization in every the areas to develop and serve the client better. To realize all the huge benefits from ERP II company has to devote use BPR process before applying ERP II which has its own pros and cons as described in the report above. And so is the case for BI even as we observed how by combining the ERP II with some business cleverness system helps to speed up the functional process. We have also seen how implementing ERP II brings about revel all the benefits of Lean philosophy across the company which inturn really helps to enhance the stake holder relations.