ERP and the Accountant

Any self-respecting Accountant should be aware of their involvement in an ERP project in areas such as :-

• Financial Accounting
• Fixed Assets
• Treasury Management
• Self Assessment Tax
• Sales Distribution and product inventory
• Logistics Management and materials inventory
• WIP
• Costing (Product, FIFO/Weighted Average)
• Balance Scorecard

ERP2 Implementation Tips : After Implementation

1. Getting post-implementation support from in-house team and/or Software Vendor
2. Turnover in trained personnel may jeopardise the continuous running. In this respect, either training support from Software Vendor or strong in-house training unit is necessary
3. Continous review of ROIs/KPIs from the implemented ERP2 system with a view of improvements
   

ERP2 Implementation Tips : During Implementation

1. The need for user to be committed in attending training by Software Vendor
2. Overcoming users resistance on workflow and system changes.
3. Integrating with other ERP2 software used by the customer's vendors in diverse industries. KarenSoft's Rosettanet middleware will help to resolve this issue.
4. Need to take into account unforeseen operational interruptions which will cause delays in the ERP2 project implementation from time to time.
5. Lack of experienced Customer personnel in implementing the system. In this respect, the right ERP2 vendor will be able to provide adequate training and hands-holding.
6. Incorrect specifications given during system study by Vendor. This can be resolved if the Software Vendor are principals (like KarenSoft) and not merely representatives.
7. Where remote access is needed from areas where bandwidth is an issue, the need to have low bandwidth access via the right system architecture. For example, KarenSoft SCM can be accessed anytime and anywhere through a 22.8 dial-up and still get 'speed of thought' response.
8. Need to co-ordinate implementation and ISO procedures
   

ERP Implementation Tips : Before Implementation

1. Getting Top Management support
2. Documenting existing workflow, identifying SWOTs
3. Identifying the expected tangible benefits and any measurable ROIs/KPIs
4. Need to put together the project team which should comprise departmental heads from Marketing,Materials Control, Purchasing,Production Control, Finance & Document control (ISO)
5. Need for significant intra-departmental co-operation . As such, adequate representation from the various departments is crucial to ensure that intra-departmental processes and workflow as well as individual departmental needs are taken to account.
6. Choosing the right ERP2 software which can truly integrate between SCM, CRM and ERM. Do not underestimate the nightmare and the waste of time and resources if integration has not been factored in from the beginning of the project.
7. Choosing the right software vendor who has to be suitably experienced i.e with a good track record and who can provide strategic business consulting on SCM, software development and support infrastructure. Costs should not be the only reason for choosing the right vendor.
   

What is ERP/ERP2 ?

Gartner defines ERP2 as collaborative e-Commerce which sees ERP working with CRM ie ERP2=ERP+CRM

International Data Corporation (IDC) does not use the term ERP2/ERP but defines Enterprise Applications as comprising ERM, SCM and CRM

Basically,
Gartner’s ERP2 = IDC’s ERM+SCM+CRM

Legend :
ERP2 = Extended Enterprise Resources Planning
ERP = Enterprise Resources Planning
ERM = Enterprise Resources Management (FMS+HRIS)
SCM = Supply Chain Management (SDS+MRP+LMS+PPS)
CRM = Customer Relationship Management


ERP as seen as an Equation

ERP2 = ERP + CRM
where ERP = Enterprise Resources Planning (transactions based)
CRM = Customer Relationship Management


ERP = Financial Management (FMS) +
Human Resources Management (HRIS) +
Distribution (SDS) +
MRP +
Materials Management (LMS) +
Manufacturing/Production Management (PPS)


CRM = Suite of inter-related modules to track
Pre-sales +
Marketing +
Post-sales activities +
Retaining existing customers +
Sales force management


SCM = Supply Chain Management (decisions based, implemented using ERP) and comprises
Distribution +
MRP +
Materials Management +
Manufacturing/Production Management


Evolution, from MRP to ERP2

ERP2 started out as Materials Requirement Planning (MRP) and evolved into Manufacturing Resources Planning (MRP2) with the addition of manufacturing and production management.

Subsequently, with the inclusion of financial management and human resources management, it became Enterprise Resources Planning (ERP).

Finally, with the inclusion of customer relationship management and supply chain management, it is currently described as ERP2 or Extended Enterprise Resources Planning (Collaborative e-Commerce)

Again, Viewed as an Equation,

MRP = Distribution + Materials Management
MRP2 = MRP + Manufacturing + Production Management
ERP = MRP2 + Financial Management + Human Resources Management
ERP2 = ERP + CRM