We knew it all along:
IT Executives Expect Double-Digit Increase on ERP in 2006
AMR Research: IT Executives Expect Double-Digit Increase on ERP in 2006
Month: November 2005
ERP Implementation: Success Factors
By Andrew Karasev
As seeing large number of implementations in our case these are Microsoft Business Solutions Products: Great Plains, MS CRM, Navision we would like to give you our opinion on what should you consider to do to secure implementation success. These principles should work as for large corporation as well as for midsize and even small business. We will not be talking about old-wisdom, which you know from the college classes or business school about management and staff involvement into the decision making, brainstorming, etc. we’ll be ERP specific
* In-house Technical Expertise. Well, complication of computer networking and its security, plus the fact that SQL is now standard for the database platform (Microsoft SQL Server, Oracle, DB2, etc.), plus internet connection line and its support make it inevitable to have IT expertise in the company this might be the whole department or just coming or part time networking consultant. Our experience indicates that the lack of internal or always available onsite specialist decreases the chances of success dramatically. And the explanation should be simple to this fact. Nowadays ERP system requires minor or major customization, integration and reporting and all these steps in turn require patient coding and testing in the test environment or on the sample dataset/database
* Dedicated ERP Administrator. This is true that users could be trained and would know how to use the system. However typical ERP has its own life and somebody should assign new users, setup security roles for them, modify reports and makes custom reports available for the users, setup printers, try first to resolve the issue by looking at the techknowledge database, and so on. ERP Administrator doesn’t have to be IT guru she/he needs to be trained on how to administer the program and how to deal with technical support. Image for a moment that if you take out manager from the company even if all the employees have excellent training and used to work for the company numerous years you will still expect performance degradation. The same should be said about ERP system
* Expect Certain Number of Issues. IT industry is not yet mature and it is probably sad, but the reality, that even very experienced consultant, developer, programmer makes errors or your software environment has something that make the custom piece malfunction. When you see the consultant being persistent in resolving your issues please be patient and try to help him or just don not make him nervous.
* Trust Your Consultant. When you decide on somebody to implement the system, you need from this moment on to trust him and let him have high security access to the ERP hosting server. Complex security makes consultant suffer from getting connected, installing the patches or custom pieces. So many times we were spinning our wheels in trying to test new custom business logic, when, say Windows or MS SQL Server security was restricting us to do the actions we needed
* Do Not Overnegotiate. This is from the sales cycle. When you purchase the system you should purchase the software and implementation from the same company otherwise your partner will place you on the second priority list. We saw numerous examples, when client purchases Microsoft CRM licenses from nation-wide distributor, and then is trying to find somebody to implement the system. Also if you are cutting software prices you may see your consulting company rescheduling the work for you in favor of somebody else.
Andrew Karasev is Chief Technology Officer at Alba Spectrum Technologies ( http://www.albaspectrum.com ) – Microsoft Business Solutions and IBM Lotus Domino Partner, serving corporate customers in the following industries: Aerospace & Defense, Medical & Healthcare, Distribution & Logistics, Wholesale & Retail, Chemicals, Oil & Gas, Placement & Recruiting, Advertising & Publishing, Textile, Pharmaceutical, Non-Profit, Beverages, Conglomerates, Apparels, Durables, Manufacturing and having locations in multiple states and internationally.
Article Source: http://EzineArticles.com/
Causes of ERP Failures
Causes of ERP Failures
by Bruce Zhang
ERP is the acronym of Enterprise Resource Planning. Multi-module ERP software integrates business activities across various functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP has transformed the way multi-billion dollar corporations conduct their businesses. Successful implementation of ERP systems could save tens of millions of dollars and increase employee satisfactions, customer satisfactions and sustain competitive advantages in every-changing marketplace. Corporate executives are often perplexed by the stories that how reputable corporations (Hershey Foods) have failed miserably and lost ten of millions of dollars in their ERP endures.
The failures of ERP projects are preventable if we can identify the common causes of the failures regardless the companies and industries that implement them.
- Image by Behrooz Nobakht via Flickr
An ERP system is the combination of ERP software, the business processes that the ERP transforms, the users of the ERP system, and the computer systems that run the ERP applications. The failures of a ERP project is often the result of the failures in one or more of those four components. The failures in computer systems (hardware and operating systems) are much easier to identify and to fix, so we’ll examine the failures in software implementation, business process and user acceptance.
ERP Failures -Software Implementation
Module-based ERP software is the core of ERP systems. Most ERP projects involve significant amount of customizations. Packaged ERP software modules have built-in functionality that work in a standard and simplified enterprise environment. However, every organization is unique in data requirements and business processes. It is the customizations that transform packaged ERP software into ERP software that meets organizations’ individual business processes and operations. Long and expensive customization efforts often result the pass of release deadline and budget overrun. Customizations may make the software more fragile and harder to maintain when it finally goes to production. Major changes may be required in the later stage of the implementation as a result of incomplete requirements and power struggles within organizations
The integration of ERP systems (http://www.sysoptima.com/erp/erp_integration.php) with the IT infrastructures also challenges ERP project teams. The use of appropriate implementation methodologies can often make or break a ERP project. (http://www.sysoptima.com/erp/implementation_methodologies.php)
ERP Failures – Failure of Accommodating Evolution of Business Processes
According to Anthony, R. A, business processes fall into three levels – strategic planning, management control and operational control. Organizations continuously realign their business processes of all levels in response to the ever-changing market environment. Many ERP systems aren’t flexible enough to accommodate evolution of business processes. Many ERP system need a major overhaul in every a couple of years.
ERP Failures – Failure of User Acceptance
The users of ERP systems are employees of the organizations at all levels. ERP projects usually modify the company’s business processes which create extra workload for employees who use them initially. They may not think that the workflow embedded in the software are better than the ones they currently use. Ongoing end-user involvement and training may ease the difficult in organization’s adaptation of new systems and new business processes.
Bruce Zhang has over 10 years experiences in developing and implementing ecommerce and ebusiness systems in various industries. He operates a website www.sysoptima.com that automatically aggregates the news and new articles in e-business (ERP, CRM, Supply Chain Management and Knowledge Management) from over 50 sources daily (www.sysoptima.com/newsbot/) to help corporate executives, professionals and consultants to keep up with the latest development in enterprise software market. The website offers a knowledge base for understanding business software from a systems perspective.
Another Related ERP Failures post
Causes of ERP Failures
Emerging to RFID Enterprise Solution
by Gireesh A
Emerging to RFID Enterprise Solution
About RFID
Radio frequency identification or RFID, is a generic term for technologies that use radio waves to automatically identify people or objects. There are several methods of identification, but the most common is to store a serial number that identifies a person or object, and perhaps other information, on a microchip that is attached to an antenna (the chip and the antenna together are called an RFID transponder or an RFID tag. Visit http://www.bigsquid.org for more information on this). The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to the computers that can make use of it.
Objective
The objective of any RFID system is to carry data in suitable transponders, generally known as tags, and to retrieve data, by machine-readable means, at a suitable time and place to satisfy particular application needs. Data within a tag may provide identification for an item in manufacture, goods in transit, a location, and identity of a vehicle, an animal or individual. By including additional data the prospect is provided for supporting applications through item specific information or instructions immediately available on reading the tag.
The system requires, in addition to tags, a means of reading or interrogating the tags and some means of communicating the data to a host computer or information management system. A system will also include a facility for entering or programming data into the tags. Quite often an antenna is distinguished as if it were a separate part of an RFID system. While its importance justifies the attention it must be seen as a feature that is present in both readers and tags, essential for the communication between the two. To understand and appreciate the capabilities of RFID systems it is necessary to consider their constituent parts. It is also necessary to consider the data flow requirements that influence the choice of systems and the practicalities of communicating across the air interface. By considering the system components and their function within the data flow chain it is possible to grasp most of the important issues that influence the effective application of RFID. However, it is useful to begin by briefly considering the manner in which wireless communication is achieved, as the techniques involved have an important bearing upon the design of the system components.
Components of RFID
RFID Reader :
The Reader is a radio frequency device used to read data from the microchip contained in the RFID tag. RFID readers use a variety of methods to communicate with tags. The most common method for reading passive tags at close range is called inductive coupling. Simply put, the coiled antenna of the reader creates a magnetic field with the coiled antenna of the tag. The tag draws energy from this field and uses it to send back waves to the reader, which is turned into digital information – the tag’s electronic product code.
A Reader comprises of a transmitter, receiver, control module and communication functions, sometimes called a transceiver in radio terms for it to link to a controlling PC. Readers should have an attached antenna, which is used to transmit and receive the radio frequency signal. Each reader is accompanied with PC compatible software that allows the user to read and program tags. Win 2K, XP, ME are some of the operating systems compatible with our Readers.
RFID Tag :
An RFID tag or transponder is a wireless system composed of an electronic chip (semi-conductor device) with a memory where data can be stored. The memory can be permanent or volatile. They are classified within two frequency ranges, namely 125 KHz (low frequency) and 13.56 MHz (high frequency).
The RFID Business Case:
RFID in the Receiving Business Process: RFID readers are placed in the receiving area to monitor pallet and case RFID tags. The RFID readers verify the pallet license plate, count the units on the pallet, identify the vendor, and confirm the purchase order receipt without human intervention in the business transaction.
RFID in the Conversion Business Process: RFID readers can be placed along the flow path of a manufacturing process. Work-in-process, or WIP, can be enabled by RFID tags for tracking and monitoring the conversion of raw materials and intermediates into finished goods and stock-keeping units. This material information is integrated with the ERP production order transaction process to track manufacturing steps and issue production transactions.
RFID in the Customer Order Picking Business Process: Forklift drivers will use RFID readers to select case and pallet materials to pick order and assemble the shipment. Elimination of staging and verification processes can yield savings. This material information is integrated with the ERP warehouse and order management process to update the customer order pick list.
RFID in the Shipping Business Process: Forklift drivers and warehouse bays will use RFID readers to track case and pallet materials onto trucks. This material information is integrated with the ERP warehouse and order management process to update the customer order shipment.
The RFID value proposition propagates if the RFID infrastructure is leveraged by other enterprises in the downstream value chain.
OUR PRODUCT : BIGSquid
BIGSquid RFID is all you need to get started with RFID. BIGSquid RFID is an ideal tool for any startup labs and research teams. BIGSquid RFID comes with one RFID READER, BIGSquid RFID middleware developer license and TAGS to get you started in speed to create your own RFID solution. (More info http://www.bigsquid.org )
BIGSquid RFID Tag
BIGSquid RFID Tag is an Industrial and Logistics RFID Transponder. BIGSquid RFID Tag’s unique design gives it, infinite life and makes it nearly indestructible as opposed to conventional Tags. (More info http://www.bigsquid.org )
BIGSquid RFID Reader
BIGSquid is an industrial grade RFID Reader and an intelligent device. BIGSquid Navigator has built-in features, which allows easy integration in large layouts as opposed to normal readers. Navigator is remotely programmable and controllable and can transmit the RFID TAG information to long distances directly without using any additional interfaces or hardware. (More info http://www.bigsquid.org )
BIGSquid Reader Controller Modules
BIGSquid Reader controller modules are an essential companion when you deploy multiple RFID readers in geographically separated locations. The reader controller modules allow you to control readers remotely using multiple digital I/O from other processes or machines. (More info http://www.bigsquid.org )
RS232 to Ethernet converter
The rs232 to Ethernet converter is a first-generation Serial Device Server that externally connects any existing serial device to an Ethernet (TCP/IP) network. The rs232 to Ethernet converter features a compact and stylish design. (More info http://www.bigsquid.org )
BIGSquid RFID Middleware Server
The Server part of the BIGSquid RFID collects the tag information and updates in the database. The server will be running in the backend as a Service. Whenever there is a read at any particular reader it will be validated and will be stored in database against particular inventory.
The server will read the tag value precisely and will not miss any valid data. The validation part first checks whether the data that has been captured is valid or not and then it will check for the object or inventory that tag value represents and stores the tag value against that inventory or object.
Please visit http://www.bigsquid.org to get more information on related topics. Contact us http://www.bigsquid.org/Contactus.html
Satheesh G Nair. CEO BIGSquid
Factory Logic Expands Lean Production Management Capabilities
Factory Logic today announced an upgraded release, 5.4, of its Factory Logic Lean Operations Suite. Factory Logic said its integrated lean software is designed to support demand-driven production scheduling and pull-based supply synchronization.
The provider said the suite uses lean methods originally pioneered in the Toyota Production System (TPS) to encourage just-in-time (JIT) manufacturing, which reduces lead times, improves efficiency and drives down costs throughout the supply chain.Read more about Factory Logic Expands Lean Production Management Capabilities
CRM to the Rescue: CRM End All Be All?
by Jeffrey Hahn
I love a challenge. And that is what I got when I was asked to lead a project to put together a CRM. How do you put together a CRM? Given my educational background is in Philosophy, I started thinking, “what is CRM?”, “What is the essence of CRM?”, and “What provoked the need for someone to create CRM?” After going back and reading about CRM, the many failures and few successes, I found whole experience enlightening. One might gather from reading up on CRM that there might be semantics issue, but I believe it goes deeper. Is CRM a business process? Is it a software application? Or is it a goal that you hope to achieve? In each of these three questions would unfold another layer of questioning in order for you (your company) to define what you/they mean by Customer Relationship Management. If it is a goal, how do you know when you have achieved CRM? If it is a business process how to you know you are following CRM? These are questions that a company must address before assembling a team to create a “CRM”. Read the entire post at: CRM to the Rescue: CRM End All Be All?
Software as a Service
From ManagingAutomation.com:
One of the most frustrating aspects of today’s IT-dependent manufacturing environment is the challenge of deploying and maintaining enterprise applications ranging from enterprise resource planning (ERP) and supply chain management (SCM) to customer relationship management (CRM) software. A significant proportion of new application deployments fail to achieve their original objectives, and even successful deployments can often cost far more to maintain than expected.
Depending on the complexity of the deployment, enterprise applications can take months or even years to implement, and they can consume the majority of the IT staff’s time just to keep them up and running. And, most major upgrades typically require additional investments in new servers, storage and other IT infrastructure upgrades.
Manufacturers trying to keep pace with escalating competition can no longer afford the extended lag-time of lengthy application deployment cycles. They can also ill-afford the ongoing infrastructure and staff costs to simply maintain their existing applications.
These frustrations have made the manufacturing industry ripe for a new approach to applications called Software-as-a-Service (SaaS). Read More about software as a Service
Tech-worker gap
Nuclear winter is over in the high-tech job market.
Software developers, design and systems engineers, network administrators and others are finding companies with a slew of openings eager to make offers and willing to negotiate better pay and benefits.
Online job postings in Phoenix alone top 3,000 and classified ads proliferate, a huge change from 2001-02, when the information-technology industry went through a cold, brutal shakedown.
“That winter has thawed, and we are definitely into … Tech-worker gap