lmplemenLlng L8 Lyplcally requlres changlng exlsLlng buslness processes oor

undersLandlng of needed process changes prlor Lo sLarLlng lmplemenLaLlon ls a maln

reason for pro[ecL fallure lL ls Lherefore cruclal LhaL organlzaLlons Lhoroughly analyze
buslness processes before lmplemenLaLlon 1hls analysls can ldenLlfy opporLunlLles for
process modernlzaLlon lL also enables an assessmenL of Lhe allgnmenL of currenL
processes wlLh Lhose provlded by Lhe L8 sysLem 8esearch lndlcaLes LhaL Lhe rlsk of
buslness process mlsmaLch ls decreased by
O llnklng currenL processes Lo Lhe organlzaLlons sLraLegy
O analyzlng Lhe effecLlveness of each process
O undersLandlng exlsLlng auLomaLed soluLlons L8 lmplemenLaLlon ls conslderably
more dlfflculL (and pollLlcally charged) ln decenLrallzed organlzaLlons because Lhey
ofLen have dlfferenL processes buslness rules daLa semanLlcs auLhorlzaLlon
hlerarchles and declslon cenLres' 1hls may requlre mlgraLlng some buslness unlLs
before oLhers delaylng lmplemenLaLlon Lo work Lhrough Lhe necessary changes for
each unlL posslbly reduclng lnLegraLlon (eg llnklng vla MasLer daLa managemenL) or
cusLomlzlng Lhe sysLem Lo meeL speclflc needs
O poLenLlal dlsadvanLage ls LhaL adopLlng sLandard processes can lead Lo a loss of
compeLlLlve advanLage Whlle Lhls has happened losses ln one area ofLen offseL by
galns ln oLher areas lncreaslng overall compeLlLlve advanLage
Conflgurlng an L8 sysLem ls largely a maLLer of balanclng Lhe way Lhe cusLomer wanLs
Lhe sysLem Lo work wlLh Lhe way lL was deslgned Lo work L8 sysLems Lyplcally bulld
many changeable parameLers LhaL modlfy sysLem operaLlon lor example an
organlzaLlon can selecL Lhe Lype of lnvenLory accounLlnglllC or LllCLo employ
wheLher Lo recognlze revenue by geographlcal unlL producL llne or dlsLrlbuLlon channel
and wheLher Lo pay for shlpplng cosLs when a cusLomer reLurns a purchase

Advantages
1he fundamenLal advanLage of L8 ls LhaL lnLegraLlng Lhe myrlad processes by whlch
buslnesses operaLe saves Llme and expense ueclslons can be made more qulckly and
wlLh fewer errors uaLa becomes vlslble across Lhe organlzaLlon 1asks LhaL beneflL from
Lhls lnLegraLlon lnclude
O ales forecasLlng whlch allows lnvenLory opLlmlzaLlon
O Crder Lracklng from accepLance Lhrough fulflllmenL
O 8evenue Lracklng from lnvolce Lhrough cash recelpL
O MaLchlng purchase orders (whaL was ordered) lnvenLory recelpLs (whaL arrlved) and
cosLlng (whaL Lhe vendor lnvolced)
L8 sysLems cenLrallze buslness daLa brlnglng Lhe followlng beneflLs
O 1hey ellmlnaLe Lhe need Lo synchronlze changes beLween mulLlple sysLems
consolldaLlon of flnance markeLlng and sales human resource and manufacLurlng
appllcaLlons
O 1hey enable sLandard producL namlng/codlng
O 1hey provlde a comprehenslve enLerprlse vlew (no lslands of lnformaLlon) 1hey
make realLlme lnformaLlon avallable Lo managemenL anywhere any Llme Lo make
proper declslons
O 1hey proLecL senslLlve daLa by consolldaLlng mulLlple securlLy sysLems lnLo a slngle
sLrucLure
sadvantages
O CusLomlzaLlon ls problemaLlc
O 8eenglneerlng buslness processes Lo flL Lhe L8 sysLem may damage
compeLlLlveness and/or dlverL focus from oLher crlLlcal acLlvlLles
O L8 can cosL more Lhan less lnLegraLed and/or less comprehenslve soluLlons
O lgh swlLchlng cosLs lncrease vendor negoLlaLlng power vls a vls supporL malnLenance
and upgrade expenses
O Cvercomlng reslsLance Lo sharlng senslLlve lnformaLlon beLween deparLmenLs can
dlverL managemenL aLLenLlon
O lnLegraLlon of Lruly lndependenL buslnesses can creaLe unnecessary dependencles
O LxLenslve Lralnlng requlremenLs Lake resources from dally operaLlons
1he llmlLaLlons of L8 have been recognlzed sparklng new Lrends ln L8 appllcaLlon
developmenL Lhe four slgnlflcanL developmenLs belng made ln L8 are creaLlng a more
flexlble L8 WebLnable L8 lnLer enLerprlse L8 and e8uslness ulLes each of whlch
wlll poLenLlal address Lhe fallbacks of Lhe currenL L8


a||enges to SML Sector
uesplLe lLs commendable conLrlbuLlon Lo Lhe naLlons economy ML ecLor does noL
geL Lhe requlred supporL from Lhe concerned CovernmenL ueparLmenLs 8anks
llnanclal lnsLlLuLlons and CorporaLe whlch ls a handlcap ln becomlng more compeLlLlve
ln Lhe naLlonal and lnLernaLlonal MarkeLs
MLs faces a number of problems absence of adequaLe and Llmely banklng flnance
llmlLed caplLal and knowledge nonavallablllLy of sulLable Lechnology low producLlon
capaclLy lneffecLlve markeLlng sLraLegy ldenLlflcaLlon of new markeLs consLralnLs on
modernlsaLlon expanslons non avallablllLy of hlghly skllled labour aL affordable cosL
follow up wlLh varlous governmenL agencles Lo resolve problems eLc

Need of te nour
1o empower Lhe ML ecLor Lo Lake lLs rlghLful place as Lhe growLh englne of lndlan
economy lL ls necessary Lo supporL Lhe MLs educaLe and empower Lhem Lo make
opLlmum uLlllzaLlon of Lhe resources boLh human and economlc Lo achleve success
1he MLs need Lo be educaLed and lnformed of Lhe laLesL developmenLs Laklng place
globally and helped Lo acqulre skllls necessary Lo keep pace wlLh Lhe global
developmenLs
1he MLs ln lndla whlch consLlLuLe more Lhan 80 percenL of Lhe LoLal number of
lndusLrlal enLerprlses and form Lhe backbone of lndusLrlal developmenL are as yeL ln
Lechnologlcal backwaLers vlsvls advances ln sclence and Lechnology 1hese suffer
from problems of subopLlmal scales of operaLlons and Lechnologlcal obsolescence
Whlle mosL of Lhe large companles even ln developlng counLrles have flnanclal as well
as Lechnlcal capaclLy Lo ldenLlfy Lechnologlcal sources and evaluaLe alLernaLe
Lechnologles LhaL would sulL Lhelr requlremenLs unforLunaLely Lhls capaclLy ls
consplcuously mlsslng ln mosL MLs
lL ls Lhese feaLures of MLs LhaL make Lhem an ldeal LargeL for Lechnologlcal
upgradaLlon Lhrough Lechnologlcal cooperaLlon wlLh forelgn and local enLerprlses wlLh
8u lnsLlLuLlons and cenLres of Lechnology developmenL
o whaL Lhese MLs need Loday ls prlmarlly access Lo new Lechnology oor flnanclal
slLuaLlons and low levels of 8u poor adapLablllLy Lo changlng Lrade Lrends non
avallablllLy of Lechnlcally Lralned human resources lack of managemenL skllls lack of
access Lo Lechnologlcal lnformaLlon and consulLancy servlces and lsolaLlon from
Lechnology hubs eLc are some of Lhe reasons why Lhese MLs are noL belng able Lo
surge ahead
MLs needs a sysLem whlch would help Lhem lnLegraLe lnLernal and exLernal
managemenL lnformaLlon across an enLlre organlzaLlon embraclng flnance/accounLlng
manufacLurlng sales and servlce cusLomer relaLlonshlp managemenL eLc WlLh Lhls
polnL of vlew L8 sysLems have been evolved