To ERP or not to ERP, that's the question
With ever-reducing margins and increasing competition, print organisations are compelled to ensure that better cost control measures are in place, along with effective transparemcy and pertinent need to deploy best practises. For this, many of them now see the benefits and requirement of an ERP system.
Sriraam Selvam crunches the numbers from the PrintWeek India Survey
30 Oct 2015 | By PrintWeek India
"Automation and reducing human dependency on information management is the next step," said Ramu Ramanathan. Thus the survey was conceptualised. The objective: To increase awareness with the printers and chart for the several ERP solution providers the expectation that the users have from them
PrintWeek India hosted the survey online on its website. Plus sent emails to the 20,000 subscribers over a period of two weeks to gather the responses
Of the 122 responses we received 31.10% are non-users (of ERP). The respondents' organisation represented diverse company sizes ranging from small print shops to bigger corporates with the smaller and mid-size companies forming the major chunk of non-users
One of the reason for the percentage of non-users that an industry insider gives: Corporatisation of the industry is yet to take place and the companies are primarily driven by proprietors or a group of individuals who believe they have everything in control and see ERP as more for vanity and status than its actual purpose
Of the non-users, 73.70% have considered implementing ERP. According to PrintWeek India's managing editor, Noel D'Cunha, the proactive participation of the non-users in the survey is a good indication. "This is a true indication of the industry's adoption levels. The interest shown in future implementation is an encouraging sign that they are ready to engage in a dialogue and gain insight before taking the plunge."
About 15.8% are looking at implementing an ERP system in a span of about three months and a majority (47.4%) will implement it a little more than six months. A respondent said, "The time period for scouring the market options, assessing through a series of demonstrations, price negotiations etc., it is a time consuming process spanning anywhere between a month to six months."
They said it...
A 21.1% do not consider ERP critical to their business
In a massive show of strength to the locally available ERP solutions, the survey showed a nearly 50% leaning towards 'an Indian service provider with a ready product', 42% preferring to develop a solution on their own using help of a local developer
What they want...
At this, Gabriel Matsliach, senior vice-president and general manager of productivity software, EFI said, "An ERP solution is not always about generating MIS and recording business processes. It is about how it helps in growing areas of marketing, acquiring new customers, increasing efficiency and providing intelligence to steer towards reaching goals."
The pressing issue of time...The best case timeline for an ERP implementation is expected to span at least six months and an upper limit of a year for maximum transition
With a slender 11% believes that the print company is responsible for the success of the implementation, Narendra Paruchuri of Pragati Offset shares, "Getting our own team which is conversant with our business to drive the implementation is extremely important for its success."
The tech quest
Tailor madeVinod Nawab of Param ERP said, "...Wanting all their unique practises to be incorporated might not help the solution actually help them fix the problems for which in the first case they are opting for an ERP."Narendra Paruchuri opines,"...Customisation is a must and that is where it is most likely to become expensive."
In the line of expectations
Functionality a top priority
To ERP or not to ERP, that's the question
To ERP or not to ERP, that's the question
To ERP or not to ERP, that's the question
To ERP or not to ERP, that's the question
The sentiment was that the exclusivity and customisation of ERP software is vital irrespective of the brand, local or multinational they belong to
To ERP or not to ERP, that's the question
The case of only 10% willing to consider an international service and others unwillingly to switch is best explained by Ramanathan, "The instances of a few major international print ERP/MIS shutting shop in India or some considerably slowing down operation is the primary cause of this sentiment from the industry."
And they lived happily ever after
The current users, most of them, with their little tweaks to the systems are satisfied with the performance of the software on the counts of accuracy, functionality, ease of use and easy operation
To ERP or not to ERP, that's the question
Nurturing a little in-house expert on your own is all it takes to champion the implementation
To ERP or not to ERP, that's the question
To ERP or not to ERP, that's the question
The response was the most varied from Rs 20,000 to Rs 20,00,000 and a majority averaging between Rs one to five lakhs. One respondent said, "Cost discrepeancy varies from one vendor to another and thus adds confusion among buyers."
To ERP or not to ERP, that's the question
Topping the chart
Summing it up: In print specific ERPs, both national and international service providers bring with them a wealth of experience, solving umpteen industry specific problems, evolving best practices and continue investing in R&D for the same. This is a good sign