New Age Advantage

New Age Advantage

by CW India Staff on Mar 1, 2009

Be the first to comment

The total cost of ownership of SAP ERP has fallen considerably

Organisations are concerned about their own ability to enter the data in a timely and accurate manner. If the data is incorrect or incomplete, then the output information will also be of lower quality. Implementation partner with domain knowledge can come out with mechanisms for tracking the data-discipline on an ongoing basis.

Adoption of ERP is a cultural transformation and hence it is most successful when led from the top. Involvement, education and communication are the three pillars that can help the organisation to successfully carry out this cultural transformation.

Cost is concern. Some of the organisations choose locally developed, ‘low cost’ ERP, which may pose longer term issues. The total cost of ownership of SAP ERP has fallen considerably. Some of the implementation partners have developed industry specific templates that reduces the time and costs. From a holistic perspective, the total cost of ownership of SAP turns out to be cheaper. One can expect the payback for these investments to be in the range of 2-3 years. One can also plan for phased implementation, if one-time investment is a concern.

Story continues below

COMMENT

Comment on this article

Way forward

Construction organisations should seriously consider implementing world-class ERP immediately. This challenging period should be utilised to set right the systems and processes so that the organisation will be at an advantage when the tide turns.

We at Hindustan Construction Company implemented SAP very comprehensively, about three years back and are now reaping the benefits. We have now started implementing SAP for other construction companies. We have already implemented the same for five other construction organisations and that has gone off very well. I will be delighted to address any query in this regard and it will be our pleasure to partner with you in your journey towards ERP based business processes excellence.

The author can be reached at satish.pendse@hccindia.com

Advantages of ERP implementation

Single application that automates various key functions
Gives an end-to-end real time business view
Connects business locations spread across the globe
Increases productivity and boosts efficiency
Considerably saves time, money and resources
Gives control over inventory and reduces waste

COMMENTS


Name *
Email *
City
Country
Subject: *
Comments: *
Math Question: *
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.	Refresh the image if not clear
	Remember me on this computer