Monday, December 18, 2000		Article

ERP professionals can improve productivity
by Sumesh Raizada

THE current Internet wave has lured professionals from several fields and disciplines into more lucrative jobs in dot.com companies. However, there are certain computer-related careers, which are gaining wide popularity in business and manufacturing organisations. Enterprise Resource Planning (ERP) is one such career opportunity that is in great demand in India and abroad. Today, professionals trained in ERP packages are providing hardware and software support to functional areas like production, materials, accounting, marketing and HRD. They are working in pharmaceutical, electrical, automobile and heavy engineering industries and provide tools to improve productivity and quality.

Organisations have realised that they can’t function efficiently, simply by automating their operations. It is essential that computing system no longer remains isolated from outside developments and also system should be fully integrated with the companybusiness objectives. Various changes at micro as well as macro level, which may affect the business or manufacturing operations, should be immediately incorporated in the input data of computing system. It is essential that different processes and departments of the organisation gets linked together, so that, in case of any internal or external changes, these may be able to adjust accordingly. In large organisations, which have manufacturing works and marketing offices located at places, all over the country or world, ERP is useful tool for linking them all together.

The ERP is a powerful computer application, which involves the effective utilisation of manpower, material, plant & machinery and finances. This software helps in management and automation of business activities. It can help enterprise in improving performance and thereby gain a competitive edge over others. Major companies, which are providing ERP software and solutions are, SAP AG, Baan, People Soft, Oracle and J. D. Edwards. Wherever applied, ERP has been able to considerably reduce the response time by transferring information swiftly all over the organisation. It has worked wonders by totally transforming the business activities, in several companies. The major focus is on the customer satisfaction through improved performance. Some other benefits of implementing ERP packages are that, it helps in reducing inventory cost by better communication between vendors, purchase and material departments. It also provides control over business operations by faster communication between customer, marketing and production departments. All this helps in increased productivity at lesser cost, thus raising the profit margins.

With the ERP, organisations, can streamline their functions, consolidate data management, or can venture in e- business activities. Management concepts like JIT or ‘just in time’, are possible with the implementation of ERP. Production department can plan the manufacturing schedule through computer on their shop floor and materials department can check the status of raw material. Sales office, which might be located miles away from the works, is also linked, through computer with the material, design or production departments. Similarly, accounts as well as warehouse are also linked with others for speedy transfer of data from manufacturing shop to sales depot.

Indian industries too, have understood the utility of the ERP and are implementing it in their operations. These companies as well as consultants who are developing packages for specific utilities have now become a major market for ERP professionals. An excellent career and growth avenue exists for the professionals who are specifically trained or qualified in such packages. Any individual, from varied fields like computer programming, engineering, materials management, costing, accounting, production planning, sales and service, can become an ERP professional.

ERP careers mainly exist in two areas — implementation and development. An individual who wants to pursue a career in the ERP can join the consultants like PwC, Anderson, KPMG, who are certified by the software providers for developing the system in client companies. They can also join the package providers like SAP, PeopleSoft, Oracle and Baan; get trained and start working for them.

Some organisations, which are offering career in ERP implementation, are IBM, SISL and Tata Technologies. Implementation is mainly in the field of accounts, costing, sales, distribution, production, purchase and personnel management. A person needs to have an experience in these fields to become an ERP consultant.

In the development area, a person needs to have sufficient exposure to programming languages like Visual basic, C, C++ or Java. Besides, he should have orientation towards project and development related tasks, and have good communication and leadership skills. Companies usually prefer candidates having engineering background, or those having MBA, CA or ICWA degrees. Institute of Manufacturing Resource Management of India is offering courses like CPIM or CIRM to make a candidate suitable for ERP jobs. The CPIM (Certified in Production & Inventory Management) or CIRM (Certified in Integrated Resource Management) certification is conducted by APICS (American Production & Inventory Control Society, USA).

Those having a relevant experience in the respective functional fields of production, marketing, materials or HRD, with programming knowledge can also work well as ERP consultant or team member. Companies like SAP, Oracle, conduct courses of few weeks duration, to make a person familiar with the packages related to finance or materials. The fee charged is enormous, considering the demand for these personnel. The certified SAP, Baan professionals, as they may be called, can thereafter work with these vendor companies or with their alliance partners. An individual going in for the ERP career needs to fully understand the business objective and operations of the organisation.

The earnings for the ERP professionals may vary upon the kind of job they undertake. For example, if they are working in the parent organisation as team member for developing and implementing ERP, then their perks are unlikely to get increased. However, they might get some quick promotions to reach decision-making positions. Those who work independently as consultant or with the ERP package providers are likely to get a handsome earning package.

An ERP professional within an organisation might work in different areas in development or implementation processes. He may be a member of the steering committee or work as a project manager

Implementation consultants, who possess specialised knowledge and experience are also there to assist the functional team, who provide training on ERP systems as per the training module and conducts post implementation review. Information service (IS) consultants are involved in almost every activity of project like requirement study, selection, installation of hardware and software.

Whenever, new functions are to be developed, the IS team provides the technical feedback to the programmers. The Information service team is also responsible for updating and incorporating latest versions supplied by package provider in the ERP software, after the completion of project. ERP professionals also work as consultants being part of the vendor team, for installing ERP software in client companies.

So far, almost all-major companies like Ranbaxy, Crompton Greaves, Mahindra & Mahindra, Reliance Industries, Siemens, Colgate-Palmolive, Kirloskar Electric, Proctor & Gamble, Telco and L&T have implemented ERP packages.

Along with ERP, supply chain management and e-com provide excellent growth avenues for organisations and individuals. Developers of ERP software are now incorporating supply chain requirements in their packages, which includes Internet compatibility. Leading ERP vendors like SAP, Baan, and Oracle have developed supply chain capabilities by developing extended software and integrating with other solution providers. Supply chain solutions provided by companies like Manugistics and ProMIRA are increasingly finding their application in organisations.