FERRARIS, FIATS AND FORTUNE 500S

Why we don’t buy Ferraris when all we need (and can afford) are Fiats ? 

It makes little sense to buy a Ferrari when you need to trudge daily along bumpy, pothole-ridden roads. The average person does not need a Ferrari. The average person cannot afford a Ferrari. If by chance he does get a Ferrari, in all likelihood he will not be able to maintain the Ferrari.

 

Alas the average man and the Ferrari are not meant to be.
In the context of enterprise resource planning systems, big firms like SAP offer Ferraris expensive, fancy and completely unsuitable for the average SME. Oracle and SAP have single handedly caused catastrophes of biblical proportions for their clients. Nike and Hershey’s may have been able to survive apocalyptical losses of $100 million but an SME most certainly cannot.

A Fiat is more affordable. A Fiat is more suitable. Most importantly, the average man can maintain a Fiat in the long run. Once an ERP system is fully deployed, it stays in place for 10 to 12 years on average. 

In India many firms use outdated IT systems in their offices to coordinate their business functions and resources. India is the hub for small and medium businesses and a cradle for start-ups. The majority of the country’s workforce is employed by small and medium enterprises – not the Fortune 500s. Business is set to boom and overtake China by the end of 2030. Despite the dynamic development, firms have failed to adopt more efficient and standard practices that results in them continue to lag behind. 

The ERP solutions by the big firms in the ERP are too extensive, too complex and too confusing for SMEs. The processes, modules and programs designed are geared towards the requirements of large conglomerates and Fortune companies. For the system to be suitable for the average firm, considerable changes and customizations are required – which further drives up the cost of the ERP. It is akin to buying a Ferrari only to replace all its parts one by one and its engine with that of a Fiat’s. By all means, it is a poor decision at best and the catalyst for an absolute catastrophe at worst.

Many local IT and ERP providers are gaining ground as a results, because they build their solution specifically for small and medium enterprises at a fraction of the cost and with a much faster implementation cycle. Once you order for a luxury sports car and then proceed with the desired customizations it is already months past.

If you buy a Ferrari you can expect to wait a long time for it to finally be in your garage – with the necessary paperwork, regulatory compliances, formalities and customizations. If you buy a car from your local dealer, you can expect it in your garage within a week or two at most. Small and medium enterprises need a provider with local knowledge who can give adapted solutions. SMEs as a results are better off hiring Tier II and Tier III vendors who are based locally as they possess in-depth understanding about the relevant industry and business environment. The ERP systems that are provided by major IT firms are too extensive, and complex and do not have the flexibility to adapt their services to local conditions. Given that the large IT firms give standardized solutions throughout the country with their centralized support system, they lack the ability to adapt their service to very specific local needs of the SMEs. Partnering with Tier II firms who give local support service tends to be the wiser, better choice for SMEs.

It is essential that the modules in the ERP system are designed with the day to day processes and relevant industry specifics in mind. Vendors like ExpandERP provide business solutions specifically for SMEs and are specialized in export and manufacturing solutions. An SME thus has a solution that perfectly addresses their business needs with greater support at a fraction of the usual cost.

Tier II firms design sturdy affordable cars and have an extensive service support. Tier I firms prove state-of-the-art, customized luxury cars but at exorbitant rates and with limited support system. SMEs require a relatively sturdy, standard system that can handle the firm’s daily challenges and go over the bumps without breaking down. The tier II solution or the Fiat gives a smooth ride, good mileage without breaking the bank of the buyer. It is advisable to leave the Ferraris to the Fortune 500s and ride away in the Fiat and save the tears and headaches.

References:

https://www.cio.com/article/2429865/enterprise-resource-planning/10-famous-erp-disasters–dustups-and-disappointments.html

https://erpsoftware.swktech.com/blog/3-famous-erp-disasters-that-still-scare-us-today

 

Contributor: Vidushi 

Myth Busters: Data Insecurity on Cloud

“Sure an ERP system is great, but is my data safe on the cloud?”
Data Insecurity on Clouds - Expand ERP

Due to common misconceptions, and with wide spread myths about cloud storage some companies remain hesitant to move forward into the future.
The cloud enables greater transparency and accessibility, rapid deployment of the software across the company and seamless scaling of business functions to meet market changes. There have been a number of high profile attacks on company data in the past year, a case in point being Sony. These stories are bound to make some hesitant about switching to the cloud.
These are the top buyer misconceptions when it comes to cloud ERP system:
1. Cloud data is more prone to attack
An ERP vendor has more expertise on data security than the average enterprise engaging its services. The physical location of the server, be it on company premises or within a cloud provider’s data center, has little relevance on the server’s potential vulnerability. The data’s security relies less on the physical location of the server and more on the security measures implemented by the center. Companies with on premise ERP have the added responsibility of maintaining its server’s security and maintenance. The generally superior to that of the average enterprise. Thus purely in terms of data security, the cloud system is the better option for most small and medium sized enterprises.
2. Data Residency Control
Many countries have regulations that restrict personal or sensitive data to be exported or stored in a different country. Companies that fear that their data and records may be outsourced without their consent can rest east knowing that there are legislative restrictions to prevent that. By choosing a reputable and reliable ERP vendor who is transparent about the internal and external policies governing the relationship, the firms can be assured that their data is in reliable hands and rest easy.
3. Rival firms with the same vendor can hack and sabotage
A persistent but unfounded concern is that a cloud based system that houses the data of multiple firms is inherently more susceptible to data hacks, leaks and attacks. In a cloud system, firms share a pool of network and storage resources, which brings about this fear, because in the business world, sharing is not about caring. Firms can be assured that the cloud providers segment and secure the servers and resources in such a way that essentially each company’s data is in their own private space, completely detached and inaccessible for others.
4. No Cloud, No Worries!
A firm that has not opted for a cloud ERP system may smugly assume that it is safer. “My data is not stored on the cloud, it is stored on my own computer. I am completely safe!” But if the computers are connected to the internet, the firm is already on the cloud. Given that most, if not all, companies are connected to the internet, no company is perfectly safe from attacks and data theft.
5. Data security is the sole responsibility of the Cloud Provider
The cloud ERP vendor does manage the network security and associated tasks for the firm. However, to rely solely on the vendor for all aspects of data security is a massive folly. Internal data management and confidentiality policies, password policies, employee accessibility, user management and security training of employees are equally, if not more, important when it comes to maintaining data integrity and safety.
There are several reasons to choose a cloud based solution for your business needs. Lower costs, greater accessibility and flexibility are some of the many reasons that firms are increasingly opting for cloud-based ERP. The common myths and misconceptions regarding data security on the cloud are more fiction than fact. Enterprises looking for a suitable ERP system can be rest assured that the cloud options are safe.
Contributor : Vidushi
 
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