1.

ERP system can help Sparsh Hospital to solve the issues saved by them :
a. Higher management performance -
ERP solutions serve as a data center that establishes links between all aspects of
enterprise activities that require management, including human resources, production,
sales, customer support, inventory, and supply. With the help of computer technologies,
ERP software enables automatic data handling in the fastest and most effective way. As
a primary advantage, enterprise resource planning solutions greatly reduce the
paperwork and the need for manual data input.

b. Better accuracy and availability of information -

This is the core perk that, one way or another, influences on all the rest of enterprise
resource planning advantages presented in this list. Advanced ERP systems enable
effective and centralized collection, processing, and storage of information on
production, sales, supplies or customers, for example. Thus, a single data system is used
and maintained instead of a number of separate databases that need regular checks and
synchronization to remove obsolete or duplicate records.

c. Better Customer Service –

Just about every business is competing with other businesses for the same customers.
That’s why the customer experience is so crucial, and much of that is shaped by the
level of customer service a company can provide. An ERP helps companies step up their
service because it puts all customer information, from contact details to order history to
support cases, in one place.

d. Precise planning –
The convenient access to the bulk of business information greatly facilitates its analysis
in order to plan a further development course. The company’s management staff and
business analysts can use the aggregated data more effectively to devise new strategies
or suggest improvements to the existing one.

e. Accurate Forecasting –
Your business can only be prepared for what’s coming if it knows what to expect. That’s
where forecasting comes in: it uses a wide range of historical data and sometimes other
inputs to predict future demand, revenue, expenses and other numbers. Forecasts are
much more accurate once you’re running an ERP system because they’re based on more
accurate and comprehensive information, since all that data is now in one place.
More accurate forecasts mean you can make the appropriate preparations for what is
likely to happen. If sales are expected to climb 30%, you can strategically purchase more
inventory or, if you’re a services business, hire more employees with the skills where
you expect increased demand. If costs are expected to climb at a higher rate than sales,
you can start looking for ways to cut back expenses. Ultimately, better forecasts can
help organizations both make more money (by having all the necessary resources
available) and lower costs (by not overspending in the wrong places).
In order to ensure successful implementation following process should be followed :

a) Step One: Planning :

Selecting and implementing an ERP system takes time. You need to be strategic in
your approach. To choose the right ERP for your business, you need to figure out
what your company-wide objectives are, and the best way to achieve them.
Create a realistic budget and timeline, but keep in mind these may have to be
altered as the project progresses. An ERP implementation can take anywhere from a
few months to a year to complete, with the average being between 6-9 months.
Design a change-management plan for all of the ERP implementation phases that
accounts for tasks like training, data migration and calculating ROI when the project
is finally finished. You need to figure out an adoption strategy that works for you.

b) Step Two: Developing the Project Team and Choosing the Right Team Members :
One thing to understand here: the core project team may need some temporary
help as much of their time will now be devoted to selection and implementation.
For a successful ERP implementation, you need to ensure the project team is fully
dedicated and aren’t getting pulled away. Hiring part-time employees to take over
some of the project teams’ daily tasks will ensure your team is committed and
proving their expertise.
An ideal ERP project team might include:
• a corporate lead or sponsor

• a project manager

• representatives from the different departments that will use the system

You need to make sure that the management team is involved at every step,
because their investment is critical for both the necessary resources and for change
management throughout your company.

c) Step Three: Communication

From the beginning of the project, management needs to hear clear objectives from
their staff about the why of the project, the scope and the goals that the company
hopes to achieve. This means spending time asking questions and really listening to
your employees’ answers. It may be helpful to conduct both a company-wide survey
as well as individual interviews. One of the biggest questions that most will have is
“Why are we doing this?”. The answers go beyond projects, activities and system
features. Everyone needs to be aware of the long-term goals and objectives and
how it will improve their day-to-day tasks and responsibilities.

d) Step Four: Research

Researching your ERP may seem like common sense, but according to a study by
Capterra, almost 33% of ERP customers skip product demos before purchase.
 Another 22% simply purchase an ERP from the first vendor that calls on them. While
this is great news for the sales team that is first off the mark, it’s also the reason
why poor research leads to poor ERP implementation

e) Step Five: Design and Development

In this phase, you’ll identify process intricacies and quirks that are unique to your
company. The ERP vendor team should work closely with you on evaluating and
analyzing your current processes and making recommendations on streamlining and
improving these processes to align with the ERP’s functionality. Be flexible—
everyone needs to understand that their daily tasks might be adjusted.

f) Step Six: Data Migration and Integration

Your IT team is going to have to be involved in every step here, but they will need to
get crucial input from the rest of the team on what data needs to be moved.
Migrating data to the ERP system is critical. As with any migration, there’s a risk of
losing or corrupting data, particularly if you’re bringing in data from different
applications.

g) Step Seven: Testing and Go-Live

Look at this step as quality assurance. You can make sure that the system is fully
implemented and operational before full launch. Even if there are crashes and
bugs—which is almost a guarantee—it doesn’t mean that the software is faulty. It
simply means that there may be some additional configuration required. This may
become even more pronounced if there is significant customization. This is because
changes to coding for one end-user group can cause problems for another.

h) Step Eight: Training and Change Management

As with any new technology, there are going to be growing pains. There might be
some grumbling. It’s unreasonable to expect everyone to immediately jump in and
use the new system correctly. Human beings are creatures of habit, and this is a big
change.

i) Step Nine: Stay Connected

This step goes back to communication and change management. Your new ERP isn’t
just a one-off effort that stops once the system goes live. The system needs to
evolve as your business needs change and grow as you grow. This means that some
of the project team needs to stay involved even after the system is deployed, so
that they can quickly address issues, help with training, and assist with new updates
and requirements.

j) Step Ten: Ongoing Support and Partnership

At the end of the day, your ERP vendor needs to be an ERP partner. What’s the
difference, you ask? An ERP vendor may not be dedicated to your ongoing success;
instead, they will complete the implementation without offering you continual
 guidance and support. A good ERP partner is dedicated to your success, providing
your business with ongoing support, best practices, and advice.

2. The findings that led to poor usage of ERP failure includes :

a. Poor software fit /inaccurate requirements –

Your requirements are the single most important component of a successful ERP
implementation. Meet with managers and users from every discipline and with senior
executives as well. Aggressively pursue any points where they have pain today that can be
resolved. Examine future plans and forecasts and anticipate where similar pains might
occur. Now pare that list until all concur you have agreement on a comprehensive list of
both requirements and features not required but would be valuable.

b. Business leadership is not committed to the implementation -

Without this commitment, no one else in the organization will be committed either.
Recommend postponement of the ERP project rather than gamble leadership attitudes will
somehow “come around”. Executive management has the power to allocate resources to
the ERP project. And they have the power to re-allocate them as conditions change. Money
is one resource and if they will not pay for ERP, the project is on hold. People are a critical
resource too. Valuable people will be needed to work on ERP implementation and their
previous jobs.

c. Insufficient team resources –

This can be the number of resources, but it is even more important to get the right
resources in to your ERP team in terms of talent and experience. Your ERP implementation
will fail if the enterprise fails to devote the resources required for success. You can hire
additional people from outside as contractors or employees or you can devote some or all of
the time available from people already within the business but somehow, significant
amounts of time will be necessary.

d. Lack of accountability to make timely, high quality decisions –

Establish early on who is responsible for what level of decision making. Late, ambiguous, or
poor quality decisions can doom your project to ERP failure. Most of the decisions to be
made throughout your ERP implementation should be made at the team level. Waiting for
executive management will needlessly delay the implementation process and the best
decision will come from people on the team who are already users of the systems and
familiar with the processes and what changes will improve the situation.

e. Lack of investment in change management -

No matter what the business case says, the rank and file will not be looking forward to ERP.
The only intelligent course is to over communicate and over prepare. Your good
communications will keep the reasons for the ERP implementation and the expected
improvements in everyone’s attention. Making the assumption that people will accept your
plans and offer their support can quickly lead to an ERP implementation failure.
 There are a number of proven strategies for transitioning to a new ERP system, each with
advantages and disadvantages. Implementing an ERP solution is all about stakeholders
working together toward a single goal: business success.

Here are four ways which can be used to ensure the ERP system is a hit among the users :

• Big bang - In this approach, also referred to as the “single-step method,” all users
move to the new system at the same time. You’ll need to have completed all
configuration and testing of the new system, as well as training, by the go-live
date. The advantage here is that you quickly start realizing ERP benefits, such as
higher productivity, better insights and lower operating costs. However, once
you’ve rolled out the system it’s hard to go back, so it’s critical to get things right.
Any error or glitch—even a relatively minor one—can impact employees, business
partners and customers. There may also be a temporary productivity drop as
employees get used to the new system.
• Phased rollout - Under a phased approach, the deployment of features, tools and
components is done over an extended period, which may cover weeks or months.
This more measured approach can be less risky than the big-bang strategy. It also
enables the company to focus first on “quick wins”—the functions that deliver the
most immediate benefits—and to apply learnings from the initial deployment
phases to improve the process for subsequent phases. But there are drawbacks: It
takes longer to get the full benefits of the new ERP, and your company will need
to support, and pay for, two systems at the same time. There are three primary
approaches. Organizations may switch on one ERP module, iron out bugs and
process issues, and then tackle another phase. Most organizations start with core
functions and expand from there. Another possibility is to deploy by business unit,
such as HR, finance or logistics, and then move forward based on needs and
hierarchies.
• Parallel adoption - With this strategy, the organization keeps using its legacy
systems in parallel with the new ERP for a specific length of time. This is generally
considered the least risky approach because it’s possible to revert to the legacy
system if you run into problems. Because of this safety net, some organizations
use this strategy for critical functions that absolutely must always continue
operating.

• Hybrid – As the name implies, this approach combines elements of the strategies
above. For example, an organization might switch on core ERP modules using a
big-bang strategy, then roll out other modules in phases to specific locations or
departments.

3. A) Understanding the pros and cons of a custom and off the shelf software solutions is key to
choosing the option that's the best fit for your business. So what are the major differences?
Custom Software – Pros
• By its very definition custom software is built for the unique challenges of your
situation. It is designed specifically for your unique circumstances, and, when done well,
provides an almost perfect solution to your problem.

• What’s more, it can be designed to meet every requirement that you had outlined in the
evaluation phase. Rather than just labeling something ‘Nice to Have’, you can have it.

Custom Software - Cons

• The built-from-scratch nature and endless customization that is possible with a custom
software solution does mean that you’ll likely be looking at a larger upfront investment.
It’s important to note, however, that the solution’s efficiencies will usually see this
upfront investment richly rewarded in the future with a solution built perfectly to match
your needs. Indeed, many off the shelf options are structured as monthly subscription
packages in order to disperse the cost. The perpetual nature of this model can
ultimately end up costing more than a custom solution.
• If you’re looking for a quick fix, a custom software solution may not be for you. You’ll be
facing a development phase that may take several months, which, while eventually
delivering a great solution, simply isn’t feasible in certain situations. But the same could
often be said for an off-the-shelf solution, as customizing and implementing software
that wasn’t built specifically for your business can take a surprising amount of time. It’s
not as easy as loading a program and getting an instant benefit.

Off the Shelf Software - Pros

• Are you needing a software solution sooner rather than later? Good news –
packaged software is designed for quick installation and use. It needs to be
remembered, however, that a packaged solution may need to be customised and
may not be compatible with your current systems, both of which will cancel out the
speed benefit.
• The mass-produced nature of off the shelf business software results in a low upfront
cost for most off-the shelf solutions. It should be remembered that these solutions
may be cheap to purchase initially, but can cost you a lot more over time due to
their inefficiencies, and any ongoing maintenance and subscription fees (e.g. SaaS).

Off the Shelf Software - Cons

• The major risk in going for a off the shelf solution is that it may not meet all of your
business’s requirements. A piece of packaged software may cost a bit less than a custom
solution, but if it’s half as capable or efficient you’ll soon lose all that money initially
 saved. You should consider the hidden cost of modifying your business processes and
staffing to fit your business to the software versus fitting the software to your business.

• Most off-the-shelf business software is rigid and difficult to modify. As your business
grows or changes you’ll be unable to grow or change the software with it, as you don’t
control the changes and upgrades. In order to get the changes you’re after you’d need
to convince the software company that your needs outweigh their broader product
roadmap.

Emerging trends and innovations in ERP cloud computing include artificial intelligence and
machine learning, which can automate tasks, provide recommendations, detect anomalies,
and generate insights.

Artificial intelligence and machine learning capabilities embedded into ERP systems work
behind the scenes to help meet increased demand for personalization and improve a broad
range of business processes. While companies could add AI functionality to some ERP
systems in the past, more vendors now offer ERP software with these capabilities built in.

AI can deliver significant benefits for businesses, including:

More insights. As organizations gather more operational and customer data than ever
before, they look to AI to deliver valuable business insights based on that information. AI
technologies scan vast amounts of unstructured information, quickly identify patterns and
predict various trends that wouldn’t be possible to spot with manual number crunching
alone.

Improved processes. AI helps to automate and improve a whole range of processes. For
example, consider a manufacturer that adopts a just-in-time inventory strategy, which aims
to deliver components at the last possible moment to minimize inventory carrying costs. AI,
in the form of machine learning, can optimize the supply delivery and labor schedules to
increase productivity and lower costs

B) Open source ERP system is defined by the greater control and freedom of choice as
compared to some proprietary software. In the case of proprietary software, the vendor
doesn’t release the source code, which compels users to rely solely on what is offered by
the vendor or to pay the vendor more money for any custom features required.

There are various types of open source ERP software available. Each type of software is
meant to handle different aspects of the business. Based on the roles and operations, open-
source ERP can be divided into three main categories including;
• Generalist ERP: Most of the open-source ERP software available in the market are generalist
in nature. These systems are designed to adapt to diverse processes across industries. Such
ERP software also offers greater customization and integration features to adapt to the
varying needs of industries. However, generalist ERP may lack some of the advanced
industry specific functionalities, as compared to vertical ERP systems.
• Vertical ERP: Contrary to generalist ERP, vertical ERP software is meant for specific
industries like construction, retail, supermarket, and others. While these aren’t as widely
used as generalist ERP software, such ERP system comes with advance functionalities that
enable companies to automate all business processes and systems.
• Small Business ERP: Small business ERP is offed as cloud or on-premise solutions. Since this
type of ERP software is specifically aimed towards small businesses, it mostly comes with
pared-down features.

Features of Open Source ERP Packages :

• Low Cost - As can be taken by name, the open source ERP system doesn’t come with
any licensing fee for the source code. It makes it even easier for businesses to self-
host the system without any support required from the vendor. However, for users
who are looking for some assistance to manage the system, they can choose vendors
that offer Software-as-a-service (SaaS). Vendors like Folio3 and others do offer
businesses with comprehensive service and support for ERP systems, making it easier
for clients to manage and take full potential of the system. The SaaS model is typically
billed monthly, while the price for the support will depend on the services and users
managed by the vendor.
• Highly Scalable - As we mentioned earlier, the ERP system is a large investment that
consumes significant money and resources. Thereby, while implementing an ERP
Software for Agriculture Industry, it’s important for businesses to not only consider
the present business requirements but also future needs. That’s because any
changes/addition to the existing system comes with expensive re-implementation
costs. However, with an open-source ERP system, that’s not a problem. Access to
source code makes it easier for businesses to alter and scale the solution as they
grow.
• Customization - With direct access to the source code, businesses don’t need to rely
on standard functionalities or pay extra for customization. Rather, they can always
customize the functionalities as per their requirement without having to rely on
vendors.
• Community Support - Like all open-source projects, the users of open source ERP
software can rely on a strong and vibrant user community. The benefit of strong
community support is that it comes transparent and free of cost. All major open
source ERP system comes with an adequately large and vivid community which can be
relied upon for fast and transparent solution against any system bugs or to achieve
customize functionality.