Analyzing SAPERP's success in TISCO

The critical success factors of ERP systems mainly include proper implementation and usage. Beside this there are several other factors that decide the regular functioning of ERP in organizations.

While many organizations have not incurred the necessary benefit in terms of money and other measures there are lots who have witnessed multiple profits. Studying them will help in understanding the critical success factors for ERP implementation. They will help in deciding ERP success.

TISCO profile

This company founded and established in the year 1907 is known to be one of the leading steel giants in the country offering multiple products and successfully running many subsidiary corporations. Being a large entity does not stop things from being subject to scrutiny and internal audit. They are regularly implemented with the help of committees who report to the selected members from the senior management. The company is dedicated to providing laudable services to the stakeholders improve on the quality and as thrive for innovations and improvements constantly.

ERP implementation

TISCO deserves lot of credit for implementing ERP because of the fact that many organizations in the global level have given up the very idea of ERP due to the fact that there are lots of failures associated with it even in the implementation stage. ERP implementation did in wrong manner have caused havoc to organizations more than bringing profits. This being the case it is natural to expect a large company (in terms of Size and volume of operations) like TISCO to discourage the idea of Enterprise resource planning. However TISCO proved to be different from the others by choosing ERP in the right time and implementing it in a proper manner. They have also reported a whooping profit and reduction of costs in the whole process. Another amazing fact is that they implemented it into the whole systems in one single spree. The method of implementing it in one spree carries a lot of risks especially for a bigger company. Infact the success rate of this method itself is low in general and very low as far as bigger companies are concerned. Incase of the rare success organizations will experience effective results in their enterprise operations. TISCO has achieved that by way of meticulous handling and professionalism. The net results of their ERP software have been described to be pathbreaking and a trendsetting one.

WHY ERP in TISCO

TISCO faced two major problems from the systems that existed for a long time. Firstly they were not customer friendly. The whole system was tuned to the process and very little attention was paid to the customer demands. Secondly the systems were outdates and the modalities of operation were too complex and not error free. In order to rectify these issues which would otherwise prove to be major setbacks to the company the organization resolved to take up ERP. This was instigated by the concerned departments. Leading consultants were hired and the business structure was studied and suitable plans were drafted accordingly.

The process

The company knew well that they had a tough time especially to implement the software in one stroke. They had to choose top ERP software in order to ensure that it meets the demands of a big firm like TISCO. They went ahead with associating and implanting TISCO to all the stakeholders so that they become compatible. These ideas also contributed to the success.They were also shrewd enough in adopting the modern and most recent technology available in the market. The period set for implementation seemed to be another major challenge. The time granted for the process was 8 months.

The business process was divided into two main segments. The core functions were denoted to be major ones. Similarly the supporting functions were named minor ones. A plan of action on the proposed ERP's impact was drafted depicting their relation to one another and to the business process. All of them were made to bear in mind the fact that ERP's implementation was imperative and that the deadlines were not very comfortable. The company took all efforts to ensure that the change did not produce any sort of resentment in the organization. This was done by educating everyone on the need and desirability of change. In addition all apprehensions relating to change were discussed and clarifications made to the fullest satisfaction.

The outcome

SAP ERP solutions produced a remarkable result to the company in terms of financial technical and managerial parameters. The effective handling and speed delivery resulted in greater sales .Similarly there was a drastic fall in the amount owned to creditors. The systems were made more user friendly without any complexities and procedural lacunas. This improved the quality of work and lessened the time taken for work and thereby increased the productivity. This was followed by a massive change in terms of accountability administration and control.

Future moves

This exercise undertaken by TISCO has been a motivating factor for both companies and ERP vendors. TISCO is not determined to stop ERP or attain a saturation point now. They are working on to improve and increase the scopes of enterprise resource planning software in the organization so that it benefits the stakeholders in all possible manners. Organizations can take this as a model guide and combine it with the critical success factors for ERP systems and critical success factors for ERP implementation in order to enjoy ERP success.

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