Sunday, December 18, 2011

Online Marketing Delhi Web Content Writer Advertising Website SEO Expert Article Blogging Tips Advantages Internet Marketing India Blogger Anil Bhat

Internet Marketing - Boost Your Business

Internet marketing, also referred to as online marketing or Emarketing, is the marketing of products or services over the Internet. The Internet has brought many unique benefits to marketing including low costs in distributing information and media to a global audience. The interactive nature of Internet marketing, both in terms of instant response and in eliciting response, are unique qualities of the medium. Internet marketing ties together creative and technical aspects of the internet, including design, development, advertising and sales. Internet marketing methods include search engine marketing, display advertising, e-mail marketing, affiliate marketing, interactive advertising, blog marketing, and viral marketing. Internet marketing is the process of growing and promoting an organization using online media. Internet marketing does not simply mean 'building a website' or 'promoting a website'. Somewhere behind that website is a real organization with real goals. Internet marketing strategy includes all aspects of online advertising products, services, and websites, including market research, brand management and direct sales.


It has been observed and proven by research that more & more businesses such as yours are seeing great results with online advertising. Millions of people search online each day for products, services & information. Google is the number one choice for all these searches done.

Between 85% to 90% of all web site traffic comes from the search engines and directories, use of those handy-dandy submission services that will submit your site to 980 search engines for a mere $19.95 won’t take care of this traffic. Just because your site is listed in the search engines won’t mean that your customers can find it. But only “search engine optimization and positioning” strategies that are designed to give the engines what they want and need in order to find your site among your competitors and other sites related to your category. Search engine optimization and positioning is challenging at best. It’s not a simple matter of adding a few tags that contain your important keywords. It is an art-and a science-since its is applying creative techniques to an in-depth study of the search engines and directories.

SEO Company is committed to meeting the search engine optimization & positioning needs of your web site and proposes a campaign plan. Meet your SEOP outsourcing needs thoroughly and professionally. The Scope of Work should include site optimization and allied web promotion & development activities, SE-friendly content writing, and submission and tracking to over all major and support Search Engines and Directories. On project completion your web site will be more accessible on the Internet in terms of Top rankings for specific keywords across the major search engines.

Search engine optimization (SEO) is an online marketing strategy used to increase a Web site's visibility to the millions of people who find information and services on the Internet. Search engine optimization can help position your firm among the top search results for a given query, which can dramatically increase traffic to your Web site and establish a Web presence for your practice.

Among other things, SEO involves optimizing the structure of your site and the text that appears on it, as well as obtaining links to your site from other sites, to help its popularity rating with search engines. With the number of Web sites on the Internet increasing at an exponential rate, gaining primary placements in search engine rankings allows you to market your firm in a very powerful and effective way.


Effective structure and a well thought-out search engine marketing campaign can be the deciding factor in whether your Internet promotions succeed.
Writing your article and throwing your mission statement should be your aim.
You need to think up a mission statement that powerfully conveys your message to users is most crucial benefit to a potential client. Your mission statement should be clear and concise. If anyone wants more we can have number of options as well.


Blogging is a great way to reach your target audience with your thoughts, opinions, and offerings on relevant topics.

Blogging makes sense from a marketing perspective. You'll be leveraging the shift from outbound to inbound marketing and interacting with your customers in new ways. A blog lets you meet your customers more directly than sending out brochures or an email campaign. It changes your website from a brochure that most people look at once to something that people interact with and come back to.


Communities creation to get more traffic is must for any social media activity

Create communities for your online presence and strive to exist in web world. And most important having online presence is not the ultimate target. What is important is having huge traffic and great page rank. There are lots of communities which drive traffic to your website. Finally traffic will produce business for you. Social Media marketing also engage the customers in generating traffic.


Regularly monitor the ranks and do the changes required as per the changes in conditions and algorithms of search engines. Changes required on the site, in case any rank is dropped due to changes in search engine algorithms or due to heavy competition.

Anil Bhat

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Online Advertising Delhi Digital Advertising India Website SEO Online Product Consultants India Brand Management Business Research Expert Social Media

Advertising Tips Benefits Strategy Advantages

Advertising is the first step to market your product efficiently. And one has to choose the methods depending upon the demands of the customers and situation of the market. Prices must be decided accordingly. Perhaps, the best media for advertising are Television, Newspaper, magazines, hoardings, flashes at different restaurants, on screens advertisements at different, malls, shopping complexes etc. Also, you have to take care of the mindset of the target audience. For example if one company is launching a food product for health conscious people one has to take care of the proper scientific researches as these people really like those kind of “scientific facts”, similarly, if one is looking something for children you have to find out ways to advertise which must be ”catchy enough” for children and if you are targeting for children whose parents are worried about their health then you have to perhaps target all possible combinations to catch their attention.

1. Breaking the Ice and Catching Audience Attention:

If you have to break the ice at the first instance, then try to catch the attention of the target audience.

2. Understanding the Psychology or Mindset of the target population:

Try to analyze the common needs and perceptions of the target audience. Take care of the age group, gender needs, cultural roles, and popularity. e.g. if you are targeting nail polish first you must have the complete report and then only you could think about how to attract their attention about your product.

3. Market Research and Analyses:

Unless one does not have the complete knowledge about the requirement of the product in the market or demand of the product amongst the masses you cannot do much. First you have to understand that how could you make your product easily popular in the first go, how to catch attention for all sorts of group, how to portray its benefits amongst the masses and how you could sell it with a greater margin. For that you have to analyze market trends for different age groups and genders and analyze the current situation.

4. Creativity and novelty which could be accepted:

One has to think and create the story line of the advertisement in a manner that it works effectively for the target population. The contents of the advertisement must be such that it is appealing to the masses and it does not make them feel bored.

5. Imagination, marketing with entertainment:

One must not be a copy cat and adopt a previously used script for advertising, rather it must be imagined in a manner that it could be original way of entertaining the audience at the same time beating the competitor in a healthy manner. Audience would watch it only if they find it entertaining. The more entertaining it is, with a little touch of emotional content for them-the more they would watch it and then it would go into their “permanent memory” (long term memory)-making the product and brand more popular.

6. Stand Unique and portray with a difference:

Every content of the advertisement script must be uniquely portrayed and the product and brand must appeal with a difference.

7. Little Touch of scientific facts with researches:

Little touch of science move the people towards the product because this appears to be a well studied fact. Make a preliminary research about thee product, analyze the results e.g. effects of your cosmetics on the skin health and so on.

8. Message must be clear, comprehensible and Understandable:

Message for the audience must be simple, clear, and meaningful to the masses. It must be easily comprehensible and the under the easy understanding of the audience at the same time entertaining them.

Anil Bhat

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Social Media Marketing Delhi Online Business Networking Delhi Brand Product Business Promotion Benefits Tips Website Blogger India Internet Advantages


Social Networking is a social structure made up of individuals or organizations. These social networks are connected by one or more specific types of interdependency. The social networking may be dependent upon friendship, kinship, financial exchanges, likes and dislikes and sexual relationships or relationships of belief, knowledge or prestige.

J. A Barnes used this term for the first time in 1954, systematically to denote patterns of ties including the concepts traditionally used by public and social scientists. It consisted of communities like tribes, families and social categories e.g.: gender and ethnicity.

When it comes to online social networking, the websites are the main source of networking in building up the social ties. Social networking websites function like the online community of internet users.

The shape of social network determines its usefulness to individuals. The small and tight networks might be emotionally bonded but open connections which have weaker ties or social connections are more likely to introduce new ideas and opportunities to their members. Hence, it varies from the need of one individual to another individual. If a person’s need is for close emotional ties, he/she would go for closed networks. But if a person’s need is to fetch a business and share the information largely with others then they have to rely on open networking with loose ends.

As Granovetter had explained that while the close ties resulted in attraction and togetherness, the weak ties are open to new information and insight, but what he called the strength of weak ties is that he could “look beyond the insight to its other friends and acquaintances”. Hence, social networking is the medium by which you are interconnected to others and could understand the things in a wider perspective. By social networking you are connected to a larger family through any kind of relations like likes, emotions or even you can do business. You can sell your products by sharing the advantages and disadvantages, pros and cons of it and even you can invite suggestions to improve it or you can have others to explore the probabilities. You can have exchange of information through sharing with a great extent of people and explore wider opportunities with a single click of online social networking.

After all the role and biggest advantage of social networking is to develop cooperation between different types of individuals. For example you can be co-operative by sharing the type of knowledge you have, you can exchange your feelings and comments about your product and create awareness for the other persons about it. Your thoughts may be good or it may be extremely negative but these are useful to others. In fact social networking is economical in the sense that it helps you understand other person’s perceptions, attitude and approach towards life, be it business or anyone’s personal life. It helps you get connected to a larger community and people worldwide through a single click of the internet. Basically, it helps you get connected to others perceptions and feelings.

To conclude, the advantages of social networking are to:

1. Improve your emotional ties and bonds with other people, whilst being connected to them
2. Share your thoughts and perceptions with a larger community.
3. Connect yourself to those, whom you have never seen or heard in your life.
4. Do business by sharing your information about the particular concept.
5. Criticize a concept or a product.
6. Understand things from others vision or perspective.
7. Open your mind towards new ideas.

In sum total social networking is the exchange of ideas, thoughts, perceptions, feelings and emotions towards the growth, adding to the potential of an individual

Anil Bhat

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A blog is a type of website maintained by an individual with the information kept about his personal events, information about his/her organization, political information, information about fashion, education, music, media, news and so on. A blog can be focusing upon the employment opportunities and individual profiles, bio-data etc.

A blog is the free flow information of individual entities of commentary, description of events or other material such as graphics or videos. Many blogs provide commentary or news on a particular subject; others function as more personal online diaries. A typical blog combines text, images, and links to other blogs, Web pages, and other media related to its topic. The ability of readers to leave comments in an interactive format is an important part of many blogs. Most blogs are primarily textual, although some focus on art (Art blog), photographs (photoblog), videos (Video blogging), music (MP3 blog), and audio (podcasting). Microblogging is another type of blogging, featuring very short posts.

A blog can be about anything happening in one’s life, environment or surroundings or any other emotional or personal event. The advantages of blogging are that almost anyone whosoever wants to surf the internet can have the easy access to such information. It is like sharing of information and knowledge to the outer world, almost free of cost. This is the most economical way of communicating with each other, while writing your passionate things about the news, media, article and events. Through writing your comments and almost anything you want to express, you can connect through your feelings, thoughts and perceptions to the wider world. In other words, the advantage of blogging is that it gives you a larger perspective of thought when you are able to share your feelings and expressions to even those whom you do not know.

A blog can also belong to corporate, business organizations and the description of a product. The advantage of this type of blogging is that you can describe the strengths of your product, or concept to the extent you want. There are no limitations or boundations. You are not bound by any regulatory laws or any copyrights. A person can also write his comments agreeing or disagreeing with the given information. In short I would say that the “Sky is the limit” for your expression.

But at the same time, it could turn disadvantageous and harmful to the society, when we pass derogatory comments to others or use this platform for filthy criticism. Hence, I would suggest that the biggest beauty and strength of blogging is to use any kind of information judiciously and even if you want to criticize some concept, use the constructive criticism. Though, there are no laws and regulations for this kind of creativity but if we turn to derogatory comments or remarks, using socially unacceptable language then it would do more harm than good. Hence, people must refrain from passing derogatory comments or using it destructively. In short, I would say that the beauty of blogging is to stay a critic but within the socially acceptable limits.

Anil Bhat

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Software Development Delhi Custom Application Software India Billing HR Accounts Payroll Management Inventory Software Delhi ERP MLM Development Tips

Software Development Overview Processes & Tips:

Software development is the process of producing or creating a software. There could be several aims of developing a piece of software:

Usually the aim is to satisfy the specific needs of a client.
Secondly, to meet the needs of the potential users.
For personal use to meet the need of a scientist.

Mainly, it refers to the activities or processes of writing and maintaining the source code. Broadly, it includes the involvement of the conception of the desired software and the manifestation of the product. Software development may include research, new development, modification, reuse, re-engineering, maintenance, or any other activities that result in software products. Usually, it involves the inputs of the several departments like marketing, research and development, engineering and general management.

Most methodologies share some combination of the following stages of software development:
Market research
Gathering requirements for the proposed business solution
Analyzing the problem
Devising a plan or design for the software-based solution
Implementation (coding) of the software
Testing the software
Maintenance and bug fixing

These stages are often referred to collectively as the software development lifecycle, or SDLC. Different approaches to software development may carry out these stages in different orders, or devote more or less time to different stages. The level of detail of the documentation produced at each stage of software development may also vary. These stages may also be carried out in turn (a “waterfall” based approach), or they may be repeated over various cycles or iterations (a more "extreme" approach). The more extreme approach usually involves less time spent on planning and documentation, and more time spent on coding and development of automated tests. More “extreme” approaches also promote continuous testing throughout the development lifecycle, as well as having a working (or bug-free) product at all times. More structured or “waterfall” based approaches attempt to assess the majority of risks and develop a detailed plan for the software before implementation (coding) begins, and avoid significant design changes and re-coding in later stages of the software development lifecycle.

The important task in creating a software product is extracting the requirements or requirements analysis.Customers typically have an abstract idea of what they want as an end result, but not what software should do. Incomplete, ambiguous, or even contradictory requirements are recognized by skilled and experienced software engineers at this point. Frequently demonstrating live code may help reduce the risk that the requirements are incorrect.

Once the general requirements are gathered from the client, an analysis of the scope of the development should be determined and clearly stated. This is often called a scope document.

Certain functionality may be out of scope of the project as a function of cost or as a result of unclear requirements at the start of development. If the development is done externally, this document can be considered a legal document so that if there are ever disputes, any ambiguity of what was promised to the client can be clarified.

Implementation, testing and documenting:
Implementation is the part of the process where software engineers actually program the code for the project.

Software testing is an integral and important part of the software development process. This part of the process ensures that defects are recognized as early as possible.

Documenting the internal design of software for the purpose of future maintenance and enhancement is done throughout development. This may also include the authoring of an API, be it external or internal.

Deployment and maintenance:
Deployment starts after the code is appropriately tested, is approved for release and sold or otherwise distributed into a production environment.

Software Training and Support is important and a lot of developers fail to realize that. It would not matter how much time and planning a development team puts into creating software if nobody in an organization ends up using it. People are often resistant to change and avoid venturing into an unfamiliar area, so as a part of the deployment phase, it is very important to have training classes for new clients of your software.

Maintaining and enhancing software to cope with newly discovered problems or new requirements can take far more time than the initial development of the software. It may be necessary to add code that does not fit the original design to correct an unforeseen problem or it may be that a customer is requesting more functionality and code can be added to accommodate their requests. If the labor cost of the maintenance phase exceeds 25% of the prior-phases' labor cost, then it is likely that the overall quality of at least one prior phase is poor. In that case, management should consider the option of rebuilding the system (or portions) before maintenance cost is out of control.

Bug Tracking System tools are often deployed at this stage of the process to allow development teams to interface with customer/field teams testing the software to identify any real or perceived issues. These software tools, both open source and commercially licensed, provide a customizable process to acquire, review, acknowledge, and respond to reported issues.

Anil Bhat

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Website SEO Delhi Internet Marketing Business Development Tips Benefits Brand Consultant Web Product Advertising Online Promotion SEO India Anil Bhat

Internet Marketing - Benefits :

Marketing with a difference with more impact on its clients:

Internet marketing has been the most widely used mode of marketing. This is the most cost effective mode of attracting customers with lots of benefits e.g. saves time and money and reaches to the masses within no time, knows no boundaries for regions or locations, have benefit of reaching throughout the world. It usually requires no unnecessary meetings.

Saves Time:

Internet marketing saves lots of unnecessary loss of time by making the customer read about the product. The only thing is that you would require to give its benefits on the internet with a precisely formed articles, blogs, links, comments given by the customer who has used the particular product to their satisfaction and so on.

Saves Travel:

Internet Marketing usually relieves the marketing professional from unnecessary waste of travel and thereby saving time and cost for traveling.

Meetings become usually Unnecessary:

Internet marketing professional usually does not require any kind of meetings as such. Even if they have to arrange meetings, these meetings are very brief and the questions are understood well so that both the consumer and the employer could save enough time.

Knows No boundary or locations:

Internet marketing especially has no boundaries or locations or regions. You could send your e-mails, links or articles throughout the world.

Reduces the cost:

Internet Marketing reduces the cost of money due to the above benefits.

Marketing made more convenient:

Internet marketing is the most convenient form of the marketing as you do not have to fix meetings as such and moreover, you could start your marketing anytime and the customer could be benefited anytime according to the conveniences.

Could Review Information again and again:

Internet marketing professionals could be benefited from the content of this e-marketing and could review it again and again.

For making comparisons :

Internet marketing allows one to go through the complete details of the product according their convenience and finally they could compare it with other products in terms of cost benefit analyses.

Keep on at least enjoying the internet marketing as this is not usually disturbing others and people can connect to huge amount of masses within few minutes.

Anil Bhat

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ERP Software Delhi Custom Software India CRM Sales SEO Website MLM Tips Enterprise Resource Planning Educational School Application Development Delhi

Enterprise Resource Planning:

ERP is a platform that facilitates the database control in a company. The working mechanism of ERP is simple and easy to understand. ERP aims to unite the data processed in various departments and division of a company. The central unit referred as the platform controls the entire system. It aims at providing connectivity in order to access the information from all faculties. The benefit of ERP is largely felt nowadays when operations are becoming global in the true sense.

With the intervention of ERP it becomes equally easy for the other departments of the company to check the information regarding the order. Similarly it is not necessary for departments to keep working on it all through to know their chance or in other words discharging their respective area of work in the whole process. On the contrary ERP intimates them as soon as it is their chance. ERP software solution is the one step answer. Implementing ERP in an organization depends upon that whether it could yield necessary benefits rather than the troublemaker.

Enterprise resource planning (ERP)

is an integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise wide system environment.

An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex, expensive computer systems in areas which will not use their full capacity.

Origin of the term

The initialism ERP was first employed by research and analysis firm Gartner Group in 1990 as an extension of MRP (Material Requirements Planning; later manufacturing resource planning) and CIM (Computer Integrated Manufacturing), and while not supplanting these terms, it has come to represent a larger whole. It came into use as makers of MRP software started to develop software applications beyond the manufacturing arena. ERP systems now attempt to cover all core functions of an enterprise, regardless of the organization's business or charter. These systems can now be found in non-manufacturing businesses, non-profit organizations and governments.

To be considered an ERP system, a software package should have the following traits:

• It should be integrated and operate in real-time with no periodic batch updates.

• All applications should access one database to prevent redundant data and multiple data definitions.

• All modules should have the same look and feel.

• Users should be able to access any information in the system without needed integration work on the part of the IS department

ERP Components

Transactional Backbone

• Financials

• Distribution

• Human Resources

• Product lifecycle management

Advanced Applications

• Customer Relationship Management (CRM)

• Supply chain management

o Purchasing

o Manufacturing

o Distribution

• Warehouse Management System

Management Portal/Dashboard

• Decision Support System

These modules can exist in a complete system or utilized in an ad-hoc fashion.

Commercial Applications


Engineering, bills of material, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow

Supply chain management

Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commission calculation


General ledger, cash management, accounts payable, accounts receivable, fixed assets

Project management

Costing, billing, time and expense, performance units, activity management

Human resources

Human resources, payroll, training, time and attendance, rostering, benefits

Customer relationship management

Sales and marketing, commissions, service, customer contact and call center support

Data services

Various "self-service" interfaces for customers, suppliers, and/or employees

Access control

Management of user privileges for various processes


Businesses have a wide scope of applications and processes throughout their functional units; producing ERP software systems that are typically complex and usually impose significant changes on staff work practices. Implementing ERP software is typically too complex for "in-house" skill, so it is desirable and highly advised to hire outside consultants who are professionally trained to implement these systems. This is typically the most cost effective way. There are three types of services that may be employed for - Consulting, Customization, Support. The length of time to implement an ERP system depends on the size of the business, the number of modules, the extent of customization, the scope of the change and the willingness of the customer to take ownership for the project. ERP systems are modular, so they don't all need be implemented at once. It can be divided into various stages, or phase-ins. The typical project is about 14 months and requires around 150 consultants. A small project (e.g., a company of less than 100 staff) can be planned and delivered within 3–9 months; however, a large, multi-site or multi-country implementation can take years. The length of the implementations is closely tied to the amount of customization desired.

To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. These firms typically provide three areas of professional services: consulting; customization; and support. The client organization can also employ independent program management, business analysis, change management, and UAT specialists to ensure their business requirements remain a priority during implementation.

Data migration is one of the most important activities in determining the success of an ERP implementation. Since many decisions must be made before migration, a significant amount of planning must occur. Unfortunately, data migration is the last activity before the production phase of an ERP implementation, and therefore receives minimal attention due to time constraints. The following are steps of a data migration strategy that can help with the success of an ERP implementation

1. Identifying the data to be migrated

2. Determining the timing of data migration

3. Generating the data templates

4. Freezing the tools for data migration

5. Deciding on migration related setups

6. Deciding on data archiving

Process preparation

ERP vendors have designed their systems around standard business processes, based upon best business practices. Different vendor(s) have different types of processes but they are all of a standard, modular nature. Firms that want to implement ERP systems are consequently forced to adapt their organizations to standardized processes as opposed to adapting the ERP package to the existing processes neglecting to map current business processes prior to starting ERP implementation is a main reason for failure of ERP projects. It is therefore crucial that organizations perform a thorough business process analysis before selecting an ERP vendor and setting off on the implementation track. This analysis should map out all present operational processes, enabling selection of an ERP vendor whose standard modules are most closely aligned with the established organization. Redesign can then be implemented to achieve further process congruence. Research indicates that the risk of business process mismatch is decreased by:

• linking each current organizational process to the organization's strategy;

• analyzing the effectiveness of each process in light of its current related business capability;

• understanding the automated solutions currently implemented.

ERP implementation is considerably more difficult (and politically charged) in organizations structured into nearly independent business units, each responsible for their own profit and loss, because they will each have different processes, business rules, data semantics, authorization hierarchies and decision centers. Solutions include requirements coordination negotiated by local change management professionals or, if this is not possible, federated implementation using loosely integrated instances (e.g. linked via Master Data Management) specifically configured and/or customized to meet local needs.]

A disadvantage usually attributed to ERP is that business process redesign to fit the standardized ERP modules can lead to a loss of competitive advantage. While documented cases exist where this has indeed materialized, other cases show that following thorough process preparation ERP systems can actually increase sustainable competitive advantage.


Configuring an ERP system is largely a matter of balancing the way you want the system to work with the way the system lets you work. Begin by deciding which modules to install, then adjust the system using configuration tables to achieve the best possible fit in working with your company’s processes

Modules — Most systems are modular simply for the flexibility of implementing some functions but not others. Some common modules, such as finance and accounting are adopted by nearly all companies implementing enterprise systems; others however such as human resource management are not needed by some companies and therefore not adopted. A service company for example will not likely need a module for manufacturing. Other times companies will not adopt a module because they already have their own proprietary system they believe to be superior. Generally speaking the greater number of modules selected, the greater the integration benefits, but also the increase in costs, risks and changes involved

Configuration Tables – A configuration table enables a company to tailor a particular aspect of the system to the way it chooses to do business. For example, an organization can select the type of inventory accounting – FIFO or LIFO – it will employ or whether it wants to recognize revenue by geographical unit, product line, or distribution channel.

So what happens when the options the system allows just aren't good enough? At this point a company has two choices, both of which are not ideal. It can re-write some of the enterprise system’s code, or it can continue to use an existing system and build interfaces between it and the new enterprise system. Both options will add time and cost to the implementation process. Additionally they can dilute the system’s integration benefits. The more customized the system becomes the less possible seamless communication between suppliers and customers

Consulting services

Many organizations do not have sufficient internal skills to implement an ERP project. This results in many organizations offering consulting services for ERP implementation. Typically, a consulting team is responsible for the entire ERP implementation including

1. selecting

2. planning

3. training

4. testing

5. implementation

6. delivery

of any customized modules. Examples of customization includes creating processes and reports for compliance, additional product training; creation of process triggers and workflow; specialist advice to improve how the ERP is used in the business; system optimization; and assistance writing reports, complex data extracts or implementing Business Intelligence

For most mid-sized companies, the cost of the implementation will range from around the list price of the ERP user licenses to up to twice this amount (depending on the level of customization required). Large companies, and especially those with multiple sites or countries, will often spend considerably more on the implementation than the cost of the user licenses—three to five times more is not uncommon for a multi-site implementation

Unlike most single-purpose applications, ERP packages have historically included full source code and shipped with vendor-supported team IDEs for customizing and extending the delivered code. During the early years of ERP the guarantee of mature tools and support for extensive customization was an important sales argument when a potential customer was considering developing their own unique solution in-house, or assembling a cross-functional solution by integrating multiple "best of breed" applications

"Core system" customization vs configuration

Increasingly, ERP vendors have tried to reduce the need for customization by providing built-in "configuration" tools to address most customers' needs for changing how the out-of-the-box core system works. Key differences between customization and configuration include

• Customization is always optional, whereas some degree of configuration (e.g., setting up cost/profit centre structures, organisational trees, purchase approval rules, etc.) may be needed before the software will work at all.

• Configuration is available to all customers, whereas customization allows individual customer to implement proprietary "market-beating" processes.

• Configuration changes tend to be recorded as entries in vendor-supplied data tables, whereas customization usually requires some element of programming and/or changes to table structures or views.

• The effect of configuration changes on the performance of the system is relatively predictable and is largely the responsibility of the ERP vendor. The effect of customization is unpredictable and may require time-consuming stress testing by the implementation team.

• Configuration changes are almost always guaranteed to survive upgrades to new software versions. Some customizations (e.g. code that uses pre-defined "hooks" that are called before/after displaying data screens) will survive upgrades, though they will still need to be re-tested. More extensive customizations (e.g. those involving changes to fundamental data structures) will be overwritten during upgrades and must be re-implemented manually.

By this analysis, customizing an ERP package can be unexpectedly expensive and complicated, and tends to delay delivery of the obvious benefits of an integrated system. Nevertheless, customizing an ERP suite gives the scope to implement secret recipes for excellence in specific areas while ensuring that industry best practices are achieved in less sensitive areas.


In this context, "Extensions" refers to ways that an ERP environment can be "extended" (supplemented) with third-party programs. It is technically easy to expose most ERP transactions to outside programs that do other things, e.g:

• archiving, reporting and republishing (these are easiest to achieve, because they mainly address static data);

• performing transactional data captures, e.g. using scanners, tills or RFIDs (also relatively easy because they touch existing data);

However, because ERP applications typically contain sophisticated rules that control how data can be created or changed, some such functions can be very difficult to implement.


In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another. Tasks that need to interface with one another may involve.

• ERP systems connect the necessary software in order for accurate forecasting to be done. This allows inventory levels to be kept at maximum efficiency and the company to be more profitable.

• Integration among different functional areas to ensure proper communication, productivity and efficiency

• Design engineering (how to best make the product)

• Order tracking, from acceptance through fulfillment

• The revenue cycle, from invoice through cash receipt

• Managing inter-dependencies of complex processes bill of materials

• Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

• The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.

ERP Systems centralize the data in one place. Benefits of this include:

• Eliminates the problem of synchronizing changes between multiple systems - consolidation of finance, marketing and sales, human resource, and manufacturing applications

• Permits control of business processes that cross functional boundaries

• Provides top-down view of the enterprise (no "islands of information"), real time information is available to management anywhere, anytime to make proper decisions.

• Reduces the risk of loss of sensitive data by consolidating multiple permissions and security models into a single structure.

• Shorten production leadtime and delivery time

• Facilitating business learning, empowering, and building common visions

Some security features are included within an ERP system to protect against both outsider crime, such as industrial espionage, and insider crime, such as embezzlement. A data-tampering scenario, for example, might involve a disgruntled employee intentionally modifying prices to below-the-breakeven point in order to attempt to interfere with the company's profit or other sabotage. ERP systems typically provide functionality for implementing internal controls to prevent actions of this kind. ERP vendors are also moving toward better integration with other kinds of information security tools.


Problems with ERP systems are mainly due to inadequate investment in ongoing training for the involved IT personnel - including those implementing and testing changes - as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and the ways in which it is used.


• Customization of the ERP software is limited.

• Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage.

• ERP systems can be very expensive (This has led to a new category of "ERP light" solutions)

• ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies—this is cited as one of the main causes of their failure.

• Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, then over time "dirty data" will reduce the reliability of some applications.

• Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level).

• The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale.

• Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.

• Some large organizations may have multiple departments with separate, independent resources, missions, chains-of-command, etc, and consolidation into a single enterprise may yield limited benefits.

Anil Bhat

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