How to Move into the Future M.E.R.P.

What is MERP  MERP is an extension of ERP - Enterprise Resources Planning  Enterprise Resources Planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, CRM, etc. (WIKIPEDIA)  MERP is the same as ERP but applied to Media Companies  It connects all the activities of a multimedia company  It is the basic of Knowledge management  It is the core of operative management.

More on ERP  ERP systems automate their activities with an integrated software application. Its 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  ERP systems can run on a variety of hardware and network configurations, typically employing a database as a repository for information  ERP systems typically include the following characteristics: An integrated system that operates in real time or near real time, without relying on periodic updates A common database, which supports all applications A consistent look and feel throughout each module Installation of the system without elaborate application/data integration by the Information Technology (IT) department

Today the Media Company  Each department has its own isolated application system  Departments are not connected between them  Separate sectors have numerous application systems with: Different GUI Different metadata  The communication between them is very limited, there is no interoperability!  The result limits an automatic and intelligent management of the business flow of TV stations

The Tape Background  Other companies worldwide develop computer-based systems from paper-based knowledge systems  On standard business, the ERP concept became the core of all the activities  In the multimedia business, the core system needs to manage different media, films first and tapes later  Tapes are a core value of a company, but due to the lack of computer processing, they cannot be originally packed inside a computer  This scenario generates several isolated subsystems to manage the core values of the company

Disavantages  Very expensive  Reduced reliability  Low efficiency of the business chain  Management processes is split into several hardly-related and statically-implemented subsystems  All the departments work stand-alone

The Evolution  When processing power was able to manage the content, those isolated systems moved to the digital environment  However, systems remained still isolated and their communication was very limited. A TV today produces all the video as files, but print back tapes to share it!  Also use txt files to exchange million dollar values!  All those subsystems are normally produced by different brands, therefore they have their own metadata which is limited and oriented to perform a single task

An example : Newspaper  Think about a newspaper where everything is written in one system  Then send a printed paper to another system that typed again and print  And all the last minute changes are told at the phone between journalist and typewriter  This was true in when liquid lead linotype was invented- but not now  However, this is the current standard interaction between traffic scheduling and broadcast in a media company  This interaction clearly lacks of real-time feedback between the two systems  Media companies manages million dollars as Press do 100 years ago

What to do ?  Integration is a complex task  ERP technologies can help media companies to plan and develop the complex real-time interaction between different systems  ERP technology supports a high complexity, which can be applied with a media extension  MERP will be the Future

New Approach  Connect all areas and all departments in a single system  Plan and develop the complex real-time interaction between the different systems  Eliminate unnecessary periodic updates and changes synchronization between multiple systems  Use a central common database to support all applications  Use ERP approach.

Involved Business  Multimedia Resource Management  Media Assessment Management (MAM)  Archive  Scheduling  Multimedia File Exchanging Management  Video-and-audio-based Business Operation  Resources Management and Planning  Sales & Customers Relationship Management  Accounting  Purchasing & Producing  Playout  Legal Office

A single MERP System  A single system can manages everything: It supports resources allocation It provides costs management It calculates revenues It handles all media types It updates all data in real-time  This is not a dream, it’s behind the door !

MERP- Production  Allocating studios  Allocating people  Allocating tech resources  Manage raw content  Allocate resource and edit  Store the versions  Making subtitles  Collecting costs  On-air  Archive  Repurpose

Benefits for Managers  Save time and effort during management  Create a total cost control and reporting functionality  Provide powerful, real-time business for executives and managers  Make information available to management anywhere  Take proper decisions any time

Benefits for Employees  Eliminate errors on working operations  Gain control over costs and budgets  Connect workgroups and enhance communications  Minimize duplication  Near zero human errors

Power is Nothing without Control

What to do?  Start to think about integration value  You can choose: Best chassis Best engine Best brakes  But this do not produce the best car of the world unless you are also the best integrator and you budget is unlimited  You can choose a ready to drive car, you are still able to drive: For longer time With less ownership cost It’s easy to find a drive And you spend less and less  But more you can concentrate with your core business !!!

It is not Easy  Since now you need to start building your integrated system  Integration will give you more value than sole performances  The future plan to survive is the MERP direction!

Move to MERP  Moving to MERP is not easy or fast  The global move will take from 1 to 5 years  But during this time you can redesign your workflow  Individuate the existing ‘black holes’ where money disappear with no result  There is no fixed point to start, but probably you need and external consultancy to write the plan

Create your Plan now!  Check it periodically  Be ready to change it  Changing means a different working approach but it is surely better than the original one  Move before your competitors, otherwise, it could be too late…

Thank YOU Fabio Gattari Software Architect ETERE