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:
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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:
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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.
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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 1900 -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:
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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 !!!
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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