ENTERPRISE RESOURCE PLANNING (ERP)

Vendors, Consultants and Employees

Why cant company implement their own ERP Package?????

Cannot go for trial–and–error coz of huge amount of investment.

Consequences of failed ERP Implementation:Quite harmfulCan put organization out of businessImplementation cannot go for long time, should

be finished in reasonable period of time

In-House Implementation-PROS and CONS

Many software vendors have their own team of consultant, responsibility is to ensure that software package follows the standard approach.

Aware of product n help during implementation.

Developing a good software n implementing software is entirely 2 different proposition.

Each group of people have their definite role in implementation.

Along with good knowledge they should have following skills:

Knowledge of how to organize and run a project.

Enough experience in handling problems and issues.

Good people skills.Good leadership skills.Excellent training skills.

In-house implementations expensiveMight require to hire experts and have them

on company's roll.After implementation these people are not

needed only few people are in use that will handle post-implementation phase.

In-house implements means wasting lots of resource

“Vendors are the people who has developed ERP package”

Invested huge amount of time and efforts in research and development to create packaged solution.

ERP package grew out of experience or opportunities of group of people working for company in particular segment.

Vendors have to constantly upgrade their product

Vendors

Vendor should supply product and its documentation as soon as company has signed contract.

Later company can organized training and testing for implementation team

Vendor is a like a LINK.Responsible for fixing any problem.Constantly interact with implementation team

Role of VENDORS

Vendors training provides to key users:How package works, what are the major

components, how data and information flows across system, what should be configured, what are the limitation, strength, weakness so on..

Objective if vendors is to show how software works not how to implement software

They are also like a “GAP” between package and actual business processing.

Software has to be customized.It is job of vendors to customize software

according to company.Company should get guarantee after

customization that software should fulfil all the requirements to achieve goal from vendor

Deals with implementation and with various problem arises during implementation.

Experts in management, administrationHave many years of implementation

experienceBut they are very expensive.Research various product in depth ,develop

in-depth understanding all the weakness n strength

Consultants

Consultant should guarantee that software success of software and must show desire results that satisfies the need of company.

Administer all the phase in detailsSchedule all the thing in time.They have to allocate right peopleFor better implementation and better business

practice they should be impartial while questing.Responsible for analyzing and addressing

customizing issue.

Role of CONSULTANTS

Must know difference „Must have‟ and „nice to have‟ items.

Decide level of customizationMust use diplomatic skills.Provide drawback and advantage of all the

areaMaintain documentationWill leave once project is finishedMust leave knowledge and train people.

These people who will use ERP systemUse function that are being automated.Employee fear.Afraid of training.Job profile will changeOld job is gone but new job comes in

Employees

Fear of being redundantFear of failureFear of the future

Reason for Employee Resistance

Training and educationCreating ERP championsPilot projectsInvolve employees in the processAddressing issues related to ERP

implementation

Employee Resistance Dealing