2 WHY CAN’T COMPANIES DEVELOP THEIR OWN ERP PACKAGES? To develop an ERP package is a complex & time consuming activity which requires a lot of skilled manpower & other resources.Many companies have personnel in their IT department who can absorb the necessary knowledge and who have experience in developing sophisticated systems.the problem is that such specialized computer work is not the main business of these companies.they should be directing all their available resources into improving their own products or services so that they can remain competitive, serve their customers better and continue to grow.since designing and implementing integrated software is not the business of most companies, the systems that the in-house team comes up with will never equal in quality, scope, functionality or technology of those systems created by software firms whose business it is.These software firms can produce sophisticated packages and provide their clients with products that allow them to maintain focus on their own chief activities, thus improving revenues, profits and share-holder returns.
3 IN-HOUSE IMPLEMENTATION – PROS & CONS To setup & implement an ERP package is not an easy task. We can also not setup a trial & error method of implementation because a large amount of investments are involved.The consequences of a failed ERP implementation will put the organization out of business & also the ERP implementation cannot go on for a long period of time.To successfully carry out the implementation within a reasonable time n-frame,The people who are given the job of implementing ERP package should have good knowledge skills.They must be familiar with the ERP package & technical issues.They must have at least 1 year experience & hands-on practical training.The people who are going to implement the ERP package should have the following skills:-
4 During ERP implementation we have to provide training at the Knowledge of how to organize & run a project:He must have organization skills, project management skills, team management skills & project management skills.Enough experience in handling problems & issues that arise during the implementation:During implementation, process problem such as cost overrun, time overrun occurs it is very important to know what kind of decisions are to be taken so that there is success to the project.Good people skills:Whenever an ERP implementation takes place there is a fear in the mind of the employees of unemployment, training, technology, so we must have good people in the implementation team, so that they can handle such situations.Good leadership skills:During ERP implementation we have to interact with a lot of people. So the implementation team must have effective communication skills & good leadership skills.Excellent training skills:During ERP implementation we have to provide training at thevarious levels of the organization. As the end users are handling thewhole system, the success of an ERP implementation is in theirhands, so it is necessary that the implementation team must haveexcellent training skills.
5 If the company plans to do ERP implementation in-house? Hire experts & have them on the company roles or positions.This is expensive proposition as once the implementation is over, there is no need to keep the experts in the business.Wastage of resources & spending a lot of money on trainingIt is better to give to those who are specialized into it & focus on company’s effort that how to manage after ERP implementation.Better to train employees during implementation it will solve money, effectiveness
6 VENDORSDEFINITION:Vendors are the people to develop the ERP packages, they spent a huge amount of time & effort in research & development to create the package solution that is flexible, efficient and easy to use.Now, these days the ERP have all features & function which can satisfy the need of all the business data. The ERP vendors spent a large amount of money so that they can become experts, to develop a flexible, efficient & easy to use ERP package.
7 VENDORSMAKE ERP S/WTIME, EFFORT, MONEY FOR R & D OF ERP S/WFLEXIBLE, EASY TO USE & EFFICIENT
8 ROLES OF VENDORS:The vendor should supply the product & its documentation as soon as the contract is signed.The vendor is responsible to fix the errors which are found during the implementation process, so it becomes necessary that the vendor should be constantly touched with the implementation team.The vendor also has to provide the training to the company’s user & also to the people who are involved in the implementation process of the s/w.The vendors training should explain how the package works, what are major components, how the data & information flows across the system, etc.The vendor gives the project support function & also takes care of the quality control factor with respect to how the product is implemented.The vendors participate in all the phases of animplementation in which he gives advices, answers to technical questions about the product & technology.In case, there is gap between the package & the actual business process then it is the job of a vendor to customize the s/w & make necessary modifications.
9 CONSULTANTS DEFINITION: Business consultants are professional people who develop the different methods & techniques to deal with the implementation process & with the various problems that will crop up during implementation.They are experts in the area of the administration, management & control activities.They have experience of implementation & various methods that ensures successful implementation.The only limitation with consultant is they are very expensive.They consultants have to make the ERP implementation for an organization as their own business.They have to make a plan to carry the activities in the right direction during the implementation process.Since they are expensive the company should formulate a plan regarding best optimum utilization of the money spent on consultants.
10 ROLE OF CONSULTANTS:The consultants are involved in the implementation process of the organization.They consultant should guarantee the success of the project and should be able to show the results such as reduction in cycle time, increased response time, improved productivity, etc to the satisfaction of the customer.They are responsible for the administration of all the phases of the implementation so that the activities occur at the scheduled time and at the desired level of quality with effective participation with all those who must participate.They add value to the project as they provide knowledge about the packages & the implementation process which gives the employees the practical experience.
11 HE IS RESPONSIBLE FOR ADMINISTRATION OF THE PHASES CONSULTANTSWHO ARE RESPONSIBLE TO IMPLEMENT THE PROJECTCLEAR CUT IDEATELLS THE CHANGE MUST BE MADE SO THAT WITH HIS DECISISON CHANGES ARE MADEHE IS RESPONSIBLE FOR ADMINISTRATION OF THE PHASES
12 END USERSDEFINITIONThey are the people who use the ERP system once it has been developed.End users are the people who will be doing the functions which are automated by the ERP system.The end user should be given the training as to how use the various functions that are automated in the s/w.They fear among the employees of unemployment is taken out with the training sections.The end users are provided with the skills set & more opportunities to work in a challenging environment using the modern technologies.
13 They also analyze & provide the suggestion where customization needs to take place. They should be able to balance their loyalty to the client & the project.They should have a clear cut context & scope of the work so that they can provide the management with the decision that are to be taken for the implementation process.The consultants should create a knowledge base & train the people so that the knowledge stays in the organization when the consultants leave the project.