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8/12/2019 ERP_Unit 14_ERP Vendors, Consultants, And Users_PPT_final Reveiw
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Program : MBA
Semester : IV
Subject Code : MI0038
Subject Name : Enterprise Resource Planning
Unit number : 14
Unit Title : ERP Vendors, Consultants, and Users
Lecture Number : 14
Lecture Title : ERP Vendors, Consultants, and Users
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Objectives :
To list the three major players of ERP implementation.
To analyse the role played by the major players of the ERPimplementation.
To assess their contribution for a successful ERP implementation.
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ERP Vendors, Consultants, and Users
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Lecture Outline
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Introduction
Pros and Cons of In-House Implementation
Role of Vendor
Role of Consultant End Users
Factors for Success of an ERP Implementation
Summary
Check your Learning
Activity
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Introduction
The development of an ERP package is very complex and it demands skilledmanpower and other resources.
The software companies must direct all their available resources forimproving their products or services to remain competitive in the market.
ERP vendors can produce sophisticated packages and provide their clientswith products that allow them to maintain a focus on the activities.
These packages helps the clients by improving the revenues, profits, andshareholder returns.
ERP consultants being the crucial players in the ERP implementation provideprofessional services.
These services include IT strategy planning, software evaluation, and ERPsystem implementation experience.
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Pros and Cons of In-House Implementation
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For successful implementation within a reasonable timeframe, the in-house people must possess the skill and knowledge of implementation.
In-house implementation helps companies to depend less on the vendorsand will have access to the owner of the software. Hence, helping the
organisation to become an integral part of the open community ofdevelopers.
The team of consultants formed by the software vendors haveresponsibility to ensure that their software package follows a standardmethodology assist the in-house implementation.
The most important thing is that a good software vendor need not begood in implementation, hence there is a need for in-houseimplementation system.
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Role of Vendor
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The people who invest huge amount of time, and effort for research anddevelopment of the ERP package are called vendor.They: Spent billions of rupees in research to come up with new ideas that make
the packages more efficient and flexible.
Are responsible for fixing any problems in the software that the
implementation team encounters.
Bare the responsibility of providing the required training for some of theimportant users of the company.
Focus on how the system works rather than how it is implemented
Play an important role in project support function and exercise the qualitycontrol with respect to how the product is implemented.
Are continuing to expand market presence by offering new applications.
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Role of Consultant
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Consultantsare people who make the business of ERP implementation and
invest huge amount, of money and manpower for that purpose.
They:
Will be expensive, so the company will have to formulate a plan regarding
best optimum use of the money spent on consultants.
Are responsible to convert the planned methodology into task and allocate
right resource to complete that task.
Bring the know-how about the package and about the implementation,
hence add value to the project
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End Users
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The employees of the company who will be using the ERP system once it is
implemented are the ERP end users.
The impact of ERP implementation on ERP end-usersproductivity is a
complex issue, since wide range of business functions and user types
interact with the systems.
Employees fear that system will replace existing jobs, as many
functions will be automated and at the same time, they are even afraid
of the training that they have to under go.
Profitable business productivity is very crucial and this can beobtained if the employees can learn and work in the environment of the
new ERP system.
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Factors for Success of an ERPImplementation
The few factors for the success of an ERP implementation are:
Focus on business processes and requirements
Focus on achieving ERP ROI (Return on Investment)
Strong project management and resource commitment
Commitment from company executives
Adequate training and change management
Understand why you're implementing ERP
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Summary
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A well-implemented ERP system creates significant efficiency across yourbusiness.
The benefits that and organisation can reap are timely business
information, better customer relationships, a more cost-effective supply
chain, improved internal process and, ultimately, increased profitability.
Vendors play an important role in project support function and exercise
the quality control with respect to how the product is implemented.
Consultants administer each of the phases of the implementation. They
bring the practical knowledge about the package and about the
implementation.
For any implementation to be successful the end users must be taken
into consideration and proper awareness has to be created throughtraining.
ERP system enables to enter the customer order information once and
then make it available throughout the business.
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1. Mention the skills that people must possess to implement the ERPsystem.
Ans. The two skills that people should possess to implement the ERPsystem are:
Good people skills
Good leadership skills
2. List the factors that govern the success of an ERP implementation.
Ans. The factors for the success of an ERP implementation are:
Focus on business processes and requirements
Focus on achieving ERP ROI (Return on Investment)
Strong project management and resource commitment
Commitment from company executives
Check Your Learning
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Activity
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Consider that you own a manufacturing company with around 100employees. You decide to implement ERP software package to control
and track finance and human resources.
What are the skills you would look at in the people who are to implement
the ERP system to successfully carry out the implementation process
within a reasonable timeframe?