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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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    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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    Unit-14 ERP Vendors, Consultants, and Users

    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?