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Chapter 9 Vendors Consultants Users Alexis Leon

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  • 1. Chapter 9 Vendors, Consultants and Users Sonali C. UDIT -T.Y.B.Sc (IT) 2008-09 Introduction  Why Companies cannot developed their ERP package?  Developing ERP is very complex.  Developing ERP is not their business…  They should be focus on improving their product and service to live in competition.  Ands also to serve their customer better.  Software firm/vendors can provide better sophisticated package then companies. Sonali ERP-Alexis Leon 2 In-House Implementation- PROS and CONS (1) Question asked: 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 harmful  Can put organization out of business  Implementation cannot go for long time, shld be finished in reasonable period of time Sonali ERP-Alexis Leon 3 1
  • 2. Cont… In-House Implementation- PROS and CONS (2)  For successful implementation- in-house ppl should have knowledge and skill.  People shld be familiar with ERP package and its technical issue.  Should at least have 1-year experience.  Not in reading all brochures n help file…shld have practical implementation experience. Sonali ERP-Alexis Leon 4 Cont… In-House Implementation- PROS and CONS (3)  Many software vendors have their own team of consultant, responsibility is to ensure that s/w package follows the standard approach.  Aware of product n help during implementation.  Developing a good s/w n implementing s/w is entirely 2 different proposition.  Each group of people have their definite role in implementation. Sonali ERP-Alexis Leon 5 Cont… In-House Implementation- PROS and CONS (4) 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. Sonali ERP-Alexis Leon 6 2
  • 3. Cont… In-House Implementation- PROS and CONS (5)  In-house implementation is expensive  Might require to hire experts and have them on company‟s roll.  After implementation these people are not needed only few ppl are in use that will handle post-implementation phase.  In-house implements means wasting lots of resource Sonali ERP-Alexis Leon 7 Cont… In-House Implementation- PROS and CONS (6)  Hence ,its better to implement to specialist  Employees must be trained during implementation, saving lots of money otherwise would have been spent on hiring training. Sonali ERP-Alexis Leon 8 Cont… In-House Implementation- PROS and CONS (7) In summary,  Better for company to concentrate on business and leave ERP implementation to the people who handles this.  For good benefit company people should participate during implementation  And proper role should be given to the people Sonali ERP-Alexis Leon 9 3
  • 4. Vendors “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 Sonali ERP-Alexis Leon 10 § Role of VENDORS (1)  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 Sonali ERP-Alexis Leon 11 Cont… § Role of VENDORS (2)  Another role is of trainer-  Provide initial training to the key users of the company  who will play lead role in implementation  Key users along with consultant will define how s/w is to sever the company  Key users should be given thorough training. Sonali ERP-Alexis Leon 12 4
  • 5. Cont… § Role of VENDORS (3)  Vendors training provides to key users:  How package works, what are the major components, how data and information flows across system, what shld be configured, what are the limitation, strength, weakness so on..  Objective if vendors is to show how s/w works not how to implement s/w Sonali ERP-Alexis Leon 13 Cont… § Role of VENDORS (4)  Consultant also plays a role in vendor  He ask question that are avoided by vendors n users are unaware of.  If implementation fails blame will be on vendors so he participate in all the phase of implementation.  He understand all the fine details regarding project. Sonali ERP-Alexis Leon 14 Cont… § Role of VENDORS (5)  They are also like a “GAP” between package and actual business processing.  s/w has to be customized.  It is job of vendors to customize s/w according to company.  Company shld get guarantee after customization that s/w shld fulfill all the requirements to achieve goal from vendor. Sonali ERP-Alexis Leon 15 5
  • 6. Consultants  Deals with implementation and with various problem arises during implementation.  Experts in management, administration  Have many years of implementation experience  But they are very expensive.  Research various product in depth ,develop in- depth understanding all the weakness n strength. Sonali ERP-Alexis Leon 16 Cont… Consultants  And make it a point that implementation does not fails  Therefore, these people are who implements ERP package and invest huge amount of money and manpower.  Since they are expertise mistakes is avoided  No trial and error  So saving of time n money and efforts Sonali ERP-Alexis Leon 17 Cont… § Role of CONSULTANTS (1)  Consultant should guarantee that s/w success of s/w and must show desire results that satisfies the need of company.  Administer all the phase in details  Schedule all the thing in time.  They have to allocate right people Sonali ERP-Alexis Leon 18 6
  • 7. Cont… § Role of CONSULTANTS (2)  For better implementation and better business practice they shld be impartial while questing.  Responsible for analyzing and addressing customizing issue.  Must know difference „Must have‟ and „nice to have‟ items.  Decide level of customization  Must use diplomatic skills.  Provide drawback and advantage of all the area. Sonali ERP-Alexis Leon 19 Cont… § Role of CONSULTANTS (3)  Maintain documentation  Will leave once project is finished  Must leave knowledge and train people. Sonali ERP-Alexis Leon 20 End-Users  These people will use ERP system  Use function that are being automated.  Employee fear.  Afraid of training.  Job profile will change  Old job is gone but new job comes in Sonali ERP-Alexis Leon 21 7
  • 8. ANY QUESTION… THANK YOU!! 8