Consultants role in ERP implementations in SME


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ERP implementation in SME. Factors affecting in implementation, Need for ERP in SME, ERP implementation strategies, functions of ERP consultant,

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Consultants role in ERP implementations in SME

  1. 1. Emmanual Ahoulou Mehak Narula Amit Chougule Xingtong Li
  2. 2. What is ERP ?In 1990 ERP CONCEPT was described as an innovative business software which can be developed to create a shared database acrross multiple business units.ERP is an enterprise –wide information system that facilitates the flow of information and coordinates all ressources and activities within the organization.
  3. 3. ERP System in SME SME uses ERP to reduce costs to improve the profit margins. Need of proven methods to streamline operations and improve thheir customer’s experience. To synchronize changes between systems. Consolidates applications could bring more control to cross-functional processes for manufacturing, finance, human ressources, marketing and sales. Provides a real time enterprise-wide view of the business for faster and more effective decision making. Shortens production lead times and delivery times. Helps build a common vision throughout the enterprise. Cross-departmental coordination and execution workflows quite challenging without erp solution. Consolidates multiple permissions and security procedures into a single framework which reduces the risk of losing or exposing sensitive data. ERP boost productivity and worker output, it can dramatically reduce operating and overhead expenses.
  4. 4. ERP System in SME Another reason an ERP solution is so critical is their ability to increase information consistency and accuracy. Most importantly, an ERP solution makes it easier for employees at all levels – from front line staff members and team supervisors to senior managers and executives – to assess company performance and understand their impact on it. ERP solutions enable effective objective setting, and allow everyone to monitor progress towards that goal.
  5. 5. NEED OF ERP System Companies require immediate informations business processes( stock, order, profits).ERP gathers all the information into a single framework to improve their effectiveness. ERP system is customizable, standard application software includes integrated business solutions for the core processes and the main administrative functions. SME need to implement an integrated information system in order to stay competitive and customer-orient Some need to reduce costs constantly to stay competitive and increase the profits margins.
  6. 6. BUSINESS PROCESSREENGINEERINGProcesses, organization, structure and information technologies are the key components of BPR which automates business processes accross the enterprise and provide a well designed information system.Organisation has two options to consider while implementing ERP.
  7. 7. ERP implementing strategies. Big bang - Implementation happens in a single instance. All users move to the new system on a given date. Phased rollout - Changeover occurs in phases over an extended period of time. Users move onto new system in a series of steps.  Phased rollout by module  Phased rollout by business unit  Phased rollout by geography Parallel adoption - Both the legacy and new ERP system run at the same time. Users learn the new system while working on the old.
  8. 8. Factors affecting ERPimplementation Data Provided Parrallel Systems Training & Testing Expectations from ERP systems Employee Retention Design & Testing Stakeholders should be identified in initial phases.
  9. 9. Issues & Challenges Awareness Perception Earlier Implementation Approach to Implementation Cost Change Management
  10. 10. Case Study - Custom EngineeringSolutions Two major divisions  Electromechanical Motors & Equipment  Electronic Control Systems ERP SYSTEM JUSTIFICATION  The Need for New Systems  Justifications for a New ERP System  Support niche market strategy  Provide better cost data  Improve the accuracy of financial reporting
  11. 11. An Enterprise ResourcePlanning Consultant Represents a contractor, firm or team of consultants that include project management, technical and functional resources or most likely a combination of all of these in one.
  12. 12. The Functions of an ERP Consultant Knowledge brought by a consultant is the most important asset. "Change management," which is part communications, part training, part strategy and part hand-holding is another important function. If your organization does not change with the system, you get less value for your efforts. Can act as an advisor - He has been there and done that and can give options along with consequences of taking those options.
  13. 13. BenefitsWhile ERP consultants can be expensive, if used properly they can save time and money while implementing a more trouble-free system.One of the key benefits is "knowledge transfer" from consultants to your staff, which, if done properly, will enable you to become self-sufficient and get rid of consultants sooner.
  14. 14. Expert Insight Many organizations keep implementation consultants on staff long after they have deployed the system. They do this for support and as a safety net in case changes are needed to the system configuration for business or regulatory reasons. Implementation consultants are generally expensive and may not be the best suited to application support. Consider instead hiring a service geared specifically for system support; these services tend to be cheaper and better at system maintenance and troubleshooting problems.
  15. 15. Roles The various tasks that are performed by ERP consultants are as follows: Selection of the ERP package. Creating equilibrium between system capabilities and organizational objectives. Present and prospective system analysis and documentation. Development, management, implementation and regular assessment of the ERP system. Imparting education and training to existing and prospective users.
  16. 16. Role Ensuring steps for effective implementation of ERP. Assisting in installation and configuration of the ERP system. Making sure that the ERP system can be updated to satisfy changing business needs. They analyze the requirements of the business and provide an ERP consulting strategy to satisfy business requirements. He assists by providing their expertise on specialized software modules.
  17. 17. Thank You Amit Chougule  Lille, France. 