Vendors, Consultants and Users New 1

8/3/2019 Vendors, Consultants and Users New 1

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VENDORS, CONSULTANTS

AND USERS


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WHY CANT COMPANIES DEVELOP THEIR OWN

ERP PACKAGES?

To develop an ERP package is a complex & time consumingactivity which requires a lot of skilled manpower & otherresources.

Many companies have personnel in their IT department who canabsorb the necessary knowledge and who have experience indeveloping sophisticated systems.

the problem is that such specialized computer work is not the mainbusiness of these companies.

they should be directing all their available resources intoimproving their own products or services so that they can remaincompetitive, 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 teamcomes up with will never equal in quality, scope, functionality ortechnology of those systems created by software firms whosebusiness it is.

These software firms can produce sophisticated packages andprovide their clients with products that allow them to maintainfocus on their own chief activities, thus improving revenues, profits

and share-holder returns.


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IN-HOUSE IMPLEMENTATION PROS & CONS

1. To setup & implement an ERP package is not an easytask. We can also not setup a trial & error method ofimplementation because a large amount of investmentsare involved.

2. The consequences of a failed ERP implementation will

put the organization out of business & also the ERPimplementation cannot go on for a long period of time.

3. To successfully carry out the implementation within areasonable time n-frame,

i. The people who are given the job of implementing ERP packageshould have good knowledge skills.

ii. They must be familiar with the ERP package & technical issues.

iii. They must have at least 1 year experience & hands-on practicaltraining.

4. The people who are going to implement the ERPpackage should have the following skills:-


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Knowledge of how to organize & run a project:

He must have organization skills, project management skills, teammanagement skills & project management skills.

Enough experience in handling problems & issues that ariseduring the implementation:

During implementation, process problem such as cost overrun, timeoverrun occurs it is very important to know what kind of decisions are tobe 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, sowe must have good people in the implementation team, so that theycan handle such situations.

Good leadership skills:

During ERP implementation we have to interact with a lot of people. Sothe implementation team must have effective communication skills &good leadership skills.

Excellent training skills:During ERP implementation we have to provide training at the

various levels of the organization. As the end users are handling the

whole system, the success of an ERP implementation is in their

hands, so it is necessary that the implementation team must have

excellent training skills.


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If the company plans to do ERP implementation in-

house?

Hire experts & have them on the company roles orpositions.

This is expensive proposition as once theimplementation is over, there is no need to keep theexperts in the business.

Wastage of resources & spending a lot of money ontraining

It is better to give to those who are specialized into it &focus on companys effort that how to manage after ERPimplementation.

Better to train employees during implementation it willsolve money, effectiveness


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VENDORS

DEFINITION:

Vendors are the people to develop the ERPpackages, they spent a huge amount of time &effort in research & development to create thepackage solution that is flexible, efficient andeasy to use.

Now, these days the ERP have all features &

function which can satisfy the need of all thebusiness data. The ERP vendors spent a largeamount of money so that they can becomeexperts, to develop a flexible, efficient & easy touse ERP package.


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VENDORS MAKE ERP S/W

TIME, EFFORT, MONEY FOR R & D OF ERP S/W

FLEXIBLE, EASY

TO USE & EFFICIENT


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ROLES OF VENDORS:

The vendor should supply the product & its documentation assoon as the contract is signed.

The vendor is responsible to fix the errors which are foundduring the implementation process, so it becomes necessarythat the vendor should be constantly touched with theimplementation team.

The vendor also has to provide the training to the companysuser & 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 & informationflows across the system, etc.

The vendor gives the project support function & also takescare of the quality control factor with respect to how the

product is implemented. The vendors participate in all the phases of an

implementation in which he gives advices, answers totechnical questions about the product & technology.

In case, there is gap between the package & the actualbusiness process then it is the job of a vendor to customize

the s/w & make necessary modifications.


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CONSULTANTS

DEFINITION:

Business consultants are professional people whodevelop the different methods & techniques to deal with theimplementation process & with the various problems that willcrop 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 planregarding best optimum utilization of the money spent onconsultants.


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ROLE OF CONSULTANTS:

The consultants are involved in theimplementation process of the organization.

They consultant should guarantee the successof the project and should be able to show theresults such as reduction in cycle time,

increased response time, improved productivity,etc to the satisfaction of the customer.

They are responsible for the administration ofall the phases of the implementation so that theactivities occur at the scheduled time and at thedesired 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 & theimplementation process which gives theemployees the practical experience.


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CONSULTANTS WHO ARE RESPONSIBLE TO IMPLEMENT THE PROJECT

CLEAR CUT IDEA

TELLS THE CHANGE MUST BE MADE SO THAT WITHHIS DECISISON CHANGES ARE MADE

HE IS RESPONSIBLE FOR ADMINISTRATION OF THE PHASES


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END USERS

DEFINITION

They 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.


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They also analyze & provide the suggestionwhere customization needs to take place.

They should be able to balance their loyalty tothe client & the project.

They should have a clear cut context & scopeof the work so that they can provide themanagement with the decision that are to betaken for the implementation process.

The consultants should create a knowledge

base & train the people so that the knowledgestays in the organization when the consultantsleave the project.

Documents

Vendors, Consultants and Users New 1