This document discusses vendors, consultants, and users in the context of ERP implementation. It notes that developing an ERP system is complex and not the core business of most companies. Vendors develop specialized ERP packages and provide support during implementation through training and customization. Consultants have extensive implementation experience and ensure projects are completed successfully without mistakes through trial and error. They administer all phases of implementation. End-users will utilize the new ERP system in their jobs, but may fear changes to their roles and responsibilities.
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Chapter 9 Vendors Consultants Users Alexis Leon
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
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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