Role of vendors, consultants and users in ERP implementation_123607392.ppt
- 2. In-house Implementation –Pros and Cons Such specialized computer work is not the main main business of these companies. They should direct all their resources into improving their core competency It will never be of the same quality , scope functionality or technology those systems created by vendors. Implementing the software means assigning the optimum values to the various parameters and the variable elements.; and this can be done only after the hands – on practical experience .
- 3. Many software vendors have their own team of consultants, but these are perceiving their own mindset which will prevent them from seeing the other sides perspective. A good vendor need not to be a good at implementing their product. It is better idea to focus the companies efforts to on preparing its personnel to administrate the package after its implementation. Each group of people in an implementation project have definite role to play in the implementation ( vendors, consultants, in-house team, end users and so on)
- 4. Vendors These are the people who have developed ERP module. ERP vendors spent billions of rupees in research to come with innovations that make the package more efficient , flexible and easy to implement and use.
- 5. Role of Vendor Vendor should supply the product and its documentation as soon as the contract is signed. Vendor is responsible for fixing any problems in software that the implementation team encounters. The vendor should have a liaison officer who should constantly interact with implementation team. The important role of vendor is –as a trainer. In this they have to show key users a. How the package works? b. What are the major components? c. How the data and information flows across the system? d. What is flexible and can be configured and what cannot? e. What are the limitations? And so on.
- 6. After training the vendor has to play an important project support function ; till the implementation , because if the implementation fails most of the blame will fall on the vendor. Vendor is also responsible to customize the system after the gap analysis ; because he knows more about the package. And ensure the customer to show same benefits as before.
- 7. Consultants Business consultants are professionals who specialized in developing techniques and methodologies for dealing with the implementation and with the various problems that will crop up during the implementation. Each of them will have many many-years of implementation experience with various industries and would have time tested methodologies , that will ensure the successful implementation. They will be involved at all levels right from the evaluation to the user training.
- 8. The only problem with them is – they are expensive. For a typical ERP implementation , the cost of consultants is 1.5 to 3 times for every rupee invested in the software product. So finding a right consultant is categorized as a. people who have the necessary know-how. b. Who will work well with the company employee. c. People who will transfer their knowledge to company employees d. People who are available in case their services are required again.
- 9. The most sought after skills of a Consultant: Knowledge of how to organize and run a project of this magnitude: organizational skills, project management skills, team management knowledge of scientific methods Enough Experience in handling problems and issues that arise during the implementation: Such as time overrun, cost overrun, etc. Good People Skills: Resistance from employee due to fear of technology, unemployment has to be handled properly. Good Leadership Skills: Communication skills Excellent training Skills : since it has to be on all levels.
- 10. Role of Consultants Should guarantee the success of project and should be able to show the results like reduction in cycle time, improved productivity , to the satisfaction of management. Administering each of the phase of implementation, so that required activities occur at scheduled time Transform their approaches and methodologies into detailed work plans. They should add the value to the project.
- 11. On their experience they should eliminate trial and error method. Thus should save huge amounts of money , time and efforts. They should be impartial ; in the company process analysis. Should try to improve companies business process so as to match the present ERP package as it was developed. Responsible for analyzing and clearly addressing the customization issue.
- 12. Should be able to distinguish between ‘must have’ and ‘nice to have’ issues of customization. Consultants need to position themselves in such a way as to balance their loyalty to the client and the project , with that of defending the package vendor , when such defense is technically correct. They should alert company management when it is affecting the implementation process. Maintaining the technical document.He should create the knowledge base; so that after he leaves, his knowledge of that particular project stays back in the organization.
- 13. End –users And Role These are the people who will be using the system once it is in place. With the implementation of ERP , the old job descriptions will change , and the nature of job will undergo drastic transformation. They should accommodate to these changes. They should be patient for the massive training that will be delivering to them.
- 14. They should understand that as ERP systems , due to automation , eliminates various job, it creates many other jobs with more responsibility and more value addition. They can get away with the monotonous clerical work . If the company can succeed in making its employees accept this fact and assist in making the transformation then the major obstacle in the path of an ERP implementation is solved
- 15. Contracts with Vendors, Consultants and Employees. Contract: is an agreement between two or more people to do something . If it is not done properly in ERP Implementation case then company will be kept stranded because of any of the participant’s lack of duties. This includes package vendors, the hardware and peripheral vendors, the networking people, the consultants, the employees .
- 16. Contract with Package vendor Most of the software companies have a drafted contracted safeguarding their interests, contracting company’s legal dept. should go through this thoroughly. Many a time lawyers from both the sides have to be involved. Creator of the packages will have copyright clauses in the contract , to safeguard his intellectual property. For this purpose access to source code or design document is not given by the vendor.
- 17. Contracting company should make clauses to make a provision of up gradations at a peripheral treatment, being a existing customer. If at all company is not sure about the existence or support from the vendor then copy of source code is kept with the third party such as a bank which will be handed over to company if vendor disappears or stops the support.
- 18. The normal content of the contract are as follows: 1. Value of software and conditions of payment 2. List of deliverables( software, document etc.) 3. Conditions and concessions for acquiring complementary modules in the future or increasing the number of users. 4. Cost of implementation training 5. Cost of end-user training. 6. AMC(Annual Maintenance Contract) 7. Warranty and guarantee terms 8. Terms and conditions for receipts of new versions , upgrades etc. 9. Details of technical support 10. Terms and conditions for customization 11. The profile of vendors team who will be assisting the companies implementation team. 12. Other specific responsibility assigned to the vendor.
- 19. Contract with Consultants The normal content of the contract are : Profile of consultants team with resume of each member Consulting fee and payment conditions The time scheduled and the implementation budget The projected improvements in quantifiable terms and time required for showing the results. Implementation methodology Terms and conditions of knowledge transfer and user training.
- 20. 1. List of deliverables ( reports, manuals , knowledgebase etc.) 2. Other specific activities that consultants are supposed to do. 3. Reporting mechanism to the company management 4. Project management and status reporting system.