Program Semester Subject Code Subject Name Unit number Unit Title Lecture Number Lecture Title

: MBA : IV : MI0038 : Enterprise Resource Planning : 14 : ERP Vendors, Consultants, and Users : 14 : ERP Vendors, Consultants, and Users

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Unit-14 ERP Vendors, Consultants, and Users

ERP Vendors, Consultants, and Users

Objectives :
To list the three major players of ERP implementation. To analyse the role played by the major players of the ERP implementation. To assess their contribution for a successful ERP implementation.

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Unit-14 ERP Vendors, Consultants, and Users

Lecture Outline

Introduction Pros and Cons of In-House Implementation Role of Vendor Role of Consultant End Users Factors for Success of an ERP Implementation Summary Check your Learning Activity

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Unit-14 ERP Vendors, Consultants, and Users

Introduction

The development of an ERP package is very complex and it demands skilled manpower and other resources. The software companies must direct all their available resources for improving their products or services to remain competitive in the market. ERP vendors can produce sophisticated packages and provide their clients with products that allow them to maintain a focus on the activities. These packages helps the clients by improving the revenues, profits, and shareholder returns. ERP consultants being the crucial players in the ERP implementation provide professional services. These services include IT strategy planning, software evaluation, and ERP system implementation experience.
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Unit-14 ERP Vendors, Consultants, and Users

Pros and Cons of In-House Implementation

For successful implementation within a reasonable timeframe, the inhouse people must possess the skill and knowledge of implementation. In-house implementation helps companies to depend less on the vendors and will have access to the owner of the software. Hence, helping the organisation to become an integral part of the open community of developers. The team of consultants formed by the software vendors have responsibility to ensure that their software package follows a standard methodology assist the in-house implementation. The most important thing is that a good software vendor need not be good in implementation, hence there is a need for in-house implementation system.

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Unit-14 ERP Vendors, Consultants, and Users

Role of Vendor
The people who invest huge amount of time, and effort for research and development of the ERP package are called vendor. They: Spent billions of rupees in research to come up with new ideas that make the packages more efficient and flexible. Are responsible for fixing any problems in the software that the implementation team encounters.

Bare the responsibility of providing the required training for some of the important users of the company.
Focus on how the system works rather than how it is implemented Play an important role in project support function and exercise the quality control with respect to how the product is implemented. Are continuing to expand market presence by offering new applications.
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Unit-14 ERP Vendors, Consultants, and Users

Role of Consultant

Consultants are people who make the business of ERP implementation and invest huge amount, of money and manpower for that purpose. They: Will be expensive, so the company will have to formulate a plan regarding best optimum use of the money spent on consultants.

Are responsible to convert the planned methodology into task and allocate
right resource to complete that task.

Bring the know-how about the package and about the implementation, hence add value to the project

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Unit-14 ERP Vendors, Consultants, and Users

End Users

The employees of the company who will be using the ERP system once it is implemented are the ERP end users. The impact of ERP implementation on ERP end-users productivity is a complex issue, since wide range of business functions and user types interact with the systems. Employees fear that system will replace existing jobs, as many functions will be automated and at the same time, they are even afraid of the training that they have to under go. Profitable business productivity is very crucial and this can be obtained if the employees can learn and work in the environment of the new ERP system.

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Unit-14 ERP Vendors, Consultants, and Users

Factors for Success of an ERP Implementation

The few factors for the success of an ERP implementation are: Focus on business processes and requirements Focus on achieving ERP ROI (Return on Investment) Strong project management and resource commitment Commitment from company executives Adequate training and change management Understand why you're implementing ERP

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Unit-14 ERP Vendors, Consultants, and Users

Summary
A well-implemented ERP system creates significant efficiency across your business. The benefits that and organisation can reap are timely business information, better customer relationships, a more cost-effective supply chain, improved internal process and, ultimately, increased profitability. Vendors play an important role in project support function and exercise the quality control with respect to how the product is implemented. Consultants administer each of the phases of the implementation. They bring the practical knowledge about the package and about the implementation. For any implementation to be successful the end users must be taken into consideration and proper awareness has to be created through training. ERP system enables to enter the customer order information once and then make it available throughout the business.
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Unit-14 ERP Vendors, Consultants, and Users

Check Your Learning

1. Mention the skills that people must possess to implement the ERP system. Ans. The two skills that people should possess to implement the ERP system are: Good people skills Good leadership skills 2. List the factors that govern the success of an ERP implementation. Ans. The factors for the success of an ERP implementation are: Focus on business processes and requirements Focus on achieving ERP ROI (Return on Investment) Strong project management and resource commitment Commitment from company executives

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Unit-14 ERP Vendors, Consultants, and Users

Activity
Consider that you own a manufacturing company with around 100 employees. You decide to implement ERP software package to control and track finance and human resources. What are the skills you would look at in the people who are to implement the ERP system to successfully carry out the implementation process within a reasonable timeframe?

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