VENDORS, CONSULTANTS

AND USERS
 WHY CAN’T COMPANIES DEVELOP THEIR OWN
ERP PACKAGES?
 To develop an ERP package is a complex & time consuming
activity which requires a lot of skilled manpower & other
resources.
 Many companies have personnel in their IT department who can
absorb the necessary knowledge and who have experience in
developing sophisticated systems.
 the problem is that such specialized computer work is not the
main business of these companies.
 they should be directing all their available resources into
improving their own products or services so that they can remain
competitive, 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 team
comes up with will never equal in quality, scope, functionality or
technology of those systems created by software firms whose
business it is.
 These software firms can produce sophisticated packages and
provide their clients with products that allow them to maintain
focus on their own chief activities, thus improving revenues, profits
and share-holder returns.
 IN-HOUSE IMPLEMENTATION – PROS & CONS

1. To setup & implement an ERP package is not an easy

task. We can also not setup a trial & error method of
implementation because a large amount of investments
are involved.
2. The consequences of a failed ERP implementation will
put the organization out of business & also the ERP
implementation cannot go on for a long period of time.
3. To successfully carry out the implementation within a
reasonable time n-frame,
i. The people who are given the job of implementing ERP package
should 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 practical
training.
4. The people who are going to implement the ERP
package should have the following skills:-
 Knowledge of how to organize & run a project:
He must have organization skills, project management skills, team
management skills & project management skills.
 Enough experience in handling problems & issues that arise
during the implementation:
During implementation, process problem such as cost overrun, time
overrun occurs it is very important to know what kind of decisions are to
be 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, so we
must have good people in the implementation team, so that they can
handle such situations.
 Good leadership skills:
During ERP implementation we have to interact with a lot of people. So
the 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.
If the company plans to do ERP implementation in-
house?

 Hire experts & have them on the company roles or

positions.
 This is expensive proposition as once the
implementation is over, there is no need to keep the
experts in the business.
 Wastage of resources & spending a lot of money on
training
 It is better to give to those who are specialized into it &
focus on company’s effort that how to manage after ERP
implementation.
 Better to train employees during implementation it will
solve money, effectiveness
 VENDORS

 DEFINITION:
Vendors are the people to develop the ERP
packages, they spent a huge amount of time &
effort in research & development to create the
package solution that is flexible, efficient and
easy to use.
Now, these days the ERP have all features &
function which can satisfy the need of all the
business data. The ERP vendors spent a large
amount of money so that they can become
experts, to develop a flexible, efficient & easy to
use ERP package.
VENDORS MAKE ERP S/W

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

FLEXIBLE, EASY TO USE & EFFICIENT

ROLES OF VENDORS:
 The vendor should supply the product & its documentation as
soon as the contract is signed.
 The vendor is responsible to fix the errors which are found
during the implementation process, so it becomes necessary
that the vendor should be constantly touched with the
implementation team.
 The vendor also has to provide the training to the company’s
user & 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 & information
flows across the system, etc.
 The vendor gives the project support function & also takes
care 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 to
technical questions about the product & technology.
 In case, there is gap between the package & the actual
business process then it is the job of a vendor to customize
the s/w & make necessary modifications.
 CONSULTANTS
DEFINITION:
 Business consultants are professional people who
develop the different methods & techniques to deal with the
implementation process & with the various problems that will
crop 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 plan
regarding best optimum utilization of the money spent on
consultants.
ROLE OF CONSULTANTS:
 The consultants are involved in the
implementation process of the organization.
 They consultant should guarantee the success
of the project and should be able to show the
results such as reduction in cycle time,
increased response time, improved productivity,
etc to the satisfaction of the customer.
 They are responsible for the administration of
all the phases of the implementation so that the
activities occur at the scheduled time and at the
desired 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 & the
implementation process which gives the
employees the practical experience.
 CONSULTANTS WHO ARE RESPONSIBLE TO IMPLEMENT THE PROJECT

CLEAR CUT IDEA

TELLS THE CHANGE MUST BE MADE SO THAT WITH HIS DECISISON CHANGES ARE MADE

HE IS RESPONSIBLE FOR ADMINISTRATION OF THE PHASES

 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.
 They also analyze & provide the suggestion
where customization needs to take place.
 They should be able to balance their loyalty to
the client & the project.
 They should have a clear cut context & scope
of the work so that they can provide the
management with the decision that are to be
taken for the implementation process.
 The consultants should create a knowledge
base & train the people so that the knowledge
stays in the organization when the consultants
leave the project.