Risks to your ERP-SAP implementation

Inadequate “as is” documentation

Consider that you are the implementation Project Manager for a consulting firm and you have a client who has selected an ERP system. The project manager and the team started gathering requirements from end users through focus groups, workshops, sessions with SMEs, etc. After obtaining all the details from end users you can easily conclude that you have all the necessary information and requirements to successfully implement the “to be” software system erroneously. During UAT (User’s Acceptance Testing) you can find out that the system does not meet all the end user’s expectations as well as the participants of UAT are unable to authorize your implemented solution previously.

Requirements not scrubbed

Instead of focusing on what the requirement should process, it should focus only on the function that the system will perform. Government organizations implementing an ERP solution document requirements are maintained frequently in web of spreadsheets that makes it difficult to: 1. Track a requirement, 2. Modify the requirement while communicating the changes to the affected parties, 3. assigning requirement ownership, 4. Create an RTM and 5. Manage the lifecycle of the requirement. The ERP implementation partner is also tasked with interpreting the requirements from spreadsheets and it discerns how these requirements will be implemented during realization and verifies that the requirements have been met during testing process. Moreover, the implementation partner of ERP for the sake of meeting deadlines rushes through the blueprint phase does not scour the requirement and makes blind attempt for executing the requirement even when the requirement is not feasible, necessary or consistent with the functionality of the ERP application.

Vendor software problems

The process of testing or maintaining the SAP software will give you errors, and so the needed enhancements, or bugs within your software cannot be addressed with your existing project team and so these errors, bugs, and needed enhancements do not instigate from having customized or implemented SAP erroneously but are rather triggered due to a deficiency with the vendor software. Impact occurred to your business could be manifested in different manners such as client/end user dissatisfaction, inability to roll out specific planned system functionality, financial losses, and unstable system based upon the severity of the problem. These vendor software problems can also get unresolved for prolonged periods. Furthermore, lack of controls, participation from the SAP client as well as audit trails can cause the software vendor problems to erroneously become closed when in fact they were never resolved.

No Scope Verification

Controversial relationships between the client and implementation partner stem from the fact that the client feels that the implemented ERP solution does not cater to their business needs depending on the documented scope, and the end users cannot perform all these tasks that were implemented within the legacy systems without difficulty. And when the client report defects, short comings and bugs against the ERP system were not a part of the scope or documented via a requirement and so the problem is compounded. When the ERP integration partner labels the end user’s reported defects and problems as enhancements mutually rather than problems with the implemented ERP solution the relationship between the implementation partner and the client takes revolve for the worse.

Author: Ron Victor

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Understanding How ERP Vendors Operate

In order for a ERP system to succeed, it must be capable of successfully integrating manufacturing with the other processes of a company. To do this, a number of vendors are adding a wide variety of tools to their products, and example of this would be the integration of sales automation with supply chain maintenance.

This have become some of the most important areas of development. When PeopleSoft was firsts created in the late 1980s, it became a leader in ERP software that dealt with human resources. However, the company wanted to expand, and by the early 1990s, it moved into software programs that dealt with finance.

The company continued to maintain a high level of dominance in this market. In order for a vendor to become successful, they must offer tools in a number of different areas. While it is possible to specialize in certain things, tailoring your products towards multiple industries can allow you to gain a great deal of success. A number of ERP suppliers will offer their products in two basic types, and these are business solutions and industry solutions. The industry products are designed for people who are working in specific industries. An example of this could be finance, communications, education, or healthcare.

The business solutions are designed for companies that work in a wide variety of different areas. For instance, while industry solutions are specific to certain industries, business solutions will be much more diverse. They will combine a large number of different elements into a single unit. A number of ERP vendors have offered what are called "suites." These suites will often be comprised of modules that a client can purchase in groups or a single unit. Three of the most important ERP tools available today are manufacturing, human resources, and finance. There are a number of reasons why these products are so powerful.

The finance tools will allow companies to successfully maintain their financial information. An example of this data would be assets, accounts, budgets, and cash. It can assist a company in managing internal as well as external factors. A company that uses ERP financial products can save a great deal of money over the long term, and the reason for this is because the productivity of the organization will be improved. Enterprise Resource Planning is instrumental in getting rid of time consuming things such as paper management. In addition to this, the company will also be able to improve its ability to make important decisions.

If a company is to succeed in the global market of today, they must be able to properly measure their performance. While this was a great challenge in the past, Enterprise Resource Planning has made things easier. A company is now able to study their processes, earnings, and performance by merging their operational information with their financial information. Once this information is connected together, a company can become more competitive and productive. Synergy is an important part of ERP solutions. The concept of combining multiple processes into a single whole will allow the company to become successful in the long term.

In addition to finance and business processes, it is also important to look at materials maintenance. Enterprise Resource Planning will allow a company successfully automate the process of buying materials and maintaining them. There modules that will track the supplies that are purchased, and it will also make calculations about how these materials should be distributed. It is possible for a company to predict the demand of the market based on history, economic statistics, and data from their employees. They can decide when a product should be producted, and they can do this based on the raw material that is available.

Based on the information revealed in this article, it should be easy to see why ERP is such an important tool. It should also be clear what steps are necessary for a ERP vendor who wants to remain competitive in the market. Through real time planning, it is possible for a company to decrease their inventory and improve the processes of their goods and supplies. Another powerful aspect of Enterprise Resource Planning is that it will give companies a high level of accuracy. They orders and shipments will have a much higher level of precision.

Source: www.exforsys.com

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How To Combine ERP With CRM

A number of companies wish to use ERP as a method that can simply allow them to integrate the existing elements of their business. However, this will only improve one aspect of your organization. To truly be effective, it may be necessary to combine the benefits of ERP with those of CRM, which stands for Customer Relationship Management.

It is important to realize that CRM is a concept that stretches far beyond the technical limitations of ERP. Depending on the size of a company, they may already be dealing with a sizeable number of vendors, and as can be expected, each vendor will promot the benefits of their product.

If a company wants to succeed, they must decide if the solution suits their needs. The vendor will tell you anything you want to hear in order to gain your business. Smart companies will need to look beyond this. There are a number of ways you can tell whether or not a CRM system is useful for your organization. In most cases, the decision should be dependent on your goals. If your company demands efficiency, combining CRM with ERP may be a great way for you to succeed. It should also be noted that some companies may not find the combination of CRM with ERP to be very effective. If your company wants to effectively integrate your data and resources, you will want to look for reputable ERP vendors.

If the goal of a company is to avoid specific risks, it may be a good idea to look for a CRM system that is directly connected to an ERP vendor. The reason why I say this is because these institutions will see CRM solutions as being highly valuable. The reason why they are considered to be valuable is because they with deal with companies that are considered to be the primary drivers of competition. In addition to this, many will consider ERP vendors to be a safe option. The costs may also be lower. When CRM is properly combined with ERP, an infrastructure can be created that will allow a company to operate at a high level of efficiency.

It should be expected that the ERP vendors will make claims saying that their products offer the highest levels of integration. There are a number of methods a company can use to successfully leverage ERP with CRM. These methods will almost always lead to the organization becoming more effective. To do this successfully, it is first important to understand how the integration can have an effect on the value chain of the company. The value chain can be defined as the framework that will help a company find the activities that an organization will use to compete in the market. It is also important to understand how these activities will effect the overhead of the company.

When front office systems (CRM) are combined with back office systems(ERP), the organization will have structure that will allow their various processes to move quickly and efficiently. As you can see, the company would greatly improve, and there are a number of reason for this. When the integration is performed in a tight manner, a powerful view of CRM and ERP will greatly enhance the decision making process. While this may not always occur as planned, it is easy to see why combining these two elements can lead to a great deal of success.

It should be noted that a trade off may need to occur between the advantages of integration and those of functionality.

The option that a company chooses will be dependent on their goals. The goal of one company may differ from another. Perhaps one of the most impressive things about ERP is that the vendors are marketing their products towards clients who are on a budget. There are a number of reasons why this has occured. The ERP system allows a company to operate at a higher level, and the cost of implementation can be reduced. When the CRM is used, the customization needs of the back office system may be reduced. It should be noted that the cost of integratiom makes up about 60 percent of the CRM budget for the first 12 months.

Source: www.exforsys.com

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