ERPs not out-of-the-box solutions

by C. Fernando

The decision to take on an enterprise resource planning (ERP) system is strategic in today's efficiency driven, information overloaded business world.

Sri Lankan businesses are in a flux of constant transformation due to growth and opportunities that are now global, and an economy that sends a multitude of signals, which are critical to business and ultimately ensuring demanding customers are satisfied.

Gone are the days where any rate of service would keep your customers as now they have become selective for on-time, on-budget, and quality services.

Most enterprises do not have the right manpower to handle this extensive and vital task. ERPs are not out-of the box solutions no matter how many vendors promote them that way; the benefits lie in the ability to unlock the power of any solution.

The top outcomes of ERP are increased visibility of company data to enable timely decision-making and the distinct ability to not only capture, but also optimise business processes.

"How is your firm's data visibility - are your processes optimised for performance? Is this met by your existing system?"

Although it is common to allocate ERP selection objectives to the IT department or person, this is the first misstep that companies take in their ERP selection. ERP is a company-wide responsibility and a decision that has to be understood and embraced especially by senior management for the benefits to flow through the company.

There are two to three parties to ERP relationships, typically the buyer company, the seller/implementer, and the developer of the solution. As systems become larger the separation between the buyer and the developer increases and a large part of the interaction takes place with the seller and implementer.

In Sri Lanka most sellers are the implementers themselves and on rare occasions companies are pure sellers and another firm is contracted for implementation.

Full picture

The key point for buyers is that ultimately only the buyer is responsible for the company objectives being met by the solution; therefore, it is critical to get the needs right.

The sales environment of ERP and the project environments of ERP are vastly different with the people assuming these roles markedly varying in personalities and management styles.

While you may have a perfect relationship with your ERP sales representative, your team may have a nightmare dealing with their project team. The point here is the full picture is rarely evident in the sales stages of ERPs and to a large extent the project side is an afterthought simplified into a few slides, Gantt charts, and milestones. There is rarely an occasion where an ERP selection and project manager is available on the buyer company's team and there is rarely a need to hire for such a person on a permanent basis as the project has an end point.

However, the critical point for company's considering an ERP solution is the need to have a knowledgeable resource on their team to aid in the selection and project processes.

With such support, a company's chances of making the appropriate system selection and finalising the project improve dramatically. The major benefit of this is saving a lot of company time and possibly millions of rupees during the life-cycle from ERP selection to delivery of the solution.

ERP services bring a vast body of knowledge in enterprise software sales and project environments to buyers via 'truth' oriented workshops designed to inform managers on the realities of ERP selection, participation in evaluation committees, and project management services.

This comprehensive and holistic set of services ensures that buyers are not left behind and vendor deliverables are progressed. What is equally important is that, independent ERP services deliver clear messages acting as a vital bridge between the buyer and the seller.