There have been many instances of failure of ERP projects associated even with big vendors and professionally run companies. It is easy to understand that project of this magnitude involves lot of complexities and makes it prone to mistakes which leads to its failure. Apart from this even established and reputed vendors and ERP companies hesitate to discuss about the reasons and chances of ERP failures which does not work well for the success of the project as a whole because the purchasing company does not have sufficient information about the implications of ERP.
Generally selling and buying companies most of the times are involved in the discussions which include the details of benefits of the new system. Sometimes benefits are blown out of proportion which suppresses the discussion about the pitfalls in the ERP implementation. To avoid this and have a realistic picture of the whole project the top management of the company needs to work upon the project and gain necessary details about the best practices of ERP implementation, past experiences and performances of the vendor as well as the companies who were able to install ERP successfully. This also saves the company from getting too much dependant on the consultants for executing the project. The best teams for ERP execution can be build by including most of the team members from the organization, as these people understand the company better than anyone else, too much reliance on external support and guidance increases chances of ERP failure.
Companies also fail to select the proper time for ERP implementation or they take up huge projects between implementation, such decisions distract and over burden the staff to cause ERP failures. Improper change management also accounts to number of ERP failures, most of the time in a hurry companies overlook or ignore the psyche of their own employees and try to follow the popular way of implementing ERP rather than following the most suitable way according to the culture of their own company. Such a situation creates confusion and leads to lack of trust on the new system to cause its failure. The demonstration of the proposed system shall be done according to the ‘to be’ document of the project and on the real data, this helps in knowing that how well vendor has been able to understand the company’s business and working style. If vendor is not having complete knowledge of present system it may not be able to provide a successful solution.
Choosing right approach is also very important, in order to make changes in the present business processes easily acceptable to the employees, companies employ bottom up approach, which has never succeeded so far, the whole project and each and every process shall be viewed as a top management priority. Selection of proper ERP software and implementation strategy remains important for every ERP project, ERP requiring too much customization to fit in or company adopting unsuitable strategy for implementation, can cause ERP failures. Training and knowledge transfer are also important steps those play an important role in the success of ERP implementation and ignorance or lack of sufficient concentration on these activities can cause ERP failure.
Read about Causes of ERP Failure. Also read about ERP Project Management.
Wednesday, November 3, 2010
Netsuite ERP Software - Largest Service Provider for SaaS Model
Netsuite is the biggest ERP software provider in software as a service model. The company initially was named as Netledger but now it provides hosted ERP solutions for mid size and divisions of large companies mainly. The cost of ERP solutions is quite low as compared to other solutions in the market which gets it in easy reach of mid size companies. It has rich functionality in terms of accounting as company initially was providing accounting solutions and can support functioning of large organizations too.
Netsuite provides ERP solution by one integrated software suite, it covers business activities like Financial management, ERP, CRM, Order management, Inventory/Shipping/fulfillment, Material requirement planning and E-commerce. Largely Netsuite ERP solutions are more suitable to fulfill the requirements of mid-size companies but with the latest launch of Netsuite Oneworld solution it has provided solutions for the companies running many divisions and subsidiaries and provides consolidation facilities for financial data. This web based solution works seamlessly to handle multiple business units from one single Netsuite account with different sets of taxation rules, languages and currencies.
Accounting features of Netsuite ERP are very strong and versatile as company leverages its vast past experience of developing accounting systems. Accounts receivables in particular have variety of features which can handle all the activities from availability to shipping and raising invoices easily.
It also provides easy navigation and shifting between roles and number of reports to provide deep analysis of the functioning. The web based solution saves large investment made for IT infrastructure in other on-premise models of ERP solutions, the applications are integrated seamlessly to provide real time transfer of information across the whole organization and saves the data in one single repository. It also supports E-commerce activities which gives users web presence to extend their reach and provide more prompt and dependable services to the existing clients. The CRM solution has all the features to cover customer relationship activities, sales force automation and role based dashboards to executives and management.
Mid size organization leverage facilities provided in the Netsuite ERP at minimum possible cost and without investing in IT infrastructure and going through rigorous implementation process, this feature has given it a clientele of more than half a million. Netsuite ERP is supported by range of partners or vendors with suitable training and tools to customize ERP according to user needs. Netsuite has recently announced some new features to be incorporated in the on-demand ERP these are like advanced billing, advanced budgeting, revenue recognition, allocation, inventory re-ordering, lot tracking and advanced inventory commitment. Time to time additions of new features not only makes it a versatile ERP but also improves its credibility in the market.
Scalability and navigation has been in question since the beginning though financial module provides excellent navigation but other modules lack in similar convenience. The backup facilities of the application are also less dependable as it is supported by the third party. Licensing norms need to be more economical as any user opting for other application does not get any extra benefit and miscellaneous charges charged every month also increase burden on the user.
Read information on the different Types of ERP Software. Read review on Netsuite ERP Software, advantages and disadvantages.
Netsuite provides ERP solution by one integrated software suite, it covers business activities like Financial management, ERP, CRM, Order management, Inventory/Shipping/fulfillment, Material requirement planning and E-commerce. Largely Netsuite ERP solutions are more suitable to fulfill the requirements of mid-size companies but with the latest launch of Netsuite Oneworld solution it has provided solutions for the companies running many divisions and subsidiaries and provides consolidation facilities for financial data. This web based solution works seamlessly to handle multiple business units from one single Netsuite account with different sets of taxation rules, languages and currencies.
Accounting features of Netsuite ERP are very strong and versatile as company leverages its vast past experience of developing accounting systems. Accounts receivables in particular have variety of features which can handle all the activities from availability to shipping and raising invoices easily.
It also provides easy navigation and shifting between roles and number of reports to provide deep analysis of the functioning. The web based solution saves large investment made for IT infrastructure in other on-premise models of ERP solutions, the applications are integrated seamlessly to provide real time transfer of information across the whole organization and saves the data in one single repository. It also supports E-commerce activities which gives users web presence to extend their reach and provide more prompt and dependable services to the existing clients. The CRM solution has all the features to cover customer relationship activities, sales force automation and role based dashboards to executives and management.
Mid size organization leverage facilities provided in the Netsuite ERP at minimum possible cost and without investing in IT infrastructure and going through rigorous implementation process, this feature has given it a clientele of more than half a million. Netsuite ERP is supported by range of partners or vendors with suitable training and tools to customize ERP according to user needs. Netsuite has recently announced some new features to be incorporated in the on-demand ERP these are like advanced billing, advanced budgeting, revenue recognition, allocation, inventory re-ordering, lot tracking and advanced inventory commitment. Time to time additions of new features not only makes it a versatile ERP but also improves its credibility in the market.
Scalability and navigation has been in question since the beginning though financial module provides excellent navigation but other modules lack in similar convenience. The backup facilities of the application are also less dependable as it is supported by the third party. Licensing norms need to be more economical as any user opting for other application does not get any extra benefit and miscellaneous charges charged every month also increase burden on the user.
Read information on the different Types of ERP Software. Read review on Netsuite ERP Software, advantages and disadvantages.
Microsoft Dynamics CRM - Customer Relationship Management Software
Microsoft dynamics customer relationship management software is primarily an IIS based web application with client server architecture and which can be accessed by Internet explorer 6 and above versions. It supports activities of sales, marketing and help desk however Microsoft claims that by using its proprietary technologies based on.Net framework can enhance this product to support other related activities too. Microsoft intends its CRM software to be used as XRM platform by its business partners for making it versatile to handle activities those are beyond generally perceived customer centric activities. This CRM software is available in four versions for clients and partners and has upward compatibility which allows its clients to easily switch on the higher version as their requirements grow.
Microsoft dynamics CRM is available in few languages and is very well integrated with Microsoft products like MS office and Microsoft windows small business server. This CRM application is easily customizable to adjust according to the requirements of the user and third party tools can be integrated for additional features. The internal customization of Dynamics CRM is easy too, forms can be customized for providing familiar or easily understandable looks, business work flow can also be customized, custom objects can be added to support extra activities, and this application can send E-mails and raise alert alarms for next step in the activity or pending work. E-mail campaigns can be managed easily and responses tracking can be done too, service scheduling provides support to all the activities from logging, dispatching to tracking and follow-up.
Microsoft dynamics CRM software's major components are MSSQL database, web services layer, system services layer, query processor, processor for secured ad-hoc queries using XML, plug-ins and reporting services. The SDK provided with the application builds on the platform for customization or integration. The web services layer manages the communication of applications, with other components and the database, developed for enhancing functioning, the server platform is responsible for creating domain specific objects and provide building blocks of the application. The incoming and outgoing E-mails are processed by the Microsoft exchange server.
Some features of Microsoft dynamics CRM makes it an effective tool for fruitful and productive customer relationship management. It provides very tight integration with Microsoft products and MS office, this gives it ease of use, familiar navigation and user experience. It provides advanced business intelligence tools such as advanced real time dashboards which can be used in individual and shared mode for more insights. Its flexibility allows the users to create personalized work place by setting up default pane and tab which opens whenever CRM is opened online. Creation of role based forms enhances security features and helps the employees in accessing the relevant information quickly rather then searching their required data from number of records and fields. Customization and integration was always easy in Microsoft dynamics CRM which has been enhanced by providing facilities of importing customized solutions already developed by other users or vendors.
Microsoft dynamics CRM provides complete solution and upcoming versions of the software may have even better and helpful enhancements like integration with Microsoft NAV and SharePoint which will boost up the productivity of the solution even further.
Read more about Microsoft Dynamics NAV. Read about Benefits of ERP.
Microsoft dynamics CRM is available in few languages and is very well integrated with Microsoft products like MS office and Microsoft windows small business server. This CRM application is easily customizable to adjust according to the requirements of the user and third party tools can be integrated for additional features. The internal customization of Dynamics CRM is easy too, forms can be customized for providing familiar or easily understandable looks, business work flow can also be customized, custom objects can be added to support extra activities, and this application can send E-mails and raise alert alarms for next step in the activity or pending work. E-mail campaigns can be managed easily and responses tracking can be done too, service scheduling provides support to all the activities from logging, dispatching to tracking and follow-up.
Microsoft dynamics CRM software's major components are MSSQL database, web services layer, system services layer, query processor, processor for secured ad-hoc queries using XML, plug-ins and reporting services. The SDK provided with the application builds on the platform for customization or integration. The web services layer manages the communication of applications, with other components and the database, developed for enhancing functioning, the server platform is responsible for creating domain specific objects and provide building blocks of the application. The incoming and outgoing E-mails are processed by the Microsoft exchange server.
Some features of Microsoft dynamics CRM makes it an effective tool for fruitful and productive customer relationship management. It provides very tight integration with Microsoft products and MS office, this gives it ease of use, familiar navigation and user experience. It provides advanced business intelligence tools such as advanced real time dashboards which can be used in individual and shared mode for more insights. Its flexibility allows the users to create personalized work place by setting up default pane and tab which opens whenever CRM is opened online. Creation of role based forms enhances security features and helps the employees in accessing the relevant information quickly rather then searching their required data from number of records and fields. Customization and integration was always easy in Microsoft dynamics CRM which has been enhanced by providing facilities of importing customized solutions already developed by other users or vendors.
Microsoft dynamics CRM provides complete solution and upcoming versions of the software may have even better and helpful enhancements like integration with Microsoft NAV and SharePoint which will boost up the productivity of the solution even further.
Read more about Microsoft Dynamics NAV. Read about Benefits of ERP.
ERP Software Cost - Direct And Indirect Costs
ERP software cost includes all the direct and indirect costs incurred, from purchasing the software till implementation process is completely over. Some costs are clearly evident in this process while some are silent or hidden. Generally an incomplete analysis of ERP cost would just include the expenses to be made in purchasing of software and hardware whereas total cost of ownership of ERP goes far beyond than just these.
By a survey conducted way back in 2002 it was estimated that an implementation of ERP on an average cost $15 Million ranging from $0.5 Million to $300 Million, but it is quite an old estimate, times have changed a lot since then and there surely would be major change in the average cost of implementation. However, the factors affecting the cost have not changed and more or less remains same as they were right at the beginning. The cost of purchasing the software and cost of installing the hardware necessary for running the ERP are two basic cost centers involved with ERP ownership. Apart from the purchasing cost the cost involved in making the system run in the form of manpower, system software, purchase of software for security features and checking third party intrusion, license renewal fees etc should also be taken into account.
Implementation process involves lots of activities and these days most of them are preferred to be done by taking help of external consultants like functional analysis of the company to prepare 'as is' document. Similarly, for technical analysis and GAP analysis services of experts or agencies are availed to get the best output and independent opinion. These services incur costs and increase total cost of ownership of the ERP. Indirect cost in these activities are those man hours which have been invested by the in-house staff for getting these activities done, these costs are ignored most of the times, but have crucial impact on total cost of ERP implementation.
To provide sufficient training, companies need to invest decent amount of money firstly in hiring trainers or paying the consultants imparting training to handle the ERP, hiring technical staff to support the ERP and training them according to the software and hiring or developing existing managers as ERP consultants for future needs. All of these add up to the total cost of ERP software.
Cost of tools and software required for integration with external entities, for optimum utilization of the ERP and for integration with present system also cost and these costs vary according to the scope of implementation and ERP software itself. Some ERP software may need lot of these tools and software and some may not.
Data conversion is another activity that involves cost depending upon the nature of the ERP and the format and media on which old data has been stored. Actual cost of data conversion can be accessed only by putting together all of these factors and sometimes it can be quite high. Testing of ERP its components, performance and user acceptance is a compulsory process which has to be conducted before going live and this activity also incurs cost on the company to increase total ownership cost of the ERP. Some companies may spend more money on one process and another may spend less but for calculating actual and realistic cost of ownership of ERP all of these cost centers are needed to be included.
Read more information on Low Cost ERP Software. Find information about ERP Implementation Cost and Timeframe for SME.
By a survey conducted way back in 2002 it was estimated that an implementation of ERP on an average cost $15 Million ranging from $0.5 Million to $300 Million, but it is quite an old estimate, times have changed a lot since then and there surely would be major change in the average cost of implementation. However, the factors affecting the cost have not changed and more or less remains same as they were right at the beginning. The cost of purchasing the software and cost of installing the hardware necessary for running the ERP are two basic cost centers involved with ERP ownership. Apart from the purchasing cost the cost involved in making the system run in the form of manpower, system software, purchase of software for security features and checking third party intrusion, license renewal fees etc should also be taken into account.
Implementation process involves lots of activities and these days most of them are preferred to be done by taking help of external consultants like functional analysis of the company to prepare 'as is' document. Similarly, for technical analysis and GAP analysis services of experts or agencies are availed to get the best output and independent opinion. These services incur costs and increase total cost of ownership of the ERP. Indirect cost in these activities are those man hours which have been invested by the in-house staff for getting these activities done, these costs are ignored most of the times, but have crucial impact on total cost of ERP implementation.
To provide sufficient training, companies need to invest decent amount of money firstly in hiring trainers or paying the consultants imparting training to handle the ERP, hiring technical staff to support the ERP and training them according to the software and hiring or developing existing managers as ERP consultants for future needs. All of these add up to the total cost of ERP software.
Cost of tools and software required for integration with external entities, for optimum utilization of the ERP and for integration with present system also cost and these costs vary according to the scope of implementation and ERP software itself. Some ERP software may need lot of these tools and software and some may not.
Data conversion is another activity that involves cost depending upon the nature of the ERP and the format and media on which old data has been stored. Actual cost of data conversion can be accessed only by putting together all of these factors and sometimes it can be quite high. Testing of ERP its components, performance and user acceptance is a compulsory process which has to be conducted before going live and this activity also incurs cost on the company to increase total ownership cost of the ERP. Some companies may spend more money on one process and another may spend less but for calculating actual and realistic cost of ownership of ERP all of these cost centers are needed to be included.
Read more information on Low Cost ERP Software. Find information about ERP Implementation Cost and Timeframe for SME.
ERP Training - Important Step In Implementation Cycle
ERP training is the most important step in implementation cycle which most of the time is underestimated and under budgeted, but it is a proven fact that proper training can not only save money but also raises the chances of successful implementation and utilization of ERP. There are many theories about how much money shall be invested or budgeted for training purpose which may be correct for few companies but cannot be for each one. Organization has to identify and decide the amount of money, time and resources it needs to put in for completing this step successfully and satisfactorily.
Training of project team before beginning the implementation process can be of immense help. In the project team representation of all the departments of the organization is given priority over hands on ERP experience, which is correct, but proper configuration level training on all the core modules shall be imparted to all the team members so that they are able to get ERP implemented to utilize it for end to end business processes. Technical training shall be given to handle issues like system administration, report writing, customizing forms and work place and application development. Training sessions for the project team shall be designed in such a way that consultants of the vendor are able to impart knowledge of use to them. Apart from configuring the modules and customizing them, training shall focus on the integration of different modules with other business processes too.
Top layer and bottom layer of the organization is comprised of most important people with a crucial role to play in the success of ERP implementation. The top management training gives them a complete picture about ERP itself as well as sort of changes it will bring in the organization, volume of effort required for implementation and necessary steps to be taken for smooth functioning in post implementation phase and the how the organization in terms of working will look after the deployment of new system. The lowest layer has employees who will make the ERP successful if they understand the qualities, the need and necessity for the changes in the working system and the shortcomings of the system. They shall be made aware about the information they will be able to get in seconds and how they can utilize the system when they are in field or what sort of knowledge or technical support are at their disposal now with the new system.
The people who will be actually using the ERP to carry out day to day functioning of the company needs a well designed training syllabi. Too much training and information about the ERP can be counterproductive hence they shall be trained in two cycles. In the first one specific training shall be imparted for carrying out their day to day works efficiently by utilizing all the features of the latest system without making mistakes. Training shall also describe to each and every user about the ways of cross-checking and identifying mistakes and proper channels to correct them. At later stage, when ERP has been live for few months another session can be started for imparting knowledge about alternative methods of doing the regular job and about advanced features.
Training as a whole needs specific attention and devotion to make ERP work efficiently and it is a no secret, without proper training companies have suffered a failed ERP implementation process or the process continues even after 20 years of deployment.
Read more information on ERP Training Institute. Know about Institution for ERP Courses.
Training of project team before beginning the implementation process can be of immense help. In the project team representation of all the departments of the organization is given priority over hands on ERP experience, which is correct, but proper configuration level training on all the core modules shall be imparted to all the team members so that they are able to get ERP implemented to utilize it for end to end business processes. Technical training shall be given to handle issues like system administration, report writing, customizing forms and work place and application development. Training sessions for the project team shall be designed in such a way that consultants of the vendor are able to impart knowledge of use to them. Apart from configuring the modules and customizing them, training shall focus on the integration of different modules with other business processes too.
Top layer and bottom layer of the organization is comprised of most important people with a crucial role to play in the success of ERP implementation. The top management training gives them a complete picture about ERP itself as well as sort of changes it will bring in the organization, volume of effort required for implementation and necessary steps to be taken for smooth functioning in post implementation phase and the how the organization in terms of working will look after the deployment of new system. The lowest layer has employees who will make the ERP successful if they understand the qualities, the need and necessity for the changes in the working system and the shortcomings of the system. They shall be made aware about the information they will be able to get in seconds and how they can utilize the system when they are in field or what sort of knowledge or technical support are at their disposal now with the new system.
The people who will be actually using the ERP to carry out day to day functioning of the company needs a well designed training syllabi. Too much training and information about the ERP can be counterproductive hence they shall be trained in two cycles. In the first one specific training shall be imparted for carrying out their day to day works efficiently by utilizing all the features of the latest system without making mistakes. Training shall also describe to each and every user about the ways of cross-checking and identifying mistakes and proper channels to correct them. At later stage, when ERP has been live for few months another session can be started for imparting knowledge about alternative methods of doing the regular job and about advanced features.
Training as a whole needs specific attention and devotion to make ERP work efficiently and it is a no secret, without proper training companies have suffered a failed ERP implementation process or the process continues even after 20 years of deployment.
Read more information on ERP Training Institute. Know about Institution for ERP Courses.
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