Enterprise resource planning software requires full support from top management at the time of implementation, selection, customization etc. During implementation, organization may require to change some business processes to meet the software standards, which are industry specific standards. Business process can not be change without top management support. It is quite necessary to change some of the business process. It helps in implementation. If you are not willing to change any business process you may go for customization. But, customization is costly and not good for any ERP project. Little bit customization is ok, but too much customization will affect your ERP project. It will increase your project duration, budget, and increase the risk of implementation failure.

It will be better to change some business process if possible, rather than customizing. When an organization changes their some business processes, change management expert is required. People resist change. Change management expert will guide how to change, and explain the benefits of changes to the employees. ERP system helps in changing the process; it is designed and developed by adopting best practices of specific industries.

Internal Change Management: An ERP implementation entails changes in business processes and reporting structure. Addressing this paradigm move is a process that the organization has to go through. This will help in achieving the acceptability of the ERP users.

Change Management Drivers:

Employees: Employees are the key players in any ERP implementation. The employees of the organization will be in the capacity of process owners, software users and administrators of the ERP software. The main challenge of an ERP implementation is to achieve the acceptability of the system to the employees and for them to perceive the benefits to the organization and to their way of working.

Process: One of the returns on investment (ROI) is adopting business best practices by virtue of an ERP system. Little change in the business process will reduce the chance of implementation failure. Minimum or no customization is very good for any ERP implementation. These processes impact the effectiveness levels to be attained by the organization.

Technology: Implementation of ERP system automatically entails adopting technology that will address easy scalability, eradication of distance and upgradeability to latest technologies.

Organization Commitment: ERP system has to be viewed as a process enabler rather than a software package to be installed and run. The implementation process is a journey towards achieving organizational effectiveness. This demands a very strong commitment of the top management throughout the entire process.

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Read information on ERP Implementation Strategy and fundamentals of ERP. Know more on SAP Business One Implementation. Also know How to Select ERP Software and other ERP fundamentals.

Most ERP systems are designed to fulfill the majority of a business’s needs – as captured at a single point in time. The inventory of business processes is typically impressive in its complexity and completeness, and the ERP system installed may be counted on to reliably trudge along its pre-determined path for years. It’s an idea that seems comforting: “We’ll get all our processes figured out – we’ll follow best practices – we’ll use enterprise resource planning to fix everything once and for all.”

It is a noble goal but it overlooks an important reality for many organizations: things change. That snapshot of the business when its ERP system was first implemented is remarkably different from the business’s state a few years later. Indeed, sometimes it takes only a matter of months to render that snapshot as quaintly dated as an old box of Polaroids in the basement. The days of trying to cast business processes in stone are a thing of the past for most companies. There are simply too many pressures, both internal and external, to expect any kind of rigid business process management software to keep up. Mergers and acquisitions, re-organizations, compliance management can all play havoc with the status-quo.

Certainly that’s the findings of CFO Research Services in their paper The High Cost of Change for ERP. One-third of the polled finance executive said “their companies have reconfigured their entire ERP system, entailing system-wide modification”. They also report that “many mid size companies spend more than million a year to continue to modify and update their ERP systems.” Note that this is not part of standard maintenance; these expenses are on top of anticipated maintenance.

Does it make sense to implement an enterprise resource planning system with such a short expiry date? Not really… but companies resigned to the substantial spend of regularly re-tooling their ERP systems may feel trapped and without options. Change is inevitable… and so is ERP system spend when you are dealing with enterprise management software that isn’t architect for change.

There is an alternative enterprise resource planning solution from Agresso, well-known in Europe and establishing a quickly growing presence in North America. Agresso Business World was specifically designed to address frequent, ongoing change and the company is targeting organizations it calls Businesses Living in Change (BLINC). Regardless of the vertical market sector, any organizations that operate in an evolving environment, or need to respond to the unexpected share a common requirement: agility. In particular, they require post-implementation agility – the ability to make changes quickly and easily after their ERP system implementation is complete.

Boasting a unique architecture, this enterprise resource planning software allows business users, rather than ERP systems consultants or IT resources, to effect changes in the ERP system, directly in the graphical user interface. It is Agresso’s unique “VITA architecture” that enables true post-implementation agility and it is this capability that differentiates Agresso’s ERP software system from the crowd. VITA combines the data, process and information delivery models into a single cohesive unit. Make a change in any one of these areas and it automatically and intelligently flows throughout the system, making all associated changes and adjustments. The change does not need to be redone or re-checked for accuracy anywhere else. And that makes change fast, easy, inexpensive and non-disruptive.

Agresso offers a fully integrated suite of enterprise resource planning capabilities, including Financial Management, Planning, Budgeting & Forecasting, Procurement Management, Human Resources and Payroll, Project Costing and Billing, Business Process Automation, Field Service Management & Automation and Reporting & Analytics.

For organizations that need enterprise resource planning software capable of adapting to their needs over the long term, they need to ask some hard questions of their ERP systems vendors. Determining the total cost of ownership is critical… but simple maintenance and support costs are only half the equation when it comes to enterprise management software. A better metric is, according to Brian Somner of TechVentive is the “Total Cost of Change”. This more realistic view goes beyond license, maintenance and upgrade costs; it considers the substantial costs of accommodating business change scenarios in the ERP system.

Any organization facing frequent, ongoing change – especially organizations that accept and embrace this reality – should be talking to Agresso about their enterprise resource planning solution. There is substantial money to be saved, considerable disruption to be avoided, and business opportunities to be seized with an ERP system like Agresso. Agile organizations need agile enterprise resource planning, and Agresso uniquely fits the bill.

The four definitive trends listed in the National Association of Wholesalers-Distributors’ publication Facing the Forces of Change are fairly straightforward, although meeting these customer expectations often proves difficult for an unprepared distributor. Learn to successfully cope with these trends is often assisted through the implementing an enterprise resource planning (ERP) software package, which is a critical first step for wholesale distributors.

Founded in 1990 and headquartered in Toledo, Ohio, Technology Group International (www.tgiltd.com) is a proven technology leader delivering Tier 1 application software functionality at a price performance level that can be readily accepted by wholesale distribution organizations of all sizes. A best-of-breed ERP software solution provides the basic footprint for managing the four trends outlined and Enterprise 21 offers functionality well beyond that of the standard distribution package. Enterprise 21 provides full ERP functionality with a fully integrated e-commerce module. It is one of the few ERP systems to meet the needs of today’s wholesale distribution without the need for expensive and time consuming modifications.

In Facing the Forces of Change (available at www.nawpubs.org) the four trends are detailed:

Customer Self-service: Providing customers with up-to-date technology that allows access to pertinent account information and provides the customer with an avenue to immediately act upon this information as needed. Examples include such functions as: online ordering, online access to product offerings and documentation, interactive product configuration management, and access to inventory levels or order status. Not all ERP systems are equally suited to meet this distribution requirement.

Strategic Sourcing: Leveraging an organization’s existing purchasing power to lower product and transportation costs, reduce product lead-times, and streamline the overall purchasing process. In companies with multiple locations, this can easily be achieved by centralizing purchasing, instituting formalized purchasing policies, and automating the purchasing process through the usage of distribution requirements planning or DRP processing. Again, many ERP systems fall short in assessing distribution requirements.

Fee-based Services and Pricing: This concept allows distributors to offer value-added services to differentiate themselves from their competition and improve profitability by providing customers with a service offering they both want and need. The key is to offer products that are backed by exception services which help augment the customer’s own profitability and aid in the purchaser reaching their own sourcing objectives. Many ERP systems cannot accommodate the exceptions common in distribution.

Logistics and Fulfillment: As more third-party logistics companies vie for the market share of the wholesale distributor, these old school distributors need to become savvier with their service and fulfillment offering. Simple order to cash processing will no longer appease the average customer; distributors must advance their offering to show exceptional customer focused value. ERP systems must have the capacity to accommodate fulfillment.

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Construction management software is only as good as the people that use it. You can have the latest, most powerful software available on the market, but if your employees cannot use the software properly, you will not get the full benefit of the software. This can be a challenge when you switch to a new software platform as veteran employees may be reluctant to adopt the new software, feeling that the old software was adequate. To help prevent these problems and maximize your investment, there are some things you can do to encourage your staff (new and old) to “play nice” with the new software.

Everyone at the company must understand the benefits that the new software will provide for the company and themselves. Before you make the transition to new software, speak with everyone in the company about what the new construction management software will accomplish for your company and how it will make things better for the company. It is also important that employees see how the software will benefit them on a personal level in relation to doing their job more accurately, faster, etc. Studies have proven time and again that new software is more successful in companies where all users understand the benefits. Your worst nightmare is a group of employees who think the new software will only make their jobs more complicated and difficult.

Conduct extensive training. The best way to combat staff reluctance is to provide the users with the best training possible, so that they feel well-equipped to use the new management products. Provide a way for the staff to seek additional one-on-one training if they still feel uncertain, and distribute resources such as support phone numbers, print manuals, or online resource links.

It is also important to get feedback from the software users. Once they begin using the new software, ask them about their likes and dislikes of the new system. You may identify ways to use the software better. At the very least, your employees will feel some power in the new software move and will know that their opinions are valued and appreciated.

As your staff becomes more confident with the new technology, begin to recognize achievements. Not only will people begin to realize some of the benefits that were discussed prior to the new construction software being implemented, but they will also be encouraged to expand their technological capabilities and confidence in using the new software.

Stay positive. Avoid speaking negatively about new software in front of your staff. Let them see you responding positively and making your best effort to utilize the software most effectively. Model the behavior you would like for them to show when working with the new system.

Switching to a new software system can be stressful and complicated. It is normal for some employees to resist the change but as a manager you must respond to this resistance with patience, confidence, and positive support. After some time getting used to the new software, most employees will come around to see why the new software was chosen and will begin to work towards the benefits that you hope to gain from your new construction management software.

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Companies that undertake the process of implementing a new ERP software system often mistakenly view the task as one that is entirely IT and technical. This belief is one of the most common reasons that new software often takes longer than necessary to be successful, particularly when the new software impacts multiple departments of the organization. While some of the reasons for this failure can be attributed to IT ‘reasons,’ a number of them can be attributed to a lack of proper change management on the part of top level executives and managers.

The reason is really no surprise. Most people that work for companies are somewhat resistant to change and believe that change generates conflict. At the very least, they see the changes as a disruption that will interfere with their ability to do their job and may even put their job in jeopardy. Therefore, management must be thoroughly equipped to manage this change so that they can attain the positive results that they expect.

Properly managing the change process requires analysis, communication, and adequate leadership from the beginning of the software evaluation process until well after the new manufacturing software goes live. Below, I’ve listed some key issues to consider throughout the change process:

1) Hire a consultant: This is probably one of the most important issues and steps that must be taken. Most small to mid sized companies simply do not have the proper skills on their staff to effectively manage and monitor the change. Even if they do, they will still have other jobs to do that will limit their ability to adequately monitor the software change. Software sellers are likewise unlikely to have the necessary skills because serving as a consultant to companies that are switching software is:
- Outside of their core competency, which is developing and selling software.
- Essentially a sunk cost – they receive no additional funds for doing so
- A situation where they may be forced to work with parties they are unfamiliar with and business models that they are not intimately familiar with

An experienced consultant can help identify major problems and guide the company through the process of proactively dealing with them. They will have experience working with companies just like yours and will be an invaluable asset…although they will cost a decent amount of money.

2) Employee Involvement and Communication: All employees that will be impacted by the software change need to be notified early and often. This communication needs to be a two-way street as well. Their input must be sought as they will be able to identify problem areas that management may not think of. At the very least, they need to know:
- What will happen
- When
- Why the change is being made
- What the change is expected to accomplish
- Who will be impacted by the change
- How the change will impact them

If this kind of communication is not provided, management should expect a number of different responses from employees. This communication may range from simple misunderstandings to outright opposition, which is frequently hidden and extremely detrimental. Again, the importance of soliciting input from employees should not be understated. Not only may good issues come to the forefront, but employees who are consulted will be more “bought in” to the change, which will help prevent mistakes down the road and will lessen the covert opposition.

That being said, it is difficult to find the time to get input from everyone. One good way to open the communication channels is to conduct interdepartmental workshops that discuss, in detail, the ways that each business area will be impacted by the change, the reason for the change, and the other factors mentioned above.

3) Management Must be Leaders: Most organizations in today’s business world are led by management, but those managers are not necessarily leaders. Most decisions are annouced in memos or similar manners. This will not work when a big change like a change in MRP software is made. This is because if employees receive a memo from their direct supervisor mentioning the upcoming change, they are unlikely to believe that the top level execs are behind the decision and may ignore it. In other words, all levels of management must be actively involved in the change management.

Further, upper management often wrongly assumes that new systems are simply “plug and play” and do not realize that a much larger leadership presence is necessary. This is especially a problem in small to mid sized companies.

4) The New Software Must be ‘Sold’ to Employees: This is relatively self explanatory and simply means that all steps must be taken to ensure that all employees are “bought in” to the new system. They must understand that they have a stake in the ultimate success of the system that will impact the overall organization, and potentially their jobs. If they do not feel like they have a stake in the new software, it may ultimately fail.

5) How to Deal with Fear: Rest assured, any new software conversion will not come without fear on behalf of employees. Some common fears they may have are:
- Will this change make my job obsolete?
- What will happen if I struggle to learn the new system?
- What if the new software makes my skill set less valuable? Will I still be paid for the skills I have?
- Will the new system take away some of my power? (This is a common fear for mid level managers)

If fear is not confronted, it can lead to oppositional behavior or employees leaving that feel they cannot deal with the new uncertainties. Thus, upper management needs to make sure that all uncertainties are addressed.

6) Conflict Resolution: There will be some conflict with the new system. This is almost guaranteed. Turf battles may erupt. New communication between previously unconnected departments may lead to conflict. In most cases, these conflicts can be proactively dealt with by addressing the fears noted above.

However, if conflict does erupt, it cannot be ignored, despite the fact that most people think it will eventually ‘work itself out.’ Do not send signals that conflict should be hidden. Instead, confront it head-on and resolve it as quickly as possible. Honesty is key here and it may be advantageous to bring in an objective third party to deal with conflict.

Finally, keep in mind that this this article is not meant to be all inclusive, although it does point out some key elements of a successful ERP software conversion. The concepts discussed here are likely to be more prevalent in larger companies, but certain aspects of them all will be seen in companies of all sizes. The key is proper leadership from management that focuses on honest and open communication. Without that, you would be surprised how much of a negative impact one or two unhappy employees can have.

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The Most Important Reason To Change Your ERP Vendor and ERP Software System

Companies who thought implementing their first ERP system years ago and making the financially significant investment in an ERP software solution was the hard part may be in for an even harder journey ahead. What many companies with ERP systems currently in operation are finding out is that is an even bigger decision both financially, operationally and resource wise to switch to a new ERP vendor or vendors and a new ERP software app than implementing an ERP system for the first time.

The business disruption with switching enterprise systems can be much higher with ERP vendor switches. Just as with real estate, in many cases its easier to build a house on a open lot rather than trying to remodel a tear down. On top of this, a company who has been using an ERP system will most likely have a business that is humming along, and the business disruption will seem much greater than what it was when incorporating the first enterprise systems. Furthermore, the competition landscape is more competitive than ever, and any loss of productivity and service levels could lose you a lot of ground with customers and with your competitors. These risks, and the fear of the unknown has kept companies in a status quo mode when it comes to their ERP applications. Although the current ERP solution may not be the state of the art system, it still works and managers at least know what the system and ERP modules can deliver. The risk of a failed ERP implementation or new ERP modules that don’t work as anticipated keeps IT manager up at night and hinders them from trying something new.

The most important driver for taking the risk to consider new ERP vendors is to take a high level look at your organizations business processes and how they are negatively impacted by your current ERP software solution. In other words, look for your broken, inefficient business processes that are that way because they needed to work around your current ERP application. To help clarify your current system limitations, identify all of the ad hoc programs that were developed over the years by your IT staff to work around the shortcoming of your current ERP system- you may be quite surprised by what you find. If indeed you find that your business processes are broken, you should most likely entertain the notion that you need to look for new ERP vendors. Company’s looking to dramatically improve their business processes usually start by getting an ERP system implemented. The same logic should hold for your company, despite the fact that you already have an ERP system in place.

The main issue with legacy ERP systems, especially the older systems, is that they were very inflexible with respect to functionality and customization and companies had to change their business processes to accommodate particular ERP modules and features. Any customization that was critical to have required extensive programming and significant resources to implement and maintain. This may have sufficed a decade ago, but with more options available now and because business processes are changing at a much more accelerated pace in today’s market, a company has many more options and many more pressures to get the optimal ERP vendor and solution available on the market place. The decision to take on new ERP software solutions will be automatic when companies reach the point where there current enterprise solution is hurting their business, the key is to make this decision before the damage is done.

In Part 2, I will talk about another driver for going with a New ERP Software System and ERP Vendor, outdated System Technology.

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Better CRM Management

CRM managers play a big role in the selection of the CRM software – always in line with company policies and CRM agenda. Since they’ve been in the setup for long, they can identify the needs of the company when it comes to strengthening CRM and bolstering company operations that need the information from the CRM data bank.

If CRM information is responsive to the requirements of top management, sales, procurement, and advertising, operations run smoothly. Data is interpreted accurately and strategies are quickly designed with the customers at the core center of the plan. As always, the line of attack benefits both the company and its customers.

Executives relying on accurate and well-organized data can devise programs to catch up with the shifting trends in marketing and customer relationship management. CRM software that provides the solution suited to the corporate agenda and organization can do much to improve business management from top to bottom, front to back.

The Options

The overwhelming information on CRM software makes it difficult for any buyer to make a decision. The decisive factor from his perspective will be his budget and the notion that any software package will do.

This is the case with first time buyers. To address this problem, sellers have come up with simple explanations any Joe in the street can understand. Sellers understand that the success of the CRM software will depend on its responsiveness to unique corporate needs. Product reviews are also helpful tools for buyers seeking enlightenment about the different software solutions available.

Small or medium-sized enterprises, or SMEs, have different requirements from bigger or multinational corporations. To think that the software used by larger companies can give them the same advantages is absurd and expensive in the long run.

However, both can choose options like leasing or purchasing the CRM solutions and the system. Still, there are facts to consider for both options. If the company’s research is fast-paced and the information is massive, it would be cheaper to buy the software solutions. The company can also request for some modifications or add-on enhancements with a purchased license.

Getting a lease is less expensive. The hitch? Since it will be hosted or managed by a third company, your database is exposed. If this does not matter, it would be advisable to get a lease. You can forget other problems like having your staff trained to handle the system and attending to the systems’ periodic maintenance. You can focus more on important issues like marketing and improving customer relationship.

Which is Which?

Bigger companies can check out Microsoft Dynamics CRM and Oracle. Smaller businesses will be comfortable with http://Salesforce.com or Goldmine 6.5, and when there are additional features needed in the future, these solutions can be expanded for additional support.

Check out the different providers if they have the CRM software solutions to match your need. Do not attempt to get an entire package when your business does not need it. The right move always makes that business change a smart one.

• Strategic Sourcing: Leveraging an organization’s existing purchasing power to lower product and transportation costs, reduce product lead-times, and streamline the overall purchasing process. In companies with multiple locations, this can easily be achieved by centralizing purchasing, instituting formalized purchasing policies, and automating the purchasing process through the usage of distribution requirements planning or DRP processing. Again, many ERP systems fall short in assessing distribution requirements.

• Fee-based Services and Pricing: This concept allows distributors to offer value-added services to differentiate themselves from their competition and improve profitability by providing customers with a service offering they both want and need. The key is to offer products that are backed by exception services which help augment the customer’s own profitability and aid in the purchaser reaching their own sourcing objectives. Many ERP systems cannot accommodate the exceptions common in distribution.

• Logistics and Fulfillment: As more third-party logistics companies vie for the market share of the wholesale distributor, these old school distributors need to become savvier with their service and fulfillment offering. Simple order to cash processing will no longer appease the average customer; distributors must advance their offering to show exceptional customer focused value. ERP systems must have the capacity to accommodate fulfillment.
Founded in 1990 and headquartered in Toledo, Ohio, Technology Group International (www.tgiltd.com) is a proven technology leader delivering Tier 1 application software functionality at a price performance level that can be readily accepted by wholesale distribution organizations of all sizes. A best-of-breed ERP software solution provides the basic footprint for managing the four trends outlined and Enterprise 21 offers functionality well beyond that of the standard distribution package. Enterprise 21 provides full ERP functionality with a fully integrated e-commerce module. It is one of the few ERP systems to meet the needs of today’s wholesale distribution without the need for expensive and time consuming modifications.