E-Sourcing Forum » Service Your ERP

Service Your ERP

May 17th, 2007 at 04:30am David Bush - Iasta

Continuing in the spirit of ERP week, I’d like to point out a great article by Sam Graham that asks Does your ERP System need a service. According to the article, ERP systems require regular servicing to ensure they are running correctly. To this end, it points out six categories where things can go wrong that are worth noting.

1. System Enhancements

Most ERP systems are updated at least yearly. Sometimes these enhancements contain functionality that would be appropriate and beneficial to the organization. Failing to implement these updates could cost the company more than not.

2. Changes in Expectations

The more comfortable users get with a system, the more they want it to do. Thus, a system that was great two years ago might not be so great today.

3. Incorrect Decisions at Go-Live

Most of the time, the company is unfamiliar with the services company chosen to assist in the system implementation and integration and the services company is also unfamiliar with the company. Thus, the decisions made are often sub-optimal, especially considering that tight budgets and overly aggressive schedules are often mandated.

4. Sitting with Nellie

Refers to the fact that some individuals held, and still hold, the view that the best way to learn a job was to sit alongside the person who did the job. Although the person who does a job now is the best person to tell you how the job is currently done, such an individual is not necessarily the best person to tell you how a job should be done.

5. Bad Habits

Over time, bad habits inevitably start to creep in. Sometimes they’re driven by laziness (”hey, I found a short-cut”) and sometimes they’re the consequences of well-intentioned individuals trying to improve the system. Either way, without a usage-audit, it’s likely you will be unable to detect these deviations.

6. Company Drift

Times change - but your ERP system will not change with them unless effort is made to keep it up to date. Without effort, you will one day wake up to find that you have a system perfectly suited to yesterday’s requirements but not at all suited for tomorrow’s.

The article also discusses some advantages and disadvantages of using the original implementation consultants, new support consultants, and the internal team to do the check-up.

Team	Advantages	Disadvantages
Original Consultants	Likely up-to-date with system enhancements Individual consultants may still be available Already familiar with the company and accepted by the internal team	Might not be willing to admit to initial errors, if they find any Might view it as an exercise in selling more
New Consultants	Fresh Perspective No vested interested in covering up any errors Might be willing to give you a good deal	Will need to be brought up to speed on the company Provenance will be unknown They may see you as a sales opportunity
Internal Team	Knows the Company Cheaper than External Consultants	Vested Interests Unlikely to know what the system now offers

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