End users & their Role
•People who will be using ERP system
•Old Job Descriptions will change
•Nature of jobs will undergo drastic transformation
•Resistance likely from the employees who have to change a lot
•Employees fear that their jobs may be become redundant
•Fear of learning
•Fear of training on a massive scale
•People will be forced to develop new skill sets
•Fears should be addressed well in advance
•Creates new jobs with more responsibilities & value addition
•Company should succeed in making the employees accept the new & challenging working environment
•Company should assist in transformation
•Major obstacle will be solved
•Increases the chances of successful implementation
Terms of contract signed with end user, consultants & vendors
Contract is:
•Important in ERP Implementation
•Before, during & after Implementation
•Contracts should be signed with
•Package Vendor
•Hardware & peripheral vendors
•Networking vendor
•Consultants
•Implementation Team Employees
Vendors are package developer. They upgrade the product regularly.
Contract with Package Vendor
•Issues related to Source code & modifications
•Price of the Software & Payment terms
•List of deliverables (Software, Documentation etc.)
•Conditions for acquiring complimentary modules in the future or for increasing the Number of end users
•Terms & conditions for customization
•The profile of the Vendor’s team who will be assisting the company in Implementation
•Any other specific responsibility assigned to the vendor
•This is not a comprehensive list
•Clauses specific to the company should be added
Contract with consultants
•Plays a vital role in Implementation
•Should make the Project a success by ensuring Implementation without time & cost overruns
•Users training should be to everybody’s satisfaction
•Train the Implementation Team for subsequent Implementation themselves
•Include performance & penalty clauses
•E.g. Agree on a completion date, budget, & projected improvements like x% increase in productivity, y% reduction in response times etc.
•Hold them accountable
•Points to be included in the contract
•Profile of the Consultant’s team members
•Consulting fee & payment terms
•Scope of work
•Time schedule & Implementation Budget
•Projected improvements in quantifiable terms & time required for showing the results
•Implementation Methodology
•List of deliverables (Reports, manuals etc.)
•Reporting mechanism to the Management
•Project monitoring & status reporting systems
•Any other specific activities that assigned to the consultants
Contract with End users
The end users are the employees
•Employees are trained at the company’s expense
•Their market value will increase exponentially once they acquire knowledge, complete the training & participated in Implementation
•They should not leave the company without any warning or alternative arrangements
•Sign a contract with these employees before they are put on the Implementation Team & given any training
•Main Clauses of the contract should be :
•They should give enough notice to the company if they want to leave
•Train another person before leaving
•They should not leave during Implementation
•Chances of leaving during first Implementation are rare
•Better to retain such employees by offering competitive salaries, challenging work environment & stock options rather than enforcing a contract
•Company should trust them, keep them happy & satisfied
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