Why can't companies develop their own ERP paokages? Developing an ERP package is a very complex and time-consuming process, which needs a lot of skilled manpower and other resources. Many companies have personnel in their IT/IS departments who can absorb the necessary knowledge and who have experience in developing sophisticated systems. The problem is that such specialized computer work is not the main business of these companies. They should be directing all their available resources into improving their own products or services so that they can remain competitive, serve their customers better and continue to grow.

The next question that many people ask is: why can't the company carry out the ERP implementation by itself? To successfully setup and implement as ERP package, which functions perfectly, is not an easy; task. One cannot go in for a trial-and-error method of implementation strategy-, due to the huge amount of investments involved. The consequences of a failed ERP implementation can be quite catastrophic. It might put the organization out of business. Also, the ERP implementation process cannot go on for a long time. It has to be completed within a reasonable time period.

To successfully carry out the implementation within a reasonable time frame, the in-house people who are designated to do the job should possess a certain amount of knowledge and skill. To start with, the company should have people who are familiar with the ERP package and with the technical issues. Implementing the ERP software means, assigning the optimum values to the various parameters and the variable elements of the system. Experience has proven that a good professional needs at least one year to become reasonably good in an ERP system and that this one-year should be hands-on practical experience. It is not possible to become an expert by reading product brochures and online help files. You have to have practical implementation experience.

Many software vendors have their own team of consultants, whose responsibility is to ensure that their software packages, follows a standard approach or methodology. Definitely, these people know the product and can be of great value during implementation. But, developing a good software package and successfully implementing it are two entirely different propositions. A good package vendor need not be good at implementing its own product. Also, each group of people in an implementation project (vendors, consultants, in-house team, users and so on) has definite roles to play in the implementation. If the same party is performing multiple roles, it can create problemS' when conflict arises. For example, if the vendor is doing the implementation, the vendor's consultants may not be as open to the ideas of the in-house team as third party consultants, because the vendor's consultants will have a mindset, which will prevent them seeing the other side's perspective.

Besides having a very good knowledge of the product, the people who are to implement the ERP system should possess the following skills:
. Knowledge of how to organize and run a project of this magnitude: This calls
for good organization skills, project management skills, team management skills and knowledge of scientific methods of software project management.
. Enough experience in handling problems and issues that arise during the implementation: No implementation will be a smooth process; there will be problems, cost overruns, time overruns and so on. Knowing what to do in these situations is vital for the success of the project.
. Good people skills: Any ERP implementation will face resistance from the employees. The resistance could be due to ignorance about the product, fear of unemployment, fear of training, fear of technology and so on. So it is very important that the people in the implementation team are very good diplomats, adept at diffusing crisis situations.
. Good leadership skills: ERP implementation will involve dealing with a lot of
people and good leadership and communication skills are very effective.
. Excellent training skills: Every ERP project involves considerable amount of training at various levels and in various details. There will be a familiarization programs for all the employees, be executive programs for the top management, functional training for the implementation team members and end-user training.