Expert Guidance in ERP Implementation

In developing an ERP system, the guidance of an ERP expert is an inseparable element. Moreover, if the organization chooses to use an ERP package from an external vendor. This is due to different logic and feature that every ERP package software has, which consequently require specific expertise for each. Expert who can work in the main ERP player such as SAP does not necessarily have expertise in Oracle ERP. Furthermore, even though in one ERP software package, the expertise is still divided into several roles such as network administrator, programmer, functional and change management, also divided into several functional modules such as finance, human resource, and operation. Therefore, to shorten the duration of the learning process, the organization usually hire an external consultant for ERP implementation.

Despite organization has a high dependency on external experts in ERP implementation, the high cost related to consultancy service should be taken into consideration. As reported in research, the consultancy cost related to ERP implementation is 1-3 times the cost of ERP software itself. Thus, to better allocate resources that organization has, organization need to understand about characteristic of consultant that organization looking for and where in the implementation stage the consultant is needed the most.

Research found, in terms of consultant characteristic, technical skill & knowledge was perceived as the most important trait, followed by a commitment to producing quality work, and ability to manage ERP implementation. It also revealed that most of the ERP users in the survey rated the highest necessity for the consultant in the configuration and integration stage, followed by design, and planning stage. Another research also found most performed activities done by the consultant were customizing and development. The succession of ERP implementation is determined by the Senior consultant, and it is important to utilize this actor for a critical activity like modification in a more focused way. Thus, in implementing ERP with high-level modification, the organization should find a consultant with a high level of technical skill and have long experience, then assigned them to be focus working on modification, while other less critical activities are to be handled by the junior consultant.

A large number of consulting companies compete in the market lead consulting industries to give more competitive price which benefits organization to save a lot of consulting budget. However, sometimes to get lower costs than other competitors, consultants do some deception, such as putting senior-level consultants in the tender process but giving junior-level consultants in the implementation process. This will cause a low level of work quality and dyssynchronization between expectation and reality. Therefore, besides budget consideration, it is important to always seek for a credible consulting firm.

Although the organization relies on the consultant especially for the modification, relying heavily on external consultant in the long term will consume a significant organization budget. Therefore, it is necessary to transfer external consultant knowledge to internal organization employees. Low acceptance of user in using the new system is due to difficulties that the users have to understand the change between the old and new system. The effective knowledge transfer process is an obligatory element not only for the financial aspect but also for the knowledge capacity and ability of the ERP users in using the system.

Reference:

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