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Most organisations do not understand

the costs associated with an ERP system when theyfirst commence the implementati on. The

benefits are usually well understood. The Vendor will make sure of this. The costs do not surface until

well into the implementati on - andwhy should the Vendor talk to an organisation about the costs and

difficulties when theyare trying to make a sale? On the surface, there are very attractive reasons for

going ERP. Benefits include:

A single system to support rather than several small

and different systems

A single applications architecture with limited interfaces

Access to management information unavailable across a mix of applications

Access to best practice systems and procedures

More integration hence lower costs

More "automation" of tasks Generic Costs and ImpactsThe costs and impacts are understandab

ly not played up by the Vendors. Some of thoseare:

Implementati on effort will be bigger

then ever talked about or even imagined. Weare yet to hear from an organisation who have implemented

ahead of schedule andunder budget.

Because of the richness of functionality,

the "toy box effect" can take over. Userssee all the functionality available and suddenly they want it

now. The scope cangrow out of control.

The existing environmenta l mix between what is done

manually and what is doneby the system will swing dramatically after implementati on. Many

more tasks willbe automated. Automation will significantly reduce the flexibility of how

youoperate as a business.

Users need to become more computer literate. Many see this as personallycha

llenging even beyond their ability and will not cope, or leave the company.

The word "Enterprise" in ERP means that whatever happens in one area has aripple effect in other areas.

Understandin g the implications of actions of one area,on other areas of the company, is not something

that happens overnight. Trainingtends to focus on how do I do my job. It should also focus on what are the

impactsof my job, in other areas.

Near enough is no longer good enough. Data integrity becomes

critical. Thecomputer cannot make human judgments. If stock is moved, it is no goodsomebo

dy remembering where they put it. The information needs to be put intothe system or there will be

a domino effect. E.g. Stock is moved from location Ato location B and the information is not put into

the system. The system will tellsomeone to get the material from A and when it is not there, they have to

golooking. At the same time it is telling someone else to put new material in B, butB is full. The first

person finds the original material in B and logs it into thesystem. We now have double the quantity in

the system again and it doesn'treorde r. And so it goes on and everyone is blaming the system.

ERP systems tend to replace old systems. As such it is a quantum leap for allareas of the company. It is replacing

the trusty Ford with a high performanceF errari. This happens at a Technical level as well as a Business

Level. New waysneed to be learnt in a very short space of time.

Things have to be done

consistently. No longer are we able to do something oneway in one branch and another way in another

branch. The system is going todetermine how we do things in all locations. Even within one location,

specialtreatm ent may not be possible any more without changing the configuration of thesystem. If the system

says you can either have 0, 15, 30 or 60 day credit terms,you can no longer offer 45 day terms without changing

configuration. If consistency can be implemented, there is good potential for cost savings as wellas getting rid of

special arrangements that reduce profit.

Corporat e Culture
All the points above

contain technical issues or business issues which can be managed if they are identified

soon enough. Training can show people the impact of their actions inother areas. QA programs can focus on quality of

data. What most managers who havebeen through an ERP implementati on, will tell

you, is the biggest impact is on "CorporateCul ture". It is always underestimat ed and never overestimate

d.Corporate Culture is a combination of two things.

The type of people who are employed by a

company. Their personal values, skills,habits etc.

The way the organisation

works. The focus, decision making process, attitude tostaff, stability, etc.Both feed

off one another. Job applicants who feel aligned with the way the organisationw orks and comfortable

with the style of person who interviews them, will likely get thejob, and perpetuate the

Culture.To successfully take on an ERP system, an organisation needs to change it's "CorporateCul

ture". It may need to change from being highly flexible and not paying a lot of attention to

consistency or accuracy, to one of being almost obsessed with detail. Of being prepared to have

Business Practices that are actually adhered to rather than justbeing documented and forgotten.

People need to change from focusing on turnover tofocusing on profit. ERP makes profit far more measurable

down to Department,C ustomer and Material level. Staff need to change their focus from their own job, to the whole

organisation. What theydo in their area has impacts in places they may never have envisaged. None of this

iseasy, and in many cases will be unachievable. Some people will not be prepared to make

the change and will either leave of their own volition or be asked to leave. This is the costof ERP.Another

dimension to "Cultural Change" is the timeframe in which the change is to bemade. It basically

needs to happen over a few days. One week you can bend all the rulesand get away with it; next week

the system will not let you. No matter how much trainingand preparation takes place, it cannot

prepare many people for reality. That is not to saythe preparation should not take place. The

preparation will ease the pain, not take it allaway. The more preparation the less the pain. On the positive side,

some people will taketo the system like the proverbial duck to water. These people tend to be (but not

all are)younger, newer employees who have had experience in other organisations. They knowthe

benefits of a good system and are frustrated with the current one. They will jump atthe chance to

make use of the new technology.

Change Manage ment

Change Management is about setting expectations that lessen the pain of change. Peopleinvolve

d in a change expect to go from A to B. Perhaps where they are actually going isto C. Change Management

is about getting them used to the idea that C is the realdestinatio n.To give an example, any new system

is bound to have teething problems. If users expectthat all is not going to run smoothly on day 1, and

that they may be working back late for the first week because of problems bedding in the new

system, they are less likely toreject the system when it does go wrong. On the other hand telling staff that this

is goingto be a great new system with no problems can only lead to disappointme nt and rejectionwhe

n bugs appear. As such, change management is measurable. Measuring attitudinal changes is

not a complicated process. Properly managed, we cansee how people feel about the changes over

a period of time, and how they shift in their expectat ions. The results of money spent on change

management can be seen. Not puttingin the effort before implementati on, will cost an organisation

after implementati on. Whatis the cost to an organisation of a system that is forced upon people, and with

which theyfeel little ownership? They will either sink it, or ensure it never reaches it's potential.Eith

er way, the organisation will never get the return on investment it imagined.

Other experien ces.

A survey of organisations that have implemented

ERP's was carried out recently. Itidentified "10 Common Causes of Disaster".

Change Managemen t and Training.

Software Pricin g

www.projectp erfect.com.au
. Tel.: (+92)(333)-(5122435) akistan g (ERP) plays a significant role

in todays enterprisee that includesors Support and Trust uted out of that 71. The study concludes that rest of the

critical success factors has atable to the user, and so on if t, finance,y. This is primarily. This study is

on.. Larsen and Myerson on critical success factors (CSFs)l ventures implementatio n projects and concluded that, criticale of a supporter,

top management support, high-s it is vital to develop key IT capabilities of the end usersll t. Zhang et al, (2002) stated that user

involvement refers to. ERP implementatio non variable considering importance based on literature.y

s. Training users to effectively . These critical factors s are made according to the culture of res in respective

organization that use diversified ERPd for data analysis concluding the response rate to 65%. tion of enterprise

resources applications . This correlation ent for change, prior usage and ease of usee in the study of Jiang Yingjie

t commitment and User intentionts for . s. All other critical factors were found significant predictors of . Based on the

Findings and conclusions of this research study it is s. Further research can be carried out by including the

ge in the postnet era:e, Journal of Strategic Information, Greenwich).ng a manufacturin gd usefulness, perceived ease

of use, and users to t & Data Systems 100/2, pp. 81-88.

erprise Resource Planning (ERP) is the

arrangement of how the resources of aecasted. ERP solutions have really minimized the extra delay and

unavoidabl eded organization but also have a prime concern with web technologies to the

engthen your brand, balancing market and your organization and minimizin gare

development. Our main function in the ERP is to integrate all theartments and functions of the company

as one single component providing ar a n s p a r e n t view of the entire company :l i e n t Server

technolo g y D I bject oriented technolog yraphical

user interfac e- T i r e a r c h i t e c t u r e ser defined reporting querying technolog

yr o v i d e s you with these functions : e all the information regarding the customers

history consisting all previou sr e d i t r a t i n g s henever any transactio n is

complete d ervice seekers. We offer the following products : ccountin

g softwar eR M s o f t w a r e eal estate managem ent

CRITICAL SUCCESS FACTORS OF ERP IMPLEMENTATION IN PAKISTAN

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