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ERP training—An investment promising great returns

Sudipta Dev / Mumbai

In India, like anywhere else in the world, Enterprise Resource Planning (ERP) implementation in any organisation has never been much welcomed by employees, thanks to the inherent human reluctance in accepting change and the fear of retrenchment. It is a skill which was once mastered by reluctant learners, who now command premium price in the recruitment market. Today, recognising the potential of ERP training, professionals from as diverse streams as sales and marketing to human resources to production planning and supply chain management, are ready to pay through their nose to get themselves trained and certified for a much sought after global career.

From the corporate standpoint, the irony of the situation is that while they spend whopping amounts on ERP software and implementation, training (of employees) is usually neglected. Experts have in fact always attributed ERP disasters (which are not so uncommon), to lack of training. “Companies that do not allocate adequate budgets for training are likely to go through sub-optimal, if not failed implementations, and therefore inadequate returns on investment made,” says S Narayanan, country manager, Knowledge Services, SAP. He points out that according to a recent Gartner Group research, organisations that met their ERP goals spent 17 percent of the total budget (including software and implementation), on training. However, companies that spend less than 13 percent of their total budget on training are three times more in number. It is also necessary that training should be provided at all levels in the organisation—from the top management to the core team in charge of the implementation, to the end users.

Course modules

The common ERP packages are—SAP, Oracle Financials, Baan, PeopleSoft and JD Edwards. Among these, SAP courses are most popular. Training is offered on various functional modules like Financials, Materials Management, Sales & Distribution, Production Planning, Plant Maintenance, Human Resource Management, etc, besides technical courses on Basic Administration & ABAP (Advanced Business Application Programming). These courses are offered by SAP Education Partners—Siemens Info Systems Limited (SISL) at Delhi and Chennai, and Genovate Systems in Mumbai. New dimension applications like Supply Chain Management, Business Information Warehouse, Enterprise Portals, etc, are offered by SAP at Bangalore and Mumbai. “SAP has entered into a partnership with these companies only after carefully evaluating their capability. We have service level agreements with partners and delivery of training courses is monitored continuously. Finally, certification examinations are directly administered and controlled by SAP through stringent online certification exams,” informs Narayanan about their quality control initiatives. Future plans include setting up a new SAP Education Centre at Hyderabad by SISL very soon.

SAP with its 18,000 customer base worldwide provides great career opportunities for those trained on its packages. In 2001, more than 1,900 people were trained in India by SAP and its education partners and over 762 professionals were certified. The requirement continues to grow with the expanding customer base in India and abroad. Genovate Solutions, the only SAP Academy partner in Western India, is also the sole partner in Singapore and Malaysia. A five weeks full-time course comes for a fee of Rs 2.5 lakh per module (inclusive of examination fee). Despite the high course fee, the response has been tremendous ever since Genovate started its Mumbai operations a few months earlier. “There are a lot of professionals who intend to upgrade their skills or look out for better prospects. The market for SAP professionals is on the rise and this has triggered the good response,” says Krishnan Iyer, manager-operations of Genovate Systems. He adds that the participants should have at least three to four years of functional experience. Participants are both individual students and corporate sponsored. “The 25-day programme puts one through rigorous training, sometimes participants put in about 12 hours a day, seven days a week,” informs Fabian M Ferreira, manager-corporate sales, Genovate. The faculty comprises trainers with eight to ten years of strong functional experience, who have implemented one to two lifecycles.

Narayanan reveals that increasing demand for trained SAP consultants has resulted in many unauthorised training centres in Hyderabad, Bangalore, Mumbai and Chennai. “These centres lure people by offering SAP training and assured placements. Such training is illegal and it does not meet the stringent quality standards of SAP nor prepares the student to be a certified consultant,” he warns, adding that spending money on unauthorised centres is not recognised in the SAP world.

Mumbai-based United Systems Infotech also offers training on Oracle Financials, PeopleSoft and JD Edwards ERP packages. Demand for these is however limited and the institute requires students to give one week’s prior notice to arrange for a consultant to organise Oracle Financials and PeopleSoft classes. “Training on JD Edwards software is done only for corporates, but the demand has been less,” says Asawari, assistant centre manager, United Systems Infotech. The course fee for each module is Rs 35,000 and the duration is either one month (full-time) or two months (part-time), for each. The SP Jain Institute of Management & Research in Mumbai had earlier conducted a few Baan classes, which have now been disbanded.

Clarifying the concepts

Before initiating the ERP implementation, it is necessary for an organisation to develop a curriculum that identifies and explains the different business processes that will be affected by it. Pradeep Khetan of the Institute of Manufacturing Resource Management of India (IMRMI) explains why: “With ERP all business functions will use the same set of data and information in a single integrated system that will affect each other in many inconvenient ways. Therefore, it is a must that users from each business function understand how they will be affected by others. In short, the education and training must not only be broader but also integrative.” IMRMI is an international certification administrator of

US-based APICS-The Education Society for Resource Management. For successful ERP implementation it is necessary to understand the concepts behind it, and this is where the APICS certification comes very useful. The two internationally recognised courses offered by APICS are—Certified in Production and Inventory Management (CPIM) and the Certified in Integrated Resource Management (CIRM) programmes. “These courses are must for individuals who are working in ERP companies, consulting and service industries or the companies where ERP gets implemented,” says Khetan, adding that it will help them in getting cross-functional knowledge as well as team-based skills. They will also understand the strategic perspective of their global enterprise environment.

The APICS examinations are held at centres in Bangalore, Chennai, Hyderabad, Mumbai and New Delhi. APICS certification is considered necessary at the time of recruitment for those ERP professionals who are involved in development work. “Presently there are at least 450 APICS certified professionals in India and three to four times the number in the US who have got certified here,” states Khetan. Many engineering students at IIT, Powai and the National Institute of Industrial Engineering (NITIE) are presently preparing for the certification for lucrative career prospects. Apart from students and beginners, many senior professionals also(appear) sit for the exams year after year for greater career opportunities. The CPIM exam fee is Rs 7000 per paper and the CIRM fee is Rs 9000 per paper. Both have five papers each. It is not uncommon for organisations to lose their staff after sponsoring them for APICS exams. The certified professionals evidently leave for greener pastures after possessing the coveted certification. There are approximately 70,000 to 80,000 CPIMS in the world and among them 70 percent are in the US.

Interestingly, ERP implementation continues to be met with resistance in organisations even as professionals realise the great scope in the international job market. The situation will probably not change till the top management do not start taking their decisions on the ERP screen and formulate an indigenous curriculum for its employees.

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