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ERP Implementation

ERP Implementation

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Published by George Prisecaru
The IT organization design must take care about ERP generated workload over the coming years and must define useful and measurable performance criteria.

From the ERP implementation perspective, the IT organization is highly dependent on tactical decisions regarding the spreading of the ERP in company sites and the speed of spreading.
The IT organization design must take care about ERP generated workload over the coming years and must define useful and measurable performance criteria.

From the ERP implementation perspective, the IT organization is highly dependent on tactical decisions regarding the spreading of the ERP in company sites and the speed of spreading.

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Categories:Types, Business/Law
Published by: George Prisecaru on Feb 02, 2013
Copyright:Attribution Non-commercial

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11/07/2013

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IT Organization from ERP Implementation Perspective
1
IT OrganizationfromERP Implementation Perspective
George Prisecaruv.1 14.06.2012
Executive summary
The IT organization design must take care about ERP generated workload over the coming years andmust define useful and measurable performance criteria.From the ERP implementation perspective, the IT organization is highly dependent on tactical decisionsregarding the spreading of the ERP in company sites and the speed of spreading.Based on the performance criteria, a model for IT support is proposed.
Contents
Remark The shape of the graphs can be changed according different scenarios; the shapes are different for each product and implementation.
 
IT Organization from ERP Implementation Perspective
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1. Introduction
 An ERP implementation is by far the most complex and expensive IT project for any company, so the ITorganization design must take care about the ERP generated workload
 –
eventually by analyze of different implementation scenarios.
2. Workload estimation
The workload estimation analysis must consider the ERP life cycle and to take into account the number of concurrent implementations.
2.1 ERP Life cycle
 Any ERP life cycle has an implementation phase and a support phase. An average life cycle is about tenyears; after this period it is most likely that the ERP will be replaced, except the case of a fundamentalredesign of the product to respond to external and internal changes.Each phase involves different type and number of people so generate different cost.From IT support perspective, the most important question of ERP life cycle is to estimate the averagesupport cost and to compare this value with the accepted one.
 
IT Organization from ERP Implementation Perspective
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2.2 ERP Implementation Scenarios
Two scenarios can be considered in order to estimate the ERP support workload: a pessimistic one andan optimistic one.
2.2.1 The worst scenario
If an ERP implementation in a group of sister companies take too long there is the danger to overcomethe life cycle of the product, so only some companies in the group will benefit by the advantages of thenew ERP; the main target
 –
creating a unique and global functional infrastructure
 –
will not be reached.The above graph includes all costs per project: infrastructure cost, licenses cost, training, customization,travel, support, etc.If the first four implementations take too long, there is a high probability to cancel the other ones or topostpone them
 –
which will dramatically change the scope of the ERP support in company IT.

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