Professional Documents
Culture Documents
ERP Implementation
ERP Implementation
com
Presentation Topics
Enterprise Planning Introduction to ERP Evolution Characteristics Architecture Advantages Major features of ERP Best Practices for an ERP Implementation through
its lifecycle
Top 10 reasons ERP implementations fail
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Plan to Perform
you perform
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Enterprise Planning
and speed
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on a common platform
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Evolution of ERP
ERP
Materials Planning Order Entry Distribution General Ledger Accounting Shop Floor Control
Extended ERP
Scheduling Forecasting Capacity Planning E-Commerce Warehousing Logistics
ERP - II
Project Management Knowledge Management Workflow Management Customer Relationship Management Human Resource Management Portal Capability Integrated Financials
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management systems
Modules integrated to provide seamless
data flow
Flexible & offers best business practices Work real time with online & batch
processing capabilities
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Processes
Lower Costs Empower Employees Enable Partners, Customers and Suppliers
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Reliable Information Access Avoids Data & Operations Redundancy Delivery & Cycle Time Reduction Cost Reduction Improved scalability Global Outreach E Commerce, E business
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System
Performs core Corporate activities and
organization
Complete integration of Systems
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Automatic introduction of latest technologies (EFT), (EDI), Internet, Intranet, Video conferencing, E-Commerce, etc.
Eliminates most of the business problems like Material shortages, service, Productivity enhancements, Inventory Customer problems, Cash Management,
Addresses current requirements of the company and provides opportunity of continually improving and refining business processes.
Provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots)
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Pre-ERP Expectations
PostImplementation Realizations
Improvement objectives:
Strategy enhanced and deployed End to end processes continuously improved People aligned and learning Stakeholder value measured and enhanced Enterprise Resource Management leveraged and improved Sustain benefits Optimize business connectivity
Pre-ERP Expectations:
Integrated business processes Update legacy/customized programs Cross-functional efficiencies Cost and time savings Shareholder value enhanced Competitive advantage secured Timely information
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If the end comes without sufficient up front planning, you may hear what we sometimes hear . . .
There is a lack of user education on how to use the system, resulting in many workaround processes
There are configuration problems People do not want to use or are afraid to use the system Full core functionality is not being used (reporting done externally)
The goal of a well planned implementation is not to create heroes The goal of a well planned implementation is not to create heroes
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gy e at r St
Co nt ro ls
The governance model for the management, administration, and evaluation of initiatives, with a strong focus on the appropriate metrics applied for measurement
Operating methods and practices, including policies and procedures, which determine the way activities are performed
Technology
Enabling information systems, applications, tools, and infrastructure
Peo p
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le
The human resource environment, including skills, organizational culture, and organizational structure
Alignment
s ces Pro
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Are we ready for ERP? How will an ERP help our business? Have we considered other solution areas beyond ERP? Who will lead our implementation effort?
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Identify what benefits the organization needs to get out of an ERP, and focus on these benefits throughout the implementation
Executive project
management
should
endorse
the
ERP
Develop a Mission Statement or Project Charter Establish metrics to measure how well the objectives of the ERP effort are being met.
Designate a Project Champion Implementation responsibilities to be shared between the IT department and functional areas
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Other COO CTO CFO CIO IT Director CEO/President 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
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ERP Implementation Lifecycle-Stage 2-ERP Approach Key questions that a business should ask are:
Do we have the in house resources, skills and experience to implement ERP? Should we build effective strategic partnerships? Have we considered how the implementation will differentiate our business? Have we developed a business case for the ERP implementation project?
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Steering Committee (Executive level) Advisory Committee (One level lower,-Key Directors & major stakeholders)
Create the business case, justification & ROI scenarios to determine the most feasible approach
Ensure that all gaps between plans & performance are closed out
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Do the features and functions meet our needs? Is the ERP package compatible with our business?
Should we buy an integrated package from a single vendor or best-of-breed solutions from several vendors?
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Implementation Approach
Phase
Detailed Discussions
Tasks
Project Initialization Evaluation of current processes, business practices, requirements Set-Up Project Organization Map Organization Map Business Processes Define Functions and Processes ERP S/w Configuration Build ERP System Modifications
Deliverables
Accepted norms & Conditions Project Organization Chart Identify Work Teams Organization Structure Design Specification Process Flow Diagrams Function Model Configuration Recording Systems Modification
Create G o-Live Plan & Documentation Integrate Applications Test the ERP Customization Train Users Run Trial Production Maintain Systems
Production / Go Live
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Implementation Time
Size of Business
Scope Of Processes
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Package training for implementation team Project team members normal job responsibilities should be reassigned to other employees/outside consultants for the project duration
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Create a separate dedicated work environment specifically for the project team
Build user acceptance test scripts Identify required custom reports Implement a system of sign offs & hand offs for deliverables and work products
Ensure complete data migration from the old software system to the new begins early in the implementation process
Constantly evaluate risks, constraints & assumptions Develop training plan for all users Develop rollout plan
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How do we ensure that the project team and the end users are in sync?
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Roll out training plan for all users in a phased manner Conduct user group conferences & prototype sessions to demonstrate the systems capabilities
Solicit feedback from end users and ensure that all concerns & questions are addressed
Encourage end users to network with peers at other institutions undergoing similar implementation initiatives
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existing applications (e.g. CRM, HR) directly with the ERP system
Ensure adequate documentation exists to
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are:
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partners
Implement a Disaster Recovery Plan
Review Business Impact & Associated Risk Off site backups Provide disaster recovery training to key personnel
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areas
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Others CTO COO CIO CEO/President IT Director CFO 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
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No, a large portion of the software is not used, 32% No, a small portion of the software is not used, 41%
Source: PMP Research
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Information is generally available, but managers need to identify which elements are relevant, 44%
Other, 7%
Many managers within the organization are suffering from an "information overload" and cannot pick what is relevant, 20%
Source: PMP Research
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2. Scope
3. Change Management
4. Skills
5. Decision Making
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6. Communications
Lacking at all levels (executives, functional owners, across team, with working level system users, external stakeholders, etc.) Lack of a solution architecture implementation methodology or proven
7. Solution Architecture
8. Training
Insufficient investment at all levels (including executives) Trying to force an integrated, enterprise-wide solution into a stove-piped culture. Systemic resistance to change Lack of public leadership from senior, accountable executive and/or lack of continuity in this leadership position
9. Culture
10. Leadership
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