ERP Implementation and Change Management

SAP implementation at Pantaloons

Presented by Group

Vineet Taneja (240) Vishal Verma (255) Deep Agarwal (402) Nishant Sharda (443) Rishikesh Jathar (451) Laura Grangaud

AGENDA
Introduction Process-oriented implementation methodology Change Management Benefits Areas of improvement and Risk mitigation Conclusion

Introduction

The context
Pantaloons was expanding its retail stores across all metros

The need of the time was- a reliable enterprise wide application

They were looking for a solution to integrate businesses and processes There was also a need of a robust transaction management system After different evaluations management decided to go for SAP

Pantaloons- At a glance
Pantaloons Retail is the flagship enterprise of the Future Group, with a presence across multiple lines of business.

Headquartered in Mumbai (Bombay),

Operates through four million square feet of retail space, Over 450 stores across 40 cities in India and employs over 14,000 people.

It launched Big Bazaar, a hypermarket chain in 2001.

This was followed by Food Bazaar, a food and grocery chain Subsidiary companies include, Home Solutions Retail India Ltd,

Pantaloon Industries Ltd, Galaxy Entertainment and Indus League

Clothing

ERP system in Pantaloons

Expectations from the ERP system

Support product development
Ideation, Trend analysis, Collaboration with partners in the supply chain

Support sourcing and procurement

Optimizing cost, quality and speed variables Managing supply chain Handling the logistics of moving finished goods from the source into stores Selling goods across a variety of channels to customers Marketing Brand management Managing mark-downs and capturing customer reactions Data Analysis

Why SAP Was Selected?

Softwares scalability and ease of integration A perfect fit for an enterprise-wide implementation

Complete data integrity and real-time updates

Expert support during migration effort Low Total Cost of Ownership Significantly reduced infrastructure Expected timely completion of the project

Process-Oriented Implementation Methodology

Planning for ERP Implementation

Addressed Primarily by Organizational Change Management
People

Addressed Primarily by Business Process Redesign

Process
Type Type Type Type Type Type

Technology

Addressed Primarily by Package

People and process issues are sometimes overlooked in planning for this type of project. They need to be addressed for the project to be a success.

SAP implementation Plan

Aim : To deploy a robust transaction management system and an enterprisewide platform to run its operations.

Solution Implemented by

: SAP retail solution : SAP team with the help of Novasoft, Singapore : Around 1,200

Number of users

Implementation Phases
Outsourced to third party Novasoft

Management also involved

Project divided into three phases

ERP Implementation- 3 Phases

1st Phase Blueprinting of existing processes of Pantaloon and mapping them to the desired state Worked on current processes within the structure of the organization, analyzed and drafted them Each and every one of processes had to be evaluated
Steering team Project team Functional experts

Sponsor

End User

The project team consists of following entities Consultant team (functions, technical), Company, Global team ,Partners (SAP),Vendors
Discipline of Execution Speed Quality Sense of Urgency

ERP Implementation- 3 Phases Contd.

2nd Phase: Novasoft developed SAP platform SAP platform was developed after evaluation of Pantaloons needs and expertise in retail solutions
Setups & Configuration Testing Walkthrough UAT Readiness UAT Environment Training

3rd Phase: Stores to switch to new system and data to be ported Last phase was for stores to switch over Current data to be migrated to the new SAP application
Data Migration Verify Gap Identification Migrate

Change Management

Change Management for ERP Implementation

Hard facts which were considered:
42% Leadership 27% Organizational & Cultural Issues 23% People Issues 4% Technology Issues 4% Other Organizational issues left unchecked often lead to project failure
Change management in general is the organized, systematic application of knowledge, tools, and resources of change that provide organizations with a key process to achieve their strategy

Objectives of Change Management

Provide awareness among all the stakeholders

Ensure understanding across the organization

Facilitate acceptance by the employees and partners Care, listen, and respond to stakeholders concerns Manage peoples expectations Ensure readiness

Process Integration
Project Management
Project Initiation

Change Management
Preparing for Change

Project Planning Managing Change-Planning Project Executing Managing Change-Execute Project Controlling Transition Project Closing Monitoring Change

Greatest Obstacles
Migrating unorganized data to an organized format No immediate benefits perceived throughout the organization

Resistance from employees and managers

Inadequate senior management & sponsorship Cultural barriers during the transition Lack of change management expertise with the company

Pantaloons : Change Management Standards

Prepare with the project team
Assess change/culture Develop/educate team

Manage the strategy

Develop and manage the plan Track/report readiness Develop training strategy

Reinforce/Support
Celebrate success Analyze feedback and prepare to manage resistance

CM Team at Pantaloons
Team Lead Manage the resources Manages the CM project plan Receives status from the Readiness Lead Reports status to the Project Manager and Project Director

Project Lead

Team member

Communications Coordinator

CM Team at Pantaloons
Team Lead Works with the coaches to compile checklist activities, communications, workshops etc. Project Lead

Receives status of organizations from the coaches

Reports status to the Pantaloons CM Team Leader

Team member

Communications Coordinator

CM Team at Pantaloons
Team Lead

Project Lead

Communicate activities to the Readiness Coordinator Track organizations progress

Team member

Report status to Change Management Lead Help facilitate workshops & focus groups

Communications Coordinator

CM Team at Pantaloons
Team Lead

Project Lead

Team member

Communications Coordinator

Develops communication plan Creates branding/logo Tracks communications sent Develops PPT presentations

Readiness at Pantaloons
Preparing Tracking Reporting Communication
Senior Executives : Why the system is necessary ?

Managers/ Supervisors : What is in it for me ?

Training at Pantaloons
Develop Training plan, Training strategy, Training Design and documents Training plan Strategy
Identify different audiences who require training Conduct training needs assessment and skill gap analysis Document requirements for the training team
- Training development schedule

Methodology for Change implementation

A Successful Organizational Change

1. Dedicate resources to Organizational Change Management 2. Secure visible executive sponsorship early in the project

3. Repeat key messages early and often

4. 5. Involve employees in the change process Create a transition strategy with achievable timeframes

Integration was the Key

Pantaloons : Benefits of ERP

Financial and Strategic Benefits

Greater business insights through more accurate and timely financial
information Lower costs via convergence of financial accounting and controlling Enhanced data quality Easier compliance with regulatory requirements via the SAP parallel accounting feature

Operational Benefits
Increased business transparency via drilldown reporting capabilities Real-time, continuous reconciliation of cost elements and expense accounts, Ability to close books 15% to 20% faster 5% to 10% reduction in accounts receivables

Organizational Benefits
Uniform Organization Structure Unified single platform & Information Architecture Integrated work environment Provided an enterprise wide view of the workflow Improved management reporting & decision making Allowed integration with systems of associates and business partners Helped in routine decision making Allowed streamlining of business processes

Conclusion

Pantaloons : Areas of Improvement for ERP

Expensive to procure High switching costs Low flexibility Limited scope for customization Security concerns Requires significant employee training Compatibility issues with other legacy systems

Higher Complexity

Risk Mitigation at Pantaloons

Phased instead "big bang" approach to migration - No fitment Issues Sufficient Training Thorough Testing - Unit and integration testing Providing Plenty of IT Support - More support center call volume and

staff accordingly during go-live. Making sure that there are clearly defined
escalation procedures in place for ERP issues that support staff isn't able to handle Developing a Contingency Plan

Conclusion
At Pantaloons ERP system made management of business a lot easier by utilizing the computing power offered by the modern day Information Systems (IS) in an integrated and consistent manner. The ERP Information Systems facilitates faster and better management decisions in Pantaloons by providing crucial information in a timely manner. It also eliminates errors caused by multiple input of the same data required in disparate legacy systems.

ERP Systems have been found to deliver high ROI despite their high initial and maintenance costs.

THANK YOU