ERP Implementation

www.relevante.
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
2 www.relevante.com
Plan to Perform
• Traditional – manage performance by

analyzing past results
• You can’t alter performance after it
happens
• Value of Enterprise Planning – plan before

you perform
3 www.relevante.com
Enterprise Planning
• Core Principle – performance must be

planned and continuously managed
• Without a plan:
• Vulnerable to unfolding events
• Buffeted by unforeseen factors
• Lack predictability
• Core Benefit – adapt with greater flexibility

and speed
4 www.relevante.com
Wide View of Enterprise Planning
• Initially synonymous with budgeting
• Implies cross-functional planning, breaking

through silos that impede collaboration
• Objective - All information in one holistic view
on a common platform
5 www.relevante.com
Evolution of ERP systems
6 www.relevante.com
Evolution of ERP
ERP
Materials Extended
Planning
ERP
Order Entry ERP - II
Scheduling
Distribution
Forecasting Project Management
General Ledger
Capacity Knowledge Management
Accounting Planning Workflow Management
Shop Floor E-Commerce Customer Relationship
Control Management
Warehousing
Human Resource Management
Logistics
Portal Capability
Integrated Financials
7 www.relevante.com
Characteristics of ERP Systems
• Modular Design
• Uses centralized common database

management systems
• Modules integrated to provide seamless
data flow
• Flexible & offers best business practices
• Work real time with online & batch

processing capabilities
8 www.relevante.com
Architecture of an ERP System
9 www.relevante.com
Why implement an ERP System?
• To support business goals

• Integrated, on-line, secure, self-service
processes for business
• Eliminate costly mainframe/fragmented
technologies
• Improved Integration of Systems and

Processes
• Lower Costs
• Empower Employees
• Enable Partners, Customers and Suppliers
10 www.relevante.com
Advantages of ERP Systems
• Reliable Information Access
• Avoids Data & Operations Redundancy
• Delivery & Cycle Time Reduction
• Cost Reduction
• Improved scalability
• Global Outreach
• E Commerce, E business
Major Features of ERP (1)
• Company-wide Integrated Information

System
• Performs core Corporate activities and
increases customer service
• Bridges the information gap across the
organization
• Complete integration of Systems
• Across departments
• Across companies
• Better Project Management
Major Features of ERP (2)
• Automatic introduction of latest technologies (EFT),

(EDI), Internet, Intranet, Video conferencing,
E-Commerce, etc.
• Eliminates most of the business problems like Material
shortages, Productivity enhancements, Customer
service, Cash Management, Inventory problems,
Quality problems, Prompt delivery etc.
• 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)
Sometimes ERP - Implementation
Performance Falls Short of Expectations…
ne e
Zo nc
et a
rg rm
Ta rfo
Pre-ERP Expectations Corrective
Pe
Action
Must Be
Applied
le
Acceptab
nce
Performa Post-
Implementation Improvement objectives:
Realizations
Strategy enhanced and deployed
End to end processes
Pre-ERP Expectations:
Post Implementation Frustrations: continuously improved
People aligned and learning
Integrated business processes
Update legacy/customized ERP design and business processes Stakeholder value measured and
programs unaligned enhanced
Cross-functional efficiencies Manual processes work around system Enterprise Resource
Cost and time savings constraints Management leveraged and
Shareholder value enhanced Transactional complexity improved
Competitive advantage secured Limited managerial reporting Sustain benefits
Timely information Untimely information Optimize business connectivity
Financial benefits fall short of
expectations
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 “The ERP system

has become more
to use the system, resulting in many of a hindrance
than help.”
“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)
• Extensions are needed to provide needed functionality (product
configurator, xxx)
• Processes and the system may not be completely aligned
The
The goal
goal of
of a
a well
well planned
planned implementation
implementation is
is not
not to
to create
create heroes
heroes
The Five Levers of Change in any
Organization
Strategic understanding of the The governance model for the

role, positioning and focus for management, administration,
enterprise-wide decision-making and evaluation of initiatives,
in support of overall organizational with a strong focus on the
objectives gy Co appropriate metrics applied for
a te nt
ro
measurement
r
St ls
Alignment
le
Pro
p
Peo
ces
s
Operating methods and The human resource

practices, including policies environment, including skills,
and procedures, which organizational culture, and
determine the way activities Technology organizational structure
are performed
Enabling information
systems, applications,
tools, and infrastructure
ERP Implementation Lifecycle
ERP Implementation Lifecycle -
Stage 1-Solution Inquiry
• Key questions that a business should ask are:

• 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?
Best Practices for
Stage 1- Solution Inquiry
• Identify what benefits the organization needs to get

out of an ERP, and focus on these benefits throughout
the implementation
• Executive management should endorse the ERP
project
• 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
• Build a framework for participation from all quarters
Best Practices for
Stage 1- Solution Inquiry
Persons directly responsible for ERP implementations
Other
COO
CTO
CFO
CIO
IT Director
CEO/President
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Source: IT toolbox ERP Implementation Survey
ERP Implementation
Lifecycle-Stage 2-ERP Approach

• 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?
Best Practices for
Stage 2- ERP Approach
• Determine the number of partners, the scope

of the partnerships etc.
• Set up the internal project team
• Steering Committee (Executive level)
• Advisory Committee (One level lower,-Key
Directors & major stakeholders)
• Cross Functional Project Team
• Create the business case, justification & ROI

scenarios to determine the most feasible
approach
• Ensure that all gaps between plans &
performance are closed out
Stage 3 - Package Selection

• 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?
Best Practices for
Stage 3- Package Selection
• Develop and document a project scope statement

• Conduct a business process review & identify signature business
processes
• Document “as is” flows of current information
• Identify functional gaps
• Document & sign off “to-be” flows of current information
• Customize the RFP to include features that meet your “to-be”
flows
• Key factors should be kept in mind while selecting the software
• Functional Capabilities
• Technical Attributes
• Partnership’s Capabilities
• Cost
ERP Implementation Lifecycle –
Stage 4 - Implementation Plan

• How do we get started with the implementation?
ERP Implementation Methodologies
• The Big Bang
• Modular Implementation
• Process Oriented Implementation
Implementation Approach
Phase Tasks Deliverables

• Project Initialization • Accepted norms & Conditions
Detailed • Evaluation of current processes, • Project Organization Chart
Discussions business practices, requirements • Identify Work Teams
• Set-Up Project Organization
• Organization Structure
• Map Organization • Design Specification
• Map Business Processes • Process Flow Diagrams
Design & • Define Functions and Processes
Customization • Function Model
• ERP S/w Configuration • Configuration Recording
• Build ERP System Modifications • Systems Modification
• Create G o-Live Plan &

Documentation • Testing Environment report
Implementation/ • Integrate Applications • Customization Test Report
Prepare to Go Live • Test the ERP Customization • Implementation Report
• Train Users
• Run Trial Production • Reconciliation Reports

Production / Go Live
• Maintain Systems • Conversion Plan Execution
Implementation Time
Size of
Business
Scope Of
Processes
Best Practices for
Stage 4 - Implementation Plan
• Procure and install required hardware and

package software
• Roll out with preliminary implementation plan
that covers
• A Phased Approach
• Segregation of Duties Plan
• Quality Plan
• Security Plan
• Package training for implementation team

• Project team members’ normal job responsibilities
should be reassigned to other employees/outside
consultants for the project duration
ERP Implementation
Lifecycle - Stage 5 - Sandbox
• Key questions that a business should ask

are:
• What steps do we take to ensure that the
implementation is on track?
Best Practices for
Stage 5 - Sandbox
• 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 off’s & hand off’s 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
Stage 6 - Design & Deployment

are:
• How do we ensure that the project team and
the end users are in sync?
• How do we ensure that our people are
accepting change?
Best Practices for
Stage 6- Design & Deployment
• Roll out training plan for all users in a phased manner

• Conduct user group conferences & prototype sessions to
demonstrate the system’s 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
• Ensure that implementation information is continuously
communicated to the user community
• Pilot rollout / evaluation
• Complete live rollout - rollout support
Stage 7- ERP Integration

are:
• How do we integrate the ERP with our other
legacy systems?
Best Practices for
Stage 7- ERP Integration
• Design interfaces ( if required) to integrate

existing applications (e.g. CRM, HR) directly
with the ERP system
• Ensure adequate documentation exists to
support the integration between interfaces
Stage 8 - IT Infrastructure

are:
• Is our IT infrastructure ready for ERP?
Best Practices for
Stage 8 - IT Infrastructure
• Set up server infrastructure to build

training, development and production
instances that run concurrently
• Ensure that the infrastructure can handle
the load of concurrent transactions from
all instances
• Ensure system security policy is in force
ERP Implementation
Lifecycle - Stage 9 - Operations

are:
• How will we recover from a major outage?
Best Practices for
Stage 9 - Operations
• Execute a onsite maintenance SLA with

partners
• Implement a Disaster Recovery Plan
• Review Business Impact & Associated Risk
• Off site backups
• Provide disaster recovery training to key
personnel
Stage 10 - Extending the Enterprise
• Consider expanding ERP to other solution

areas
• Supply Chain Management
• Customer Relationship Management
• E-commerce Solutions
Stage 10 - Extending the Enterprise
Key decision makers in adding new modules
Others
CTO
COO
CIO
CEO/President
IT Director
CFO
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
Source: IT toolbox ERP Implementation Survey
Current Enterprise Applications
Environment
Combination of
standalone &
bespoke packages,
Mainly based on
Combination of 3%
integrated ERP
integrated and packages,
bespoke packages, 44%
11%
Combination of integrated
and standalone packages,
21%
Mainly based
on bespoke Mainly based on
applications, standalone packages,
14% 7%
Source: PMP Research
Enterprise/ERP Systems Usage
Do you feel that you are using your existing enterprise

or ERP software to its full extent?
Yes, software is used

to its full extent, 5%
Yes, Software is used

extensively, 22%
No, a large portion of

the software is not
used, 32%
No, a small portion of

the software is not
used, 41%
ERP Implementation Quality
How would you describe the information delivered to managers

in your organization via your ERP and enterprise systems?
Information is Information is
targeted or generally available,
personalized for but managers need to
specific identify which
functions/managers, elements are
29% relevant, 44%
Other, 7%
Many managers within the

organization are suffering
from an "information
overload" and cannot pick
what is relevant, 20%
Top Ten Reasons
ERP Implementations Fail
1. Governance Lack of a single person in charge who reports

directly to openly supportive senior executive
accountable for the solution. Also, ineffective
steering body of cross-functional senior
executives
2. Scope Failure to align contract for services with the

requirements expectations. Also, make sure
initial scope is achievable to build momentum
3. Change Management Insufficient investment in all facets of change

management
4. Skills Team members lack a thorough understanding of

the technical capabilities of the solution or of the
underlying business processes
5. Decision Making Relying too much on consensus-based decision-

making, rather than rapid evaluation of options
Top Ten Reasons
ERP Implementations Fail
6. Communications Lacking at all levels (executives, functional

owners, across team, with working level system
users, external stakeholders, etc.)
7. Solution Architecture Lack of a solution architecture or proven

implementation methodology
8. Training Insufficient investment at all levels (including

executives)
9. Culture Trying to force an integrated, enterprise-wide

solution into a stove-piped culture. Systemic
resistance to change
10. Leadership Lack of “public” leadership from senior,

accountable executive and/or lack of continuity in
this leadership position

ERP Implementation

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

ERP Implementation

Enviado por

Direitos autorais:

Formatos disponíveis

www.relevante.

• Major features of ERP

• Best Practices for an ERP Implementation through

• Traditional – manage performance by

• Value of Enterprise Planning – plan before

• Core Principle – performance must be

• Core Benefit – adapt with greater flexibility

• Initially synonymous with budgeting

• Implies cross-functional planning, breaking

• Uses centralized common database

• Work real time with online & batch

• To support business goals

• Improved Integration of Systems and

• Enable Partners, Customers and Suppliers

• Reliable Information Access

• Avoids Data & Operations Redundancy

• Delivery & Cycle Time Reduction

• Company-wide Integrated Information

• Better Project Management

• Automatic introduction of latest technologies (EFT),

• There is a lack of user education on how “The ERP system

Strategic understanding of the The governance model for the

Operating methods and The human resource

• Key questions that a business should ask are:

• Identify what benefits the organization needs to get

Persons directly responsible for ERP implementations

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Source: IT toolbox ERP Implementation Survey

• Key questions that a business should ask are:

• Determine the number of partners, the scope

• Create the business case, justification & ROI

• Key questions that a business should ask are:

• Develop and document a project scope statement

• Key questions that a business should ask are:

• The Big Bang

• Process Oriented Implementation

Phase Tasks Deliverables

• Create G o-Live Plan &

• Run Trial Production • Reconciliation Reports

• Procure and install required hardware and

• Package training for implementation team

• Key questions that a business should ask

• Create a separate dedicated work environment

• Key questions that a business should ask

• Roll out training plan for all users in a phased manner

• Key questions that a business should ask

• Design interfaces ( if required) to integrate

• Key questions that a business should ask

• Set up server infrastructure to build

• Key questions that a business should ask

• Execute a onsite maintenance SLA with

• Consider expanding ERP to other solution

Key decision makers in adding new modules

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Source: IT toolbox ERP Implementation Survey

Source: PMP Research

Do you feel that you are using your existing enterprise

Yes, software is used

Yes, Software is used

No, a large portion of

No, a small portion of

Source: PMP Research

How would you describe the information delivered to managers

Many managers within the