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The SITT99 Conference (15-17 Sep 99)

Computer Science Department - Technical University of Aachen

STANDARDISATION AND INNOVATION IN I.T.


STANDARDISATION THROUGH SAP R/3: A PROPOSED MODEL FOR EFFECTIVE IMPLEMENTATION
Majed Al-Mashari & Mohamed Zairi
Majed Al-Mashari Research Associate in Information Systems University of Bradford Management Centre UK Professor Mohamed Zairi SABIC Chair in Best Practice Management Head of European Centre for TQM University of Bradford Management Centre UK

Prepared by Majed Al-Mashari 15th Sep 1999

Presented by Yasar Jarrar

About SAP R/3

What is SAP R/3? SAP R/3 is the dominant leader in client/server enterprise resource planning (ERP) systems and one of the most used
standards to change business processes.

SAP R/3s design demonstrates several key concepts :


On-line

system with no batch interfaces. One single database for all corporate data, without any redundancy. Clear definition of a data model documented in a data dictionary. Software functionality configurable to different customers needs. Client/server architecture. Best practice and standardised business processes.
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A HOLISTIC MODEL FOR SAP R/3 IMPLEMENTATION


ROLE IN IMPLEMENTATION
Benchmarking Business Case

STRATEGIC LEVEL
Implementation Strategy

Provides qualitative and quantitative statements on both strategic and tangible benefits. Captures best practices and enables transference of knowledge related to all aspects of SAP R/3 implementation. Describes plan for change that ensures alignment with overall corporate strategy. Defines various roles and responsibilities of both internal and external entities in the implementation efforts and determines forms of co-ordination, and co-operation among them. Facilitates the insertion of newly implemented systems, processes and structure into the working practice, and deals with resistance. Redesigns business procedures to accommodate SAP software modules within the entire business operation. Involves all technical activities, such as sourcing SAP applications, legacy systems migration, customisation and configuration. 1999 Al-Mashari 3

Directs

Project Management Infrastructure

MANAGERIAL LEVEL

Change Management

OPERATIONAL LEVEL
BPR

SAP R/3 Installation

OPTIMUM OUTCOMES

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Standardisation through SAP R/3

Business Case

A Business Case must: Identified clearly at corporate level. Fit with broader vision of company. Allow equal comparison with other investments. Be developed on continuous basis, evolving from conceptual vision towards more detailed operational measures. Initially targets areas of order-of-magnitude and immediate impact.
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Benchmarking

Benchmarking highlights negative gaps in current performance and recommends appropriate approaches to improve them.

Implementation Strategy

Effective strategic discourse determines how SAP R/3 can be implemented and the related change successfully absorbed by the organisation concerned.
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Project Management Infrastructure


Defines procedures for team formation and development. Provides clear description of roles and responsibilities. Determines forms of co-ordination, cooperation and decision-making. Audits team performance, and identifies any management biases early on. Ensures a disciplined and structured project leadership.

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Change Management

Training & Education Leadership Risk Management

People Involvement Empowerment Communication

Structural Change Championship & Sponsorship

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Standardisation through SAP R/3

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Business Process Re-engineering (BPR)

BPR and SAP R/3 are interdependent in the sense that BPR must be supported by integrated and process-oriented IT systems such as SAP R/3, and SAP R/3 implementation forces BPR.
Structure Fragmented & Function-based Inefficient, costly, slow, complex
Integrated & Processoriented

SAP R/3

Standardised, customerfocused, and competency-centred


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SAP R/3 Installation

Strategic Stages

Design & Plan Stages

Actual Installation Stages

Studying Current Technical Architecture As-Is

Designing a New Technical Architecture To-Be

Defining a Detailed Technical Master Plan

Sourcing & Contracting

Customisation & Configuration


F E E D B A C K AND R E A L I G N M E N T

Defining Technical Strategy Start

CONTINUOUS AUIDITING & MONITORING

Migration to SAP & Testing

Major Steps in SAP R/3 Installation


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Roll-Out

Conclusion (1)

The features of an organisations flexibility and adaptability are highly dependent on the way in which the core business processes have been designed, as well as the extent to which they have been integrated with other business majors. A study of how SAP R/3 can best be implemented and positioned answers the question of how business flexibility and adaptability can be ensured in SAP R/3 initiatives.
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Conclusion (2)
Organisation intending to implement SAP R/3 on a corporate level needs to establish its competencies in five core areas.
IT-Enabled BPR

Change Management

Change Strategy

Project Management

SAP R/3 Installation


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Conclusion (3)

The model proposed offers a great opportunity for further study across several dimensions, such as: Examining the relationship between standardisation and adaptability to innovation, and ways of increasing its alignment. Exploring how standardisation can be embraced as a strategic initiative and integrated with other long-term strategic activities. Examining the effectiveness of both rapid and incremental approaches to standardisation, as well as the conditions of their applications. Exploring the relationship between technology and knowledge transfer and standardisation.
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Conclusion (4)

Scrutinising the dynamic interaction between various implementation components. Identifying the implementation variables which determine a particular approach for a particular project context. Developing techniques to help make appropriate implementation decisions. Studying contextual factors that have control on the implementation process. Identifying implementation challenges and ways of dealing with them. Developing a set of critical success factors (CSF) for SAP implementation.
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Questions & Discussion


To Contact the authors for questions and comments, please use the following address:
m.al-mashari@bradford.ac.uk or m.zairi@bradford.ac.uk

University of Bradford Management Centre


Bradford BD9 4JL UK

Tel: +44-1274-234313 Fax: +44-1274-234311

THANK YOU
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