Title :Managing and Implementing ERP systems successfully ...Document Transcript
Title :Managing and Implementing ERP systems successfully.
The challenge of ERP solutions lie in implementation because
they are complex, time consuming and expensive to implement. ERP projects
are the 400-pound gorillas of business technology. When done right, they help
streamline operations throughout a business. But because the projects involve
data from so many parts of the business, there are plenty of opportunities for
problems. Many compare an ERP installation to rewiring a nervous system.
Many companies have enjoyed the benefits of such systems; but. many have
also had to settle for minimum returns, complete abandonment of the system, or
even bankruptcy. For Example In Jan 2008 American La-France[ALF], which
makes fire engines, ambulances and other emergency-response equipment filed
for bankruptcy. In December 2005 [ALF] decided to install enterprise resource
planning, or ERP, software to help manage its inventory, purchasing, financial
data, and other critical business tasks. The ERP system had a “crippling impact”
on ALF, specifically, as it led to inaccurate inventory levels, mis-configured
vehicles and erroneous accounts payable and receivable records. As a direct
result of the problems with the ERP system, ALF became unable to complete the
manufacture of many pre-ordered vehicles. The truth is that the software itself is
almost never to blame for problems like this. It is how a business implements
and uses the software that matters. The two most common problems are seeding
the system with bad data to begin with – to the shock of many, software won’t
automatically fix inaccurate information – and inadequate training that results in
employees refusing to use the new system. The success or failure of ERP rides
on the implementation, not on the software. Businesses choosing to implement
ERP must now consider.
Organizational Change that accompanies ERP implementations
In the majority of ERP implementations the system is rolled out with little or no
knowledge about the organization and the changes that effect it. It is not the
change from the legacy systems to ERP that causes disruptions for people but
rather the change of processes that is necessary to make these systems work.
More precisely it is the integration of processes. Processes get standardized.
Implementing ERP not only requires a systems change [technology] but also a
fundamental turnaround of the way things work [PROCESSES] and as a result of
that- a fundamental change of knowledge , skills and behaviour [PEOPLE].
The success of ERP implementations greatly depend on management of the non
technical issues : the “soft stuff””. Managing Change in ERP implementations
means harmonizing the interaction between the “hard stuff”[technical] and the
“soft stuff” in the context of an organization.
Application Change Management[ACM] strategy
While there are cases where an ERP implementation requires a “Big Bang”
approach, most implementations are staggered based on the
module deployment schedule, scope of the implementation effort, required
functionality etc. ERP modules are commonly phased in as new functionality is
evaluated, configured, tested and released. The underlying benefit of the ERP
architecture, a common data and application architecture, also presents
one of the biggest challenges. Since the various modules are tightly integrated,
patches can affect modules which were not the original target of the patch.
Large patches (or family packs) can affect many modules, not just the modules
where the fix is desired. It is almost impossible to isolate changes to prevent
unexpected consequences. As a result, extensive regression testing is used to
validate even seemingly minor changes. Also, it is not unusual for the
finance, manufacturing, or HR to have completely separate testing and instance
refresh schedules. The right Application Change Management strategy can
mitigate the project risk that is inherent to these concurrency issues. By
equipping ERP –projects with the appropriate Application Change Management
[ACM] tools & processes, a more intelligent and deliberate change framework
can be created that allows an organization to facilitate, and in many cases even
drive, business process change
Knowledge management approach to ensure effective
Knowledge management refers to identifying and leveraging the
collective knowledge to help an organization to compete.
An organization may typically have four sets of "knowledge-processes":
(2) storage/ retrieval
(3) transfer, and
For example Knowledge Creation process could involve
Keeping a record of the ERP implementation problems and solutions
Updating the records of the problems and solutions. Knowledge Transfer could
mean extent of intentionally transferring knowledge by written communications,
training, internal conferences, internal publications. A major cultural change may
be required to change ERP users' attitudes and behavior so that they willingly
and consistently participate in "knowledge processes". What cultures foster the
four sets of "knowledge processes"? What is the relationships among
organizational culture, knowledge creation, storage, transfer and application in
the context of ERP implementation.
Identify the best practices to manage organizational change across
different industry verticals during ERP implementations.
Analyze how and why some processes were changed , what functional
specifications were developed , how did that change the way people and
What role HR played to stabilize the human side of an organization
around its new technology and processes.
Review of ERP application deployment should touch upon certain critical
issues such as
1) With growing opportunities in the global market and exciting growth
plans with top management, can we provide adequate support using the
current ERP application
2) What are the critical steps required to improve the application value for
3) Can this application support future business requirements emerging
because of growth and expansion of business
Review an effective ACM(Application change management) strategy.
Identify the best knowledge Management strategies in ERP
implementations covering areas like
1) What is knowledge management (KM)?
2) What culture and technologies can support KM in an ERP
implementation? What are the challenges of KM?
3) Who should lead KM efforts?
4) What benefits can companies expect from KM?
Time • Topic
9:30 AM to 11 AM • Introduction to the programme
11AM to 11:30AM • Tea
11:30 AM to 13:00 HRS • . Managing and Implementing ERP systems
BY PRIVATE SECTOR( MAJOR) • Application Change Management in an ERP
RETAIL ORGNIZATION Implementation
13:00 Hrs to 14:00 hrs • LUNCH
14:00 hrs to 15:30 hrs • ERP Vendor presentation covering the key
functionality of their software and the emerging
trends in the ERP market including areas like
CRM, SCM their SME’s( small and meduim size
15:30 hrs to 16:00 hrs TEA
16:00 to 17:30 Hrs Experience Sharing
9:30 AM to 11AM Knowledge Management tools and strategies in an ERP
implementation: Private sector presentation
11AM to 11:30AM Tea
11:30AM to 13:00HRS Methodology of business change during ERP
implementation: presentation by a consulting company.
13:00 hrs to 14:00 hrs Lunch
14:00 Hrs to 15:30 Hrs Critical success factors for an integrated change initiative
during ERP implementation: a A Public sector
15:30hrs to 16:00 hrs Tea
16:00 hrs to 17:30 hrs Discussions and a final conclusion to the programme.
ERP project managers, members of the ERP project steering committee
line managers and HR managers .
IMI-Campus B-10 Qutab Institutional Area,New Delhi-110016