ERP systems implementation


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  • Standish Group International (1995) CHAOS Report
  • Keen, P. G. W. (1991) Relevance and Rigor in Information Systems Research: Improving Quality, Confidence, Cohesion and Impact. In Nisson, H.-E. et al. (eds), Information Systems Research: Contemporary Approaches and Emergent Traditions, pp. 27-49. Elsevier Science Publishers.
  • At time t0, the need for a system is recognised and development commences, with relatively incomplete knowledge of the real user needs at that time. By t1, an operational system has been produced, but not only does it fail to satisfy user needs at t1, it fails even to satisfy needs as specified at t0. The system is then subjected to a series of maintenance enhancements between t1 and t3, which enable it to satisfy the original needs (at t2). At time t3, the cost of reworking the system is so great that it is decided to rebuild from scratch. This redevelopment is complete by t4, and the cycle recommences. Davis, A.M., Bersoff, E. H. & Comer, E. R. (1988) A Strategy for Comparing Alternative Software Development Lifecycle Models, IEEE Transactions on Software Engineering , 14(10) October Xeno’s Paradox: the tortoise is given a significant headstart; once the hare has covered the initial distance that separated him from the tortoise, the tortoise is no longer there and has moved a little further; again, once the hare covers that marginal distance, the tortoise has moved a little further still, so how does he ever catch the tortoise ? (easily dispelled by Newton’s Laws of Motion)
  • Motwani, J., Subramanian, R. & Gopalakrishna, P. (2005) Critical factors for successful ERP implementation: Exploratory findings from four case studies. Computers in Industry. 56(6), 529-544.
  • Finney, S. & Corbett, M. (2007) ERP implementation: a compilation and analysis of critical success factors. Business Process Management Journal. 13(3), 329-347.
  • ERP systems implementation

    1. 1. ERP Systems Implementation
    2. 2. INTRODUCTION- ERP SOFTWARE SOLUTION <ul><li>Enterprise Resource Planning – An information system (multi-module application software) that integrates all manufacturing and related applications for an entire enterprise. </li></ul><ul><li>Different ERP Software solutions vendors </li></ul><ul><li>– BAAN, </li></ul><ul><li>– RAMCO OnDemand ERP, </li></ul><ul><li>– Oracle, </li></ul><ul><li>– People soft, </li></ul><ul><li>– JD Edwards, </li></ul><ul><li>– SAP, etc </li></ul><ul><li>SAP is the market leader in ERP Software solutions. </li></ul>
    3. 3. Dietmar-Hopp-Allee 16  69190 Walldorf, Germany
    4. 4. S.A.P <ul><li>The name SAP being a German company, is acronym for “Systeme Anwendungen, Produkte in der Datenverarbeitung”. </li></ul><ul><li>This is translated into English as </li></ul><ul><li>“ System ,Applications and Products in Data Processing ” </li></ul>
    5. 5. COMPANY PROFILE <ul><li>Founded Weinheim (1972) Headquarters Walldorf, Germany </li></ul><ul><li>Key people Henning Kagermann, </li></ul><ul><li>CEO Shai Agassi </li></ul><ul><li>Development ERP </li></ul><ul><li>INDUSTRY COMPUTER SOFTWARE </li></ul><ul><li>Revenue 8.5 billion EUR (2005) </li></ul><ul><li>(or 10.2 billion USD) </li></ul><ul><li>Employees 35,873 (2005) </li></ul><ul><li>Website </li></ul>
    6. 6. <ul><li>SAP AG is the largest European software enterprise. </li></ul><ul><li>SAP is the 3rd largest software company in the world. </li></ul><ul><li>It ranks after Microsoft, IBM , in terms of market capitalization. </li></ul><ul><li>It is also the largest business application and Enterprise Resource Planning (ERP) solution software provider in terms of revenue. </li></ul>
    7. 8. R/3
    8. 9. Module
    9. 10. R/3 Real Time Three Tier Architecture
    10. 11. Architecture
    11. 12. BASIS <ul><li>BASIS is similar to a kernel for R/3. </li></ul><ul><li>It provides the runtime environment </li></ul><ul><li>for ABAP/4 programs. Basis is </li></ul><ul><li>essential to run ABAP/4 programs. </li></ul><ul><li>It is a collection of R/3 system </li></ul><ul><li>programs that present you with an </li></ul><ul><li>interface </li></ul>
    12. 13. ABAP <ul><li>ABAP stands for Advanced Business </li></ul><ul><li>Application Programming / 4th Generation </li></ul><ul><li>Language </li></ul><ul><li>• ABAP/4 cannot run directly on an operating </li></ul><ul><li>system. It requires a set of programs to </li></ul><ul><li>load, interpret, and buffer its input and </li></ul><ul><li>output. </li></ul>
    13. 14. Task-Technology Fit (TTF)
    14. 15. DeLone & McLean (Updated) Model of Information Systems Success
    15. 16. Unified Theory of Use and Acceptance of Technology (UTAUT)
    16. 17. IS Project Failure (CHAOS Report) <ul><li>Incomplete Requirements 13.1% </li></ul><ul><li>Lack of User Involvement 12.4% </li></ul><ul><li>Lack of Resources 10.6% </li></ul><ul><li>Unrealistic Expectations 9.9% </li></ul><ul><li>Lack of Executive Support 9.3% </li></ul><ul><li>Changing Requirements & Specifications 8.7% </li></ul><ul><li>Lack of Planning 8.1% </li></ul><ul><li>Didn't Need it any Longer 7.5% </li></ul><ul><li>Lack of IT Management 6.2% </li></ul><ul><li>Technology Illiteracy 4.3% </li></ul><ul><li>Other 9.9% </li></ul>
    17. 18. Lessons for ERP Systems … <ul><li>&quot;Those who fail to learn history are doomed to repeat it&quot; (Winston Churchill) </li></ul><ul><li>In the field of MIS, “issues seen as ‘new’ turn out to have long roots” (Keen, 1991) </li></ul><ul><li>What of ERP Systems ? </li></ul><ul><ul><li>ERP systems are large scale, expensive projects </li></ul></ul><ul><ul><li>ERP systems may involve dramatic changes to work practices and organisational processes </li></ul></ul><ul><ul><li>They are not “quick fix” solutions and need to be implemented with care </li></ul></ul>POOR DUMP SAP LET BE THE LESSON
    18. 19. It’s All About the Requirements ! <ul><li>“ In nearly every software project that fails to meet performance and cost goals, requirements inadequacies play a major and expensive role in project failure” (Alford & Lawson, 1979) </li></ul><ul><li>“ The hardest single part of building a software system is deciding precisely what to build. No other part of the conceptual work is as difficult as establishing the detailed technical requirements ... No other part of the work so cripples the resulting system if done wrong.” (Brooks, 1987) </li></ul><ul><li>Build the correct system (product) + Build the system correctly (process) </li></ul>
    19. 20. Playing Catch-up with User Needs FUNCTIONALITY TIME User Needs Actual System Capabilities t 0 t 1 t 3 t 2 t 5 t 4
    21. 22. ERP Implementation Framework
    22. 23. ERP Critical Success Factors
    23. 24. THANK YOU