Banks offer/value proposition: to offer development finance at low interest rates Training , knowledge transfer Key activities: disbursement of loans/finance to SA and SADC region- The Banks activities have expanded dramatically to meet growing demands from government. A considerably larger range of products and services are now offered to a wider customer base, both in character, and geographically.
- By conducting a swotanaysis of the Bank, gaps in the Bank’s operations were identified.Given the great opportunities of increasing the client base into the SADC market, taking advantage of faster improved ERP systems and increase in the development/infrastructure needs in the region; the Bank needs to address its weakenesses and threats. The biggest threat to the Bank is the existing IT infrastructure which is operating on an outdated system and many operations are now performed outside of the system.
Selection of the best system is dependent on organisation’s performance objectives and prioritisation of these
Having established that the Bank requires an integrated system, it was important to determine which system to acquire if purchasing an ERP system, should the entire system be purchased or only certain modules given the disparity of the systems used at DBSA, we saw it best to purchase an ERP system for all business processes
Even though there are several systesm available in the market, for purposes of this paper, only two systems were investigated. These were SAP ERP and Oracle (E-Business suite).The reason for this was that DBSA already uses Oracle financials which presented a possibility for building on the existing system SAP was investigated because many other DFIs in the region have implemented SAP and the vendors have therefore gained experience in implementing this system in similar environments. We learnt that the DBSA employees’ experience with Oracle was that the system was cumbersome and difficult to use. The negative bias towards this system immediately indicated that selection of this system would result in difficulties during implementation because user acceptance is a critical success factor in systems implementation. an assessment by TEC also showed that in 7/9 performance factors, SAP ERP outperformed Oracle. consequently, we selected SAP as the system to be implemented for the Bank.
Implementation of an ERP system is a mammoth task CostlyInadequate implementation can result in failure of entire projectMust be done right first time
Proposal for the Implementation of an ERP System at DBSA Group 6
The DBSA Business ModelBased on Osterwalder model DBSA Mandate To provide development finance Strategic objective To drive development impact in the region through expanding access to development finance in order to alleviate poverty IT strategy The Bank will provide a comprehensive suite of enterprise wide IT applications to meet all information needs for delivering the Bank’s strategic objective
System Selection/Requirements Bank’s performance objectives: cost, speed, dependability, flexibility and quality Bank requires integrated environment To deliver strategy with agility and flexibility Integration results: Automation of business processes Standardised processes across the bank Efficient business operations Reduced business development and service delivery lead times Increased customer satisfaction Can any of the existing systems replace all other systems? NO
Current Situation: Disparate Systems Oracle Financials Excel Spreadsheets ? CORE People Soft CURA ‘Different Versions of the Truth’
Implementation & Risk Assessment Selected Critical Success Factors Appropriate business & IT legacy systems Comprehensive change management program Communication at all levels Proper data management Effective ERP strategy & Implementation methodology ERP teamwork & Appropriate team composition Appropriate ERP vendor selection Product champions across the organisation Top management support Good fit between business & processes Avoidance of customization