Title :Managing and Implementing ERP systems successfully ...


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Title :Managing and Implementing ERP systems successfully ...

  1. 1. Title :Managing and Implementing ERP systems successfully. INTRODUCTION 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
  2. 2. 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
  3. 3. Knowledge management approach to ensure effective ERP implementation 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": (1) creation (2) storage/ retrieval (3) transfer, and (4)usage/application. 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. THE OBJECTIVES 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 processes function. 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
  4. 4. 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 the Organization? 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? DAY ONE 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 successfully: introduction. PRESENTATION BOOKED 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 sector)segment strategy
  5. 5. 15:30 hrs to 16:00 hrs TEA 16:00 to 17:30 Hrs Experience Sharing Day Two Time Topic 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 presentation. 15:30hrs to 16:00 hrs Tea 16:00 hrs to 17:30 hrs Discussions and a final conclusion to the programme. For Whom ERP project managers, members of the ERP project steering committee line managers and HR managers . Venue IMI-Campus B-10 Qutab Institutional Area,New Delhi-110016