The document outlines the planning and implementation of ERP projects, covering methodologies, reasons for replacing existing systems, operating costs, and common functional requirements. It emphasizes the importance of an integrated system and the various methodologies available for ERP development, such as waterfall and rapid application development. Furthermore, it discusses critical success factors, customization vs. configuration of ERP systems, and details about ERP system migration and requirements for mid-sized companies.

1. Prepare by: Dr. Usman Tariq
10 February 2019

2. Outline
• How to plan ERP project
• System Development Life Cycle
• Planning of ERP project
• New methodologies
• Waterfall methodology
• Rapid application development methodology (RAD)
• Extreme Programming Methodology
• ASAP: Accelerated SAP

3. Reasons to Replace Your ERP System
1. The current system lacks function, is hard to use, slow, and/or inflexible. These are probably the most obvious reasons,
and companies experiencing these kinds of issues should not hesitate to find and install a replacement system
2. Operating costs are too high. Older system can get increasingly expensive to operate, especially if the software is no
longer supported by the developer, the hardware is antiquated and increasingly unreliable, or if there are a lot of
modifications (made to overcome limitations mentioned in the first bullet).
3. It doesn’t support current business needs like web sales, collaboration or business intelligence.
4. Your people rely on spreadsheets to get their jobs done. This is a big red flag. If the function can’t be accomplished within
the system (or usability is lacking so it’s perceived to be easier to use spreadsheets) you are not getting the benefits you
paid for and the system is not supporting your business needs.
5. You lose business to competitors because they are simply easier to do business with or their customer service is better.
This may not be entirely the fault of the system but the system may be hampering or limiting your effectiveness in
pleasing the customers, answering their questions, or delivering products on time.
6. Your company is growing or changing faster than the system can support and you need better control of your processes.
When new processes and technologies start showing up in your market, do system limitations prevent you from moving
forward against the competition? How long does it take your ERP supplier to add new functionality?
7. Decision-makers are frustrated by lack of easy access to the information they need about the business, sales and
markets.

4. Common ERP Functional Requirements
1. An integrated system operating in
or near actual real time without
reliance on periodic updates
2. A common database supporting
all applications
3. A consistent look and feel across
modules
4. System installation with elaborate
application integration by the in-
house IT department
 Distribution Process Management
 Supply Chain Management
 Price Configuration
 Financial Data Management
 Project Planning
 Redundant Task Reduction
 Business Needs Assessments

5. How to create ERP value
• ERP creates value through
1. Integrating activates across a firm
2. Implementing best practices for each business process
3. Standardizing processes within organizations
4. Creating one-source data
5. Providing on-line access to information
• facilitate better organizational planning,
• communication, and collaboration.

6. Most used ERP Modules
Module Degree of module used by
companies
Financial and Accounting 91.5%
Materials Management 89.2%
Production Planning 88.5%
Order entry 87.7%
Purchasing 86.9%
Financial Control 81.5%
Distribution/logistics 75.4%
Example

7. LMS – ERP (1/2)
Example (modules)

8. LMS – ERP (2/2)
Example (modules)

9. ERP for Manufacturing Industry
Example (modules)

10. Ways to Developing ERP System
Method Advantages Disadvantages
Develop in-house Best fit with organizational needs Most difficult to develop, most expensive,
Slowest
In house system with vendor
supplements
Gain commercial advantages combined with
organizational fit
Difficult to develop, Expensive, slow
Best-of-breed Theoretically gain best of all systems Difficult to link modules, slow, potentially
inefficient
Customized vendor system Retain flexibility while keeping vendor expertise Slower, usually more expensive
Selected vendor modules Less risk, relatively fast, least expensive If expand, long run time and cost higher
Full vendor system Fast, less expensive, efficient Inflexible
Application service provider Least risk, least cost, fastest, least subject to
vendor change
At the mercy of the provider, no control,
and subject to price increases

11. Critical Success Factors in ERP
1. Clear understating of strategic goals
2. Commitment by top management
3. Excellent implementation project management
4. Great implementation team
5. Successful coping with technical issues
6. Organizational commitment to change
7. Extensive education and training
8. Data accuracy
9. Focused performance measures
10. Multisite issues resolved

12. Levels of IS/IT Failure
• Corresponding failure
– Don’t meet design objectives
• Process failure
– Not on time &/or not within budget
• Interaction failure
– System not used as designed
• Expectation failure
– Return not what stockholders expected

13. Factors in ERP Implementation Failure
Scenario CIO/IT Focus Typical outcome
Technological determinism Technical Fail to gain business
benefits
Supplier/consultant driven Disregarded Cost overruns
Outdated relationships &
capabilities
Insufficient talent Chaos

14. Factors to Reduce Risk
• Business case
• Justify need for system, establish objectives
• Benchmark
• Import best practices
• Implementation strategy
• Align system with corporate strategy
• Project management
• Change management
• BPR
• Installation

15. Open Source ERP
• Reasons of Choosing open source ERP
1. cost
2. Free redistribution
3. Available source code
• Available providers
There are many vendors providing open
source ERP systems. For example:
1. Open MFG
2. FISTERRA
3. ERP 5
4. Compiere
5. Odoo

16. ERP System Needs
 It must be unified with applications and interfaces easy to use and working seamlessly
across multiple departments
 A common database or multiple shared databases accessible through all applications
 Search and report utilities
 Scalability, customization, and easy integration of additional modules as needed
 Database and information management software for a single central or for multiple
interconnected databases with data flow to and from all. The defined workflow makes
data movement seamless. Database hosts can be local, remote, or cloud-based.

17. ERP System Needs
 Applications and interfaces with suitable read-only or edit access controls to process data. For
ERP content, when a writer submits content for review, only the editor should have access to it to
prevent duplication and conflict.
 Workflow management where data updates and actions follow a logical sequence based on
business needs.
 Report generation usually available in either dashboard form or data-editing applications like
spreadsheets on management, department, team, and individual levels is another important ERP
need.
 Communication in ERP systems is by automated mail generation, instant messaging, chat, or
general broadcasts at individual and group levels.

18. SDLC
• Systems Development Life Cycle : the overall process for developing
information systems from planning and analysis through
implementation and maintenance

19. Project Planning
• Set up project administration
• Staff project
• Set goals and objectives
• Acquire project resources
• Define metrics

20. Project Staff
• Project manager
• Solution experts
• Process experts
• Technical experts
• Geography experts
• Change management

21. Traditional Systems Development Life Cycle
 Detailed analysis of system using tools and techniques to determine
problem areas
– Process models
– Data models
 Phases
1. Problem definition
2. Feasibility study
3. Systems analysis
4. Systems design
5. Detailed design
6. Implementation
7. Maintenance

22. Traditional Systems Development Life Cycle (continued)
 Automating current system is counter-productive
– Inherit old problems and flaws
 Provides opportunity to re-engineer current system
 Create logical database design before details are refined
 Takes too much time
 Uses a great deal of resources
 Expensive

23. ERP Implementation Requirements
1. Installations, which includes software, hardware and network requirements
2. Configurations and integrations
3. Project management
4. Change management
5. Data migration
6. Training
7. Documentation
8. Managing the go-live event
9. Post go-live support
10. Costs for future wish-list enhancements

24. ERP Customization
• When we customize the ERP system, we will build a function that does not
exist in the ERP software to be used. If partner ERP we cannot help us in
building this customization, it may be very troublesome us to be able to get
what we want.
 Require technical expertise and in-depth product knowledge
 Customization often have uniqueness of each for each solution
 Requiring the addition of new features to meet the needs

25. ERP Configuration
• if you choose to configure your ERP system, you basically set up setting your ERP
system. It might sound easy, but you need to know that there will be a lot of settings,
which certainly thorough knowledge of ERP systems owned will be necessary. But
in this case you can ask for help on your partner because they certainly have
experience in these matters.
 Requires knowledge of deep ERP system
 Configuration is done in a variety of ERP systems usually are basically the same
 Adjusting existing features to meet business needs

26. New Methodologies
1. Waterfall methodology
2. Rapid application development methodology (RAD)
3. Extreme Programming Methodology
4. ASAP: Accelerated SAP

27. Waterfall methodology
• Waterfall methodology – a sequential,
activity-based process in which each
phase in the SDLC is performed
sequentially from planning through
implementation and maintenance

28. Rapid application development methodology (RAD)
Emphasizes extensive user involvement in the rapid and
evolutionary construction of working prototypes of a system
to accelerate the systems development process
The prototype is an essential part of the analysis phase when
using a RAD methodology
– Prototype – a smaller-scale representation or working model of the
users’ requirements or a proposed design for an information
system

29. Extreme Programming Methodology
Extreme programming (XP) methodology – breaks a project into tiny
phases, and developers cannot continue on to the next phase until the
first phase is complete

30. ASAP
• Accelerated SAP (ASAP) is SAP's standard implementation
methodology. It contains the Roadmap, a step-by-step guide that
incorporates experience from many years of implementing R/3.
• Accelerated SAP contains a multitude of tools, accelerators and
useful information to assist all team members in implementing R/3.
Quality checks are incorporated at the end of each phase to easily
monitor deliverables and critical success factors.

31. ASAP Roadmap
Final
Preparation
Project
Preparation Business Blueprint
Realization
Setup of Local Project
Organization
Adaption of
Strategic Framework
Establish OCM
Procedures + Responsibles
Infrastructure Requirements
and Design
Early Adoption of Best
Business Practice Proceesses
Training and
Documentation Strategy
Data Management
Standards Implementation
Data Cleansing
and Data Preparation
Completion Check &
Prepare for Next Phase
General
Project Management
Local Business Blueprint
Documentation
Security Requirements
Infrastructure Planning
System Operation Stategy
Early Adoption of Best
Business Practice Processes
Training Planning
Data Cleansing
and Data Preparation
Completion Check &
Prepare for Next Phase
OCM Organizational
Alignment + Change Analysis
General
Project Management
OCM
Training Preparation
Configuration &
Development
Unit / Process / Integration /
Business Acceptance Testing
Early Adoption of Best
Business Practice Processes
Infrastructure
Implementation
Data Preparation & Data
Migration Simulation
Completion Check &
Prepare for Next Phase
Cutover Planning
& Preparation
Business Transition
Planning for Cutover
General
Project Management
OCM
End User Training
End User Practice in the
System
Data Migration to
Production
Infrastructure Finalization
Cutover Management
Business Simulation
Pre-Go-Live Operations
Completion Check &
Prepare for Next Phase
Final Cutover and
Controlled Process GoLive
GoLive and
Support
General
Project Management
OCM
Project Closing
System Support
Business Support

32. ERP System Migration
• Over time, need to adopt changes
• Minor modifications
• Maybe system replacement
• Vendors change products
• WHY
• The longer the time between upgrades, the harder
• Easier to support a smaller number of software versions
• Migrations can increase sales of seats, add-ons

33. ERP Data Migration Methodology

34. ERP Data Migration Methodology (cont.)

35. ERP Data Migration Methodology (cont.)

36. ERP Data Migration Methodology (cont.)

37. User Reasons to Migrate
• Added functionality
• Compliance with new standards
• Discontinued vendor support
• Customer problems in linked systems

38. ERP System Requirements (midsize company)

39. ERP System Requirements (midsize company)
• CLIENT HARDWARE AND O/S
REQUIREMENTS
• Windows Client: (Minimum
Requirements)
• Intel processor (pentium and up)
• 10 MB available hard drive space
• 32 MB RAM
• TCP/IP and Telnet connection to
Linux Host
• Windows XP or better (Win
XP/7/8)
• X11 (X-Windows) Client (Client
must be Intel processor based
and support WINE)
• Linux Server Software Requirements
• Red Hat Enterprise Series
• CentOS
• SUSE
• Debian
• Ubuntu
• For all others, please contact
Fourth Generation Software

40. Hardware sizing for up to 4,000 Users

41. Hardware Sizing on Virtual Servers

42. SAP ERP Modules
Example

43. SAP ERP Industry Coverage
https://www.sap.com/mena/industries.html

44. Microsoft Dynamics 365 - ERP
Example

45. ERP Options Analysis
Example