ERP (enterprise resource planning)

1. ERP (enterprise resource
planning)
Research course Advanced topics in IT
1.0V
prepared by: Eng. Mohammed Ali A. Hadi
Sana’a University
March , 2018

3. what is ERP ?
 Definition: Enterprise resource planning (ERP) is an industry term for the
broad set of activities that help an organization manage its business.
 Goal: facilitate the flow of information so business decisions can be data-
driven. ERP software suites are built to collect and organize data from
various levels of an organization to provide management with insight into
key performance indicators in real time.

4. Key ERP modules :
 Key ERP modules: ERP (Enterprise Resource Planning) software typically
consists of multiple enterprise software modules that are individually
purchased, based on what best meets the specific needs and technical
capabilities of the organization.
 Each ERP module is focused on one area of business processes, such as
product development or marketing. Some of the more common ERP
modules include those for product planning, material purchasing, inventory
control, distribution, accounting, marketing, finance and HR.
 Benefits: Can help an organization's administrators monitor and
manage supply chain, procurement, inventory, finance, product
lifecycle, projects, human resources, customer relationship management,
business intelligence and other mission-critical components of a business
through a series of interconnected executive dashboards.

5. Types of ERP software:
 On premises: Legacy ERP systems tend to be architected as large,
complex, homogeneous systems which do not lend themselves easily to a
software as a service ERP delivery model. As such, most ERP systems,
particularly those from large legacy vendors, are run on premises.
 Cloud: As more companies begin to store data in the cloud, however, ERP
vendors are responding with cloud-based services to perform some
functions of ERP -- particularly those relied upon by mobile users.
Companies may also want to reduce the cost and complexity of running
ERP
 by moving to cloud-based ERP.
 In some cases, companies are using mixed environments in which part of
the ERP runs on premises and part runs in the cloud.

6. Multi-tiered ERP systems:
 The most common ERP deployment, either on-premises or cloud-based, is a
standard monolithic system from one vendor, generally a large legacy
vendor. However, many organizations now run multiple ERP systems under
one environment, commonly known as two-tier (or multi-tier) ERP. Reasons
for this include geographic differences in the organization, different
divisions running different systems or company mergers for which various
systems have been brought into one environment.
 These deployments often have one large, "Tier 1" ERP that runs across the
organization and includes functions that are critical to the organization as a
whole, and one or more other ERPs, called Tier 2, that run less critical
functions, or ones that are specific to departments.

7. ERP vendors:
 There are many ERP vendors with a wide variety of functions and on-
premises or cloud deployment options.
 The most widely deployed legacy platforms are SAP, Oracle and Microsoft
Dynamics, all of which have multifunction ERP systems and on-premises and
cloud deployment options. Their customers range from large enterprises to
small and medium-sized businesses.

8. ERP support:
 ERP vendors have a variety of support models for ERP systems, depending
on licensing contracts with customers.

9. 5 QUESTIONS TO ASK YOURSELF DURING
THE ERP SELECTION PROCESS
1.Why do you want to implement an ERP solution?
2.What are your business requirements and priorities?
3. What are the expected benefits of a new system?
4.What is the true value of implementing an ERP
system?
5. What are your business goals?

10. 7 Reasons Why ERP Implementations
Fail
1. No Clear Definition of Success
2. Underestimating Required Resources
3. Cutting Corners to Cut Costs
4. Delayed Decision-Making
5. Insufficient Testing before Go-Live
6. Inadequate Training of End-Users
7. Failure to Manage Organizational Change

11. 1.TOP 10 TIPS FOR SUCCESSFUL ERP
IMPLEMENTATION

12. 1. Make the right Pre-Implementation Choices
2. Appoint an ERP Hero
3. Build a Team that knows your Processes (and how they’ll
change)
4. Plan Precisely and Realistically – Set KPIs and Track Progress
5. Keep Executive/Senior Management Involved
6. Keep End-Users Engaged
7. Manage Change, Avoid Confusion – Organizational
Change Management
8. Take Training Seriously
9. Test Everything
10. Celebrate!

13. HOW TO RECOVER FROM A FAILED
ERP IMPLEMENTATION

14. How to Fix a Failed ERP Implementation
1.Identify the Breakdown
2.Assess the Short-term and Long-term Effects
3. Fight or Flight
4.Learn from the Failed Project

15. Identify the Breakdown
 Your first step to fixing an unsuccessful ERP implementation is to assess why it
has failed. There are countless reasons why ERP projects fail but, generally
speaking, they can be divided into six problem areas with various
subcategories.
1. Business Case
• Strategic Need
• Business Benefits
• Budget
• ROI
• Timeframe

16. Cont’d. Identify the Breakdown
2. Business Processes and Requirements
• Business Priorities
• Business Requirements
• Process Ownership
3. Technology and Architecture
• Solution’s Standard Functionality
• System Integrations
• Customization
• Infrastructure
4. Implementation
• Project Management
• Timely Decision Making
• Testing
• Data migration

17. Cont’d. Identify the Breakdown
5. Resource Management
• Internal Resources (ie. Project Team)
• External Resources (ie. Consultant, Implementation team, Partner)
6. Change Enablement
• Stakeholder Support
• Business Impact
• End-user buy-in
• Training
• Business Process Re-engineering
 Any of these areas that experienced performance issues during the unsuccessful project
should be further examined. Some of the most common issues that can sabotage an
implementation project include choosing the wrong system or vendor, choosing the wrong
implementation team (either internal or external), a breakdown in project management,
and/or a lack of business process improvement/change management within the
organization itself. By uncovering the root cause(s) of the failed implementation you will
be able to recommend solutions and move forward with a recovery plan.

18. Assess the Short-term and Long-term
Effects
 The next step is to assess the short-term and long-term effects on the
organization. After a frustrating implementation project has failed to
deliver promised results, it’s not uncommon to make emotional
decisions. By putting together a complete analysis, your decision on how
best to move forward will be backed by quantifiable metrics.
 Assess each area, department, and business process that the system is
affecting. Identify any bottle-necks or operational pain points. You’ll need
to identify what isn’t working on a department by department and function
by function basis. From there, determine if these issues are short-term
“growing pains” or long-term issues and prioritize accordingly.

19. Fight or Flight
 Fight
Use your responses to step 2 to divide the issues with the current system into
two categories. One category is the “low hanging fruit,” quick and dirty fixes
that will alleviate disruption, and improve efficiency with minimal effort. The
other category will contain more complex fixes with higher costs that will take
longer to implement. Prioritize your problem/solution combinations to arrive at
the top 5-10 areas where you will experience the most immediate business
improvements at the lowest cost. Many of these fixes will not involve ERP
functionality, but will instead focus on business processes and organizational
change management. Implement these 5-10 solutions first. Once you have a
few quick wins in place, use that organizational momentum to prioritize and
implement more long-term solutions as time and resources allow.

20. Cont’d. Fight or Flight
 Flight
 Sometimes, an ERP implementation project has failed so spectacularly that
it simply cannot, or shouldn’t, be salvaged. Often, these went off the rails
early in the project even though problems may not have become obvious
until after the system goes live. Of course, a new implementation will
involve re-investing time and resources. However, that investment can be
the lesser of two evils if the issues in the current system are either too many
or too complex.
 If choosing to undergo a fresh implementation, ensure that you follow best
practices in order to avoid common pitfalls.

21. Learn from the Failed Project
 Your recovery project will yield the same negative results as the original failed
implementation unless you learn from your mistakes and make
corrections. Whether you choose to salvage the current system by making
these changes or start from scratch with a whole new implementation, you’ll
need to do things differently. Revisit the list of mistakes from step 1 often
throughout the recovery process.
 It can be a long and arduous road to recover from a failed ERP
implementation, but it is necessary in order to get your organization back on
track. You’ll need to take an honest look at what made your initial project
fail, including your implementation team, project management, and choices
in vendor and installation team. Don’t be afraid to make internal business
process changes in order to leverage the system’s functionality. But above
all, ensure that you’re learning from past mistakes to avoid repeating them.

22.  References:
• Article “ERP”
https://4acc.com/article/
• Journal “Enterprise Resource Planning (ERP) System Implementation: A case for User
• participation”
• Google.com