SAP Implementation in faster and better way.

1. 7/5/2010 ERP Implementation Methodology 1 Yashpal Jain, Project Manager-SAP

2. Agenda Companies without ERP ERP Implementation Current Business situation & Expectation from ERP Reason behind project failures Overview of ASAP methodology & its drawback Theory of Constraints Protorative Methodology – Assumption/Schedule/Advantage Q&A 7/5/2010 Protorative Methodology 2

4. Business functions or Systems are not integrated or at best loosely integrated.

5. MIS reports are generally overdue.

6. Management decision on market situation is often reactive.

7. Bird eye view of company’s status is not available to management.7/5/2010 Protorative Methodology 3

9. Decision to implement ERP is taken by watching market trend and relying on different agencies reports.

10. With Initial cost of implementation being high, ROI cannot be calculated in short span of time. It is at best over a period of 2-3 years.

11. Success of system implementation has different meaning to Client and Consulting partner.

12. Implementation timeline is aggressive and schedule slippage is very costly to business.

14. Current 7/5/2010 Protorative Methodology 6 Expectation

15. End Results?? 7/5/2010 Protorative Methodology 7 Only two possible outcome OR SUCCESS FAILURE

16. Project Success Rate 7/5/2010 Protorative Methodology 8 “Studies by Standish Group and others for traditional project management methods, only 44% of projects typically finish on time, projects usually complete at 222% of the duration originally planned, 189% of the original budgeted cost, 70% of projects fall short of their planned scope (technical content delivered), and 30% are cancelled before completion”. “The success rate is even lower in case when companies are going for ERP system for the first time”.

17. Reasons behind project failures 7/5/2010 Protorative Methodology 9

19. In-Budget Go-Live

21. In-Budget Go-Live

22. All open issues are closed before end of stabilization phase

23. Use & leverage the system as intendedIf we compare the meaning of success of both consulting partner and client, the only difference is using and leverage the system as intended. This is in fact the most ignored success criteria and deciding factor between success or failure of the project.

26. ASAP Methodology & Drawback 7/5/2010 Protorative Methodology 13

27. ASAP Methodology 7/5/2010 Protorative Methodology 14

29. How often changes in agreed business requirement/process are requested by client?

30. How often we run out of testing time when changes are requested during later phase of the project?

31. How often client feel inadequately trained at the end of the project?

32. How often client needs to have extended support to fix all outstanding issues?If most of the answers are in “Very Often” inspite of using ASAP methodology, blaming the poor planning and execution does not sound correct.

33. Why Do Requirements Change? 7/5/2010 Protorative Methodology 16 When we write the initial specification we document the low hanging fruit. The specification will include the most obvious requirements, those that have been discussed before the project started, those which are already documented and those this people think of in the early stages. Yet as the project proceeds, everyone involved will get a more detailed understanding of what is happening both in the software and the company, potentially revealing even greater value in a system. Consequently, it is necessary to reprioritize our work as we go. Requirements changes mainly due to one of the below factors: External changes - changes required to meet some need from outside the organization, say a changed legal requirement. Internal changes - changes required because of company changes such as new products or restructuring. Technical changes - required to meet new technical demands. Learning - changes resulting from learning by individuals or groups.

34. Drawback of ASAP Methodology 7/5/2010 Protorative Methodology 17 What is the main drawback of using ASAP methodology or for that matter any traditional project management methodology? The answer is “it relies on completing all the activities of a particular phase in that phase itself”. It does not permit us to go back in phase and change something. If we try to go back to some phase and change something, basically we are eating up time of current phase. This often results in project delays.

35. Theory of Constraints 7/5/2010 Protorative Methodology 18

37. Decide how to exploit the constraint (make sure the constraint's time is not wasted doing things that it should not do)

38. Subordinate all other processes to above decision (align the whole system or organization to support the decision made above)

39. Elevate the constraint (if required or possible, permanently increase capacity of the constraint; "buy more")

41. Protorative MethodologyPrototype + Iterative 7/5/2010 Protorative Methodology 21

42. 7/5/2010 Protorative Methodology 22 Configure Protorative Methodology Test Gather Close Prototype Configure & Train

43. Protorative Phases & Milestones 7/5/2010 Protorative Methodology 23

44. Differences If most of the answers are in “Yes” inspite of using ASAP methodology, blaming the poor planning and execution does not sound correct. 7/5/2010 Protorative Methodology 24

46. List of would be SAP users are finalized with their respective roles in Organization before project starts.

47. All the hardware (At least Dev and Quality servers) are procured and ready to be setup before project starts.

48. Consulting Project team is finalized and ready to be deployed.

49. Standard SAP user manuals are available to give it to the users.

50. Consulting team is experienced and ready to work extra hours from the day one of the project.

52. Testing of the system is done by user himself.

53. Both client and implementation partner become equally responsible for success of the system.

54. Consultants will be working more during initial phase of the project instead of later part. This way they can be more productive when it matters most.

55. Post Go Live issues will be very few as user has tested and approved the system.

56. Separate window for Training is not required as user get hands on training from week 2.

57. Data collection is almost error free and smooth.