This document provides a guide to implementing an ERP system. It discusses that ERP implementations in developing countries are more difficult and expensive than other parts of the world due to economic conditions. The document outlines the key stages of an ERP implementation - pre-implementation, during implementation, and post-implementation. It stresses that choosing the right solution, proper project planning, and selecting an experienced implementation team are critical to the success of an ERP project. The document also evaluates factors to consider when selecting an ERP vendor and solution such as cost, customization ability, integration, and support.
For companies selecting an enterprise software solution packages - ERP - here is a guide for qualitative and quantitative assessment of ERP packages from different vendors.
For companies selecting an enterprise software solution packages - ERP - here is a guide for qualitative and quantitative assessment of ERP packages from different vendors.
Enterprise system implementation strategies and phasesJohn Cachat
Implementation Strategies
Full blown
Staggered or Phased
Implementation Phases
Project planning
Application exploration
System design
System testing
System activation – “go live”
johncachat@hotmail.com
www.peproso.com
The primary goal of most companies is to successfully grow and one notable challenge facing companies seeking to expand their business is often managing the growth of their IT infrastructure. The 5 tips listed in this guide provide a comprehensive set of measures for organising and structuring your IT infrastructure to support your company’s growth.
The 2012 ERP Buyers Guide from Software Shortlist provides an overview of leading ERP providers, together with expert commentary and advice to help you make the right decision, including articles on:
> A business-driven approach to software selection
> Benefits & pitfalls of ERP systems
> Advice for a successful ERP implementation
The Buyers Guide also includes detailed profiles of 20+ leading ERP vendors.
Accelerate your selection process by downloading the ERP Buyers Guide from Software Shortlist.
Pros & cons in house software vs outsourcedCeline George
Both in house ERP development and Outsourcing have their own advantages and disadvantages in store. Cautious thought must be taken by the general business population
An ERP system is an integrated suite of information technology applications that support the operations of an enterprise from a process perspective.
ERP implementation Life cycle :-https://www.baexperts.info/2020/03/the-9-stages-of-erp-implementation-life.html
Feedback about ERP implementation project. Questions answered:
Did Cisco spend enough time to configure the ERP system? Did the compressed configuration phase negatively impact the quality of the system?
Should they have customized the package to match business processes?
Was Cisco smart or lucky with its ERP implementation?
What can top managers do to maximize chances for success here?
Enterprise system implementation strategies and phasesJohn Cachat
Implementation Strategies
Full blown
Staggered or Phased
Implementation Phases
Project planning
Application exploration
System design
System testing
System activation – “go live”
johncachat@hotmail.com
www.peproso.com
The primary goal of most companies is to successfully grow and one notable challenge facing companies seeking to expand their business is often managing the growth of their IT infrastructure. The 5 tips listed in this guide provide a comprehensive set of measures for organising and structuring your IT infrastructure to support your company’s growth.
The 2012 ERP Buyers Guide from Software Shortlist provides an overview of leading ERP providers, together with expert commentary and advice to help you make the right decision, including articles on:
> A business-driven approach to software selection
> Benefits & pitfalls of ERP systems
> Advice for a successful ERP implementation
The Buyers Guide also includes detailed profiles of 20+ leading ERP vendors.
Accelerate your selection process by downloading the ERP Buyers Guide from Software Shortlist.
Pros & cons in house software vs outsourcedCeline George
Both in house ERP development and Outsourcing have their own advantages and disadvantages in store. Cautious thought must be taken by the general business population
An ERP system is an integrated suite of information technology applications that support the operations of an enterprise from a process perspective.
ERP implementation Life cycle :-https://www.baexperts.info/2020/03/the-9-stages-of-erp-implementation-life.html
Feedback about ERP implementation project. Questions answered:
Did Cisco spend enough time to configure the ERP system? Did the compressed configuration phase negatively impact the quality of the system?
Should they have customized the package to match business processes?
Was Cisco smart or lucky with its ERP implementation?
What can top managers do to maximize chances for success here?
Steps recommended ascertaining the success of ERP implementation6e Technologies
The implementation of the ERP in an organization is a massive step towards achieving the organizational objectives with a systematic and careful approach. It is a major change that ensures better success rate by involving various components of business and integrating them with the help of software.
Our certified ERP consultants can aid you in finalizing the vendor and the software that best fits your current business processes and align with your future goals as well.
ERP Key Success Factors Series 1 includes the first 5 factors namely:
1) Top Management Commitment
2) Clear Goal Setting & Budget Planning
3) Good Project Team - Client & Vendor
4) Change Management
5) Business Process Re-Engineering
Agile helps to break down the functional scope
of ERP into a smaller set of features that small teams
can deliver in sprints. This iterative approach helps
projects to realize business value quickly
TRB Group News What Mistakes You Must Avoid to Pick the Right ERP SolutionTRB GROUP
A professionally crafted ERP system can prove to be a game-changer for many businesses. It is specifically useful for those who want to improve their efficiency and streamline official operations. However, choosing the most suited option is not an easy task. Since there are numerous providers available in the market, it becomes even more perplexing to locate the right one. However, you always have the options provided by TRB Group’s IT venture Kloud Advanced Solutions Private Limited.
Developing an ERP solution brings positive transformation and long-term advantages. Define business objectives for ERP software goals. Challenges may arise during integration, leading to production shutdowns, off-budget expenses, or low ROI. Smartinfologiks' ERP software, BizSuite, streamlines operations by automating processes like accounting, sales, Project Management, Inventory Management, CRM, HRMS, and more. It offers real-time data and analytics for improved decision-making and increased efficiency.
Know More: https://blog.smartinfologiks.com/cloud-erp/why-erp-implementation-fails/
ERP FAQ_ Frequently Asked Questions About ERP.pdfPridesys IT Ltd.
The implementation of enterprise resource planning software, also called ERP, often surprises companies. Most companies misjudge the work expected to implement their chosen ERP solution. If the software is not implemented accurately, the company will not profit from the speculation of the new business software system. In this article, you can find the ERP FAQ with answers.
PridesysERP - Frequently asked questions about ERP
The path to effective implementation incorporates numerous factors that must be considered before designing the solution into the flow of daily business tasks. Let us discuss some important queries and answers as frequently asked questions for people who want to learn more about the ideal ERP implementation essays.
ERP FAQ: What is an ERP system and why is it used?
Enterprise resource planning is a type of software application used most often by medium and large businesses, and occasionally by smaller organizations. ERP software focuses on embedding business processes in a single, smooth data set and user interface by offering modules for each of the core business regions: Human Resources, Finance, Inventory Management, Sales, and Relationship Management. with customers, along with other core businesses. functionalities
The main goal of ERP software is to coordinate previously separate databases and processes into a single source of truth, rather than these databases and processes running in warehouses. The moment a customer submits an item request, the ERP performs data exchanges within the customer relationship management and inventory management modules, along with other modules related to sales exercises.
PridesysERP - Frequently asked questions about ERP
In this way, the ERP cultivates the permeability and examination of information in various business divisions from a single system. At the same time, staff do not have to physically enter the exchange into numerous databases.
Associated through an ERP system, data sources that monitor distinct business goals can communicate with each other. These directions reduced manual handling of information, faster business cycles, IT cost reserve funds, and business development potential without hiring new faculty or bringing in additional capital.
ERP FAQ: What are some ERP implementation approaches?
Well-known approaches incorporate all-inclusive complete set-up, unit-by-unit, and key process set-up. The system you choose should match the needs of your association. For example, smaller companies may attempt a large installation, while this type of approach is unimaginable for most larger organizations.
Before implementation begins, the software determination cycle should have led your association to choose an ERP software that is a good fit for your core business processes. In any case, during the implementation of the ERP, minor changes must be made to ensure that the processes fit as well as might be expected with the upcoming software solution
In this presentation, we will analyze the strength and weakness of ERP systems. Implementation cost, investment required, hidden costs and benefits of implementing ERP will also be covered in this presentation. We will discuss advantages and disadvantages of ERP and analyse the reason behind the failure of ERP in some specific projects.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
According to a number of studies; up to 80% of businesses deem their ERP initiatives as failing to meet objectives... What must business management consider prior to taking the leap. How do mitigate the risk of being one of that 80%. If you represent a business an have questions please use the contact form on the changespecialist.org site and I will respond.
What are the organizational challenges of erpPoonam pandey
Different areas come under the extended extent of the research study of ERP software. It is a subject with vast measurements. The range of ERP software initiates from the implementation, covering areas of innovation in technology, making a difference in businesses globally, outsourcing, possibilities in examination of tasks etc. The primary objective of ERP's style was aid in the manufacturing procedure. Different procedures and also resources of data coming from a company are accumulated and put into a solitary system by the Enterprise Resource Planning.
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1. ERP IMPLEMENTATION: A COMPLETE GUIDE
*1 Mr. Ijaz Haider Malik , weboriez@hotmail.com
*2 Mr. Umar Malik , umarmalik.128@gmail.com
Abstract Despite of the many reasons, the biggest
challenges are choosing the right solution with
ERP implementations in the South Asian the right vendor and its effective implementation
countries, are comparatively different, harder according to the requirements of the business. In
and financially very expensive than the other fact, in 42% of the cases when new business
parts of the worlds. This is because of different applications are under consideration, the ERP is
socio-economic conditions, working style of the default decision without even looking
businesses, their operation methods and low anywhere else[2]. Rapid changes in businesses
currency comparative to international have thrown away the idea of bespoke and
currencies. Most of the well renowned ERP fusion solutions. The biggest fear of an
solutions and their licenses are in foreign enterprise for the ERP implementation is the
currencies such as Dollar, Pound or Sterling. failure rate: 51% have experienced their ERP
When, a third world country would like to implementation as unsuccessful [1]. It becomes
implement an ERP solution, investment more painful as the ERP implementation is the
becomes many folds due to the currency most expensive in the field of IT.
difference. But, the post implementation cost is
lesser than the international market due to the Generally, the ERP is considered as the back
cheaper labor cost. With the growing market of bone of an organization. But, the ERP is in fact
mobile operators in Pakistan, PTCL as a the combination of backbone, reflex system and
landline operator needs the cutting edge the back part of the brain i.e., organization’s
technology as its products and operations. main support, assurance to comply with the
Though, the ERP implementation has high cost processes and business rules and centralized
but without it, gap between expenses and storage of data. There are three basic stages for
revenue could not be widened: profit only an ERP implementation: pre-implementation,
comes with less cost and high revenue. Making during and post implementation. All ERP
a decision for the ERP implementation is a huge implementation stages are equally difficult and
and tough task for the management. But, the full of challenges. Any loose brick can bring the
tougher is its proper implementation and post whole implementation down. As the post stage
implementation monitoring and maintenance. is dependent on the prior stages, hence the
importance sequence is pre, during and Post
1.0 Introduction Implementation.
A proper ERP solution has become a vital need To keep up with the growing customer demands
of this era for the enterprises due to the market and fast changes in business trends, the
globalization and day by day growing enterprise must have the flexibility and agility to
competition. For the very fact, the ERP solution change quickly. And this could only be possible
has become mandatory for an enterprise to run if the ERP solution is implemented successfully:
the business in an effective and efficient way. aligned with the business requirements along
But, before going for the implementation of an with the seamless information flow between the
ERP solution, an enterprise has gone through modules and across departments. In this space
immense hard-hitting times: choosing the right age, everything is sought with extreme sense of
solution, planning, selection of implementation urgency and there is no room for duplication of
team and managing the change. Whether it is an data inputs and serial processing [11].
ERP implementation or reimplementation, it
should be well thought as its life spreads over
many years.
2. 2.0 Pre Implementation the end. While forming a steering committee,
the CEO of the organization must realizes that it
a) An ERP Solution Required or Not? should be of apt size with the best suited
members. Sometimes, a huge sized steering
Before the ERP implementation, the first committee cannot make decisions due to diverse
question is to whether the organization does members.
require new ERP solution or not? And, the
answer does not come easy. It needs an d) Preparedness
immense amount of work to come up with final
facts and figures. Writing the ERP Initial An ERP implementation’s success depends
Documentation needs combination of the upon the preparedness before the
business experience and in depth knowledge of implementation. The business requirements and
the ERP implementations. Once facts and business rules should be properly documented
figures appear on the paper, budget approval and signed off from stake holders and senior
from the Board of Directors along with a potential users. The implementation with
convincing presentation is another hard part for inadequate documentation is an open invitation
the management. Without proper approved to failure. The legacy systems’ plus and minus
budget, the implementation is just a dream with points should also be documented so that the
no wings. plus can be a part of implementation and the
minus points can be avoided. Also record and
b) Scope of Work document legacy application users’ comments
as they are the actual users and they might give
Scope of work should be clear with achievable inside of the application to be required.
objectives. A normal ERP implementation has Processes should be identified and they should
the following modules: Finance & Accounting, be intact. Identify the pain points and touch
Material Management and Human Capital points.
Management. Though, organizational scope can
be more or less than the above mentioned. Most of the time, the feedback from the actual
Almost all ERP Solutions offer individual users gets ignored with a thought that the ERP
modules or combination of more than one as per application is not only for the use of
clients’ requirements. The organization can opt management but also for the real operators /
for the modular scope. Even from some users.
solutions, the organization may select desired
sub modules and leave the rest. e) Pre Evaluation
c) Steering Committee After the budget approval, next is to select the
apt ERP Solution. Almost all ERP systems
An ERP implementation can not be successful available are good at some things, yet not so
without the support from the highest good at other. [3]. Selecting and implementing
management. For the very reason, the steering the most appropriate software package to
committee should be formed with “C” level support a company’s business processes is itself
management members. Few members from the considered a best practice[5]. With the internet
board of directors in the committee may also be and fast intelligent search engines an enterprise
helpful for the easy release of the budget can browse through hundreds and thousands of
whenever required. The steering committee the web sites for best suited ERP Solutions and
enables the project management team with vendor profiles. Every ERP solution provider is
proper mandate and to overrule the red tape claiming that they are the best ERP solution
issues which can be the bottlenecks for the ERP providers. But, thanks to reviews and white
implementation. Not only the steering papers, a wide horizon of comparison between
committee pushes the business towards the ERP different ERP solutions has been reduced to top
implementation, but also it is evaluating the five: SAP AG, Oracle E-Business, J D Edwards,
implementation team and its progress towards People Soft and Baan. According to some, it is
3. just among two big giants: SAP and Oracle E- o Ease Of Use
Business Suite. The first and vital feature of an ERP
solution should be its ease of use. As if
Even, the major competition is between two big
ease of use is missing it would have
giants, it is a cumbersome activity for an
been very difficult to convince the end
enterprise to choose the right Solution. ERP
users to leave their legacy systems and
solutions are so expensive that one wrong
start using the new application. In
decision not only makes the implementation
addition, ease of use brings efficiency in
project a failure but sometimes also destroys the
work and requires less resources to use
business itself. Ratio of ERP implementation’s
it.
success is much lower than failure. In most of
the cases, enterprises take one to two years just
o Cost
to decide the apt solution according to their
Cost is the major factor of an ERP
requirements.
Implementation. Cost of implementation
and support should not impact business
An Organization should not believe on Vendor’s
to run its normal operation. Cost of an
provided evidences and implementation
ERP implementation has different
references. The Organization should also dig out
aspects and faces. Few of them are:
figures and facts of the particular ERP solution
license cost, support, maintenance, HR,
at their own. And, should contact the references
hardware and infrastructure cost. Most
provided by the vendor to find out the exact
important is the post implementation
problems they have faced and are facing with
cost for maintenance and operation. As
this solution.
post implementation period is much
larger than the implementation. 59% of
All organizations are different even if they are in
implementations cost more than that
the same business. Requirements and business
initially assumed[8].
processes are always different and so is the ERP
implementation and solution. Though, the best
o Customization
practices might be followed to gain the best out
Major difference between bespoke and
of an ERP implementation.
ERP off the shelf solution is
customization. If ERP solution
Along with the ERP solution, an organization
configuration module is not strong
should evaluate the business partners who are
enough to support the business and its
implementing the solution in your region. May
changes then successful implementation
be during the evaluation you find out that
could not be possible. ERP solution
though the solution is excellent but the business
should provide flexible and
partners of vendor have bad repute, financially
comprehensive and easy to use
unsound or are have inept resources for
configuration solution. Configuration
implementation. These really matter during the
solution should accommodate business
implementation.
changes and new requirements without
going into development. Though,
Following should be considered while selecting
development feature should also be
an ERP selection:
there to cater exceptional cases. But,
configuration solution should be strong,
4. flexible and easy to use to cater most of Excel, CSV, PDF or text then there is a
the business changes. problem for the business. Reports are
the source for information and hence
o Efficiency authorization control at the low level is
If an ERP solution is giving business very important. Without proper
everything but not efficiency, it means it authorization control on reports, it might
is not a good ERP solution. As without put an organization at risk.
efficiency, business could not achieve
its targets and business requirements.
The biggest differences between manual o Integration
and automated system are efficiency ERP means modules integration and
and accuracy. Efficiency can be flow of data and information from one
measured by number of transaction module to another module without
processed per second effecting efficiency and accuracy. If
ERP solution modules are not well
o Accuracy integrated or there are issues with
Reliability comes from accuracy. If integration between modules then it
solution has issue with accuracy then it should not be considered as the ERP
is not considered for ERP Solution. As the strength of ERP is the
implementation. Accuracy of ERP integration of modules and data flows.
solution can be measured with number
of accurate results per number of o Multi Currency
transactions or queries. Accuracy is ERP solution should support
considered as the basic salient feature of Multicurrency feature and it should be
an ERP solution and with it, the concept across the application. As few solutions
of ERP methodology could not be only provide the option on few
achieved. interfaces with limited functionalities.
The ERP implementation should be well
o Comprehensive & Flexible Standard thought and it should at least cover five
Reports to seven years. Even, an organization
End product and crux of an ERP does not need a multicurrency option, it
solution is the reporting solution which should be part of implementation so that
can provide management the right in future this could not be a bottleneck.
reports at the right time to make timely
correct decisions for the organization. If o Graphs
the standard reports cover sixty to ERP solution should have an option to
seventy percent of an organization’s see reports in graphical mode for the
requirements, it should be considered as management to see figures and trends in
a good ERP Solution. Otherwise, more less time. Graphical reports should be
efforts will be required to develop the flexible to change the view as per
reports which result in an increase in requirement.
cost and time of implementation. If the
reporting solution is not flexible in o Business Intelligence
terms of parameters, display options and ERP solution should provide its own
export to other applications such as Business Intelligence. The major
5. advantage of ERP solution is to the Security not only at the user’s
Management to make quick decisions authorization level but must also at the
and for this very reason BI module system level: protection from hackers or
availability in ERP Solution is definitely malicious computer applications.
a plus. Using third party BI, slows down
the main application and have more o Other considerations
complexities and issues unlike if ERP Most of the organizations fell into the
solution has its own real time BI traps of vendors and consultants. It is a
module. marketing gimmick of vendors and
consultants to come up with highly
o Support colored presentation with lots of good
After implementation, support is very references of big brands. Organizations
important while considering the ERP should not completely rely on vendors
solution selection. After the successful or consultants but they should check the
implementation, there are chances that actual truth by contacting the references
the application could not run along with provided by vendors or consultants.
the business if after implementation This will not only make their decision
support is not good from the vendor or more practical but also would help them
consultants. Often vendors or business to negotiate prices with them.
partners put their all efforts to make the
implementation successful but they Following should be evaluated against
vanish from the scene once their the ERP solution:
implementation contract is over. After Age in market (number of years).
implementation support though often Stability in market.
mentioned in RFP but when time comes Average Human Resources required
organizations found out the support was for each module.
virtual and actual support. It is best Average cost of Human Resources
practice to check the real support required for operations,
experience from the existing clientele of development and its support.
the vendor and consultants. How easy to find resources: human
and other.
o Security Number of platforms it can support:
An ERP solution should have a tight Unix, Linux , Windows etc
Security embedded into it and should Cost of Infrastructure required and
have it at a granular level. In this era,
how easy to get that in market.
security is considered to be the top most
Frequency of new releases and how
priority of the organizations. Business
easy to upgrade it?
data is the most important asset of an
Frequency of bug fixing patches.
organization. Comprehensive
Does it follow industry and business
authorization mechanism is required to
standards like ISO, CMMI etc?
every organization which will enable
the management to provide apt access to
Following should be evaluated against
their users according to their role.
the vendor and consultant:
Their Financial Strength
Number of clientele
6. Number of satisfied clients technical team for further action. Focus on your
Proposal submitted by vendor business strategy and not just software selection
should be reviewed legally and and implementation [9]. ERP implementation
could not bring benefits to an organization
technically. unless its processes are optimized before
They should offer transfer of implementation.
technology (Knowledge transfer)
They should not sublet contract to
other companies. They should have
their own seasoned professionals
for all modules.
f) Project Planning
h) Implementation Team
Once the ERP solution is selected, project
Selecting or hiring the professional
planning is the major task to be performed
implementation team with apt skills and
between implementers and the organization.
experience is a must have. Team should be
Project plan is the track of activities with date
combination of technical and functional
stamps, resource allocation from both the sides
members. Skills that are critical to the
along with risks and dependencies. If project
implementation include project management,
plan is followed with right pace, it gets the
process improvement, requirement’s definition,
organization success in the implementation.
data conversion, testing, separation of duties
Project planning should follow the standards
analysis, and post go live analysis [10]. Proper
like PMP or Prince2. Project plan should have
trainings should be conducted for
activities according to priorities. Risk should be
implementation teams. Teams should not work
covered in the project planning and steps should
in silos and work under one umbrella so that
be taken to avoid risks and mitigation of risks.
integration can be done effectively. Moving
Regardless of your size and perceived resources,
away from Functional silos and creating
an ERP implementation is not something that
effective cross functional processes that are truly
should be approached without a great deal of
integrated via an ERP system is not an easy task
careful planning [9].
[9].
g) Process Refinement (AS-IS , TO-BE) i) SDC ( Environment )
Documenting the AS-IS Business processes is Software Development Center should be
the crucial activity of the process identification established with the proper resources like PCs,
and its refinement. This could be achieved by Laptops and Printers with proper infrastructure.
conducting different sessions with the business This SDC will be helpful during and after
stake holders. As enterprise has a large number implementation.
of employees so it is not possible to discuss AS-
IS processes with everyone. The best approach j) Employees Buy-in.
is to select the teams from each domain. Once
draft version of AS-IS documents are ready, the Without employees buy-in, successful
second should be arranging the workshop to implementation is close to impossible. If
further clarify the AS-IS processes with the management decide to go for the ERP
stake holders. After proper sign off from stake implementation without buy-in from its
holders, conduct other workshops to document employees, issue starts popping up from day
the TO-BE processes. To-Be processes should one till the day of the final failure.ERP
be evaluated with the help of technical staff implementation is for the whole enterprise and
before proper sign off from the stake holders. not only for the management and that’s why it is
Once the To-Be processes are signed off, termed as ERP and not “Management
processes will be handed over to consultants /
7. Planning”. Only 13% of respondents
characterize themselves as “very satisfied” with
their company’s software implementation and 3.0 During Implementation
38 % of respondents indicated “lack of
employee buy-in” as the biggest challenge Once it has been decided that which ERP
facing the ERP implementation teams[8].
solution to implement, implementation has
Organization should also assure its employees
that job losses will be minimum otherwise there begun with all it challenges and activities.
will be a considerable resistance from During implementation if proper monitoring and
employees. execution plan has not been taken on, it could
take the implementation towards the failure
without noticeable to the management. During
implementation, the biggest factor is time. As
loosing the time will impact budget and without
k) Interfaces for third party integration
budget implementation won’t be possible.
It should also be considered that ERP
solution must provide easy to implement
integration interfaces for third party a) Data Collection
applications. Most of the off shelf ERP
solutions provide XML or web service First the most difficult of all is to collect the
interfaces. ERP solutions that do not provide data. To avoid “Garbage in garbage out”, Data
integration interface costs lot of time, collection team of experienced members should
resources and money to develop interface be formed. And, in the implementation plan
every time organization would like to share activities of data collection with proper time
the data with ERP Solution.
lines should be mentioned. The vital part of data
l) Declare Implementation as a Project collection is to design the data collection
templates. Data collection template should be
As ERP implementation is a big task, well thought of. Following should be considered
implementation should be declared as a Project. while designing the data collection templates:
Project should have project management team easy to understand, user friendly, validation
with execution mandate. According to PMP and
checks to avoid wrong entries, examples, and
Prince2, “Project should have a definite start and
end”. Same implies to ERP Implementation. minimize data entry with lookups and drop
down options. Also provide data dictionary for
As per Wikipedia, ”Project Management is the each column. Before sending to users get the
discipline of planning, organizing, and evaluated template from easily approachable
managing resources to bring about the users. Template should be communicated via
successful completion of specific project goals highest managements email so that users take
and objectives. It is often closely related to and
them seriously.
sometimes conflated with program
management.”
Avoid sending same template again and again
j) BPM with modifications as it will reduce the effect. If
possible conduct workshops to give template
If ERP Solution supports Business Process overviews. No templates should be accepted
Management it will be an additional edge on with proper sign off from the sender: sense of
other ERP solutions as it enables employees to ownership. If these issues are tackled with
effectively manage the processes with dynamic proper planning and strategy, it will save
approach: designing, configuring, executing,
considerable cost and time.
monitoring, and analyzing.
8. The biggest challenge is to convert legacy data
into new format and also check for redundancy
and duplication (data cleansing). Most of the
c) Quality Team
cases legacy data do not provide the complete
data required for the new implementation. In “A quick migration to an ERP system without
those cases special permissions and decisions time for testing and validating the systems is not
are required from the steering committee. wise nor advisable,”[7]. There should be proper
quality testing and assurance teams. Quality
Communication teams begins with the initiation of the implementation.
To reduce the cost of implementation, some
Communication team should be formed to organizations ignore the formation of dedicated
teams for quality testing and quality assurance.
communicate every possible achievement or
But, after implementation low quality cost the
hurdle to all the stake holders in order to organization many folds then investing the
develop a sense of ownership among all. Also it money on quality during implementation.
gives confidence to all that they are part of the Despite other quality assurances, the most
implementation. Communication team should important for quality team is to keep check on
build strategies to avoid the scenarios where the unnecessary development of reports.
ERP implementation becomes scapegoat for
Without quality the objectives of successful
non performers. As it is a normal practice to
implementation could not be achieved. Quality
blame the solution if something goes wrong and should be checked and assured at every process
mostly common with new implementations. and step of implementation. Some of them are:
documentation, AS-IS and TO-BE processes,
configuration, development.
b) Support Team d) Documentation with Configuration
No matter how much trainings are conducted The prime focus of implementation and Project
during the implementation, end users always Management office is on configuration,
need support to use the new implemented testing, and deploying the ERP solution in the best
solution. There should be three levels support: possible manner. However, the importance
first, second and third level. In First level, of proper documentation and it configuration is
representatives who are good in operating the placed aside And logic presented by the PMO
office or the implementation team is that
system and should guide the end users how to documentation slows down the entire project.
use the application effectively. If first level But, it is proved that lack of documentation cost
support could not solve the problem they should more in implementation than maintaining proper
forward the problem or issue to second level documentation.
support. Second level support should be of team
leads of different modules. If second level 4.0 Post Implementation
support could not solve the issue or problem it
should be forwarded to third level support. Third After implementation, organizations celebrate
level support should be of consultants or internal the GO-LIVE, they forget about the fact that
technical teams. post implementation is as important as
implementation. No matter how successful is the
Third Level Support implementation, if not used or maintained
properly it causes more harm to the organization
Second Level Support then the implementation itself.
First Level Support
9. e) Change Management decisions and act quickly on decisions. Easy and
automated forecasting, reduces the stock
People do not accept change easily. The biggest keeping and investment. Enhanced
post implementation problem is the resistance to empowerment of employees through increased
the change. Organizations which do not form a information sharing [4], Real time processing
strategy for change management could not get enables the organization for fast business
the benefits from the ERP solution. End users moves, Reduces operations, paper environment,
would like to remain in their comfort zone: pain points and bottlenecks. Optimized
using legacy applications with which they are processes and cycles which reduces resources
familiar with. Cultural change and insecurities and cost factors. The purpose of ERP
are the biggest threats. technology is to support the company’s strategic
opportunities [9].
f) Support
ERP implementation is the outcome for huge
financial investment and exhaustive hard work 6.0 Disadvantages
of teams. Organizations do not realize that
ongoing support of ERP solution is the major Every picture has two sides and so does the ERP
part of the total ERP cost. ERP support cost implementation. With flowers come thorns:
depends on the size of the solution, number of disadvantages: huge investment on ERP
users, nature of business, vendor (Oracle, SAP, implementation and its maintenance, too much
etc) and frequency of system’s modifications. reliability on the system and limitation ERP
solution brings with it as inheritance. Some
g) Human Resource Retention
limitations of off shelf ERP solutions, also limit
HR retention is the most difficult of all after the business to grow in a particular direction.
post implementation. Internal staff not only
gained the technical expertise but also in depth 7.0 Basic Causes of Failure
business knowledge which enabled them to get
highly paid job very easily in the market. To Cause of failure may vary from organization to
retain the HR, different strategies can be organization, business type to business type,
adopted: incentives, salary increase and clarity ERP solution to ERP solution. But, basic failure
to their future growth. reasons remain the same: not prepared for
h) Competency Center implementation, rely on available resources
regardless of their skills and experience, opt for
Formation of competency center will enable the a wrong solution, budget constraints to buy low
teams for continuous improvements through cadre solution, management was not on board,
extensive training for competency of staff and wrong choice of business users, decisions
end users. Competency center will reduce the making in close rooms, teams working on
cost of after implementation support from third different islands and are not on the same page,
party. Enabling organizations’ own staff will solving problems on fire fighting mode, high
definitely reduce cost and time for new changes, expectations raised. Also sometimes cause of
development and improvements in the system. failure is the management who is so busy in
other operations and consider ERP
5.0Advantages implementation is the sole responsibility of IT.
Successful ERP implementation comes with a 8.0 Basic reasons of Success
bouquet of advantages. Visibility across the
company figures saves time, resources and Selection of apt solution, right technical and
money. With one centralized database and business team, management on board, whole
integrated modules, fast and accurate organization taken into confidence and their buy
information helps the management to make in, proper and exact requirement gathering, best
10. approach, processes in place, best plan, PMO Kimberling said "I think that's where a lot of
office in place with proper mandate of companies fall short," he said. "Their finish line
execution, exhaustive trainings to all type of is the go-live, and there's very little that gets
users, dedicated team for implementation, done after the fact."
looking for KPIs after implementation.
9.0 Conclusions
ERP implementation is different from conventional IT Software Projects.ERP implementation involves
process reengineering and optimization. It brings a new culture and a fresh breath to an organization if
implemented in the right way. It takes an average of two and a half years from project initiation to achieve a
quantifiable return on investment for an ERP system. Ninety percent of those quantified benefits are the
result of a cost reduction, according to the study [6]. ERP implementation if would have been done with
proper planning and long thought out process brings its benefits. But, if planning or processes are not in
place, it would be a disaster for the organization. Studies showed that ERP implementation could only be
possible if well planned along with organizations well placed processes.
10.0 Acknowledgements
We would like to acknowledge Mr. Wasif Ihsan who has provided us the support and cooperation during
our case study.
References:
[1] The Robins-Gioia Survey 2001.
[2] Supply Chain Digest, Springboro, OH, 2005]
[3] Successful ERP Implementation required planning by Robert W.Stanisky-2000
[4] A Case Study of ERP Implementation Issues by Dr. Tom Bramorski University of Wisconsin USA
[5] Paul Wahl SAP America
[6] Meta Group study
[7]Dr. John T. Whiting
[8] Panorama Consulting Group Dec 05-Nov 08
[9] Successful ERP Implementation the first time by R. Machael Donovan.
[10] Global ERP Implementation Challenges by KPMG’s Global Energy Institute – 2008
[11] Implementation issues in ERP by R.Appuswamy Deakin University, Australia
11. 0
2
4
6
8
10
12
Proper planning of project
Role of PMO
Was there sufficient Management support?
Were there any conflicts with the consultants?
Is there any integration with other applications?
How effective was the inter-departmental …
How many revisions to the base lined schedule?
How well you achieve the objective of your ERP?
Increase in revenue
Increase in Sale
Increase in productivity
Paperless environment
Collaboration with other departments
Transparency improvement
Were Trainings Effective
How much you have gained from Trainings
People do not understand ERP advantages
TABLE 1.1 : Questionnaire Survey (Graph with Trends)
How effective reports were?
Integration Issues with other applications?
Team Preparedness
After Implementation Support
Cross-functional process orientation with high …
Advantage after implementation
Disadvantages after implementation
One
Two
Four
5-Highest
0- Lowest
3-Midium
12. TABLE 1.2 : Questionnaire Survey
3-Midium
0- Lowest
5-Highest
Four
Two
One
Questions
Proper planning of project 0 2 0 4 7 1
Role of PMO 0 2 0 4 7 5
Was there sufficient Management support? 0 0 0 4 5 5
Were there any conflicts with the consultants? 1 0 2 6 4 1
Is there any integration with other applications? 0 2 0 5 3 4
How effective was the inter-departmental communication? 0 2 1 1 10 0
How many revisions to the base lined schedule? 0 0 2 7 3 2
How well you achieve the objective of your ERP? 0 1 2 2 6 3
Increase in revenue 0 2 3 4 4 1
Increase in Sale 2 1 3 5 2 1
Increase in productivity 1 0 2 4 4 3
Paperless environment 0 1 2 3 8 0
Collaboration with other departments 0 1 1 4 5 3
Transparency improvement 0 0 0 3 7 4
Were Trainings Effective 0 0 2 5 3 4
How much you have gained from Trainings 0 0 2 4 4 4
People do not understand ERP advantages 0 1 1 6 3 3
How effective reports were? 0 1 2 1 6 4
Integration Issues with other applications? 0 2 3 4 4 1
Team Preparedness 0 1 5 3 5 0
Efficient support to end user during Implementation 0 1 2 1 6 4
After Implementation Support 1 0 1 4 5 3
Cross-functional process orientation with high visibility 1 0 1 4 7 1
Advantage after implementation 0 1 1 3 6 3
Disadvantages after implementation 2 7 3 2 0 0