Presentation Transcript
ERP Implementation Fundamentals :ERP Implementation Fundamentals
Agenda :Agenda What is an ERP System?
Why implement an ERP system?
How should ERP systems be implemented?
Conclusion
What is an ERP System – definitions :What is an ERP System – definitions Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
“ERP software is a multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business. ”
Historical system architectures :Historical system architectures Historically, companies created “islands of automation”. A hodge-podge of various systems that operated or managed various divergent business processes. Sometimes these systems were integrated with each other and sometimes they weren’t. Sometimes they were loosely interfaced and sometimes they were more tightly interfaced.
What is an ERP – Key Characteristics :What is an ERP – Key Characteristics Integration
Seamless integration of all the information flowing through a company – financial and accounting, human resource information, supply chain information, and customer information.
What is an ERP – Key Characteristics :Packages
Enterprise systems are not developed in-house
Information System life cycle is different
Mapping organizational requirements to the processes and terminology employed by the vendor and
Making informed choices about the parameter setting
Organizations that purchase enterprise systems enter into long-term relationships with vendors.
Organizations no longer control their own destiny. What is an ERP – Key Characteristics
What is an ERP – Key Characteristics :Best Practices
ERP vendors talk to many different businesses within a given industry as well as academics to determine the best and most efficient way of accounting for various transactions and managing different processes. The result is claimed to be “industry best practices”.
The general consensus is that business process change adds considerably to the expense and risk of an enterprise systems implementation. Some organizations rebel against the inflexibility of these imposed business practices. What is an ERP – Key Characteristics
What is an ERP – Key Characteristics :Some Assembly Required
Only the software is integrated, not the computing platform on which it runs. Most companies have great difficulty integrating their enterprise software with a package of hardware, operating systems, database management systems software, and telecommunications suited to their specific needs.
Interfaces to legacy systems
Third-party bolt-on applications
Best of Breed Strategy What is an ERP – Key Characteristics
What is an ERP – Key Characteristics :Evolving
Enterprise Systems are changing rapidly
Architecturally: Mainframe, Client/Server, Web-enabled, Object-oriented, Componentization
Functionally: front-office (i.e. sales management), supply chain (advanced planning and scheduling), data warehousing, specialized vertical industry solutions, etc. What is an ERP – Key Characteristics
Typical architectural components :Typical architectural components CRM
Foundation Marketing Sales eCommerce Business
Applications Interaction History Universal Work Q 1-to-1 Fulfillment Assignment Engine Escalations TCA Installed Base Tasks Notes Resources Calendar Territories Finance HR
Why implement an ERP System? :Why implement an ERP System? To support business goals
Integrated, on-line, secure, self-service processes for business
Eliminate costly mainframe/fragmented technologies
Improved Integration of Systems and Processes
Lower Costs
Empower Employees
Enable Partners, Customers and Suppliers
How should we implement ERP systems :How should we implement ERP systems Obtain the right mix of people, processes and technology!!
How should we implement ERP Systems? :How should we implement ERP Systems? People
Project Structure
Should be aligned to processes
Process
Implementation Process (outlined in detail)
Adapt your processes to those of the ERP.
Technology
Hardware
Software
Integrated Systems
Process :Process 1. Definition and Analysis
Hold discussions with various functional personnel to establish the actual number of systems operating at client site, what they are used for, why and how often
Produce the Project Scoping Document outlining current situation, proposed solution and budgeted time
Challenge : REQUISITE EXPERTISE - No two clients are the same
Process :Process 2. Design
Prepare various functional reports - specifies current scenario and wish list
Prepare Design document which specifies how the system is going to work
Prepare test scripts to be followed on system testing
Map out the interface paths to various modules
Challenge : INFORMATION SHARING - Availability of staff
Process :Process 3. Build
Configure system as per set up document specifications i.e. transfer conceptual model into reality
Test system to verify accuracy (preliminary tests)
Challenge : TECHNICAL ENVIRONMENT - System functionality
Process :Process 4. Transition
Train users on their specific areas
Assist in test data compilation and system testing by users
Finalise the Live system and capture opening balances
Challenge : USER RESISTANCE - Understanding and acceptance
Data preparation
Process :Process 5. Production
Official hand holding
Effectiveness assessment
Business and Technical Direction recommendations
Technology :Technology Technology is an enabler, not the driver (it is there to assist the organisation to achieve business goals)
It is a means to an end, not the end
Conclusion :Conclusion ERP systems provide a mechanism for implementing systems where a high degree of integration between applications is required
The Business Case or Value Proposition for implementation must be outlined
To successfully implement - a proper mix of people, processes and technology should be maintained