ENTERPRISE RESOURCE PLANNING

An Enterprise is a group of people with a common goal.Resources include money, manpower, materials and all the other things that are required to run the enterprise.Planning is putting necessary functions in place together.ENTERPRISE RESOURCE PLANNING is a method of effective planning of all the resources in an organization.ERP Covers the techniques and concepts employed for the integrated management of businesses as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise.

BUSINESS FUNCTIONS AND BUSINESS PROCESSESA Business process is a collection of activities that takes one or more kinds of inputs and creates an output that is of value to the customer. it cuts across more than one business functions to get a task done.INTEGRATED MANAGEMENT INFORMATIONThe information system consists of three elements: people, procedures and data.The fundamental characteristics of information are ACCURACY, RELEVANCY AND TIMELINESS.

COMMON ERP MYTHS:ERP means more work and procedures.ERP will make many employees redundant and jobless.ERP is the sole responsibility of the management.ERP is just for the Managers/ Decision-makers.ERP is just for manufacturing organizations.ERP is just for the ERP implementation team.ERP slows down the organization.ERP is just to impress customers.

9.ERP package will take care of everything.10.One ERP package will suit everybody.11.ERP is very expensive.12.Organizations can succeed without ERP.

Evolution of ERPOrigins in the manufacturing industry.1960,s- inventory management and control system1970s- materials requirements planning (MRP) and closed-loop MRP1980S- manufacturing requirement planning (MRP 11)1990s- ERP

Inventory management and control systemInventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. Material Requirement Planning (MRP) Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.

Closed-loop MRPIts a series of functions for automating the production process. It contains tools and techniques to address both priority and capacity and supports both planning and execution. It has provisions for accepting the feedback from the execution functions back to the planning function thus enabling the plans to be revised and updated depending on the actual execution or changes in priorities.Manufacturing Requirements Planning (MRP II) Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.

Enterprise Resource Planning (ERP) Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking.

Reasons for the growth of the ERP marketTo enable improved business performanceTo support business growth requirementsTo provide flexible, integrated, real time decision support.To eliminate limitation in legacy systemsTo take advantage of the untapped mid-market

The advantages of ERP Business integrationFlexibilityBetter analysis and planning capabilitiesUse of latest technology

Why ERP packages are being used now?ERP packages are able to handle entire range of business functions necessary for the companys operations.ERP packages are targeted at everything from small businesses to the largest organizations.Global adaptation.

Business ModelingIt is a representation of the business as one large system showing the interconnections and interdependencies of the various subsystems and business processes.Its representation of the actual business-what are the various business functions of the organization, how are they related, what are their interdependencies.

Basic concepts of ERPWhy is ERP important to a company?ERP affects almost all organizations, irrespective of their size and nature.Forces the competition to change their strategies and processes.Influences business partners to become more competitive.Improves the profits of the consulting organizations.It is the most important tool for business process reengineering.Enforces best practice business process in organizations.Fully utilizes the true potential of client- server computing to deliver an enterprise product.

ContdChanges the nature of information systems function and IT professionals.Changes the nature of jobs in all functional business areas.Implementation is very costly.

How does ERP creates Value?Integrate the organizations activities.Force the use of best practices.Enable organizational standardization.Eliminate information asymmetries.Provide online and real time information.Allow simultaneous access to the same data for planning and control.Facilitate intra-organization communication.Enable inter-organization collaboration.

Risks and benefits of ERPQuantifiable benefits from an ERP system:Reduced inventory and inventory carrying costsReduced Man power costsReduced Material costsImproved sales and customer serviceEfficient financial Management

Intangible benefits of ERP systemAccountingProduct and process designProduction and materials managementSalesMIS FunctionOther Factors:Implementation costsProduction and business transaction costsReporting costsPersonnel costsBusiness process change and enhancement costsCustomer and partner supportEnabling new business opportunities

Risks of ERPPeople Issues:Change managementInternal staff adequacyProject teamTrainingEmployee relocation and retrainingStaffing (includes turnover)Top management supportConsultantsDisciplineResistance to change

Process Risks Program Management Business Process Re-engineeringStage TransitionBenefit RealizationTechnological RisksSoftware FunctionalityTechnological ObsolescenceApplication Portfolio ManagementEnhancement and Upgrades

Implementation Issues Project SizeLengthy Implementation TimeHigh Initial InvestmentUnreasonable DeadlinesInsufficient FundingInterfaceOrganizational politicsScope CreepUnexpected GapsConfiguration Difficulties

Operation and Maintenance IssuesManaging Risk on ERP Projects:Find potential failure Points or Risks Analyze the potential failure points to determine the damage they might doAsses the probability of the failure occurringBased on the first three factors, prioritize the risksMitigate the risks through whatever action is necessary.

ERP and Related TechnologiesBusiness processing Reengineering (BPR)Management Information System (MIS)Decision Support Systems (DSS)Executive Information Systems (EIS)Data WarehousingData MiningOn-line Analytical processing (OLAP)Supply Chain Management (SCM)Customer Relationship Management (CRM)

Business processing Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality service and speed. Management information SystemMIS is a computer-based system that optimizes the collection, collation, transfer and presentation of information throughout an organization, through an integrated structure of databases and information flow.Characteristics of MIS:MIS supports the functions of transaction handling and record keeping.

MIS uses an integrated database and supports a variety of functional areas.Provides operational, tactical and strategic levels of the organization with timely and structured information. MIS is flexible.Advantages of MIS over Data processing system:The integrated database of the MIS enables greater flexibility. MIS integrates the information flow between functional areas.MIS caters to the information needs of all levels of management.Information needs are supported on more timely basis with MIS than Data processing system.

DSS are designed to support decision-making processes involving semi-structured and unstructured problems. A DSS can help close the information gap and allow managers to improve the quality of their decisions.Characteristics of DSS:DSS is designed to address semi-structured and unstructured problems.Mainly supports decision-making at the top management level.DSS is interactive, user-friendly.

EIS is a decision support system especially made for senior-level executives. It is the concerned with how decisions affect an entire organization.EIS takes the following in to consideration:The overall vision and mission of the company and company goals.Strategic planning and objectives.Organizational structure.Crisis managementStrategic control and monitoring of overall operations.

Executive Information System

Advantages of EIS:Easy to useFlexibleUse of latest technology

Data Warehousing:The primary concept of data warehousing is that the data stored for business analysis can be accessed most effectively by separating it from the data in operational systems.A data warehouse is a collection of computer-based information that is critical to the successful execution of enterprise initiatives.One of the principle reason for developing a data warehouse is to integrate operational data from various sources in to a single and consistent architecture that support analysis and decision making within the enterprise.

Advantages of a data warehouseMore cost effective decision making Better enterprise intelligenceEnhanced customer serviceBusiness reengineeringInformation system engineeringData warehouse components:Summarised dataOperational systems of recordIntegration/ transformation programsCurrent detailData warehouse architecture or metadataArchives

Structure of a Data Warehouse :Physical data warehouseLogical data warehouseData MartChallenges of data warehousing project:Complex Extract, Transformation and Load CharacteristicsSource vs. TargetData TransformationsTransaction-based loadingImmense volume of daily data Load methodology ( load control and auditing)Data warehouse Recovery ( load recovery)Data warehouse Validation

Meta data ManagementUses of a DATA WAREHOUSE :Standard Reports and QueriesQueries against Summarized DataData MiningInterface with other data warehouses

DATA MININGIt is the process of identifying valid, novel, potentially useful and ultimately comprehensive knowledge from databases that is used to make crucial business decisions.Advantages of Data Mining:Automated prediction of trends and behaviorsAutomated discovery of previously unknown patternsDatabases can be larger in both depth and breadthTechnologies used in Data Mining:Neural NetworksRule InductionEvolutionary ProgrammingCase-Based Reasoning (CBR)Decision TreesGenetic AlgorithmsNon-Linear regression methods

On-Line Analytical Processing (OLAP)OLAP is a method of analyzing data in a multi-dimensional format, often across multiple time periods, with the aim of uncovering the business information concealed within the data.OLAP provides the facility to analyze the data held within the data warehouse in a flexible manner. OLAP can be defined as the process o converting raw data in to business information through multi-dimensional analysis. This enables analysts to identify business strengths and weaknesses, business trends and the underlying causes of these trends.

Uses of OLAP:Financial FunctionsSales FunctionsManufacturing FunctionsKey Features of OLAP:Multi-dimensional views of dataCalculation-intensive CapabilitiesTime intelligenceDifferent Styles of OLAP:Multi-dimensional OLAPHybrid OLAPDesktop OLAPRelational OLAP

Supply Chain Management (SCM)The concept of supply chain management encompasses all activities relating to the supply chain. This includes vendor selection, negotiation, relations and performance. It accommodates the planning, procurement and delivery processes and personnel recruitment and training. SCM enables collaboration, planning, execution and coordination of the entire supply chain, empowering companies to adapt their supply chain processes to an ever changing competitive environment.

Advantages of Supply Chain Management:Supply Chain Planning and CollaborationSupply Chain ExecutionSupply Chain Visibility deign and analyticsBusiness BenefitsBusiness Benefits of Supply Chain Management:Faster response to changes in Supply and DemandIncreased Customer SatisfactionCompliance with regulatory requirementsImproved Cash FlowHigher MarginsGreater synchronization with business priorities

Customer Relationship Management:A business strategy, the outcomes of which optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviors, and implementing customer-centric processes. CRM technologies enable greater customer insight, increased customer access, more effective interactions and integration throughout all customer channels and back-office enterprise functions.

Functions of CRM:Identify factors important to clientsPromote a customer oriented philosophyAdopt customer based measuresDevelop end-to-end process to serve customersProvide successful customer supportHandle customer complaintsTrack all aspects of salesCreate a holistic view of customers sales and services information

Components of A CRM SYSTEM:OperationalAnalyticalCollaborativeOperational CRM: Provides automated support to front office business process. It involves three general areas.Sales force automation (SFA)Customer service and support (CSS)Enterprise marketing automation (EMA)Analytical CRM: It analysis data in an attempt to identify means to enhance a companys relationship with its clients.

Collaborative CRM: Focuses on the interaction with customers. It includes:Providing efficient communication with customers across a variety of communications channels.Providing on-line services to reduce customer service costs.Providing access to customer information while interacting with customers.USES OF CRM:Providing on-line access to product information and technical assistance around the clock.Identifying what customers value and devising appropriate service strategies for each customerProviding mechanisms for managing and scheduling follow-up sales calls.Tracking all contacts with a customer.

Identifying potential problems before they occur.Providing a user-friendly mechanism for registering customer complaints.Providing a mechanism for handling problems and complaints.Providing a mechanism for correcting service deficiencies.Sorting customer interests in order to target customers selectively.Providing mechanisms for managing and scheduling maintenance, repair and ongoing support.

FEATURES AND FUNCTIONS OF A CRM SYSTEM:Technology-Enabled SellingMarketing Resource ManagementSegment and List ManagementCall Center ManagementCampaign ManagementInternet Protocol TelephonyField Service ManagementTrade promotion ManagementLead ManagementMarketing Analytics

PRODUCT LIFE CYCLE MANAGEMENT

Its a software solution for collaborative engineering, product development, and management of projects, product structures, documents and quality.The PLM application should provide integrated product life cycle management software , a single source of all product-related information needed for collaborating with business partners and supporting processes including product innovation, design and engineering, quality and maintenance management and control of environmental issues.

The PLM software can help the organizationTo support strategic sourcing by interfacing with supplier relationship management software.Improve decision making through insight in to projects, flexible reporting, and analytics for portfolio management, product safety and product quality.Increase strategic and operative control by monitoring product and production changes affecting timelines, costs and resources.Provide an open technology framework that delivers up-to- date data required by enterprise processes for demand planning, manufacturing, purchasing, and sales.

Product data management:The product data management system facilitates the design release, distributes the design data to multiple manufacturing sites and manages changes to the design.Benefits of PDM:Market ShareCustomer SatisfactionProfit marginsReturns to the Stakeholders

Product life cycle phases:New product development stageIntroduction StageGrowth stageMaturity stageDecline stagePLM-Features and Functions:Life cycle data managementProgram and project managementLife cycle collaborationQuality managementEnterprise asset managementEnvironment, health and safety

PLMs Support for Product life Cycle process:Product developmentDevelopment collaboration and strategic sourcingPrototyping and production ramp-upSales, service, and maintenance handoversQuality engineering and improvementProduct costingBenefits of PLM:Faster development and reduced costsSeamless integration with enterprise systemsImproved product qualityBetter business resultsBetter business decision making

BUSINESS INTELLIGENCE (BI)It is the intelligence of business and application of human cognitive faculties and artificial intelligence technologies to the management and decision support in different business problems.It is a broad category of applications and technologies for gathering, providing access to, analyzing data for the purpose of helping enterprise users make better business decisions.The ultimate objective of business intelligence is to improve the timeliness and quality of information.

Business Intelligence Reveals:The position of the firm in comparison to its competitorsChanges in customer behavior and spending patternsThe capabilities of firmMarket conditions, future trends, demographic and economic informationThe social, regulatory and political environmentWhat the other firms in the market are doing

Factors influencing the Business IntelligenceCustomersCompetitorsBusiness PartnersBusiness EnvironmentInternal OperationsTechniques for integrating Business Intelligence in to business process:

BUSINESS PROCESS REENGINEERING (BPR)It is the fundamental rethinking and radical re-design of business process to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.Successful BPR can result in dramatic performance improvements, increase in profits, better business practices, cost reductions, improvements in productivity, quality, customer service, employee satisfaction, profitability and other business goals.

Different Phases of BPR:There are seven different steps or phases:Begin organizational ChangeBuilding the reengineering OrganizationIdentifying BPR OpportunitiesUnderstanding the existing processReengineering the ProcessBlueprint the new business systemPerform the transformation

Begin organizational change: Asses the current state of the organization.Explain the need for change.Illustrate the desired state.Create a communication campaign for change.

Build the Reengineering Organization:Establish a BPR organizational structure.Establish the roles for performing BPR.Who are the people that will be enlisted to re-engineer the business?What will their responsibilities be?Who will they report to?What will happen to the normal business functions when the BPR is going on?Choose the personnel who will re-engineer.Members of the Reengineering Effort:Executive Leader: A high level Executive

Process Owner: Responsible for specific High level processReengineering Team: To actually reengineer the process.Steering Committee: Helps to control its chaos and overall monitoring its progress.Reengineering Specialist or Consultants: They can assist each of the reengineering teams by providing tools, techniques and methods to help them with their tasks.

Identify BPR Opportunities:Identify the core/high-level processesRecognize potential change enablersGather performance metrics within the industryGather performance metrics outside industrySelect processes that should be reengineeredChange levelers can be identified as:The use of informationThe use of information technologyHuman factorsPrioritize selected processes

Three factors for selecting high level processes:dysfunctionImportanceFeasibilityEvaluate preexisting business strategiesConsult with customers for their desiresDetermine customers actual needsFormulate new process performance objectivesEstablish key process characteristicsIdentify potential barriers to implementation

Understand the existing process:Understand why the current steps are performedModel the current processUnderstand how technology is currently usedUnderstand how information is currently usedDo staff members have access to essential information?Are some processes wasting time and effort by creating duplicate information?Why is technology used to support some tasks and not to others?How effective are the current interfaces?

Are they easy to use?In what way does the existing process take advantage of technology?Understand the current organizational structureCompare current process with new objectives

Re-engineer the process:Ensure the diversity of the reengineering teamQuestion current operating assumptionsIs there a reason why a process has been performed in a certain way?Are there customer requirements that dictate the steps in a process?Brainstorm using change leversBrainstorm using BPR principlesSuccessful BPR principles for Brainstorming sessions:Several jobs are combined in to oneWorkers make decisions

The steps in a process are performed in a natural orderProcesses have multiple versionsWork is performed where it makes the most senseChecks and controls are reducedReconciliation is minimizedhybrid centralized/ decentralized operations are prevalentEvaluate the impact of new technologiesTechnologies that are often considered:ERP SystemsSupply chain integration technologiesBusiness intelligence technologiesInternet technologies

Distributed computing platformsClient server architectureWorkflow automation technologiesConsider the perspectives of stakeholdersUse customer value as the focal point

Blueprint the new Business System:Define the new flow of workModel the new process stepsModel the new information requirementsDocument the new organizational structureDescribe the new technology specificationsRecord the new personnel management systemsDescribe the new values and culture required

Perform the Transformation:Develop a migration strategyFull change over to new processPhased approachPilot projectCreating an entirely new business unitCreate a migration action planDevelop metrics for measuring performance during implementationInvolve the impacted staffEstablish the new organizational structuresAssess current skills and capabilities of workforce

Map new tasks and skill requirements to staffRe-allocate workforceDevelop a training curriculumEducate staff about the new processEducate the staff about new technology usedEducate management on facilitation skillsDecide how new technologies will be introducedTransition to the new technologiesIncorporate process improvement mechanisms

CHALLENGES FACED BY REENGINEERING EFFORTSResistanceTraditionTime RequirementsCostSkepticismJob Losses

GUIDELINES FOR THE SUCCESS OF BPR:Not every company needs to re-invent itselfSurround the project with a sense of urgencyGet top management to fully support the projectKeep the lines of communication to employees openCreate an atmosphere of trust and co-operationChange the way employees are evaluated and rewardedStaff the project with the best peopleDesign the system from the customers point of viewThe employees are adequately trainedPrepared to change the companys culture

BUSINESS MODULES OF AN ERP PACKAGEThe Enterprise Resource planning Systems help the management by making the planning process more productive and efficient.ERP software is made up of many software modules. It includes modules for finance, manufacturing, production planning, human resources, plant maintenance, materials management, quality management, marketing, sales and distribution, purchasing, inventory control, product distribution, order tracking, etc.

Financial Module: Financial module of ERP software systems gathers financial data form various functional departments and generates valuable financial reports such as the balance sheet, general ledger, trail balance and quarterly financial statements.It will have the following sub-systems:Financial AccountingInvestment ManagementControllingTreasuryEnterprise Controlling

Financial Accounting Module:It gives the ability to centrally track financial accounting data with in an international framework of multiple companies, languages, currencies, charts of accounts .General LedgerAccounts Receivable/PayableSpecial LedgersFixed Asset Accounting Legal Consolidation

Controlling Module:It gathers the functions required for effective internal cost accounting. And it offers a versatile information system with standard reports and analysis paths for the most common questions.Overhead Cost ControllingCost Center AccountingOverhead OrdersActivity-Based CostingProduct Cost ControllingCost Object ControllingProfitability Analysis

Investment Management Module:It provides extensive support for investment processes from planning through settlement.It provides tools enabling to plan and manage capital spending process.It allows to distribute the budgets, monitor and avoid the budget overruns.Investment PlanningBudgetingControllingDepreciation ForecastSimulationCalculation

Treasury Module:It provides a basis for effective liquidity, portfolio and risk management.Cash managementTreasury ManagementMarket Risk ManagementFunds Management

Enterprise Controlling:It comprises of functions that will optimize shareholder value while meeting internal objectives for growth and investment.Executive information SystemBusiness planning and budgetingProfit Center Accounting

Manufacturing (production) Module:Manufacturing module of an ERP do not limit businesses to a single manufacturing method, instead many manufacturing and planning methods can be combined within the same operation with unlimited flexibility to choose the best method.These applications should allow easier exchange of information through out the entire global enterprise.These systems support the entire range of production strategies and the information base upon which the entire operation should be run.

The major subsystems of the manufacturing modules are:Material and Capacity PlanningShop Floor ControlQuality ManagementJust-IN-Time/ Repetitive ManufacturingCost ManagementEngineering Data ManagementEngineering Change ControlConfiguration ManagementSerialization/ Lot ControlTooling

Human Resource Module:The HR module of most ERP systems have a set of rich features and I will integrate with the other modules and thereby improve the productivity.They offer company-wide solutions for HR departments and make it possible for other departments to access specific employee data.The various sub-systems under the HR module are:Personnel Management HR Master-DataPersonnel AdministrationInformation SystemsRecruitment

Travel Management Benefits AdministrationSalary AdministrationOrganizational ManagementOrganizational CultureStaffing SchedulesJob DescriptionsPlanning ScenariosPersonnel Cost Planning

Payroll AccountingGross/Net AccountingHistory FunctionDialog CapabilityMulti-Currency CapabilityInternational SolutionsTime ManagementShift PlanningWork SchedulesTime RecordingAbsence Determination

Personnel DevelopmentCareer and Succession PlanningProfile ComparisonsQualifications AssessmentsAdditional Training DeterminationTraining And Event Management

Plant Maintenance Module:This module provides an integrated solution for supporting the operational needs of an enterprise-wide system. It includes an entire family of products covering all aspects of plant/equipment maintenance and becomes integral to the achievement of process improvement.Plant maintenance supports various options for structuring technical with its object, type and function related views, and enables flexible navigation.

The major sub-systems of a plant maintenance module are:Preventive Maintenance ControlEquipment TrackingComponent TrackingPlant Maintenance Calibration TrackingPlant Maintenance Warranty Claims Tracking

Materials Management Module:The materials management module optimizes all purchasing processes with workflow driven processing functions, enables automated supplier evaluation, lowers procurement and warehousing costs with accurate inventory and warehouse management, and integrates invoice verification. The main sub-systems of materials management module are:Pre-purchasing ActivitiesPurchasingVendor EvaluationInventory ManagementInvoice verification and material Inspection

Quality Management Module:The Quality management module handles the traditional tasks of quality planning, quality inspection and quality control. It supports quality management in procurement, product verification, documentation, and in the processing of problems.Quality Management Module Functions:Quality PlanningManagement of basic data for quality planning and inspection planning, material specifications.Quality InspectionTrigger inspections, inspection processing with inspection

Plan selection and sample calculation, print shop papers for sampling and inspection, record results and defects, make the usage decision and trigger follow-up actions.Quality ControlDynamic sample determination on the basis of quality level historyApplication of statistical process control techniques using quality control chartsQuality notifications for processing internal or external problems and initiating corrective action to correct the problemsQuality management information system for inspections and inspection results and quality notifications

Marketing Module:The marketing module enables organizations to maximize the efficiencies of marketing resources and empowers marketers to acquire and develop long-term customer relationships.By using the tools and features of the marketing module, the company gain a flexible application to power marketing success.The marketing module supports the critical marketing processes like:Marketing Resource ManagementSegment and list ManagementCampaign ManagementE-mail Marketing

Trade Promotion ManagementLead ManagementMarketing AnalyticsWeb-based Marketing SurveysSelf-Service Portal

Sales, Distribution and Service Module:The sales and distribution modules of many ERP offer a comprehensive set of components for both order and logistics management.These modules very actively interacts with the material management and the financial accounting modules for delivery and billing.The main sub-systems of sales and distribution module are:Master-data ManagementOrder ManagementSales Order ManagementPurchase Order Management

Warehouse ManagementInventory PlanningInventory HandlingIntelligent Location AssignmentInventory ReportingInventory AnalysisLot ControlDistribution Data CollectionShippingBillingPricingSale SupportTransportationForeign Trade

ERP IMPLEMENTATIONImplementation challenges:Inadequate Requirements DefinitionResistance To ChangeInability to Achieve Organizational UnderstandingInadequate ResourcesLack of Top Management SupportLack of Organizational ReadinessInadequate Training and EducationInaccurate ExpectationsPoor Package SelectionPoor Project Management

Customization IssuesLong Payback PeriodPoor Communication and Co-operationData Quality CostsHidden Implementation CostsImproper IntegrationImproper Operation/ Use

ERP Implementation (Transition) Strategies:Big BangPhasedParallelProcess LineHybrid

ERP Implementation Life CycleObjectives of ERP Implementation:SpeedScopeResourcesRiskComplexityBenefits

Different Phases of ERP Implementation:Pre-evaluation ScreeningPackage EvaluationProject Planning PhaseGap AnalysisReengineeringCustomizationImplementation Team TrainingTestingGoing LiveEnd-User TrainingPost-Implementation

Why Do Many ERP Implementations Fail?Lack of Top Management Buy-in, Commitment and SupportImproper Planning and BudgetingUse of Wrong ERP ToolLack of TrainingWork Culture of the Organization

Pre-implementation Tasks:Assembling the ParticipantsFeasibility Study ReviewProject Mission and Vision Statements CreationDetermination of Organizational StructureDetermination of the Modules to be ImplementedCreating the Core TeamEstablishing the training NeedsEstablishing the Data Conversion/ Migration StrategyEstablishing InterfacesDetermining Work EstimatesCost of Consultants

Calculation of Implementation TimeIdentifying ConstraintsEstablishing Policies and Guidelines

Implementation Methodologies:Managing the ImplementationOrganization of the ERP Project TeamImplementation StrategyERP Implementation PlanRisk AssessmentBudgetCostCost-Benefit AnalysisPerformance MeasurementProblem ResolutionSystem Issues

ERP Implementation- The Hidden CostsTrainingCustomizationIntegration and TestingData ConversionData AnalysisERP ConsultantsBrain Drain (Employee Turnover)Continuing Maintenance

ERP Project TeamsOrganization o the ERP implementation team:Chief Executive Officer (CEO)Executive CommitteeExternal ConsultantsProject ManagerProject Management TeamWork Teams or Implementation TeamsTechnical Support TeamAdministrative Support Team

Training and EducationDefine Learning ObjectivesDetermine ContentPlan DeliverAssess LearnerReview effectiveness of the Training SessionTraining Phases:Pre-implementation TrainingUser Training Training, Assessment and Review

Post Implementation ActivitiesData ConversionBottleneck ResolutionDocumentation and TrainingAudit and ReviewImplementation CompromisesSystem Design and ImplementationCompare Planned and Actual UseCompare System FunctioningInterfaces, Upgrades and ExtensionsEvaluating SuccessTimingBalance ScorecardPost-implementation Review

Success and Failure Factors of an ERP ImplementationSuccess Factors:Project PlanningAlign the Organization on the True DestinationArchitectural DesignData RequirementsActive Executive DirectionMake ERP related Decisions QuicklyPhased ApproachData ConversionOrganization CommitmentsEnsure the Project has Sufficient budgetImplementation Review

Failure Factors:Employee ResistanceLack of Top Management CommitmentInadequate Training and EducationInadequate Requirements DefinitionInadequate ResourcesPoor ERP Package SelectionExtensive CustomizationChange ManagementUser AcceptanceGoing Live is not the end of the ERP journey

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