ERP Implementation and Change Management

SAP implementation at Pantaloons

Presented by Group 4Vineet Taneja (240)

Vishal Verma (255)

Deep Agarwal (402)

Nishant Sharda (443)

Rishikesh Jathar (451)

Laura Grangaud

AGENDA

• Introduction

• Process-oriented implementation methodology

• Change Management

• Benefits

• Areas of improvement and Risk mitigation

• Conclusion

Introduction

The context

• Pantaloons was expanding its retail stores across all metros

• The need of the time was- a reliable enterprise wide application

• They were looking for a solution to integrate businesses and processes

• There was also a need of a robust transaction management system

• After different evaluations management decided to go for SAP

Pantaloons- At a glance

• Pantaloons Retail is the flagship enterprise of the Future

• Group, with a presence across multiple lines of business.

• Headquartered in Mumbai (Bombay),

• Operates through four million square feet of retail space,

• Over 450 stores across 40 cities in India and employs over 14,000 people.

• It launched Big Bazaar, a hypermarket chain in 2001.

• This was followed by Food Bazaar, a food and grocery chain

• Subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon

Industries Ltd, Galaxy Entertainment and Indus League Clothing

ERP system in Pantaloons

Expectations from the ERP system• Support product development

Ideation,

Trend analysis,

Collaboration with partners in the supply chain

Support sourcing and procurement

Optimizing cost, quality and speed variables

• Managing supply chain

Handling the logistics of moving finished goods from the source into stores

• Selling goods across a variety of channels to customers

Marketing

Brand management

• Managing mark-downs and capturing customer reactions

• Data Analysis

Why SAP Was Selected?

• Software’s scalability and ease of integration

• A “perfect fit” for an enterprise-wide implementation

• Complete data integrity and real-time updates

• Expert support during migration effort

• Low Total Cost of Ownership

• Significantly reduced infrastructure

• Expected timely completion of the project

Process-Oriented Implementation Methodology

Planning for ERP Implementation

Addressed Primarilyby OrganizationalChange Management

Type

TypeTypeType

Type

Type

People

Process Technology

Addressed Primarilyby BusinessProcess Redesign

AddressedPrimarily

by Package

People and process issues are sometimes overlooked in planning for this type of project. They need to be addressed for the project to be a success.

SAP implementation PlanAim : To deploy a robust transaction

management system and an enterprise-wide platform to run its operations.

Solution : SAP retail solution

Implemented by : SAP team with the help of Novasoft, Singapore

Number of users : Around 1,200

Implementation Phases • Outsourced to third party – Novasoft

• Management also involved

• Project divided into three phases

ERP Implementation- 3 Phases1st Phase• Blueprinting of existing processes of Pantaloon and mapping them to the

desired state• Worked on current processes within the structure of the organization,

analyzed and drafted them• Each and every one of processes had to be evaluated

• The project team consists of following entities

Consultant team (functions, technical), Company, Global team ,Partners (SAP),Vendors

Sponsor

Steering

team

Project team

Functional

experts

End User

Discipline of Execution

Speed Quality Sense of Urgency

ERP Implementation- 3 Phases Contd.

2nd Phase: Novasoft developed SAP platform• SAP platform was developed after evaluation of Pantaloon’s needs and

expertise in retail solutions

3rd Phase: Stores to switch to new system and data to be ported• Last phase was for stores to switch over • Current data to be migrated to the new SAP application

Setups &

Configuration

Testing

Walkthrough

UAT Readiness

UAT Environme

nt

Training

Data Migration

Verify

Gap Identification

Migrate

Change Management

Change Management for ERP Implementation

• Hard facts which were considered: 42% Leadership 27% Organizational & Cultural Issues 23% People Issues 4% Technology Issues 4% Other Organizational issues left unchecked often lead to project

failure

“Change management in general is the organized, systematic application of knowledge, tools, and resources of change that provide organizations with a key process to achieve their strategy”

Objectives of Change Management

• Provide awareness among all the stakeholders

• Ensure understanding across the organization

• Facilitate acceptance by the employees and partners

• Care, listen, and respond to stakeholders’ concerns

• Manage people’s expectations

• Ensure readiness

Process Integration

Project Management

Project Initiation

Project Planning

Project Executing

Project Controlling

Project Closing

Change Management

Managing Change-Planning

Managing Change-Execute

Preparing for Change

Monitoring Change

Transition

Greatest Obstacles

• Migrating unorganized data to an organized format

• No immediate benefits perceived throughout the organization

• Resistance from employees and managers

• Inadequate senior management & sponsorship

• Cultural barriers during the transition

• Lack of change management expertise with the company

Pantaloons : Change Management Standards

Prepare with the project team• Assess change/culture• Develop/educate team

Manage the strategy• Develop and manage the plan• Track/report readiness• Develop training strategy

Reinforce/Support• Celebrate success• Analyze feedback and prepare to manage resistance

CM Team at Pantaloons

Team Lead

Project Lead

Team member

Communications Coordinator

•Manage the resources•Manages the CM project plan•Receives status from the Readiness Lead•Reports status to the Project Manager and Project Director

CM Team at Pantaloons

Team Lead

Project Lead

Team member

Communications Coordinator

•Works with the coaches to compile checklist activities, communications, workshops etc.

•Receives status of organizations from the coaches

•Reports status to the Pantaloons CM Team Leader

CM Team at Pantaloons

Team Lead

Project Lead

Team member

Communications Coordinator

•Communicate activities to the Readiness Coordinator

•Track organizations’ progress

•Report status to Change Management Lead

•Help facilitate workshops & focus groups

CM Team at Pantaloons

Team Lead

Project Lead

Team member

Communications Coordinator

•Develops communication plan•Creates branding/logo•Tracks communications sent•Develops PPT presentations

Readiness at Pantaloons

• Preparing

• Tracking

• Reporting

• Communication

Senior Executives : Why the system is necessary ?

Managers/ Supervisors : What is in it for me ?

Training at Pantaloons

• Develop Training plan, Training strategy, Training Design

and documents

• Training plan Strategy

• Identify different audiences who require training• Conduct training needs assessment and skill gap analysis• Document requirements for the training team

- Training development schedule

Methodology for Change implementation

A Successful Organizational Change

1. Dedicate resources to Organizational Change

Management

2. Secure visible executive sponsorship early in the

project

3. Repeat key messages early and often

4. Involve employees in the change process

5. Create a transition strategy with achievable timeframes

Integration was the Key

Pantaloons : Benefits of ERP

Financial and Strategic Benefits

• Greater business insights through more accurate and timely financial

information

• Lower costs via convergence of financial accounting and controlling

• Enhanced data quality

• Easier compliance with regulatory requirements via the SAP parallel

accounting feature

Operational Benefits

• Increased business transparency via drilldown reporting capabilities

• Real-time, continuous reconciliation of cost elements and expense

accounts,

• Ability to close books 15% to 20% faster

• 5% to 10% reduction in accounts receivables

Organizational Benefits

• Uniform Organization Structure

• Unified single platform & Information Architecture

• Integrated work environment – Provided an enterprise wide view of the

workflow

• Improved management reporting & decision making

• Allowed integration with systems of associates and business partners

• Helped in routine decision making

• Allowed streamlining of business processes

Conclusion

Pantaloons : Areas of Improvement for ERP

• Expensive to procure

• High switching costs

• Low flexibility

• Limited scope for customization

• Security concerns

• Requires significant employee training

• Compatibility issues with other legacy systems

• Higher Complexity

Risk Mitigation at Pantaloons

• Phased instead "big bang" approach to migration - No fitment Issues

• Sufficient Training 

• Thorough Testing - Unit and integration testing

• Providing Plenty of IT Support - More support center call volume and

staff accordingly during go-live. Making sure that there are clearly

defined escalation procedures in place for ERP issues that support staff

isn't able to handle

• Developing a Contingency Plan 

Conclusion

• At Pantaloons ERP system made management of business a lot easier by utilizing the computing power offered by the modern day Information Systems (IS) in an integrated and consistent manner.

• The ERP Information Systems facilitates faster and better management decisions  in Pantaloons by providing crucial information in a timely manner.

• It also eliminates errors caused by multiple input of the same data required in disparate legacy systems.  

• ERP Systems have been found to deliver high ROI despite their high initial and maintenance costs.

THANK YOU