why er ps maybe magic dust
TRANSCRIPT
![Page 1: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/1.jpg)
Why an ERP could be the magic dust organisations need to
succeed.
Naeem Arif
26th February 2009Arif Intelligence Ltd
![Page 2: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/2.jpg)
• Why Implement an ERP• When to Implement an ERP• How to Implement an ERP• Other sources of CA• Associated Issues and Risks, including the aspect of
Change Management
Agenda
![Page 3: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/3.jpg)
Agenda
• Why Implement an ERP• When to Implement an ERP• How to Implement an ERP• Other sources of CA• Associated Issues and Risks, including the aspect of
Change Management
![Page 4: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/4.jpg)
What is an ERP
• ERP = Enterprise Resource Planning (Gartner 1990)• A system for the entire organisation• Move from the best of breed to a single software, sharing
a common database and common design• Covering more than 1 business function, including;
– Financials– Human Resources– Manufacturing– Supply Chain– Warehouse Managements– Customer Relationship Management
![Page 5: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/5.jpg)
Before ERP
• Departments build and support their own “best of breed” systems.
• Work on the different databases• Various views of the truth, different tools for planning and
management of the organisation• Multiple support contracts, reliance of interfaces and luck
![Page 6: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/6.jpg)
After ERP
• Departments work on the same database• Single View of the truth • Single view of customer• Reduced support costs, less Interfaces
![Page 7: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/7.jpg)
Benefits & Purpose of an ERP
• Improve efficiencies• Knowledge is Power• Single version of the truth• Supports the business process• Reduce time delays in processing information• Hold large volumes of data to support decision making• Provides an integrated solution to an organisations
“computer system” needs.
![Page 8: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/8.jpg)
What Is Integration?
• Integration is the seamless interaction of technology, processes, and thinking– Process integration
• Business process alignment– Technical integration
• Interfaces, third-party products• Avoid bad/non-integrated solutions
– Process breakdown– Passing of bad information within your system
landscape
![Page 9: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/9.jpg)
MY ORGANIZATIONSuppliers Customers
Managers
Shareholders
A good ERP satisfies a number of people
People
Process & Technology
![Page 10: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/10.jpg)
Examples of ERP Software
• JD Edwards Enterprise One & JD Edwards World from Oracle
• Microsoft Dynamics GP (formerly Great Plains) from Microsoft
• Paradigm from Consona Corporation
• PeopleSoft from Oracle
• SAGE ERP X3 from The Sage Group
• SAP R/3 from SAP
![Page 11: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/11.jpg)
Agenda
• Why Implement an ERP• When to Implement an ERP• How to Implement an ERP• Other sources of CA• Associated Issues and Risks, including the aspect of
Change Management
![Page 12: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/12.jpg)
Where do Projects come from?
• Formal strategy to gain the tools• System replacement• Emergent projects just happen
Intended strategy Realised strategyDeliberate strategy
Unrealisedstrategy
Emergent
strategy
(Mintzberg & Waters, 1985)
![Page 13: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/13.jpg)
Definitions of strategy
“…the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for those goals.”
(Chandler, 1962)
![Page 14: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/14.jpg)
Management of Technology … Why are you here?
• Technology Management has been described as the “key to success for companies anywhere in the world in the coming years”
(Morita, 1987, p246)
• “Failure to exploit technological innovation leads to a loss of competitiveness which in turn has an impact on general economic development”
(Durham, 1986)
![Page 15: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/15.jpg)
TM and the organisation
• TM is concerned with systems that transform inputs into outputs
• A Tech system includes software, people, processes etc• TM systems can be categorised in terms of input, output,
transformation, administrative, control• aim of TM is make use of Tech to obtain CA• TM needs to be aligned to the near and far environments
![Page 16: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/16.jpg)
So ERP can provide a Control Mechanism
![Page 17: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/17.jpg)
Na
rro
w ta
rge
tB
road
targ
et
Source of Competitive Advantage
Co
mp
eti
tive
Sco
pe
Lower cost Differentiation
Cost leadership Broad differentiation
Cost focus Differentiation focus
(Porter, 1985)
The ERP can do only do so much ….
![Page 18: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/18.jpg)
Resources and capabilities
Resources comprise the tangible and intangible assets of the firm.
Capabilities are the processes through which resources are combined and co-ordinated.
![Page 19: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/19.jpg)
Linking resources and capabilities
Resources & Capabilities
(Grant, 2002)
Resources
Tangible Intangible Human- Financial - Technology - Skills/know-how- Physical - Reputation - Capacity for communication
- Culture and collaboration- Motivation
Industry key success factors
StrategyCompetitive advantage
Organisational capabilities
![Page 20: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/20.jpg)
Key Success Factor for your ERP
Prerequisites for success
What do customers want? How does the firm survive competition?
Analysis of demand: • Who are our customers? • What do they want?
Analysis of competition:•What drives competition?•What are the main dimensions of competition?•How intense is competition?•How can we obtain a superior competitive position?
Key success factors
(Grant, 2005)
![Page 21: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/21.jpg)
Agenda
• Why Implement an ERP• When to Implement an ERP• How to Implement an ERP• Other sources of CA• Associated Issues and Risks, including the aspect of
Change Management
![Page 22: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/22.jpg)
How to Implement
• Numerous ERP implementation strategies• Built on the basic principles of
– Design– Build– Test– Go-live– Support (what happens after we go live?)
• Prince2, PMBOK, GDPM• SAP has its own version
![Page 23: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/23.jpg)
Project Managers Body of Knowledge (PMBOK)
Plan Do Check Act Shewart-Deming
1. Initiating process group – start of the project phase2. Planning process group – planning objectives3. Executing process group - delivery4. Monitoring and Controlling process group – management team5. Closing process group – PMI
![Page 24: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/24.jpg)
Characteristics of Projects
(1) Temporary
(2) Unique (different from a Steady State)
(3) Progressive elaboration, which is the evolution of the original scope, process, requirements etc. This is different to scope creep, this is more to do with process and methodology.
![Page 25: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/25.jpg)
Project Characteristics
• Participant mix (internal, external, mixed)• Degree of standardisation• Project visibility• Business need• Size & complexity• Industry
(Gardiner)
![Page 26: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/26.jpg)
Symptoms of Poor Project Mgt
• Project staff not seeing how their project fits in within the ‘bigger picture’
• Project staff being ambivalent about their projects• Decision-making processes being unclear or slow• Senior management unsupportive when problems with
project occur• Staff equipped with inappropriate skills being recruited
into projects• Working on projects and programmes being seen as a
poor career path(Williams and Parr, 2004)
![Page 27: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/27.jpg)
Benefits Management
• Identify expected benefits that will be delivered by a programme
• Establish a benefits management structure defining processes, relationships, communications, roles and responsibilities
• Develop models to structure the programme benefits, including immediate and final outcomes
• Asses how the benefits are interrelated• Develop a realisation plan• Define accountability
(Williams and Parr)
![Page 28: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/28.jpg)
Agenda
• Why Implement an ERP• When to Implement an ERP• How to Implement an ERP• Other sources of CA• Associated Issues and Risks, including the aspect of
Change Management
![Page 29: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/29.jpg)
BPR
• Business Process Re-Engineering• Reviewing and re-creating the business process• Driven by issues or need to become more efficient• Process driven or System driven?
• Business Transformation is Process Driven• Technology projects are System Driven
• BPR doesn’t need a system project
![Page 30: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/30.jpg)
Sharpbenders
Companies achieving a sharp and sustained improvement in performance by means of:
• Major changes in management• Stronger financial controls• New product-market focus• Improved marketing• Significant reductions in production costs• Improved quality and service
(Grinyer, Mayes and McKiernan, 1988)
![Page 31: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/31.jpg)
Agenda
• Why Implement an ERP• When to Implement an ERP• How to Implement an ERP• Other sources of CA• Associated Issues and Risks, including the aspect of
Change Management
![Page 32: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/32.jpg)
Project Failures
• Beware of “ambitions for a better society” – people want what they want.
• New technology produces new trajectories and new horizons – but people still want to be in control (e.g. pilots still want to control the plane, even thought the information is there).
• New technology may replace old, but not always for the good? Sometimes old needs to sit with new (e.g. Paperless office not possible, but we have certainly reduced the need for paper records).
• New technologies may have other side effects – e.g. online shopping (change of employment profile, delivery van still needed to deliver your products)
• You can’t replace everything – e.g. people may still want to go into town and have a
wonder around the shops
• Sometimes the innovation does not meet all that was specified at the outset – you maybe let down by it.
Geels and Smit (2000)
![Page 33: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/33.jpg)
Why manage Change
• Implementing a change to a system or a process requires a review of associated Change
• Its basic common sense, if you changing the colour of the curtains – check with your wife first
• User Acceptance• Reduce delays to getting the benefit• Use the system for what was designed
![Page 34: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/34.jpg)
Knowledge Acquisition
• Experience Accumulation – e.g. learning by doing lots of something
• Knowledge Articulation – after the project, running a review of the project, appraisal etc.
• Knowledge Codification – project experience in converted in documentation/procedures etc.
(Prencipe & Tell)
![Page 35: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/35.jpg)
• Why Implement an ERP• When to Implement an ERP• How to Implement an ERP• Other sources of CA• Associated Issues and Risks, including the aspect of
Change Management
Agenda
![Page 36: Why er ps maybe magic dust](https://reader036.vdocuments.site/reader036/viewer/2022062320/55931f141a28abf8238b45c7/html5/thumbnails/36.jpg)
Why an ERP could be the magic dust organisations need to
succeed.
Naeem Arif
26th February 2009Arif Intelligence Ltd