Enterprise Resource planning Unit 3 ERP implementation

Prepared and presented by,
N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
IIyearIIISemester
Academicyear2017-2018
1

 Personnel
 Technology
 Workflow
 Performance Measurements

 A review of the potential software products that
are a “fit” for the organization’s environment
 Elimination of those packages that do not meet
the specified needs and requirements
 Creation of a manageable list of vendors for
final review – typically three to five
 Scheduled detailed product demonstrations
 A check of your vendor’s references
 A visit to a “like” customer site of the final short-listed
vendors

 The different phases of
the ERP implementation
are given below:
 Pre-evaluation Screening
 Package Evaluation
 Project Planning Phase
 Gap analysis
 Re-engineering
 Configuration
 Implementation Team
Training
 Testing
 Going Live
 End-user
 Training
 Post-implementation.

 According to S Shankarnarayanan, Senior Consultant with Baan Info
systems India Pvt. Ltd. (ERP Systems—Using IT to gain a competitive
advantage), some important points to be kept in mind while evaluating
ERP software include:
o Functional fit with the company’s business processes
o Degree of integration between the various components of the ERP system
o Flexibility and scalability
o Complexity
o User friendliness
o Quick implementation
o Ability to support multi-site planning and control

o Technology—client/server capabilities, database
independence, security o Availability of regular
upgrades
o Amount of customization required o Local
support infrastructure
o Availability of reference sites
o Total costs, including cost of license, training,
implementation, maintenance, customization
and hardware requirements.

There are five most critical phases of ERP lifecycle
 There are five most critical phases of ERP
lifecycle
 Adoption decision
 Acquisition
 Implementation
 Evolution
 Retirement

There are number of factors to be consideration as
follows –
Speed or urgency of implementation
 Availability of people for carrying out the implementation
tasks o Availability of time for training all users
o Cost
o Confidence in the new system o Disruption to
operations
o Total timescale

 ERP implementation is primarily a people
project.
 Training is perhaps the most misjudged
activity of implementation life cycle.
 One of the most common mistake of all ERP
implementations is understanding the time
and cost of training program is done.

 Experts say that the technical training of the
core team of people who are installing the
software is done properly and there is no
problem in that aspects.
 Many studies have revealed the fact that as
few as 10-15% of ERP implementations have a
smooth introduction that delivers the
anticipated benefits.

 Pre implementation Training
 User Training (During and after
Implementation)
 Training, Assessment and Review

 Data migration is the process translating data
from one format to another.
 Data migration is necessary when an organization
decides to use a new computing system or
database management system that is
incompatible with the current system.
 Data migration is performed by a set of
customized programs or scripts that
automatically transfer the data.

 Data migration is the process of moving required
volumes of data from existing systems to new
systems.
 Existing systems can be anything from custom-
built IT infrastructures to spreadsheets and
standalone database.
 Data migration encompasses all the necessary
steps to cleanse, correct and move data into the
new system.

 Electronic Method
 Manual Method

Question that need to be addressed –
 What data is required on the new system?
 Can this data be transferred from the old system?
 What data is required that is not on the old system?
 Does this data exist elsewhere and how can it be
best input?
 Who will check the data and when?
 Who will input the data and when?

 Chief Executive Officer (CEO)
 Executive Committee
 External Consultant
 Project Manager
 )Project Management Team
 Work Teams or Implementation Teams
 Technical Support Team
 Administrative Support team

 It is the vendor who understands the finer
details and subtleties of the product and can
make valuable suggestions and improvements
that could improve the performance of the
system.
 A clause defining how problems are to be
handled and the timescale allowed.
 If problems are not resolved then an
escalation path should be defined identifying
the people to be contacted.

 Consultants are responsible for administering each of
the phases of the implementation so that the
required activities occur at the scheduled time and
at the desired level of quality and with effective
participation of all those who must participate.
 In order to keep the promises that they have made
during the negotiations, the consultants have to
transform their approaches and methodologies into
detailed work plans.

 The project manager should monitor and
control the costs incurred by the vendor.
 It is possible to monitor consultancy costs,
which is a potential area for overspend, by
monitoring the time that the vendor’s
personnel are in-site.
 Mistakes do happen and it is advisable that
vendor’s invoices are checked.

Enterprise Resource planning Unit 3 ERP implementation

Enterprise Resource planning Unit 3 ERP implementation

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Enterprise Resource planning Unit 3 ERP implementation