Post on 08-Apr-2018
8/6/2019 BPR & ERP Part B
1/24
8/6/2019 BPR & ERP Part B
2/24
ERP- BUILDING USING INTERNALRESOURCES- THE FACTS
Lack of adequate & qualified manpowerNot driven with clear focus on expectations, time & cost
Poor software project managementLack of seriousness with the Management & the IT TeamHigh employee turnoverLot of schedule gaps during Project execution
Normally project life is moreFrequent change in the scope with the approval of theManagement
8/6/2019 BPR & ERP Part B
3/24
Tailor-made ERP solutions
Ab out this optionExecution PhasesERP product selection phase
Product selection - ParametersPreparation PhaseERP product acceptance - OptionsGap A nalysisProduction Phase
Implementation PhasePost-Implementation PhasePitfalls & Points of ConcernCritical Success factors
8/6/2019 BPR & ERP Part B
4/24
AboutGeneralized off the shelf application s/w packagesModules b ased on rich functionalities for all b usiness
functionsUser tested with lot of installationsNo lead time requirement for software developmentTuned for more users/networks with adequate & in-b uilt security Parameterized for flexi b ility Can sit on latest hardware & software platformsUp gradation of functionalities with version control
8/6/2019 BPR & ERP Part B
5/24
Execution phases
ERP product selection
PreparationsProduction
Implementation
Post-Implementation
8/6/2019 BPR & ERP Part B
6/24
ERP Product selection Phase
ERP Team formation for selection A ppointment of Consultants [if needed]
Scoping study
Product selection
Implementation partners selection
Hardware/Communication cost estimation
8/6/2019 BPR & ERP Part B
7/24
Product Selection - Parameters
Reputation of the ERP product
No.of installations in the geographical vicinity
% of the overall functional availa b ility
Customization possi b ilitiesA fter sales support
Your investment plan & b udget
Implementation partner s track record
8/6/2019 BPR & ERP Part B
8/24
Technology
Support
Costs
5 Strategic5 StrategicRequirementRequirement
LevelsLevels
FunctionalityGoal:Goal:To select theTo select theMost Suitable SoftwareMost Suitable SoftwarePackage SolutionPackage Solution
Vendor
ERP Product selection Criteria
8/6/2019 BPR & ERP Part B
9/24
8/6/2019 BPR & ERP Part B
10/24
ERP product acceptance - options
1. A dapting directly, all the functions availa b le inthe ERP Product [ A pplica b le for startup companies]
2. Change the way the firm does the b usiness to fitthe product [Compromising]
3. Customize the ERP product to suit the b usinessProcesses. [Customization]
8/6/2019 BPR & ERP Part B
11/24
GAP Analysis
y This is the process to identity the gaps b y mappingy the expectations of the company with they capa b ilities of the ERP product
Results of Gap Analysis
D irectly Supported Workaround suggestedExtension requiredChange in b usiness process suggestedNot full supportedManual not under the scope of ERP
8/6/2019 BPR & ERP Part B
12/24
Production Phase
Installing the software & hardware
Tuning the software to meet thecustomization needs
Master & Control data arrival as perthe Product data structures
Location & people specific roles & rightsallocation for module access & security
8/6/2019 BPR & ERP Part B
13/24
Implementation Phase
Conference Room Pilot [Parallel run]
Resolving the Parallel run issues
Training the end users
Live run
8/6/2019 BPR & ERP Part B
14/24
8/6/2019 BPR & ERP Part B
15/24
Pitfalls & Points of concern
Costly comparing to custom- b uilt optionsLot of hidden costsChances of cost & time overrun are high
The Level of customizationCompulsion to pay for redundant modules/features
Vigorous involvement of all during implementationNon-availa b ility of special practices like CustomerComplaint, Logistics
Linking historical data offline & painfulThe requirement of Change Management is a mustD ependency on outsiders is highIT department Poor grip on the Implemented systems
8/6/2019 BPR & ERP Part B
16/24
8/6/2019 BPR & ERP Part B
17/24
Building ERP Using External sources
Ab out this option
The Principle!
The Steps
Why?
Points of Concern
Software Vendor selection
Critical Success factors
8/6/2019 BPR & ERP Part B
18/24
Abouty Here the whole package is designed & b uilt
D
By keeping a specific enterprise & itsb
usinessPractices in mind (customization)D By incorporating the improvements/additionsD With due integrationD Without compromising or changing the current way
of doing the b usiness andD Providing f lexi b ility to accommodate your b usiness
fluctuations
8/6/2019 BPR & ERP Part B
19/24
The Principle!
The b est as seen elsewhere, need not b e the b estfor you.
What is your b est is what can b e successfully implemented
8/6/2019 BPR & ERP Part B
20/24
The Steps
1. Software vendor selection2. D etailed study b y the vendor
3. Scope & platform finalization4. Freezing the commercials5. D evelopment6. Hardware addition/Up gradation
7. Old master/transaction data migration8. Parallel run with Integration & connectivity check9. Implementation10 . Maintenance
8/6/2019 BPR & ERP Part B
21/24
Key ProcessIntegration
via ERP Product
LifecycleManagement
Supply ChainManagement
Customer Management
Supplier Collaboration
DesignPartners
Consumersand Channels
Beyond ERP
8/6/2019 BPR & ERP Part B
22/24
Characteristics of Business ProcessReengineering
y Several job s are com b ined into one
y Employees make decisions
y Steps in b usiness process: natural order
y Process may have multiple versions
y Work is performed where it makes the most sense
8/6/2019 BPR & ERP Part B
23/24
Characteristics of Business ProcessReengineering
y Controls, checks, other no value-added work isminimized
y Reconciliation is minimized - minimize externalcontact points
y Hy b rid centralized / decentralized operation is used
y A single point of contact is provided for the customer
8/6/2019 BPR & ERP Part B
24/24
Business Process Reengineering andRestructuring the Organization
y Redesign of processes
y From mass production to mass customization
y Cycle time reduction
y Restructuring organizations