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The presentation is for a person to understand what is an ERP and how to implement ERP
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What Is ERP?
Why ERP?
General Perception
Ground Realities
Product Or Development?
Which ERP?
ERP Cost
How To Do It?
What Is ERP?
Enterprise Resource Planning
Integration Of Business Management Practices & Modern Technology
Enterprise Wide Standard Business Controls & Ops.
Enterprise Wide Integrated Information Systems
What Is ERP?
Module Consist Of Programs For A Business Process
Some ERP Applications Are Independent Of Database
ERP Has Controlled Data Base Model / Schema & Tables
Basic ERP For All Standard Business Operations
Industry Specific Solution
Business Intelligence (BI)
legal
Inventory
Finance
Maintenance
Engineering Design
Controlling
Production Planning
Sales
Human resources
Quality
Functions Of Enterprise
Enterprise
CHALLENGES
• Highly Competitive Markets
• Continually Changing Business Environment
• Need To Reduce Operating Costs
• Need To Integrate Operations
• Within Company
• Between Dispersed Operations
• Between Alliance Partners
• Increase Enterprise Financial Efficiency
• Increase Operational Efficiency
• Improve Customer Service & Response Time
Why ERP ?
Why ERP ? Eliminate Duplication Of
Work
Efficient Customer Response
Competitive Bidding
Efficient Inventory & Stock Control
Shop Floor Optimization & Production Planning
Reduce Errors & Mistakes
Improved & Consistent Quality Control
Efficient Invoicing & Ageing Control
Enterprise Wide Standard Discipline
Uniform SOP & Controls Across The Board
Timely & Reliable Documentation
Increased Transparency & Responsibility
Enterprise Wide Uniform Reporting
Preventive Approach Rather Than Reactive Approach
Facilitates Strategic Planning
Accurate & Real time Access To Data For Timely Decisions
General Perception ERP Is Very Expensive
High Failure Ratio
ERP Is Just To Impress Customers
ERP Will Make Employees Redundant & Jobless
ERP Means More Work & Procedures
ERP Slows Down The Organization
ERP Is Just For Manufacturing Organizations
ERP Is The Sole Responsibility Of The Management
ERP Is Just For The Managers & Decision Makers
ERP Is Just For The ERP Implementation Team
One ERP Package Will Suit Everybody
ERP Package Will Take Care Of Everything
One ERP Package Suits Everyone & Will Take Care Of Everything
ERP Implementation Is NOT AN IT PROJECT
ERP Implementation Is NOT BPR
50-60% Change & 40-50% Technology
Complete & Dedicated Management Support
Serious Organization Change
Fear Of Change
Effects Everyone In The Enterprise
Change In Roles & Responsibilities
Change In SOP
Ownership By All Stake Holders
Close Coordination & Collaboration
Quick Management Decisions
Require Quality Time From Everyone Involved
Intensive Training
Hardware & Technology Selection & Setup
Program Or Project ?
Ground Realities
Ground Realities
People 62%
Process 16%
Technology 9%
Knowledge Assets 3%
16%
8%
7%
7%
6%
6%
5%
4%
2%
8%
4%
2%
1%
4%
3%
2%
2%
1%
Organization Change
Internal Staff Adequacy
Project Team
Training
Prioritization/Resource Allocation
Top Management Support
Consultants
Ownership (of benefits to others)
Discipline
Program Management
Process Reengineering
Stage/Transition
Benefit Realization
Software Functionality
Application Portfolio Management
Enhancements/Upgrades
Data
Reporting
Note: Rounded percentages; not all categories are shown as bars
Top Issues Organizations Face During Enterprise Resource Planning
Product Or Development ?
In House Development
Long Time To Deploy
Highly Flexible
Poor Or No Adaption Of Best Practices
Inefficiencies Automated
Lack Of Documentation
Off The Shelf Product
Short Time To Deploy
Limited Flexibility
Adaption Of Best Practices
Homogenous Reporting
Inefficiencies Eliminated
Better Documentation
Which ERP ?
Bann Fujitsu Glovia International IFS J.D. Edwards MicroSoft Dynamics NETSUITE Oracle eBusiness Suite Peoplesoft Ross Enterprise SAGE SAP
Adempiere
BlueErp
Dolibarr
ERP5
Fedena
GNU Enterprise
HeliumV
JFire
Kuali
Foundation
LedgerSMB
OFBiz
Openbravo
OpenERP
Opentaps
Postbooks
SQL-Ledger
Tryton
WebERP
Proprietary Products Open Source Products
Some Of The ERP Products
ERP Software User Based License – One Time Upfront Cost
Software Maintenance – Yearly Recurring Cost 17 – 22%
Hardware Acquisition – One Time Upfront Cost
Maintenance – Yearly Recurring Cost
Data Communication Depends On Locations & Data Volume
Setup –Upfront One Time
Service – Monthly Recurring Cost
Training – Technical & Operations
Implementation Cost – Outsourced Or In-house Team
Customization – Depends On Situation
Incentives, Rewards & Celebrations
ERP Cost
How To Do It ?
Program Or Project ? A Program Is A Group Of Related Projects Managed In A Coordinated Way To Obtain Benefits And Control Not Available From Managing Them Individually
How To Do It ?
ERP Implementation Is A Program
First Project – Ground Work
Second Project – Selection Of Product & Technology Data Volume Estimation
Transaction Volume Estimation
Estimation Of Number & Type Of Users
Coverage Footprint & Road Map
Third Project Hardware Sizing
Disaster Recovery & Business Continuity
Sourcing & Procurement
Installation Of Software & Hardware
Testing & Upgrade / Update
How To Do It ?
Fourth Project Existing ICT Infrastructure & Gap Analysis
Revamping / Upgrade Of ICT Infrastructure Work Stations, Servers, Network etc.
Sizing For Data Communication
Network & Remote Connectivity
Network & Data Security
Fifth Project – OCM
Sixth Project – Training Need Analysis & Logistics
Seventh Project – ERP Implementation Multiple Teams
Mini Projects
How To Do It ?
How To Do It ? Ground Work
Questions To Ask Without Any Product In Mind
Why You Want ERP?
What Are The Management Expectations?
Differentiate Between Must Haves & Nice To Have
Clearly Define The Objective(s) & Expectations
Integrated On Line Real Time Information Systems
Improve Logistics Or Reduce Time To Deliver By 40%
Cut Down Time For Order To Manufacture Cycle By 20%
Reduce Inventory Cost By 20% - 40%
Reduce Receivable Ageing From Over 90 To 45 Days
Control Credit Limits For Single Distributor Working With Multiple Business Units
Discovery Mission - Document As Is Processes
Document Gaps Between As Is and Objectives
Know & Document “What We Want” Business Needs & Objectives
Future Business Plan & Vision For At Least 5 Years
Priorities
Organizational Readiness
Is BPR Required ?
Prepare Comprehensive RFP
Evaluate ERP Products For Best Fit
Most Importantly Who Will Implement? Outsource To Implementation Partner
Do It Yourself With In House Team
How To Do It ? Ground Work
Well Thought Of Strategy Big Bang Or Phased Roll Out For Global Program
Implementation Methodology PMI Framework AIM By Oracle ASAP By SAP
Common Components Of Implementation Methodology Program / Project Charter Team Structure, Roles & Responsibilities Strategies & Governance Standards Program Management & Project Plans Stake Holder Identification & Analysis As Is, To Be & Fit Gap Analysis Risk & Issue Management Technology Infrastructure Design & Deployment Training Programs & Logistics Data Preparation, Mapping & Conversion Quality Gates & Reviews Steering Committee Formation & Meetings
How To Do It ? Strategy & Methodology
Program Director
Project Manager(s)
Solution Architect
Technology Experts From IT – Certified On Selected Technology
Application Administrator
DBA
Security Expert
Network & Communication
Development Team
Functional Experts / Consultants – IT & Non IT
Certified On Respective Module / Technology
Relevant Educational Background
Relevant Industry Experience
Integration Manager
OCM Team & Change Agents
Subject Matter Experts From Business
Power Users Or Super Users From Business
How To Do It ? Typical Team
AIM By Oracle
Application Implementation Methodology
Phases Of AIM
Definition
Operations Analysis
Solution Design
Build
Transition
Production Ready Made Templates Including Project Plan
Guide Lines & Instructions
Software Tool
How To Do It ? Proprietary Methodologies
ASAP By SAP Accelerated SAP Methodology
ASAP And Global ASAP
Phases Of ASAP Program / Project Preparation
Business Blue Print
Realization
Final Preparation
Go Live & Support
Continuous Improvement
Ready Made Templates Including Project Plan
Guide Lines & Instructions
Software Tool
How To Do It ? Proprietary Methodologies
Initiation & Planning
Decision Announcement Implementation
Time
profits in productivity
losses in productivity
“Valley of tears”
DENIAL RESISTANCE EXPLORATION
Execution Closing
What will the future hold for
me? I can’t stand this anymore!
I will just wait and
see…
Maybe I will try and
change...
I will adopt a
new identity and new
behaviors.
Looking for a new
identity?
100%
How To Do It ? Typical Emotional Curve
How To Do It ?
Quality
Time Cost
Scope
Typical Triple Constraint For Any Program Also Applies To ERP Programs
Comments Or Suggestion
Welcome At
naumanmajeed@gmail.com
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