ERP Implementation Choices

ERP Implementation Choices
ERP Implementation Methodologies SAP Implementation Methodology (ASAP) Strategic Implementation Decisions
SUMMER 2005 JUNE 6-10 2005

SUMMER 2005 JUNE 6-10 2005
ERP Implementation Phases

Can be used for any ERP implementation Based on Project Management Methodology

Project Initiation Planning Controlling Execution Closeout
IST 600 ERP Systems: Key Implementation Issues
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ERP Implementation Phases
According to Ross:
Markus and Tanis:
Design Implementation Stabilization Continuous Improvement Transformation
Chartering Project Shakedown Onward and Upward
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SUMMER 2005 JUNE 6-10 2005
SAP Implementation Timeline
Accelerated SAP (ASAP) Implementation Methodology
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What is ASAP Methodology?
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Project Success With ASAP Meth.
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Phase-1 Project Preparation
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Phase- 2 Business Blueprint
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Phase-3 Realization
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Project Plan Outline for Realization
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Phase-4 Final Preparation
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Phase-5 Go Live & Support
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SUMMER 2005 JUNE 6-10 2005
Strategic ERP Implementation Choices
Timeline

Big Bang Implementation Pros and Cons? Phased (Roll Out) Implementation Mini Big Bang (Combination of big bang and roll-out) Outsourcing In-house
Pros and Cons?
Staff/Resources

Customization Level
Pros and Cons?
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Customization in ERP Environment
Technical Customization
Process Customization
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ERP Technical Customization
Davenport:
Brehm, et.al. :
Module Selection Table Configuration Code Modification
Configuration Bolt-ons Screen masks (eg: 3 screens into 1) Extended Reporting Workflow Programming User Exits ERP Programming (eg: ABAP/4) Interface Development Package Code Modification
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Module Selection

Implement one or more modules Default configuration of the vendor May be appropriate for small companies Rarely sufficient for many companies
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Configuration
Configuration: Changing parameters in tables in SAP R/3 SAP promises that configuration specifications will transfer without problems to later versions of their software SAP calls configuration customization
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Configuration in SAP R/3: SPRO
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The Implementation Guide (IMG)
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Defining Companies
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Code Modification (Customization)
Customization: Changing code in SAP R/3. Today such changes are done in a programming language developed by SAP called ABAP/4.
(In future it will also be possible in J2EE.)
May involve defining new database tables It is possible to make changes to the code that SAP will not support. Future upgrades will need to be re-customized (expensive).
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Process Customization
Process Customization: The degree to which the business process is changed to fit the system. Business process:

Tasks Resources Outcome Relationships among tasks Relationships among resources and tasks
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Process Customization Categories
No change
Change in tasks and resources No changes in relationships among task and configuration of resources Eg: Task automation
Improvements in tasks and resources Improvements in relationships among tasks Improvements in relationships among tasks and resources. Nature of process and outcome measures unchanged Eg: Total Quality Management (TQM)
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Incremental change

Process Customization Categories
Radical Change
Fundamental rethinking and radical redesign of elements in a business process including measures of performance Eg: Business Process Reengineering Eg: Move from functional view of organizations to process view of orgs.
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ERP Customization Choices
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Questions?
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Sources

Kenny Leung- SAP Summit 2005 Hong Kong Luo, W., & Strong, D. M. (2004). A framework for evaluating erp implementation choices. IEEE Transactions on Engineering Management, 51(3), 322-333.
Brehm, Heinzl, and Markus, Tailoring ERP Systems: A Spectrum of Choices, 2000
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Some Terminology
Basis Software. The R/3 Basis is similar to an operating system that specifically has the capability of processing any of the SAP R/3 transactions. Its a middleware between the operating system and the servers that allow for smooth operations across different servers, operating systems, and databases. ABAP: Advanced Business Application Programming (ABAP/4), is a special-purpose, fourth generation language developed by SAP, is used to write programs for the specialized requirements of creating custom reports, screens, user-defined functions, and special industry solutions for use with the SAP R/3 System.
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What is SAP Netweaver?
A comprehensive integration and application platform, SAP NetWeaver works with your existing IT infrastructure to enable and manage change. SAP NetWeaver embraces Internet standards such as

HTTP, XML, and Web services. Ensuring openness and interoperability with Microsoft .NET and Java 2 Platform Enterprise Edition (J2EE) environments such as IBM WebSphere.
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ERP Implementation Choices

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ERP Implementation Choices

SUMMER 2005 JUNE 6-10 2005