By Sourabh , 10HM30

Click to edit Master subtitle style

ERP IMplementation
5/1/12

1.

Introduction to ERP systems and implementation ERP Implementation stages Guidelines for successful ERP implementation A case study : ERP implementation at OmanTel

1.

1.

1.

5/1/12

INTRODUCTION TO ERP SYSTEMS AND IMPLEMENTATION

ERP provides the managers with a comprehensive overview of the complete business execution thus influences their decisions in a productive way.

ERP

5/1/12

INTRODUCTION TO ERP SYSTEMS AND IMPLEMENTATION

Implementing an ERP system in an organization is an extremely complex process. may even take years to implement in a large organization. necessitate significant on staff and work

It

Eventually
5/1/12

changes

INTRODUCTION TO ERP SYSTEMS AND IMPLEMENTATION

Firms

implement ERP mainly for following reasons : 1.Integrate Financial Information

2.Integrate Information

Customer

Order

3.Standardise and speed up manufacturing processes

5/1/12

4.Reduce inventory

ERP IMPLEMENTATION STAGES on the basis of observation 1. Shortlist

2. 3. 4. 5. 6. 7. 8. 9.

Assessing the chosen packages Preparing for the venture Gap Analysis Business process reengineering Designing the System In-house Guidance Checking The real test

5/1/12

01.SHORTLISTING VENDOR
Involves

choosing few applications suitable for the company from the whole many ERP software does not happen all on a sudden or as a result of an overnight's discussion to be considered include :

Selecting

Things
5/1/12

01.SHORTLISTING VENDOR
Flexible

, scalable and reliable . , accuracy . amongst the softwares

Promptness

Compatibility

Credibility

Training 5/1/12

provided

02.ASSESSING THE CHOSEN PACKAGES

A

team of experts will test and assess the package on 2 parameters : 1. Is it apt for the range of application in their field ?

2. What is the level of coordination that the software will help to achieve in working with other departments ?
5/1/12

03.PREPARING FOR THE VENTURE

This stage is aimed at defining the implementation of ERP in all measures.

A team of officers will lay down the stipulations and criteria to be met and will report to the person of the highest hierarchy in the organization. Some guidelines are mentioned :

5/1/12

04.GAP ANALYSIS

Gap analysis basically identifies analyses and as well suggests a sequence of steps to be followed after taking into account "What ought to be "and "what actually exists". It provides to overcome /bridge the gap.

5/1/12

05.BUSINESS PROCESS REENGINEERING

BPR analyses and suggests the structural changes. Its a crucial step . BPR is taken to conduct feasibility study and other restructuring exercises

The company can either restructure the business process itself or customize the ERP system so that it 5/1/12 suits the business process.

05.BUSINESS PROCESS REENGINEERING

Implementing ERP Software to Suit Business Needs 1. A very costly affair for the firm .

2. Needs persons with greater working knowledge to design the systems. 3. The process will also require frequent updations.
Restructuring 5/1/12

the business process

06.DESIGNING THE SYSTEM

This step helps to decide and conclude the areas where restructuring have to be carried on. When modifications in ERP software is required, design work is critical. The programmer has to be ready to make design changes during construction.

5/1/12

06.DESIGNING THE SYSTEM

Factors to consider while designing : 1) Recruit qualified consultants. 2) Document the existing processes 3) Diagram all the data flows in the system
5/1/12

07.IN-HOUSE GUIDANCE
The

employees in the company are trained to face crisis and make minor corrections as well trainers employed in the company must be trained on ERP before taking it to the other set of employees.

The

ERP

training should be a continual process and not a one day affair. 5/1/12

07.IN-HOUSE GUIDANCE

Some common mistakes that take place in ERP training : 1)Too much emphasis on technical aspects 2)Does not address business issues 3)Less importance to training
5/1/12

4)Errors in administration

08.CHECKING
The

system is subjected to the wildest tests possible so that it ensures proper usage and justifies the costs incurred. Testing is a procedure that usually occurs before a company fully implements an ERP software package and the software goes live. can help identify problem scenarios

ERP

It

5/1/12

08.CHECKING

1)Preparations of evaluation metrics 2)Evaluating the work periodically 3)Following contracts terms 4)Evaluating ERP performance

5)Accurate Quantification to facilitate correct measure

5/1/12

09.THE REAL TEST

Once

development is completed, the true unit testing occurs. designer must do integrated testing on all possible scenarios that may come out of the business process (different variations of the same process)

The

Once

unit testing is approved, then the solution can be delivered to the client for the go-live phase . 5/1/12

10.PREPARING THE EMPLOYEES TO USE ERP employees in the organization The

will be taught to make use of the system in the day to day and regular basis so as to make sure that it becomes a part of the system in the organization . firm must be prepared to look for alternatives to vendor supplied training.

The

5/1/12

11.POST IMPLEMENTATION

The process of implementation will find meaning only when there is regular follow up and proper instruction flow thereafter and through the lifetime of ERP . will include all efforts and steps taken to update and attain better benefits once the system is implemented. conduct a post

This

5/1/12 Also

11.POST IMPLEMENTATION
ERP Software Limitations 1. Earlier best practices lost . 2. Firm now constrained to ERP system 3. ERP costs may be too much to bear 4. Takes away decision making power from employees
5/1/12

GUIDELINES FOR SUCCESSFUL ERP IMPLEMENTATION

1.Implement changes in the firm for ERP properly 2.Understand that ERP is a tool , not a cureall 3.ERP gap analysis and BPR should be performed properly
5/1/12

ERP IMPLEMENTATION AT OMANTEL

Omantel commissioned the ERP project for two major reasons. 1. To ensure that it was ready for the anticipated liberalisation of the Omani telecommunications industry by upgrading its capabilities . 2. A need to position itself to be able to meet national development requirements as identified by the United Nations . 5/1/12

ERP IMPLEMENTATION AT OMANTEL : Some topics consultation : 1.Stakeholder

Omantel

was committed to full consultation and transparency with not only its customers, but also with its competitors, and the regulator

2.Vendor selection :
Selection

of Oracle was conducted through an evaluation workshop 5/1/12 organised by the vendor evaluation

ERP IMPLEMENTATION AT OMANTEL : Some topicsmanagement : 3.Project

o

The Omantel staff expressed concerns that the Oracle consultants seemed to have no time, or were unwilling, to share knowledge with the Omantel technical project staff. Overall, responsibility was assigned to an Omantel project manager, while technical leadership and consultancy was provided by Oracle
o

5/1/12

ERP IMPLEMENTATION AT OMANTEL : Some topics

4.Stakeholder management communication :
Omantel

and

sought to communicate and engage with all stakeholders and to provide advice on the likely impact of the proposed implementation.

5/1/12

ERP IMPLEMENTATION AT OMANTEL : Some topics : 5.Training

Overall,

about 15 per cent of staff involved in the project did not receive any training at all. who did, did not practice and hence could not be productive . addition, the talent pool available

Those

In 5/1/12

ERP IMPLEMENTATION AT OMANTEL : Some topics 6.Risk management :

There

was an over-reliance on Oracle to resolve technical queries. At the same time, precise details of the new systems were not clearly articulated. no time appeared to have been

Also 5/1/12

ERP IMPLEMENTATION AT OMANTEL : Some topics

7.System testing customization :
Product

and

software

and service offerings required changes either because

1) the requirement for change had been identified before testing began and had not been sufficiently addressed 2)changes had to take place 5/1/12 following a problem identified during

CONCLUSION

ERP

implementatio n is a long
5/1/12

5/1/12