Principles of an ERP Implementation Objectives Describe the life cycle of an ERP implementation Identify the different phases of an ERP life cycles Identify the activities carried out in each phase Define the pre-implementation methods and strategies

Life Cycle Phases of an ERP Ex ante Evaluation Configuration and Roll-out Go Live Implementation Onward and Upward Run Phase

Life Cycle Phases of an ERP

Life Cycle Phases of an ERP 1- Ex ante evaluation Phase: Setting the objectives and implementation approach The decision to go / not to go to next phase is established (Technology fit/ risk analysis/ cost- benefit analysis) Establish a structured approach for the implementation (The seen of the whole project is set in this phase) 2- Configuration and Rollout: Business logic is built into the ERP Existing system/ ERP data conversion Future users are trained Configuration and Rollout methods: Accelerated SAP Stepwise (Intentia / Movex)

Life Cycle Phases of an ERP 3- Go live ( Production start): Users start working with the ERP Implementation partner finalizes its work Server provider keep ERP up and running 4- Onward and Upward: ERP is kept up and running Users are supported New implementations are carried out regularly: New ERP versions New modules New subsidiaries start using the ERP Each new project in Onward and Upward has: Ex ante evaluation, configuration rollout, go live, and onward& upward

Pre-implementation Principles Pre-selection of potential suppliers Sourcing basis Rollout strategy Go live strategy

The Pre-selection of suppliers, implementation partner and application service provider Shortlisting is done as follows: Long list ERP supplier is established ( International or country representative) Organization objectives and information is sent to the potential suppliers ERP suppliers is invited to give presentation / reference visit ERP supplier is requested to identify: implementation partner and application service provider Suppliers presentations are evaluated. Suppliers are shortlisted. Implementation partner and service provider are shortlisted

Supplier, Implementation partner, and Service provider Shortlisting (Cont.) Implementation partner Interview: Methods and the quality of their implementation consultants Application service provider Interview: Availability Reliability Pre-selection Supplier, Implementation partner, and Service provider

Turn-key / Do-it-yourself Sourcing bases: Turn-key / Do-it-yourself Activities between the organization and its application partner The quality of implementation partner contribute to the success of ERP implementation Turn-key involves: Configuration Interfacing between the ERP and existing systems Data conversion Advantages: Quick progress Optimal use of ERP functionality Disadvantages: Extra time required for knowledge transfer Dependence on the implementation consultant Missing organization-specific requirements

Turn-key / Do-it-yourself Sourcing bases: Turn-key / Do-it-yourself Activities between the organization and its application partner The quality of implementation partner contribute to the success of ERP implementation Do-it-yourself: The employees will do ( as they could reasonably do) Configuration Interfacing between the ERP and existing systems Data conversion Consolation partner will supply the expert knowledge of the ERP Advantages: Commitment Optimal knowledge of business processes Cheaper Disadvantages: Slower Risk of losing expert employees

Turn-key / Do-it-yourself Sourcing bases: Turn-key / Do-it-yourself The Mixed Approach

Model Building Strategy One Instance Strategy One configuration model independent geographical location or market. Same IT infrastructure ( Would cloud computing help?) Enforced standardization ( Organizational isomorphism) Kernel Strategy First step: Kernel model is created on corporate or staff divisions level. Second Step: Each geographical or functional units extends its business logic to the kernel model Standardization is enforced in the Kernel model Multi model Each unit has its own instance model Standardization is not enforced Give an example of this strategy

Go- Live Strategy Big Bang strategy Fall back strategy Old applications are stopped All users start using the new ERP functions at the same time Fall back strategy Old systems and new ERP work together. ERP is evaluated, and accordingly old systems shut down By Function Strategy Certain function go ERP first ( mostly finance) Other functions follow if the ERP function is stable Small Bang Strategy Per market , per process, or per location