1. M0254 - ERP (Enterprise Resources Planning)
Session 9 - ERP Implementation
Ir. Ekananta Manalif, MM, MKom (D2664)
Jurusan Sistem Informasi Universitas Bina Nusantara

2. ERP Solution Components
From a very high level perspective costs will lay out approximately like this - rule of thumb only...
M0254 Enterprise Resources Planning ©2004

3. ERP Implementation Involves
Project Planning
Business & Operational Analysis, including Gap Analysis
Business Process Re-engineering (BPR)
Installation & Configuration
Project Team Training
Business Requirements Mapping to Software
Module Configuration
System Modification and Interfaces
Data Conversion
Custom Documentation
End User Training
Conference Room Pilot
Acceptance Testing
Production
Post-Implementation Audit/Support
M0254 Enterprise Resources Planning ©2004

4. M0254 Enterprise Resources Planning ©2004
ERP Implementation
Commitment from Management
Form a task force with personnel from all functional Areas
Take care of Hardware requirements
Step-by-step rather than big-bang introduction
Be patient, ERP implementation takes Time
M0254 Enterprise Resources Planning ©2004

5. M0254 Enterprise Resources Planning ©2004
Prepare Base for ERP
Do not start without Management commitment
Allocate sufficient funds
Identify Core Project Team
Select specialists from all functional areas
Evaluate and select ERP package
Evaluate Implementation Partner
Make an Implementation Plan
Present plan to Management Committee for sanctions
Present plan to Employee groups for feedback/acceptability
Plan for User Training
Plan for Future upgrades
M0254 Enterprise Resources Planning ©2004

6. ERP Implementation Activities
Manage It...
Prime Contractor Project Management
Detailed Project planning and Tracking
Communications Plan
Subcontractor management
Project Scope Control
Financial Control
Project Oversight and Quality Assurance Reviews
Change It...
Change Mgment
Business Vision and Goals
Process Analysis
Package Select .
Business Case
Bus. Process Reengineering
Industry Best Practices
As Is /To Be Process Modeling
Fit-Gap Analysis
Policy Design and Procedure Dev.
Readiness Assessment
Organizational Design
Communications Plan
Implement It..
Operate It...
Data Center Operations
Application Development & Maintenance
Network Station Management
Network Operations & Support
Service It...
Platforms & Technology Services
Installation/ Customization & Maintenance
Performance and Tuning
Software Services
Planning/Design/ Install
Migration Management
Problem Mgmt.
Systems Mgmt.
Internet Enablement
Web Site Design
Help Desk
Disaster Recovery
Business Resumption Services
Teach It...
Training Needs Assessment
Custom Curriculum and Material Development
CBT Development
End User Training Classes
Train-the-Trainers
Roll-out of Training
Package Integration (SAP,PeopleSoft, JDE, Oracle...)
Software Environment Builds
Enterprise-wide Infrastructure Planning/Design & Roll-out
Interfaces and Conversions
Data Warehouse Integration
E-Business
Business Intelligence
Networking
Design
Implementation
Tuning
It is important to recognize all of the different kinds of activities it takes to implement an ERP solution.
This is a bit of an "eye chart" but it makes the point that this is a complex undertaking. The State needs to make sure it understands how its resources will need to participate in these activities and what type of support you will need from your selected vendor for these areas. You should make sure your selected prime contractor can address all of these areas.
Everyone focuses on the technical tasks but the management, business transformation, and training activities are equally important.
Some customers will include "operate it" as an outsourced or network application solution. Others won't want this option.
All of the other categories must be part of an ERP implementation. We're going to talk in more detail about 3 of these areas.
M0254 Enterprise Resources Planning ©2004

7. M0254 Enterprise Resources Planning ©2004
Define Requirements
Determine the hardware required.
Analyze the existing Processes.
Fine tune the processes to be in line with those of ERP defined.
Analyze effect of system changes.
Prototype and present.
Refine the prototype & freeze the specifications.
M0254 Enterprise Resources Planning ©2004

8. ERP Implementation Sustain Evaluation Project Preparation Realization
Business Case and Project Proposal
Project Charter
Project Preparation
Business Blueprint
Configured and Tested System
Realization
Production System and Ready Organization
Final Preparation
Help Desk and Support Organization
Go Live and Support
Sustain
Business Benefits and Continuous Improvement
This is the lifecycle and key deliverables as presented in ASAP
M0254 Enterprise Resources Planning ©2004

9. M0254 Enterprise Resources Planning ©2004
ERP Consultants
How does a consultant steer a client through an ERP implementation?
Identify what you want improved, set goals, and calculate benefit
Define standard procedures
Plan for rollout far before it happens
Set milestones
Train everyone
Don’t forget your customers
M0254 Enterprise Resources Planning ©2004

10. Re-engineering - a part life with ERP
Re-engineer process before going for ERP
Re-engineer during implementation of ERP
Re-engineer after implementing ERP
Continuous re-engineering through ERP
M0254 Enterprise Resources Planning ©2004

11. ERP without Re-engineering
Advantages
No visible changes in Functionality
Users find it more acceptable
Can be completed within time frame.
Cost can be with in your control
Impact on Organization will be moderate
Disadvantages
Best Business practices would have been ignored
Stability of the system is known only in long run
May not achieve Corporate wide systems integration
New technologies have to be studied your self
Some functionality may be lost
M0254 Enterprise Resources Planning ©2004

12. M0254 Enterprise Resources Planning ©2004
Re-Engineering
Study the current system & Processes
Design and develop new systems
Define Process, organization structure, procedures
Develop/Customize the software
Train people
Implement new system
M0254 Enterprise Resources Planning ©2004

13. Business Process Re-Engineering (BPR)
In-depth study of existing systems/processes is required before ERP is considered.
This study brings out deficiencies of the existing system/process.
This study is called BPR.
BPR attempts to re-structure and re-organize the human resources, functional areas, Man-Machine interfaces in the organization.
Hence BPR attempts to maximize productivity.
M0254 Enterprise Resources Planning ©2004