bpr & erp part b

8/6/2019 BPR & ERP Part B

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ERP- BUILDING USING INTERNALRESOURCES- THE FACTS

Lack of adequate & qualified manpowerNot driven with clear focus on expectations, time & cost

Poor software project managementLack of seriousness with the Management & the IT TeamHigh employee turnoverLot of schedule gaps during Project execution

Normally project life is moreFrequent change in the scope with the approval of theManagement


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Tailor-made ERP solutions

Ab out this optionExecution PhasesERP product selection phase

Product selection - ParametersPreparation PhaseERP product acceptance - OptionsGap A nalysisProduction Phase

Implementation PhasePost-Implementation PhasePitfalls & Points of ConcernCritical Success factors


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AboutGeneralized off the shelf application s/w packagesModules b ased on rich functionalities for all b usiness

functionsUser tested with lot of installationsNo lead time requirement for software developmentTuned for more users/networks with adequate & in-b uilt security Parameterized for flexi b ility Can sit on latest hardware & software platformsUp gradation of functionalities with version control


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Execution phases

ERP product selection

PreparationsProduction

Implementation

Post-Implementation


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ERP Product selection Phase

ERP Team formation for selection A ppointment of Consultants [if needed]

Scoping study

Product selection

Implementation partners selection

Hardware/Communication cost estimation


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Product Selection - Parameters

Reputation of the ERP product

No.of installations in the geographical vicinity

% of the overall functional availa b ility

Customization possi b ilitiesA fter sales support

Your investment plan & b udget

Implementation partner s track record


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Technology

Support

Costs

5 Strategic5 StrategicRequirementRequirement

LevelsLevels

FunctionalityGoal:Goal:To select theTo select theMost Suitable SoftwareMost Suitable SoftwarePackage SolutionPackage Solution

Vendor

ERP Product selection Criteria


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ERP product acceptance - options

1. A dapting directly, all the functions availa b le inthe ERP Product [ A pplica b le for startup companies]

2. Change the way the firm does the b usiness to fitthe product [Compromising]

3. Customize the ERP product to suit the b usinessProcesses. [Customization]


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GAP Analysis

y This is the process to identity the gaps b y mappingy the expectations of the company with they capa b ilities of the ERP product

Results of Gap Analysis

D irectly Supported Workaround suggestedExtension requiredChange in b usiness process suggestedNot full supportedManual not under the scope of ERP


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Production Phase

Installing the software & hardware

Tuning the software to meet thecustomization needs

Master & Control data arrival as perthe Product data structures

Location & people specific roles & rightsallocation for module access & security


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Implementation Phase

Conference Room Pilot [Parallel run]

Resolving the Parallel run issues

Training the end users

Live run


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Pitfalls & Points of concern

Costly comparing to custom- b uilt optionsLot of hidden costsChances of cost & time overrun are high

The Level of customizationCompulsion to pay for redundant modules/features

Vigorous involvement of all during implementationNon-availa b ility of special practices like CustomerComplaint, Logistics

Linking historical data offline & painfulThe requirement of Change Management is a mustD ependency on outsiders is highIT department Poor grip on the Implemented systems


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Building ERP Using External sources

Ab out this option

The Principle!

The Steps

Why?

Points of Concern

Software Vendor selection

Critical Success factors


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Abouty Here the whole package is designed & b uilt

D

By keeping a specific enterprise & itsb

usinessPractices in mind (customization)D By incorporating the improvements/additionsD With due integrationD Without compromising or changing the current way

of doing the b usiness andD Providing f lexi b ility to accommodate your b usiness

fluctuations


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The Principle!

The b est as seen elsewhere, need not b e the b estfor you.

What is your b est is what can b e successfully implemented


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The Steps

1. Software vendor selection2. D etailed study b y the vendor

3. Scope & platform finalization4. Freezing the commercials5. D evelopment6. Hardware addition/Up gradation

7. Old master/transaction data migration8. Parallel run with Integration & connectivity check9. Implementation10 . Maintenance


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Key ProcessIntegration

via ERP Product

LifecycleManagement

Supply ChainManagement

Customer Management

Supplier Collaboration

DesignPartners

Consumersand Channels

Beyond ERP


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Characteristics of Business ProcessReengineering

y Several job s are com b ined into one

y Employees make decisions

y Steps in b usiness process: natural order

y Process may have multiple versions

y Work is performed where it makes the most sense


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Characteristics of Business ProcessReengineering

y Controls, checks, other no value-added work isminimized

y Reconciliation is minimized - minimize externalcontact points

y Hy b rid centralized / decentralized operation is used

y A single point of contact is provided for the customer


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Business Process Reengineering andRestructuring the Organization

y Redesign of processes

y From mass production to mass customization

y Cycle time reduction

y Restructuring organizations

bpr & erp part b

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