What Is ERP?

Why ERP?

General Perception

Ground Realities

Product Or Development?

Which ERP?

ERP Cost

How To Do It?

What Is ERP?

Enterprise Resource Planning

Integration Of Business Management Practices & Modern Technology

Enterprise Wide Standard Business Controls & Ops.

Enterprise Wide Integrated Information Systems

What Is ERP?

Module Consist Of Programs For A Business Process

Some ERP Applications Are Independent Of Database

ERP Has Controlled Data Base Model / Schema & Tables

Basic ERP For All Standard Business Operations

Industry Specific Solution

Business Intelligence (BI)

legal

Inventory

Finance

Maintenance

Engineering Design

Controlling

Production Planning

Sales

Human resources

Quality

Functions Of Enterprise

Enterprise

CHALLENGES

• Highly Competitive Markets

• Continually Changing Business Environment

• Need To Reduce Operating Costs

• Need To Integrate Operations

• Within Company

• Between Dispersed Operations

• Between Alliance Partners

• Increase Enterprise Financial Efficiency

• Increase Operational Efficiency

• Improve Customer Service & Response Time

Why ERP ?

Why ERP ? Eliminate Duplication Of

Work

Efficient Customer Response

Competitive Bidding

Efficient Inventory & Stock Control

Shop Floor Optimization & Production Planning

Reduce Errors & Mistakes

Improved & Consistent Quality Control

Efficient Invoicing & Ageing Control

Enterprise Wide Standard Discipline

Uniform SOP & Controls Across The Board

Timely & Reliable Documentation

Increased Transparency & Responsibility

Enterprise Wide Uniform Reporting

Preventive Approach Rather Than Reactive Approach

Facilitates Strategic Planning

Accurate & Real time Access To Data For Timely Decisions

General Perception ERP Is Very Expensive

High Failure Ratio

ERP Is Just To Impress Customers

ERP Will Make Employees Redundant & Jobless

ERP Means More Work & Procedures

ERP Slows Down The Organization

ERP Is Just For Manufacturing Organizations

ERP Is The Sole Responsibility Of The Management

ERP Is Just For The Managers & Decision Makers

ERP Is Just For The ERP Implementation Team

One ERP Package Will Suit Everybody

ERP Package Will Take Care Of Everything

One ERP Package Suits Everyone & Will Take Care Of Everything

ERP Implementation Is NOT AN IT PROJECT

ERP Implementation Is NOT BPR

50-60% Change & 40-50% Technology

Complete & Dedicated Management Support

Serious Organization Change

Fear Of Change

Effects Everyone In The Enterprise

Change In Roles & Responsibilities

Change In SOP

Ownership By All Stake Holders

Close Coordination & Collaboration

Quick Management Decisions

Require Quality Time From Everyone Involved

Intensive Training

Hardware & Technology Selection & Setup

Program Or Project ?

Ground Realities

Ground Realities

People 62%

Process 16%

Technology 9%

Knowledge Assets 3%

16%

8%

7%

7%

6%

6%

5%

4%

2%

8%

4%

2%

1%

4%

3%

2%

2%

1%

Organization Change

Internal Staff Adequacy

Project Team

Training

Prioritization/Resource Allocation

Top Management Support

Consultants

Ownership (of benefits to others)

Discipline

Program Management

Process Reengineering

Stage/Transition

Benefit Realization

Software Functionality

Application Portfolio Management

Enhancements/Upgrades

Data

Reporting

Note: Rounded percentages; not all categories are shown as bars

Top Issues Organizations Face During Enterprise Resource Planning

Product Or Development ?

In House Development

Long Time To Deploy

Highly Flexible

Poor Or No Adaption Of Best Practices

Inefficiencies Automated

Lack Of Documentation

Off The Shelf Product

Short Time To Deploy

Limited Flexibility

Adaption Of Best Practices

Homogenous Reporting

Inefficiencies Eliminated

Better Documentation

Which ERP ?

Bann Fujitsu Glovia International IFS J.D. Edwards MicroSoft Dynamics NETSUITE Oracle eBusiness Suite Peoplesoft Ross Enterprise SAGE SAP

Adempiere

BlueErp

Dolibarr

ERP5

Fedena

GNU Enterprise

HeliumV

JFire

Kuali

Foundation

LedgerSMB

OFBiz

Openbravo

OpenERP

Opentaps

Postbooks

SQL-Ledger

Tryton

WebERP

Proprietary Products Open Source Products

Some Of The ERP Products

ERP Software User Based License – One Time Upfront Cost

Software Maintenance – Yearly Recurring Cost 17 – 22%

Hardware Acquisition – One Time Upfront Cost

Maintenance – Yearly Recurring Cost

Data Communication Depends On Locations & Data Volume

Setup –Upfront One Time

Service – Monthly Recurring Cost

Training – Technical & Operations

Implementation Cost – Outsourced Or In-house Team

Customization – Depends On Situation

Incentives, Rewards & Celebrations

ERP Cost

How To Do It ?

Program Or Project ? A Program Is A Group Of Related Projects Managed In A Coordinated Way To Obtain Benefits And Control Not Available From Managing Them Individually

How To Do It ?

ERP Implementation Is A Program

First Project – Ground Work

Second Project – Selection Of Product & Technology Data Volume Estimation

Transaction Volume Estimation

Estimation Of Number & Type Of Users

Coverage Footprint & Road Map

Third Project Hardware Sizing

Disaster Recovery & Business Continuity

Sourcing & Procurement

Installation Of Software & Hardware

Testing & Upgrade / Update

How To Do It ?

Fourth Project Existing ICT Infrastructure & Gap Analysis

Revamping / Upgrade Of ICT Infrastructure Work Stations, Servers, Network etc.

Sizing For Data Communication

Network & Remote Connectivity

Network & Data Security

Fifth Project – OCM

Sixth Project – Training Need Analysis & Logistics

Seventh Project – ERP Implementation Multiple Teams

Mini Projects

How To Do It ?

How To Do It ? Ground Work

Questions To Ask Without Any Product In Mind

Why You Want ERP?

What Are The Management Expectations?

Differentiate Between Must Haves & Nice To Have

Clearly Define The Objective(s) & Expectations

Integrated On Line Real Time Information Systems

Improve Logistics Or Reduce Time To Deliver By 40%

Cut Down Time For Order To Manufacture Cycle By 20%

Reduce Inventory Cost By 20% - 40%

Reduce Receivable Ageing From Over 90 To 45 Days

Control Credit Limits For Single Distributor Working With Multiple Business Units

Discovery Mission - Document As Is Processes

Document Gaps Between As Is and Objectives

Know & Document “What We Want” Business Needs & Objectives

Future Business Plan & Vision For At Least 5 Years

Priorities

Organizational Readiness

Is BPR Required ?

Prepare Comprehensive RFP

Evaluate ERP Products For Best Fit

Most Importantly Who Will Implement? Outsource To Implementation Partner

Do It Yourself With In House Team

How To Do It ? Ground Work

Well Thought Of Strategy Big Bang Or Phased Roll Out For Global Program

Implementation Methodology PMI Framework AIM By Oracle ASAP By SAP

Common Components Of Implementation Methodology Program / Project Charter Team Structure, Roles & Responsibilities Strategies & Governance Standards Program Management & Project Plans Stake Holder Identification & Analysis As Is, To Be & Fit Gap Analysis Risk & Issue Management Technology Infrastructure Design & Deployment Training Programs & Logistics Data Preparation, Mapping & Conversion Quality Gates & Reviews Steering Committee Formation & Meetings

How To Do It ? Strategy & Methodology

Program Director

Project Manager(s)

Solution Architect

Technology Experts From IT – Certified On Selected Technology

Application Administrator

DBA

Security Expert

Network & Communication

Development Team

Functional Experts / Consultants – IT & Non IT

Certified On Respective Module / Technology

Relevant Educational Background

Relevant Industry Experience

Integration Manager

OCM Team & Change Agents

Subject Matter Experts From Business

Power Users Or Super Users From Business

How To Do It ? Typical Team

AIM By Oracle

Application Implementation Methodology

Phases Of AIM

Definition

Operations Analysis

Solution Design

Build

Transition

Production Ready Made Templates Including Project Plan

Guide Lines & Instructions

Software Tool

How To Do It ? Proprietary Methodologies

ASAP By SAP Accelerated SAP Methodology

ASAP And Global ASAP

Phases Of ASAP Program / Project Preparation

Business Blue Print

Realization

Final Preparation

Go Live & Support

Continuous Improvement

Ready Made Templates Including Project Plan

Guide Lines & Instructions

Software Tool

How To Do It ? Proprietary Methodologies

Initiation & Planning

Decision Announcement Implementation

Time

profits in productivity

losses in productivity

“Valley of tears”

DENIAL RESISTANCE EXPLORATION

Execution Closing

What will the future hold for

me? I can’t stand this anymore!

I will just wait and

see…

Maybe I will try and

change...

I will adopt a

new identity and new

behaviors.

Looking for a new

identity?

100%

How To Do It ? Typical Emotional Curve

How To Do It ?

Quality

Time Cost

Scope

Typical Triple Constraint For Any Program Also Applies To ERP Programs

Comments Or Suggestion

Welcome At

naumanmajeed@gmail.com