ERP implementation
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This presentation outlines steps for successful ERP implementation in firms by giving the example of ERP implementation at Omantel .
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ERP implementation
- 1. By Sourabh , 10HM30ERP IMplementation
- 2. Introduction to ERP systems and implementationERP Implementation stagesGuidelines for successful ERP implementationA case study : ERP implementation at OmanTelConclusion
- 3. INTRODUCTION TO ERP SYSTEMS AND IMPLEMENTATIONERP provides the managers with a comprehensive overview of the complete business executionERP thus influences their decisions in a productive way.
- 4. INTRODUCTION TO ERP SYSTEMS AND IMPLEMENTATIONImplementing an ERP system in an organization is an extremely complex process.
- 5. It may even take years to implement in a large organization.
- 6. Eventually necessitate significant changes on staff and work processes. INTRODUCTION TO ERP SYSTEMS AND IMPLEMENTATIONFirms implement ERP mainly for following reasons :1.Integrate Financial Information 2.Integrate Customer Order Information 3.Standardise and speed up manufacturing processes 4.Reduce inventory 5.Standardise HR information
- 7. ERP IMPLEMENTATION STAGES Shortlist on the basis of observation Assessing the chosen packages Preparing for the venture Gap Analysis Business process reengineering Designing the System In-house Guidance Checking The real test Preparing the employees to use ERP Post Implementation
- 8. 01.SHORTLISTING VENDORInvolves choosing few applications suitable for the company from the whole many
- 9. Selecting ERP software does not happen all on a sudden or as a result of an overnight's discussion
- 10. Things to be considered include :01.SHORTLISTING VENDORFlexible , scalable and reliable .
- 11. Promptness , accuracy .
- 12. Compatibility amongst the softwares
- 13. Credibility
- 14. Training provided02.ASSESSING THE CHOSEN PACKAGESA 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 ?
- 15. 03.PREPARING FOR THE VENTUREThis stage is aimed at defining the implementation of ERP in all measures.
- 16. 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.
- 17. Some guidelines are mentioned :04.GAP ANALYSISGap 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".
- 18. It provides to overcome /bridge the gap.05.BUSINESS PROCESS REENGINEERINGBPR analyses and suggests the structural changes. It’s a crucial step .
- 19. BPR is taken to conduct feasibility study and other restructuring exercises
- 20. The company can either restructure the business process itself or customize the ERP system so that it suits the business process.05.BUSINESS PROCESS REENGINEERINGImplementing 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 the business process to be ERP Friendly 1. Requires lots of monetary outlay 2. Employees may also face problems 3. The customers may face problems
- 21. 06.DESIGNING THE SYSTEMThis step helps to decide and conclude the areas where restructuring have to be carried on.
- 22. When modifications in ERP software is required, design work is critical.
- 23. The programmer has to be ready to make design changes during construction. 06.DESIGNING THE SYSTEMFactors to consider while designing : 1) Recruit qualified consultants. 2) Document the existing processes3) Diagram all the data flows in the system4)Design the new system and compare with requirements .5) Identify hardware and software.
- 24. 07.IN-HOUSE GUIDANCEThe employees in the company are trained to face crisis and make minor corrections as well The trainers employed in the company must be trained on ERP before taking it to the other set of employees. ERP training should be a continual process and not a one day affair.
- 25. 07.IN-HOUSE GUIDANCESome 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 4)Errors in administration 5)Lack of operational awareness
- 26. 08.CHECKINGThe system is subjected to the wildest tests possible so that it ensures proper usage and justifies the costs incurred. ERP Testing is a procedure that usually occurs before a company fully implements an ERP software package and the software goes live. It can help identify problem scenarios and training needs .
- 27. 08.CHECKING1)Preparations of evaluation metrics 2)Evaluating the work periodically 3)Following contracts terms 4)Evaluating ERP performance 5)Accurate Quantification to facilitate correct measure
- 28. 09.THE REAL TESTOnce development is completed, the true unit testing occurs. The designer must do integrated testing on all possible scenarios that may come out of the business process (different variations of the same process)Once unit testing is approved, then the solution can be delivered to the client for the ‘ go-live ‘phase .
- 29. 10.PREPARING THE EMPLOYEES TO USE ERPThe employees in the organization 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 .The firm must be prepared to look for alternatives to vendor supplied training.
- 30. 11.POST IMPLEMENTATIONThe process of implementation will find meaning only when there is regular follow up and proper instruction flow thereafter and through the lifetime of ERP .This will include all efforts and steps taken to update and attain better benefits once the system is implemented.Also conduct a post – implementation audit
- 31. 11.POST IMPLEMENTATIONERP Software Limitations1. Earlier best practices lost .2. Firm now constrained to ERP system3. ERP costs may be too much to bear4. Takes away decision making power from employees5. toy box effect
- 32. GUIDELINES FOR SUCCESSFUL ERP IMPLEMENTATION1.Implement changes in the firm for ERP properly2.Understand that ERP is a tool , not a cure-all3.ERP gap analysis and BPR should be performed properly4.IT facilities in the organization should be capable 5.The process should be carried on by competent personnel 6.ERP should become a part of the daily routine
- 33. ERP IMPLEMENTATION AT OMANTELOmantel 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 .
- 34. ERP IMPLEMENTATION AT OMANTEL : Some topics1.Stakeholder consultation :Omantel was committed to full consultation and transparency with not only its customers, but also with its competitors, and the regulator2.Vendor selection :Selection of Oracle was conducted through an evaluation workshop organised by the vendor evaluation team
- 35. ERP IMPLEMENTATION AT OMANTEL : Some topics3.Project management : 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.
- 36. Overall, responsibility was assigned to an Omantel project manager, while technical leadership and consultancy was provided by OracleERP IMPLEMENTATION AT OMANTEL : Some topics4.Stakeholder management and communication : Omantel sought to communicate and engage with all stakeholders and to provide advice on the likely impact of the proposed implementation.
- 37. ERP IMPLEMENTATION AT OMANTEL : Some topics5.Training : Overall, about 15 per cent of staff involved in the project did not receive any training at all.Those who did, did not practice and hence could not be productive .In addition, the talent pool available to Omantel was generally restricted.
- 38. ERP IMPLEMENTATION AT OMANTEL : Some topics6.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. Also no time appeared to have been allowed for any contingencies, late deliveries or significant failures in testing.
- 39. ERP IMPLEMENTATION AT OMANTEL : Some topics7.System testing and software customization : Product 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 following a problem identified during testing.
- 40. CONCLUSION ERP implementation is a long process involving high costsThe firm must be flexible enough to adapt to changes bought about by ERP Once ERP is implemented , the system’s operations must be carefully monitoredThere must be true knowledge and best practice transfer between the vendor and the firm This way ,a firm can get the most out of its ERP system .