csf s for erp implementation

8/13/2019 CSF s for ERP Implementation

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PGDM IB

Bindhya Narayanan 31Varun Sethumadhavan 45Divyambal VV - 57


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Source: Raymond (2004)


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It is important to define success for ERP

Optimal cost and risk of these valuable

technological investments vis-a-vis the potentialpayoffs.

Optimal success measured against a portfolio ofproject, early operational and long-term businessmetrics.

Optimal success measured for readiness towardsdynamic business.


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Source: Holland and Light (1999)


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ERP implementation : matter of repositioning thecompany and transformingthe business practices

Top management needs to identify the project as a

top priority publicly and explicitly, to set up thesuitable and competent project team, to share therole of new systems and structures through the

whole organization.

Two issues that should be emphasized in thefunction of top management support.

Business plan Financial budgets


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Business fit - An organization will try to purchase the packagethat fits best into its business process.

Modifying the software to fit the business means that it is

possible that any potential benefits from reengineering businessprocesses will not be achieved

The extentof customization determines the length of theimplementation. Custom modification may be an option to reduce the gap

between the system capability and the business practice, whichallows the customer to enhance the capability of the system Too much modification leads to a complex system difficult to

support and virtually impossible to upgrade to the newest

version of the software


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When should we implement the ERP systems and howlong shall we expect the installation job will be done?

Managers should consider its own business implications

and organizational resources, and then make areasonable schedule of implementation plan.

The length of implementation is affected to a great extentby the

1. number of modules being implemented2. the scope of the implementation (different functional

units or across multiple units spread out globally)

3. the extent of customization

4. the number of interfaces with other applications


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Encapsulates the existing business processes,organisation structure culture and informationtechnology Determines the amount of IT and organisationalchange required to successfully implement an ERP

system

Business and IT legacy are not separate problems

since many components of a business (e.g. work

flow and processes) are bound up in the design and

operation of the existing IT systems.


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Project schedule/plans is the formal definition of the project in

terms of milestones, critical paths and a clear view of the

boundary of the project.

Poorly planned schedules growth in the scale of the project (to

include all parts of the business) and the geographic complexity

of designing common systems across could cause delay

A clear business vision for the project - give the project direction

and scope. Without this, implementation is likely to be lengthy, costly and the

result misaligned with the organisation's overall strategic vision

Also ensures that an appropriate ERP strategy is selected


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Companies at the beginning of ERP Project

ERP Software Configuration different from CustomizedSystem

Software not to be modified as it reduces s/wfunctionality and increase in error possibility

Process to be simplified to eliminate redundant activities

IT systems

Current Business

Process withexisting ITsystems

Business processcontained within

ERP system


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Focus Areas for ERPs success:-

2 1 Team Composition

Multidisciplinary, dedicated teams

IT specialists + key users & operations

personnel + consultants with process redesign

& change mgmt skills

Requires time & effort


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User Resistance

Reengineered workers-grievance process

Changes in staff relationships

Requirement of managers soft skills

Users should take part in the activities of project

selection

Companies develop formal communication plans and

issue regular reports to achieve a higher level of

acceptance on ERP project.


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ERPs greatest challenge is to find and retain

individuals with ERP skills.

Projects require multiple skill sets, includingfunctional, technical, and interpersonal skills.

Recruitment & career development of experiencedemployee


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Consultants & IT vendors role

1.To remove knowledge barrier between various level of

management within

a company by making blueprint of their business process

2.Recommend which hardware and software that is most suitable

3.Assist companies in implementation management

4.Lead to valuable knowledge transfer in both directions

5.Act as knowledge providers that lower the knowledge deficiencies

existing within companies

6.Provide training as a valuable resource to develop skills that are

lacking in house


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1. Greater vendor participation in implementation and

support2. Higher rating of user capabilities by vendor

3. Higher rating of user skills by MIS management.

A highly skilled workforce is important for asuccessful ERP implementation.


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To eliminate major system glitches

Needed to identify any alignment problems thatmay have occurred

By appointing an executive-level individual withextensive knowledge of the organizationsoperational processes as the project leader

Team morale is a vital component for the success ofthe project.

Continuous evaluation required

Honest and open communication, cooperationamong all parties needed


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Bugs in the system & troubleshooting

Modified System would increase its possibility

Quick response

patience Perseverance Manage

problem solving Troubleshooting

firefighting capabilities

Hands on cooperation with vendors & consultants

Vigorous and sophisticated software testing easesimplementation


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1. A Critical Success Factors Model ForEnterprise Resource PlanningImplementation

Christopher P. Holland and Ben Light, Manchester Business School

2. Critical Success Factors in ERP

Implementation Li Fang and Sylvia Patrecia

June 13, 2005


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THANK YOU

csf s for erp implementation

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