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A model of ERP project implementation

A model of ERP project implementation. Presented to: Dr. Dina Rateb Systems 508 Presented By El 3yal El Cobar. Outlines: Terminology and Introduction ERP implementation process models The PPM of ERP implementation The PPM phases The PPM CSFs Two case studies

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A model of ERP project implementation

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  1. A model of ERP project implementation Presented to: Dr. Dina Rateb Systems 508 Presented By El 3yal El Cobar

  2. Outlines: • Terminology and Introduction • ERP implementation process models • The PPM of ERP implementation • The PPM phases • The PPM CSFs • Two case studies • Implications of the PPM for practice and research • Conclusion and future research

  3. Terminology: • ERP: Enterprise Resource planning. • PPM: Project Phase Model Process Models). • CSFs: Critical Success Factors.

  4. Introduction: • ERP: • Is the Enterprise Resource Planning. • Implementation of ERP system is an extensive, lengthy, and costly process. • Investment in the ERP is investment in both the software itself and the related services such as; consulting, training…etc. • Although companies spend millions on both the packages and the implementation process, most companies experience considerable problems in the actual implementation project.

  5. Introduction: • ERP: • Focus on • Evaluate • Define Relevant company processes in precise details

  6. Introduction: • ERP: • Beginning with system planning. • Constructing project team. • Moving on discrete project phases. • Post-implementation review. • Stabilization phase.

  7. Introduction: • PPM /Process Models: • Provides deeper understanding of the process. • Provides guidelines for successful ERP implementation. • CSFS: • Addresses difficulties of ERP implementation. Both help better planning and more successful ERP implementation.

  8. ERP Process Models • Justification of creating PPM of ERP implementation. • Allocation of responsible individual. • Discrete phases of implementation • i.e. project is not another phase in the whole implementation enterprise. • Presenting two case studies relating CSF to the PPM implementation phases. • * Unsuccessful case. • * Successful case.

  9. What is A Best Practice Of ERP Implementation Process Model?

  10. ERP Process Models • First: The Bancroft et al Model • It has 5 phases: • 1.Focus • 2.As is • 3.To be • 4.Construction& Testing • 5.Actual implementation

  11. ERP Process Models • First: The Bancroft et al Model • 1.Focus: • Planning phase to set up key activities of the committee. • Selection of team members. • Developing guidelines principles. • Creating project plan.

  12. ERP Process Models • First: The Bancroft et al Model • 2. As is • Analysis of current business process. • Istallation of ERP. • Mapping of the business process to ERP finctions. • Training of project team.

  13. ERP Process Models • First: The Bancroft et al Model • 3.To be: • Outlines the high level design then detailed user-accepted design. • Interactive prototyping. • Constant communication with the user.

  14. ERP Process Models • First: The Bancroft et al Model • 4. Construction and testing phase: • Development of comprehensive configuration. • Population of test instances with withreal data. • Building and testing interfaces. • Writing and testing reports. • System and user testing.

  15. ERP Process Models • First: The Bancroft et al Mode • 5. Actual Implementation: • Building networks. • Installing desktops. • Managing user training and support.

  16. ERP Process Models • Second: Ross Model • It has 5 phases: • 1.Design • 2.implementation • 3.Stabilization • 4.Continuous improvement • 5.Transformation

  17. ERP Process Models • Second: Ross Model • It has 5 phases: • 1. Design • Planning phase for critical guidelines and decision making for implementation.

  18. ERP Process Models • Second: Ross Model • It has 5 phases: • 2. Implementation • Phases are similar to model 1. • Stabilization:

  19. ERP Process Models • Second: Ross Model • It has 5 phases: • 3.Stabilization • After cut-over. • System problems are fixed. • Improvement of company performance.

  20. ERP Process Models • Second: Ross Model • It has 5 phases: • 4.Continuous improvement • Functionality is added.

  21. ERP Process Models • Second: Ross Model • It has 5 phases: • 5.Transformation • Organizational boundaries and systems are maximally flexible.

  22. Third: Markus and Tanis model It has 3 phases: 1.Chartering 2.Project 3.Onwards and upwards

  23. Third: Markus and Tanis model • It has 3 phases: • 1.Chartering • Focus and designing phase. • Development of the business case of ERP. • Package selection. • PM identification. • Budget and schedule approval.

  24. Third: Markus and Tanis model • It has 3 phases: • 2. Project • Same as Bankroft’s • Software configuration, system integration, testing, data conversion, training.

  25. Third: Markus and Tanis model • It has 3 phases: • 3.Onwards and upwards • Subsidiary of Ross continuous improvements and stabilization phases.

  26. Comments on the three models: 1.Markus & Tanis and Ross models include a planning phase which occurs prior to the actual implementation project. 2.These two models,unlike the Bancroft et al. model, collapse the actual implementation into one discerete unit. 3.Ross& Markus and Tanis models include a post-project phase in the model of the whole ERP implementation enterprise. 4.None of them relates critical success factors (CSFs) to the phases of implementation.

  27. The following points will be discussed: Introduction ERP implementation process models The PPM of ERP implementation The PPM phases The PPM CSFs The case studies Implications of the PPM for practice and research Conclusions and future research

  28. Introduction: -ERP is the Enterprise Resource Planning. -Implementation of ERP system is an extensive, lengthy, and costly process. -Investment in the ERP is investment in both the software itself and the related services such as; consulting, training…etc. -Although companies spend millions on both the packages and the implementation process, most companies experience considerable problems in the actual implementation project.

  29. ERP implementation process models In this section we review three of the ERP implementation process models: Firstly, The Bancroft et al.model It has 5 phases: 1.Focus 2.As is 3.To be 4.Construction& Testing 5.Actual implementation Secondly, Ross Model It has 5 phases: 1.Design 2.implementation 3.Stabilization

  30. 4.continuous improvement5.Transformation Thirdly,Markus and Tanis model It has 4 phases: 1.Chartering 2.Project 3.Shake-down 4.Onwards and upwards Comments on the three models: 1.Markus & Tanis and Ross models include a planning phase which occurs prior to the actual implementation project. 2.These two models,unlike the Bancroft et al. model, collapse the actual implementation into one disceret unit.

  31. 3.Ross& Markus and Tanis models include a post-project phase in the model of the whole ERP implementation enterprise. 4.None of them relates critical success factors (CSFs) to the phases of implementation.

  32. The PPM of ERP implementation The PPM model consists of two concepts: 1-Implementation phases 2-Critical success factors (CSFs) Implementation phases: SDLC Analysis Phase Design Phase Implementation Phase Preliminary Investigation Focus As Is To be Construction & Testing Actual Implementation Bankroft et al. Design Ross Stabilization Continuous Improvement Transformation Implementation Markus & Tanis Chartering Shake-down Onward & Upwards Project PPM Phase Planning Project Enhancement

  33. The PPM Project Phase Planning Enhancement Project Installation Set-up Configuration & testing RE-engineering Design

  34. The CSFs Those few critical areas where things must go right for the business to flourish. Planning Project Enhancement Outcomes Planning Outcomes Planning Outcomes Project Outcomes Project Outcomes Enhancement Outcomes Enhancement CSFs that are necessary and sufficient for success CSFs linked to the success of the outcome by a known causal mechanism CSFs that are associated with success CSFs that are necessary for success Commitment to change Release of full time business experts Definition of scope Management Support Balanced Team Vanilla ERP Unswerving Champion Deliverable Date ( realistic ) Empowered decision makers

  35. Combining the PPM with CSFs • Not every CSF is necessary for each Outcome • The CSF’s level of power and criticality is as follows: 1- Causal Links , 2- Necessity & Sufficiency, 3- Necessity, 4- Association. • When comparing a successful case and an unsuccessful case there exist differences in the relationship between the phases of the PPM and CSFs

  36. The case studies Two case studies are discussed: 1-Oilco:ERP1 - unsuccessful case,over budget & over time. -Reasons:full automation,improved levels of customer service,..etc. -Benefits:better sales forecast, better data quality. 2-Exploreco: ERP 2 -Successful case, under budget &on time. Reasons:dissatisfying system -

  37. Benefits:Reduction in mannual processes, re-engineering of processes, and improved time accounting. Phase CSFs Oilco Exploreco 1.PlanningManagement support Management support Champion Champion Commitment to change Commitment to change Vanilla ERP Vanilla ERP Best people ful-time Deliverable dates definition of scope

  38. Phase CSFs Oilco Exploreco 2a.Set-upManagement support Management support Balanced team Champion Definition of scope & Balanced team goals Vanilla ERP Deliverable dates Definition of scope & goals

  39. Phase CSFs Oilco Exploreco 2b.Re-engineeringBalanced team Empowered decision makers Definition of scope Management support Balance team Definition of scope &goals 2c.DesignBest people full-time Management support Management support Deliverable dates

  40. Phase CSFs Oilco Exploreco 2d.Configuration&testingBest people full-time Management support Balanced team Installation Management support Management support Commitment to change Balanced team Balanced team Commitment to change Best people full-time

  41. Case findings-similarities 1.The planning phase was clearly considered the most critical by both companies. 2.The installation phase was very similar in both cases. 3.Full-time were considered crucial in the installation phase of PPM. 4.There are no significant enhancement phase in either companies.

  42. Case findings - differences 1.The importance of CSFs over all phases of the PPM in the Exploreco case 2.The CSFs within the Exploreco were generally considered more important than with Oilco. 3.Strategic differences in the planning phase. 4.Facilitating the achievement of the CSFs. 5.Focus on the set up phase for the Exploreco. 6.Consistency and persistence of the CSFs throughout all phases.

  43. Explanations for the similarities and differences • 1-Organizational learning • 2-The scope and complexity of each project Comprehensive, Middle Level, Vanilla • What Characteristics are used? • -Physical scope • - Technical scope • -Module implementation strategy, and • -Type of re-engineering involved and resource scope level

  44. Implications of the PPM for practice and research 1.Large-scale ERP implementation projects are high risk and difficult to implement on time and within budget. 2.In both cases there was no marked enhancement phase. 3.The appointment of an experienced ERP implementer early in the project as a “champion” who is empowered to make decisions about the project is important to the success of the project. 4.The PPM model together with associated CSFs from the Exploreco case provides practitioners with a useful example of successful “Vanilla” ERP implementation.

  45. Conclusions and future research The PPM has a dual function: 1.For researchers; it provides a foundation for further empirical research. 2.For parishioners need to pay more attention to planning phase and the CSFs in each phase.

  46. THANK YOU FOR YOUR CONCERN Till We Meet

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