Institute of Administrative Sciences

University of the Punjab

ENTERPRISE RESOURCE PLANNING

MPA 2017-2019
Session:
A
Section:

Semester: 4th

Submission Date: 24-10-2019

Document type: Group Assignment

Submitted to: Sir Mujtaba Ali

Submitted by:

Shakil Ahmed Khan MPA-IAS12EF-17

Muhammad Atif Karamat MPA-IAS13EF-17

Adnan Iqbal MPA-IAS16EF-17

Sheraz Ahmad MPA-IAS19EF-17

Mazhar Hussain MPA-IAS33EF-17

 Institute of Administrative Sciences University of the Punjab Group Assignment

Contents
1 Organization Introduction .............................................................................................................. 3
2 Vision ................................................................................................................................................ 3
3 Mission ............................................................................................................................................. 3
4 Project Preparation ..........................................................................................................................4
5 Scope (what will be the Benefits etc. – the Institute vision and IT vision) ...................................4
6 Advantages .......................................................................................................................................4
7 Financial Module ............................................................................................................................. 5
8 Inventory Module ............................................................................................................................ 5
9 Human Capital Management Module............................................................................................. 5
10 Sales & Distributions ................................................................................................................... 5
11 Supply Chain Management ......................................................................................................... 5
12 Requirement Engineering ...........................................................................................................6
13 Requirement Validation .............................................................................................................. 7
14 Business Process Reengineering-BPR (change in existing business processes etc.) ................. 7
15 Change Management and Training Plan .................................................................................... 7
16 ERP Solution Selection ................................................................................................................8
17 Vender Selection (Self developed, purchased etc.) ....................................................................8
18 Configuration...............................................................................................................................9
19 Final Preparation ....................................................................................................................... 10
20 Go Live (Roll Out) ..................................................................................................................... 10
21 ERP software updates .................................................................................................................12
22 Identification and evaluation of software updates ....................................................................12
23 Conclusion and Recommendation ............................................................................................12

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 Institute of Administrative Sciences University of the Punjab Group Assignment

ERP Implementation in SANOFI AVENTIS

PAKISTAN (A Pharmaceutical Company)

1 Organization Introduction
Sanofi Aventis came into existence in 1973 as a subsolar of Elf Aquitaine when the company took
the control over a pharmaceutical company called “Labaz Group”. Sanofi is a multinational
company which became the fifth largest pharmaceutical company in 2013 with its headquarter
located in Gentilly, France. In 2004, Sanofi - Synthélabo merged with Aventis and renamed itself
to “Sanofi Aventis”. However, in May 2011 the company changed its name to “Sanofi”. A vital
role is played by the research and development department at Sanofi and manufacturing and
marketing of pharmaceutical drugs primarily in the market of medicines is the core business of
Sanofi. There is an ideology that is followed by Sanofi in the overall organization which are
seizing outdoor expansion opportunities, advancement in research and development and accepting
the company’s model to future opportunities. The aim of Sanofi is to accommodate and help over
a population of 7 billion with a healthy lifestyle and doing that with the help of over 110,000
employees placed in over 100 countries.

2 Vision
Saving the lives of millions and improving the quality of life of many more through effective, top
quality products.

3 Mission
We stand firm to protect, enable and support people on their health journey through life.

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 Institute of Administrative Sciences University of the Punjab Group Assignment

4 Project Preparation
✔ Business Need (Why we need the App./ERP etc.)

Over the past few years, organization all over the world have realized the need for an ERP System
as it aims to streamline all Business Function and Business processes that reside within the
functional areas of the organization.

5 Scope (what will be the Benefits etc. – the Institute vision and IT vision)
The aim of Sanofi is to accommodate and help over a population of 7 billion with a healthy
lifestyle and doing that with the help of over 110,000 employees placed in over 100 countries.
Sanofi ensures that all of the data of the company on its electronic system that are Electronic
Management System and Electronic Directory Management. It aids them in returning and
retrieving the data in regards of the entire history and information on all of their relevant
customers. The Software that Sanofi is currently using is SAP-Unity which is a global based ERP
system that is functioned from their head office in France.

ERP System brought a major Change in the way Sanofi functions as there was a drastic shift from
manual record keeping to computerized software.

6 Advantages
Integration among different functional areas to ensure proper communication, productivity and
efficiency

Design engineering (how to best make the product)

Order tracking, from acceptance through fulfillment

The revenue cycle, from invoice through cash receipt

Managing inter-dependencies of complex processes bill of materials

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 Institute of Administrative Sciences University of the Punjab Group Assignment

Tracking the three-way match between purchase orders (what was ordered), inventory receipts
(what arrived), and costing (what the vendor invoiced)

The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.

✔ Initial Costing (any rough figure or if possible)

Could not get exact details about it.

✔ Implementation Strategy (Project Plan – Gantt Charts, conversion

strategies planned (i.e. Phased, Big Bang,))

Strategy followed was phased as per modules:

7 Financial Module
General ledger, cash management, accounts payable, accounts receivable, fixed assets

8 Inventory Module

9 Human Capital Management Module

Human resources, payroll, training, time and attendance, rostering, benefits

10 Sales & Distributions

11 Supply Chain Management

Order to cash, inventory, order entry, purchasing, product configurator, supply chain
planning, supplier scheduling, and inspection of goods, claim processing, and commission
calculation

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 Institute of Administrative Sciences University of the Punjab Group Assignment

✔ Project Team (used Exiting Staff, or hired New Staff etc. – Team
Strategy.)

A team from the head office of Sanofi from France visits Sanofi Pakistan to download and install
the software in the local computers to make sure that they are efficiently active. It took
approximately 6 months to 1 year to make the System active because of the fact that the System
keeps on updating itself. It takes a sufficient amount of time to ensure that the system is
completely operational as numerous functions are required to be connected to the system on an
intervallic basis.

12 Requirement Engineering
✔ Requirement Elicitation (Data gathering process)

Convert data: They knew that 100% of the data can be converted as there may be outdated
information in the system. They knew which information should be converted through an
analysis of current data.

Collect new data: Defined the new data that needs to be collected. They identified the source
documents of the data. Created spreadsheets to collect and segment the data into logical tables.

Review all data input: After the converted and manually collected data is entered into the ERP
database, then they reviewed for accuracy and completeness. Data drives the business, so it was
very important that the data should be accurate.

Data clean-up: Reviewed and weed out unneeded information such as customers who haven’t
purchased in a while or are no longer in business. Now is the time for improving data accuracy
and re-establishing contact with inactive customers.

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 Institute of Administrative Sciences University of the Punjab Group Assignment

13 Requirement Validation
Requirements validation is the process of checking that requirements defined for development,
define the system that the customer really wants. To check issues related to requirements, we
perform requirements validation.

Validation also ensures that the requirements: 1) achieve stated business objectives, 2) meet the
needs of stakeholders and 3) are clear and understood by the developers. Validation is essential to
identification of missing requirements and to ensure that the requirements meet certain quality
characteristics.

14 Business Process Reengineering-BPR (change in existing business processes

etc.)
They did not need to change in existing business process because they already used this system in
France. Business process reengineering is the act of recreating a core business process with the
goal of improving product output, quality, or reducing costs. Typically, it involves the analysis of
company workflows, finding processes that are sub-par or inefficient, and figuring out ways to get
rid of them or change them.

15 Change Management and Training Plan

✔ How to encourage the existing employees to use it,

By Training, motivation for reduction in work load, easy reporting and no extra working.

✔ How change has been implemented

Module wise change was implemented.

✔ How to train them

Training and workshops conducted department wise as per their requirements.

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 Institute of Administrative Sciences University of the Punjab Group Assignment

16 ERP Solution Selection

✔ ERP selection process

They have selected PeopleSoft Enterprise 8.8. Because as per their business needs they already
bought ERP solution for Head Office in France.

17 Vender Selection (Self developed, purchased etc.)

ERP solution has been purchased from French Company.

✔ Implementation Partner Selection (if purchased then vender/ implementer

team str,)

Vendor Self implemented with Company’s’ Project Team.

⮚ Technical Planning (Web Enabled, Desktop app)

✔ System Servers (which technology is proposed to used 1-tier, 2-tier, 3-tier and
why)

Microsoft Dynamics NAV ERP System is designed to work smoothly with other Microsoft
products such as Microsoft Office 2003, Microsoft SQL Server 2005 and Microsoft 48 Windows
Vista and XP

✔ Networking (special VPN or open, using SAN?)

All PeopleSoft modules and applications, including PeopleSoft Enterprise One, are fully web-
enabled and do not require the download of any application code on the end user workstation.
This feature facilitates upgrades that are very transparent to the end users and that do not require
the attention of either the end user or the technical staff regarding client side issues. Siebel has
added 100% web deployment in the most recent version of its software. Previously with Siebel,
some code had to be downloaded to the client. While Oracle claims to be 100% web enabled,
some code components are still downloaded to the client. And unfortunately, Oracle's web
architecture is not consistent across all Oracle modules. SAP is not yet fully web-enabled. By

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 Institute of Administrative Sciences University of the Punjab Group Assignment

contrast, Microsoft's applications are still mostly client-server, and release upgrades can trigger
significant disruption to business operations through additional downtime and unnecessary
incremental costs to upgrade each end user workstation.

✔ OS Selection

Microsoft Dynamics NAV 2009 SP1 runs on 32-bit and 64-bit operating system editions. On 64-
bit (x64) editions, Microsoft Dynamics NAV runs in WOW64 emulation mode.

Windows 7 Professional, Ultimate, or Enterprise

Windows Server 2008

18 Configuration
✔ Time, efforts from the organization and vendor???

Most of the work done by organization itself with helps of vendor from France.

⮚ Custom Code (if required, in case if purchased)

No Custom Coding was required by Sanofi because they were already using this ERP system in
Head office at France.

⮚ Implementation and Deployment

The implementation phase is typically broken into three major steps:

1. Software installation

2. Configuration

3. Integration

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19 Final Preparation
Make sure the actual test mirrors the Standard Operating Procedures outlined and determine
whether modifications need to make.

✔ System Testing

The project team should practice in the test database to confirm that all information is accurate
and working correctly. Use a full week of real transaction data to push through the system to
validate output. Run real life scenarios to test for data accuracy. Occurring simultaneously with
testing, make sure all necessary interfaces are designed and integration issues are resolved to
ensure the software works in concert with other systems.

✔ User Acceptance Testing

All Modules were checked by HODs and tested. Some employees resisted in start but they
learned very quickly as it was helpful.

✔ Performance Testing

Every Module was tested before its completion stage as per its performance, if particulars
objectives have been achieved as per requirements.

✔ Data Migration

Data was migrated as per module, once module was completed and tested whole data related to
that module was transferred.

20 Go Live (Roll Out)

Sample Final Go Live Countdown Checklist Sample

● Physical inventory process is complete.

● Beginning balance entry procedures are developed for all modules.
● Any transition issues are addressed.
● Documents & modifications are tested thoroughly.

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● Executives and department’s heads are fully trained.

● Vendor is available for go-live day.
● Users will have assistance during their first live transactions.

Evaluation: Develop a structured evaluation plan which ties back to the goals and objectives
that were set in the planning stage. In addition, a post-implementation audit should be
performed after the system has been up and running for the first week for reconciliation
purposes and three to six months following to test whether or not the anticipated ROI and
business benefits are being realized. Comparing actual numbers with previously established
benchmarks will reveal if the software tool does what it is intended to do - add value to the
business. It is important to periodically review the system's performance to maximize ROI.

✔ Time taken for complete implementation

It took 1 Year and 1 Month to Complete implementation of this ERP project at SANOFI Pakistan.
As In France Company already implemented ERP that’s why it wasn’t delayed or failed. So it
took time as per plan.

⮚ Maintenance
✔ Strategies

The life-cycle of an ERP system can be partitioned into two major phases (Willis and Willis-
Brown, 2002): The implementation phase includes the selection and implementation of an ERP
system, ending with the go-live of the system. The second phase, also called ERP post-
implementation phase, covers all activities after go-live, including the stabilization, operation and
extension of the ERP system. While the two phases include some similar activities and often
involve the same stakeholders, previous research on ERP life-cycle phases (Bajwa et al., 2004;
Somers and Nelson, 2004) shows that the importance of activities and success factors, as well as
the involvement of various stakeholders, differ across the different phases of the life-cycle.

Sanofi made agreement with vendor for 10 years maintenance. Vendor will take care of any
ambiguity and error at system during uses till 10 years.

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21 ERP software updates

IT-tasks and characteristics

Standard ERP software packages are usually updated on a regular basis by the software vendor
who provides patches or upgrades for the software. Patches are used to fix bugs in the ERP
standard programs, to adapt the system to changes in the external environment, including, for
example, changes in government regulations, and to keep a system up-to date (Ng et al., 2002).
Compared to patches, software upgrades are more extensive changes to the ERP system, that
include functional as well as technical enhancements of the software (Ng et al., 2002; Ng et al.,
2003b).

22 Identification and evaluation of software updates

The identification and evaluation of relevant software updates is vital in ERP maintenance to
ensure that benefits provided by them are available to the organization (Beatty and Williams,
2006; Haines, 2009; Ng, 2001, 2006; Ng et al., 2002). Business benefits can e.g. be achieved by
new or improved functionality that covers business requirements, or compliance to new legal
regulations that are considered in the software update (Haines, 2009; Ng, 2006; Ng et al., 2002).
Technical benefits on the other hand include a better system performance, and ongoing vendor
support of the software (Beatty and Williams, 2006; Haines, 2009; Ng, 2001, 2006; Ng et al.,
2002).

23 Conclusion and Recommendation

Human Resource Module in ERP helps in the development of your human capital Management
(HCM) as it joins all HRM applications with the respective departments. Workers and managers
are able to easily ability access data from the HR Module installed in the company. We can take
the example of different planning programs, bonus schemes given to employees overtime, worker
capability etc. Several other actions are associated with the HRM module in order to deal with the
workforce in a competent manner. For example the finance module is a functional area that
administers the wage rate of workers. In addition, there are various different procedures that

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include figure outing the wage rate and tasks of the workers along with the task of monitoring the
retirement plans and wage rate of the retired workers. Moreover, Training and Development need
for a particular employee is identified through the HRM module which stores complete detail of
employee’s performance. Statistical information can therefore be found on the ERP System to
support the workforce and the employees are given rewards in view of their performance
information stored on the System. In this way SAP can also be used to provide these functions to
Sanofi to smoothen their Human resource operation although the current ERP system is working
effectively for Sanofi. Sanofi is one of the largest pharmaceutical companies operating in
Pakistan, ranked on 7th by IMS. This is evident that how information management is important.

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