By Sourabh , 10HM30

1. Introduction to ERP systems

and implementation

2. ERP Implementation stages

3. Guidelines for successful ERP

implementation

4. A case study : ERP

implementation at OmanTel

5. Conclusion
INTRODUCTION TO ERP
SYSTEMS AND
IMPLEMENTATION
 ERP provides the managers with a
comprehensive overview of the
complete business execution

 ERP thus influences their decisions

in a productive way.
INTRODUCTION TO ERP
SYSTEMS AND
IMPLEMENTATION
 Implementing an ERP system in an
organization is an extremely complex
process.

 It may even take years to implement in a

large organization.

 Eventually necessitate significant

changes on staff and work processes.
INTRODUCTION TO ERP
SYSTEMS AND
IMPLEMENTATION
 Firms 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
ERP IMPLEMENTATION
STAGES
1. Shortlist on the basis of observation
2. Assessing the chosen packages
3. Preparing for the venture
4. Gap Analysis
5. Business process reengineering
6. Designing the System
7. In-house Guidance
8. Checking
9. The real test
10. Preparing the employees to use ERP
11. Post Implementation
01.SHORTLISTING VENDOR
 Involves choosing few applications
suitable for the company from the
whole many

 Selecting ERP software does not

happen all on a sudden or as a result
of an overnight's discussion

 Things to be considered include :

01.SHORTLISTING VENDOR
 Flexible , scalable and reliable .

 Promptness , accuracy .

 Compatibility amongst the softwares

 Credibility

 Training provided
02.ASSESSING THE CHOSEN
PACKAGES
 A 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 ?
03.PREPARING FOR THE
VENTURE
 This stage is aimed at defining the
implementation of ERP in all
measures.

 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.

 Some guidelines are mentioned :

04.GAP ANALYSIS
 Gap 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".

 It provides to overcome /bridge the

gap.
05.BUSINESS PROCESS
REENGINEERING
 BPR analyses and suggests the
structural changes. It’s a crucial step .

 BPR is taken to conduct feasibility

study and other restructuring exercises

 The company can either restructure the

business process itself or customize
the ERP system so that it suits the
business process.
05.BUSINESS PROCESS
REENGINEERING
 Implementing 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

06.DESIGNING THE SYSTEM
 This step helps to decide and
conclude the areas where
restructuring have to be carried on.

 When modifications in ERP software

is required, design work is critical.

 The programmer has to be ready to

make design changes during
construction.
06.DESIGNING THE SYSTEM
Factors to consider while designing :

1) Recruit qualified consultants.

2) Document the existing processes

3) Diagram all the data flows in the system

4)Design the new system and compare with

requirements .

5) Identify hardware and software.

07.IN-HOUSE GUIDANCE
 The 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.
07.IN-HOUSE GUIDANCE
Some 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

08.CHECKING
 The 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 .
08.CHECKING
1)Preparations of evaluation metrics

2)Evaluating the work periodically

3)Following contracts terms

4)Evaluating ERP performance

5)Accurate Quantification to facilitate

correct measure
09.THE REAL TEST
 Once 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 .
10.PREPARING THE
EMPLOYEES TO USE ERP
 The 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.
11.POST IMPLEMENTATION
 The 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
11.POST
IMPLEMENTATION
ERP Software Limitations
1. Earlier best practices lost .

2. Firm now constrained to ERP system

3. ERP costs may be too much to bear

4. Takes away decision making power

from employees

5. toy box effect

GUIDELINES FOR
SUCCESSFUL ERP
IMPLEMENTATION
1.Implement changes in the firm for ERP properly

2.Understand that ERP is a tool , not a cure-all

3.ERP gap analysis and BPR should be performed properly

4.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

ERP IMPLEMENTATION AT
OMANTEL
Omantel 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 .
ERP IMPLEMENTATION AT
OMANTEL : Some topics
1.Stakeholder consultation :
 Omantel was committed to full
consultation and transparency with not
only its customers, but also with its
competitors, and the regulator

2.Vendor selection :
 Selection of Oracle was conducted
through an evaluation workshop
organised by the vendor evaluation
team
ERP IMPLEMENTATION AT
OMANTEL : Some topics
3.Project management :
o 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.

o Overall, responsibility was assigned to

an Omantel project manager, while
technical leadership and consultancy was
provided by Oracle
ERP IMPLEMENTATION AT
OMANTEL : Some topics
4.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.
ERP IMPLEMENTATION AT
OMANTEL : Some topics
5.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.
ERP IMPLEMENTATION AT
OMANTEL : Some topics
6.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.
ERP IMPLEMENTATION AT
OMANTEL : Some topics
7.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.
 CONCLUSION
 ERP implementation is a long process involving high
costs

 The firm must be flexible enough to adapt to changes

bought about by ERP

 Once ERP is implemented , the system’s operations must

be carefully monitored

 There 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 .