MB A - 3 R D S E ME S T E R

I T & O P E R AT I O N S M A N A G E M E N T

Welcome to The
World of ERP
A N K I TA
JRF
UBS, PU

10/28/20 04:54:07 PM 1
From Where to Begin Our
Journey??

10/28/20 04:54:07 PM 2
Figure This Out

10/28/20 04:54:07 PM 3
One Liner

“Consolidating an enterprise’s
planning, manufacturing, sales and
marketing efforts into one
management system”

10/28/20 04:54:07 PM 4
Some More Explanation
 ERP is a type of software that organizations use to manage day-to-day
business activities such as accounting, procurement, project
management, risk management and compliance, and supply chain
operations. 
ERP applications automate and support a range of administrative and
operational business processes across multiple industries, including line
of business, customer-facing, administrative and the asset management
aspects of an enterprise.

10/28/20 04:54:07 PM 5
Why These Efforts??
FINANCE
Integrate Financial Information

Integrate Customer Order Information

MARKETING

Standardise & Speed Up Operations Processes

OPERATIONS/
MANUFACTURI
Reduce Inventory NG

Standardise HR Information
HR

10/28/20 04:54:07 PM 6
Recollect What We Have
Discussed So Far…

10/28/20 04:54:07 PM 7
Crux of ERP

UNIFICATION Remember
how complex
operations are!

AUTOMATION

10/28/20 04:54:07 PM 8
Let’s Jump To ERP Module

10/28/20 04:54:07 PM 9
ERP Modules (1)
 ERP system of integrated applications designed to manage business
operations.
 It helps automate business operations that tackle various factors such
as technology, services, and human resources to give a better
experience in cross-functional department communication.
 It consists of various departmental modules that manage the core
business functions in a unified manner.
 The system modules facilitate a seamless flow of information between
multiple departments.
 Modules increase operational efficiency between departments.

10/28/20 04:54:07 PM 10
Finance & Accounting
Module (1)
 Financial tools help businesses aggregate and manage how money
moves throughout the company.
 Includes the management of financial transactions, payments, cash
flows, revenues, and profits.
 Handles taxation and document management according to all the valid
regulations.

10/28/20 04:54:07 PM 11
Purchasing Module
 It covers the estimate of supplies, orders, required documentation,
billing processes.
 Example: it generates the order request documentation that is sent to
the suppliers. In return, the supplier sends the invoices that are
automatically getting to the financial module.
 In the above example, the purchase module and costing module should
be integrated to compare the total price in order to request an invoice,
and only then sent to the accounting department for the payment.
 Once confirmed, the information regarding completed transaction will
be transferred to the purchasing module to allow requesting for the
delivery of the goods from the supplier.

10/28/20 04:54:07 PM 12
Costing Module
 The module keeps a track on every transaction and its expenses.
The business intelligence component uses this data to measure the
company’s expenditure and produces the necessary forecasts.
 It covers the estimate of supplies, orders, required documentation,
billing processes.

10/28/20 04:54:07 PM 13
ERP Payroll Module
 This module produces reports on salaries, reimbursements, travel
expenses, benefits, etc.
 It even collects audit data by certain periods, tracks the duration of sick
leave and vacations, deducts government taxes and reports them to the
taxation authority.

10/28/20 04:54:07 PM 14
Thing To Ponder About!

Finance & Accounting module

Versus
Accounting Software

10/28/20 04:54:07 PM 15
 Understand Through Venn
ERP

Accounting
Software

10/28/20 04:54:07 PM 16
Manufacturing Module (2)
 It controls and deals with the improvement of the manufacturing
performance.
 Covers all the stages from material procurement to production status.
 This also establishes communication with the sales department to get
information on orders received.
 Helps in effective inventory management.
 Helps to forecast future manufacturing requirements that help to take
various essential decisions such as recruitment, training, and payroll.
 It facilitates easy forecasting of future data and sales order through
which you can easily estimate profits.

10/28/20 04:54:07 PM 17
Manufacturing Sub-Modules

10/28/20 04:54:07 PM 18
Inventory Management
Module
 The details relating to merchandise and raw material handling along
with their storage details are handled by Inventory Management
module.
 The production planning and implementation processes are
streamlined.
 The module’s functionality sets the requirements for materials
purchasing according to the needs of the enterprise and market
demand.

10/28/20 04:54:07 PM 19
Material Sourcing Module
 The modules prime aim is to optimise time and cost effectiveness
associated with material sourcing.
 This module can help to avoid supply chain interruptions, control
issues, and extra expenses.

10/28/20 04:54:07 PM 20
Quality Control Module
 The management of an enterprise is always keen on taking control over
the quality and its constant improvements.
 Tracking manufacturing activities ensures maximum productivity,
reasonable expenses and helps to estimate the timelines properly.
 Timing and quality should always be carefully planned and handled in
the most efficient ways.
 Quality control module tracks the manufacturing data carefully.

10/28/20 04:54:07 PM 21
Business Module (3)
 Streamlining sales, up-to-date marketing and the most important –
providing real-time data on every process.

10/28/20 04:54:07 PM 22
Sales Module (CRM)
 The automated process facilitates the workload of the sales team.
 It stores structured data like names, contact details, order history,
customers’ preferences, etc.
 The team members use it to build communication channels and make
sales.
 CRM can process order details such as inquiries, quotations, order
acceptance, invoices, tracking and be ready to generate requests for the
next ordering tasks.
In order to provide valuable customers’ experience, even the smallest
details should be tracked, analyzed and taken into account by the team.

10/28/20 04:54:07 PM 23
Marketing Module
 The key to launching a successful marketing campaign is tracking and
analysis of such data as customers’ engagement, achievement rates,
promotion tactics, advertisement, etc.
 The point is that marketing should be carefully planned and
investments are long-termed.
 Moreover, the data on sales is integrated with it to come up with
possible ways of increasing sales and attracting new customers.

10/28/20 04:54:07 PM 24
Distribution Module
 The distribution module is firmly connected with the sales module.
 The data is processed by unified performance to handle the inquiry,
check the availability, transfer requirements from one department to
another, create the necessary documentation, schedule the delivery,
etc. In short, it is a connecting link between storage and shipping.

10/28/20 04:54:07 PM 25
Business Intelligence Module
 The business intelligence module integrates the reports from other
modules and is capable of forecasting.
 The module measures, monitors and tracks the performance of every
business function, entity, and process.
 Managers and business owners, for example, may choose to analyze
sales performance of salespersons, monitor each sale through its
various stages.
 Users can also monitor their products with statistics or visual graphical
representation alongside the market in which they are being sold,
compare business units to analyze performance.

10/28/20 04:54:07 PM 26
Human Resource Module (4)

10/28/20 04:54:07 PM 27
Recruitment Module
 The module’s functionality focuses on the efficiency and simplicity
of recruiting processes.
 The module obtains the possibility to post advertisements, support
necessary documentation, track the talent pools including social
platforms, automate the assessment process, analyze candidates’
profiles, schedule interviews, etc.

10/28/20 04:54:07 PM 28
Workforce Management
Module
 It streamlines the management of human resources in the company.
 It stores employees’ data such as general information, working hours,
attendance, sick leave, vacations, etc.
 However, it is not only about the storage but the overall document
management related to staff performance.
Sharing this data with other ERP modules is inevitable for the work of
the whole system.
For example, the accounting department calculates the staff salary
based on the reports sent from this component.
HR analytics informs about necessary updates on the employees’
resources as well as conducts employees’ performance appraisals.

10/28/20 04:54:07 PM 29
Let’s Review Our
Understanding
 ERP and its crux.
 Why is it required?
 Various ERP modules available to us.
 Distinction between accounting software & ERP.
 Understanding Financing & Accounting, Manufacturing, Business,
Human Resource Modules

10/28/20 04:54:07 PM 30
MB A - 3 R D S E ME S T E R
I T & O P E R AT I O N S M A N A G E M E N T

Welcome to The
World of ERP
A N K I TA
JRF
UBS, PU

10/28/20 04:54:07 PM 31
Supply Chain Management
Module

10/28/20 04:54:07 PM 32
Logistics Module
 This involves process streamlining for supply, storage, delivery, goods
redistribution, etc. 
 The component organizes the logical grouping of clients in order to
establish the most convenient supply line as well as generating the
waybills.
 It helps to control the movements of goods both inside and outside the
company.

10/28/20 04:54:07 PM 33
Ordering Module
 If the company is interested in fulfilling orders without much delay and
returns, it will draw special attention to proper order management.
 It requires precise and direct control of each ordering step.
 It is worth making an effort to meet the requirements and improve
customer relationships.
 Both the company and customers can request real-time information on
order processing.

10/28/20 04:54:07 PM 34
Warehousing Module
 The day to day operations of warehouses includes inventory
preparation, order planning, and implementation.
 This component keeps track of real-time information about the order
status including such details as receiving the order, items in stock,
production registration, delay alarms, etc.
 For example, the sales department automatically receives the reports
from it to know exactly what products they can offer.

10/28/20 04:54:07 PM 35
Facing The Reality

10/28/20 04:54:07 PM 36
10/28/20 04:54:07 PM 37
Few Take-aways
By automating finance and sales processes, McDonald’s UAE is using
real-time data to organise suppliers, monitor supply sources, and
manage inventory.
SAP Analytics Cloud enabled McDonald’s UAE to communicate
operational data to all restaurants, including kitchen serving times and
relationships with third party operators.
SAP introduced several new human resources functionalities including
accommodation management, automated payroll, etc.

10/28/20 04:54:07 PM 38
 Quality Benefits of ERP

10/28/20 04:54:07 PM 39
 Is ERP Investment Worth The Risk?

Recall Cost & Benefits Analysis

10/28/20 04:54:07 PM 40
1. Focused IT Cost
 ERP software is often a large investment, but it can unify IT costs and
improve efficiency.
 No need of spending resources on multiple systems, but focus all costs
such as dedicated staff, infrastructure, support teams, licences, etc. into
one ERP system.
 Using a single system reduces training requirements for end-users,
since they only need to learn one system rather than interacting with
numerous individual applications.

10/28/20 04:54:07 PM 41
2. Enhancing Visibility
 ERP software allows total access of important process in business by
making data from every department easily accessible.
 One can monitor inventory levels on a daily basis, including future
consignments that are yet to be received and inventory currently in
transit.
 The availability of all company’s information at a centralized location
allows for increased collaboration and more streamlined completion of
tasks.
 Inter-departmental processes can be easily tracked with maximum
efficiency.

10/28/20 04:54:07 PM 42
3. Flexible Modularity
 The modular makeup of ERP allows vendors to offer several
applications that can be implemented together according to business
needs.
 The applications are designed to be able to stand alone or integrate
with the larger suite.
 Hence, companies can pick and choose which components work best
and can leave out what you don’t need.

10/28/20 04:54:07 PM 43
 4. Improved Process
Efficiency
 ERP platform eliminates repetitive processes and greatly reduces the
need to manually enter information.
 This improves user productivity since the possibility of inaccurate data
is eliminated.
 The business processes are streamlined making it easier and more
efficient for companies to collect data, no matter what department
they’re working in.
 One can think ERP as an extra hand and brain, designed to keep
businesses on track, noticing every detail and making work life easier
and more efficient, from software users down to its customers.
Walmart employs ERP to enhance its sales efficiency.
Sales analysts were able to see in real time that a particular novelty cookie was very
popular in most stores, it wasn’t selling at all in two stores.
The alert prompted a quick investigation, which showed that, due to a simple
stocking oversight, the cookies hadn’t been put on the shelves. The store was then
able to rectify the situation immediately.
10/28/20 04:54:08 PM 44
5. Competitive Advantage
 It’s true that ERP software requires a major investment, but there’s also
an even bigger cost in not making the investment.
 While some manufacturers choose to stick to the tried and true
methods of the past, others seek technology solutions.
 Implementing the software helps to keep one ahead of the
competition because the company can no longer run the risk of making
costly business mistakes, which could place you behind the pack instead
of ahead.
 Manufacturers cannot afford to put off an ERP implementation while
their competition invests in ERP.

10/28/20 04:54:08 PM 45
6.Accurate Forecasting
 ERP software gives your users, and especially managers, the tools they
need to create more accurate forecasts.
 Helping software users, and businesses as a whole, think ahead and
properly plan what they need from inventory and sales down to
financials and customer service.
 With stronger forecasting, businesses can effectively decrease business
costs, which saves money as well as become an more overall proactive
unit.
 Since the information within ERP is as accurate as possible, updating in
real time, businesses can make realistic estimates and more effective
forecasts.

10/28/20 04:54:08 PM 46
7. Professionalising Work
Ethics
 ERP requires every employee to work more professionally and devote
more, due to the close and scientific supervision.
 The purpose of the software requires every part to have strict
cooperation and compliance.
 Information about working hours, KPIs, and job quality of employees is
collected and evaluated by ERP.

10/28/20 04:54:08 PM 47
8. Lead Time Reduction (1)
What is Lead Time?

10/28/20 04:54:08 PM 48
8. Lead Time Reduction (2)
 Lead time is the time between getting of order and delivery of same
ordered goods to customers.
 If this time is reduced , business can get the reputation in the heart of
customers .
 ERP helps in the reduction of lead time.
 Whenever an order is placed, ERP system automatically checks whether
stock is nearest manufacturing plant.
 Further, it alerts to finance department for raising sale invoice and ensure
that payment is received under the terms and conditions of finance
department.
 All these automatic activities reduce the lead time. .

10/28/20 04:54:08 PM 49
9. Better Customer
Engagement
 With ERP firms easily provide high-quality customer service.
 Sales and customer service people can interact with customers better
and improve relationships with them through faster, more accurate
access to customers’ information and history.
 Having an access to marketing automation and contact center software
, ensures customers are being interacted.
 Further social media monitoring and email campaigning allows users to
track the status of their campaigns.
 ERP also integrates with CRM, which is designed to strengthen the
relationship between a business and its customers.

10/28/20 04:54:08 PM 50
10. Enhanced Data Reliability
 ERP provides reliable data that can be accessed from different locations
& through multiple devices including tablets and smart phones.
 With the ability to update in real time, ERP improves data accuracy and
consistency.
 Further, users can ensure that all data and analytics are safe to use,
without running the risk of errors.
 ERP user data can also have additional security through firewalls and
built-in protection resources.
 Improved security removes the risk of important business information
getting into the hands of the wrong person.
 Both accuracy and safety are key to an ERP software.

10/28/20 04:54:08 PM 51
MB A - 3 R D S E ME S T E R
I T & O P E R AT I O N S M A N A G E M E N T

Welcome to The
World of ERP
A N K I TA
JRF
UBS, PU

10/28/20 04:54:08 PM 52
MB A - 3 R D S E ME S T E R
I T & O P E R AT I O N S M A N A G E M E N T

Welcome to The
World of ERP
A N K I TA
JRF
UBS, PU

10/28/20 04:54:08 PM 53
Brainstorming

DATA MIGRATION
Vs
DATA SYNCHRONISATION
 Data Migration

Data
Synchronisation

Data
Synchronisation
CORRECT

Data Migration
 ERP Evaluation Criteria

10/28/20 04:54:08 PM 56
1. Functional Fit for
Organisation
 Evaluate how the functionality of ERP software products and services
fit with your business.
 Finding the best functional fit includes evaluating ERP software,
watching ERP demos, and meeting with solution consultants.  

QUESTIONS TO CONSIDER

What is outdated about your current system? Why are you considering a
new ERP?
What works well with your current business systems?
What manual processes could you potentially automate?
In what areas of the business are you lacking visibility – or have a hard
time with reliable business reporting?
What other systems need to be integrated with the ERP?

10/28/20 04:54:08 PM 57
2. Industry Experience
 Consider: What ERP software is used in your industry?
 Some ERP solutions are optimized to perform best in industries such as
manufacturing and distribution.
 Industry is a factor to consider not only with your software vendor
(Oracle, Microsoft, NetSuite etc.) but also with your implementation
partner.
 Also consider whether or not the vendor and the implementation
partner has had success in your industry is essential.

10/28/20 04:54:08 PM 58
 3. Price
 Are there specific areas of the business where cost savings can be achieved through new
technology?
 For example better inventory management, faster financial close, automating manual or time-
consuming tasks.
 Are there technology costs that can be reduced through the new ERP?
 Cost savings can result from a reduction in hardware or support, new software licensing
agreements, or a reduced software footprint.
What is the long-term ROI?
 There is no question that the initial software and implementation cost will be a financial
investment for your organization.
 What does the ROI need to be after year one, year five, and beyond, to make the new
technology worth it for your business?
 What capabilities will new ERP software enable?
 Faster ship times, better customer service, streamlined business processes, operational
efficiency, modern e-commerce, warehouse and inventory management, real-time business
reporting.

10/28/20 04:54:08 PM 59
4. ERP Vendor Viability
 Product viability: how long has the product been in the market, what
is the future software roadmap, what is the research and development
investment in the product?
 Size of customer base: how many active customers use the software?
 Financial status: how solid is the software company?

10/28/20 04:54:08 PM 60
 5. ERP Implementation
Project Considerations
 Timing for the business. 
Is it the right time to take on this project? If not, when?
For example, after a merger or acquisition might be the right time, or when
deciding between a major (expensive) upgrade of your current system versus
new software. Otherwise, the right time depends heavily on your team.
People and executive support. 
An ERP implementation needs both executive support and involvement, as well
as upper management and other key internal leaders on the project.
Methodology and a project plan. 
To be successful, an ERP implementation methodology is fundamental.
Thorough project planning and project communication tools are also keys to
success.

10/28/20 04:54:08 PM 61
6. The Technology
 End user reporting tools – easier access to information, no
development skills necessary.
 Simplicity in UI and UX.
 Business intelligence.
 Data security.
 Reliable system performance and response time – very limited
downtime.
 Ability to integrate with other systems.
 Ability to make necessary customizations.

10/28/20 04:54:08 PM 62
7. Risk
Technology and ERP projects at the enterprise level inherently come with some
risk.
 Selecting an ERP software with functionality that fits your business, along with
many of the other criteria on this list (vendor viability, selecting the right
partner, project planning, cost, executive support), goes a long way in
mitigating risk during an ERP implementation.
 Taking the time to create a thorough map of the key business processes that
are essential for the operations of your organization, and using that throughout
the ERP selection and implementation, will also negate risk.
 Essential elements to map out include integrations with other systems as well
as necessary ERP customizations for your organization.
 Change management and end-user training are also key areas to plan for in
order to avoid risk.

10/28/20 04:54:08 PM 63
8. Scalability
 Managing the initial scope of an ERP software implementation is
necessary to avoid risk and ensure success.
 You will likely have a vision of future enhancements after the initial
implementation.
 When evaluating various ERP vendors, consider how the technology
fits with your business strategy both today and down the road.
 How will the software help facilitate and support future plans for your
organization?
 Whether future plans include growth, new markets, merging with
another entity, the new technology you select should mesh with the
strategic direction of your organization.

10/28/20 04:54:08 PM 64
9. Post Implementation &
Support
 Seek out for support plans by vendors.
 Ensure the support available is 24*7 & uninterrupted.
 Ask for solutions to the issues that you face.

10/28/20 04:54:08 PM 65
MB A - 3 R D S E ME S T E R
I T & O P E R AT I O N S M A N A G E M E N T

Welcome to The
World of ERP
A N K I TA
JRF
UBS, PU

10/28/20 04:54:08 PM 66
 ERP Implementation

10/28/20 04:54:08 PM 67
Steps for ERP Implementation
RESEARCH
INSTALLATION
MIGRATION
TESTING
TRAINING
DEPLOYMENT
SUPPORT

10/28/20 04:54:08 PM 68
1. Research (1)
 The first step is to define the need, vision and scope of an ERP solution.
 You’ll need to form an implementation team that can communicate
effectively and has the knowledge and commitment to guide the project
from beginning to end. 

10/28/20 04:54:08 PM 69
1. Research: the team
involved(2)

10/28/20 04:54:08 PM 70
2. Installation
 ERP software installation is also an opportunity to evaluate your
current operations and re-engineer business processes into standard
operating procedures.
 Figure out which processes to automate or keep manual and then
design a blueprint of how new business practices will flow.
The application developer will be responsible for installing the software
and building the infrastructure, such as networking facilities and data
collection or display devices.

10/28/20 04:54:08 PM 71
3. Migration
 Migration involves transferring all records and information to the new
system.
 Many organizations store their customer, supplier and physical asset
records in multiple formats and databases that contain errors and
unnecessary information.
 This data should be reviewed and edited for accuracy and uniformity
before migration begins.
 Any out-of-date information should also be removed.
 When the data has been updated and verified, the application
analyst migrates the data to the new system.
 The above step involves setting up new databases, mapping database
fields between the old and new systems, and transferring the data.

10/28/20 04:54:08 PM 72
4. Testing
 The quality assurance test engineer is in charge of the next step:
testing the system.
All interfaces, functionality and reports should work with real-life
scenarios and transaction data.
 Users should also validate that business processes are flowing correctly
between departments.
 It’s vital the system is thoroughly tested before the go-live date.

10/28/20 04:54:08 PM 73
 5. Training
 Training users requires significant time and effort, especially considering
employees are also expected to carry out their normal responsibilities throughout
the process.
 Users may find it difficult to change roles, processes and behaviors that they may
have learned over many years of work.
 Provide opportunities for users to offer feedback and for the implementation
team to act on it.
 Consistent, meaningful communication between users, trainers, the rest of the
implementation team and the vendor will decrease the likelihood of lost
productivity after deployment.
 Some vendors also provide user training such as live classes, e-learning modules
or written manuals.
 Training may be included with the software purchase or require an additional fee.

10/28/20 04:54:08 PM 74
6. Deployment

Phased
Big Bang
Approach

Parallel
Operation
10/28/20 04:54:08 PM 75
6. Deployment
 Big bang – All users transition from the legacy system to the new
system in a single day. This method is the fastest and cheapest option,
but technical difficulties can cause major operational problems.
 Phased approach – Users transition by business unit or function. The
implementation team can improve transitions with each group, but the
process will take longer, and integrating ERP modules individually can
be difficult.
 Parallel operation – Users run both systems simultaneously. Because
there’s a system to fall back on, this method is the least risky. However,
users need to spend more time duplicating their work, and running two
systems is expensive.

10/28/20 04:54:08 PM 76
7. Support
 Many companies believe that ERP implementation ends on the go-live
date.
 However, it requires ongoing maintenance of the software and support
for its users.
 Budgeting time and resources to identify issues and fix errors will be
important throughout the entire life cycle of the ERP solution.

10/28/20 04:54:08 PM 77
 Understanding
Prominent Parties

10/28/20 04:54:08 PM 78
Parties in Implementation

VENDORS

CONSULTANTS

USERS

10/28/20 04:54:08 PM 79
Vendors & Their Role
Vendors are the party who have developed ERP package.
 They have invested huge amount of time & efforts in R&D to
create a packaged solution.
 ERP package grew out of experience or opportunities of
group of people working for company in particular segment.
 Vendors have a role of continuous upgradation of the ERP
package.
 They supply product & its documentation as soon as
company signs the contract.
 Later, the vendor organises the training schedule for the
employees.
They are responsible for fixing any problem.
10/28/20 04:54:08 PM 80
Consultants & Their Role
 Consultants deal with the implementation and various issues that arise
during the implementation of ERP package.
 They are an expert in management & administration of the software,
since they have years of experience in implementation.
 They provide users with the drawbacks and advantages associated of
all the aspects of package.
 The consultants leave once the project is finished.

10/28/20 04:54:08 PM 81
Users
 Users are the one for whom the ERP system have been created.
 Their functionalities are being automated owing to the
implementation.
FEARS ENCOUNTERED

BEING
FAILURE
REDUNDANT

FUTURE

10/28/20 04:54:08 PM 82
 Going ERP way

10/28/20 04:54:08 PM 83
1. Identify the Problems/Set
Objectives
CADBURY

 Was on a growth track.

 Problem in meeting production and distribution
requirements.

 Introduced multi-node resources management in supply

chain, warehouse and distribution processes.
 Reduced overall operating cost.
 Better production & efficient supply chain.

10/28/20 04:54:08 PM 84
1. Identify the Problems/Set
Objectives
 ERP provides a vast solution to many issues faced by companies.
 However, it is very important to identify the real objective for
implementing ERP.
 The question is less about “should we implement” and but more about
“what should ERP be implemented for”.
 The Key Performance Indicators (KPI) have to be analyzed in order to
understand the necessity of the software intervention.
 Key objectives are necessary; not only with respect to the present but
also because future projections are included in the requisition list.

10/28/20 04:54:08 PM 85
 2. Define Scope/Team
 The objectives can be many:
1. Bringing in the transparency of operations
2. Having financial control
3. Supporting organic expansion
4. Supporting acquisition or
5. Supporting common processes.
 Research highlights, 61.1% of ERP implementations take longer than expected and 74.1%
of ERP projects exceed budget.
 The primary cause of the delays and over budgeting is the unclear definition of the ERP
requirement.
 The ERP features must be evaluated in accordance with the barometer of synchronization
within the needs of company.
 Depending upon the budget and core necessity, the ERP demand list should be generated
which achieves a smooth and hurdle less ERP implementation.

10/28/20 04:54:09 PM 86
3. Brainstorm/ Evaluate
Options

10/28/20 04:54:09 PM 87
3. Brainstorm/ Evaluate
Options
 For successful utilization of ERP software, the management of the
company has to invest its time in evaluating the options available.
 The vendors customise the ERP software for the intended use of the
companies.
 However, the customization could sometimes lead to an increase in the
failure of the ERP system as it may increase the complexities.
 The organization needs to understand the difference between ERP
package configuration and customization clearly because many times
the requirement is fulfilled by the purchased of the ERP system and no
customization is needed.
Thus, a company needs to brainstorm with the ERP vendors/ consultants
to bring in the best system in the organization.

10/28/20 04:54:09 PM 88
4. Data Migration

Consider the case of buying a new

Laptop/Mobile

10/28/20 04:54:09 PM 89
4. Data Migration
Once an ERP solution is identified, the next biggest and most important
step is of data migration, which provides for a smooth transition and
future utilization of the software.
 Implementing an ERP can be a huge change, especially if the company is
trying the software for the first time.
 Identifying which data are necessary for successful transition to the
common software problem is very important.
 Most software allows the input of data but entire data shifting may
burden the software.
 Therefore, only the necessary and most important data should be
transferred to the software, and great care should be taken to ensure that
the data is retrieved from the software, whenever required.

10/28/20 04:54:09 PM 90
5. Check Infrastructure (1)
Storage space available = 420 MB

Storage required by new software =

6000 MB

10/28/20 04:54:09 PM 91
5. Check Infrastructure (2)
SAP Considerations:
APPLICATION
SERVER

10/28/20 04:54:09 PM 92
5. Check Infrastructure (3)
 Preparing the company for the ERP implementation is at the core of all
of the steps of ERP implementation and plays a vital role in the process,
be it a success or failure.
 After detailed brainstorming between the vendor and its management,
the requisite infrastructure is installed.
 Research highlights, 23% are unable to grow their business as quickly
as they would like and believe this to be because they lack the tools
they need in their current ERP system.
 The infrastructure on which the software will run, has to have the
scope of scalability along with options to update as per the demand. 
Such requirement should not be limited.

10/28/20 04:54:09 PM 93
6. Customisation
 ERP software is designed after a significant amount of research and
according to the needs of the specific industry. 
 In some cases, there may be no need for the customization.
 During the pilot testing, management has to evaluate the realization of the
value of the system against the desired value of the company.
 One should have a check on the system adopted by the company since its
inception – so long as  the company is following best practices OR it un-
follows some unconventional/old methods regarding the ERP being fit-as-it-is-
bought?
These questions should be answered prior to customization as there is a
chance that even before understanding the software, the system and making
positive changes, and the need may never arise to customize the software.

10/28/20 04:54:09 PM 94
7. Change Management
 Employees of any company are accustomed to the same kind of activities
performed through a defined process in their daily routine and any
changes may not be easily-accepted, especially when it is something as
influential as ERP and that is when Change Management becomes crucial.
 ERP is a system that would change the environment and the working-style
for the better, which affects not only one or two operations but all.
 Management should involve their employees and prepare them mentally
to answer the critical questions like
- Why is it important for the organization to include ERP? OR
- How would an ERP boost productivity? OR
- How would an ERP automate back-office functions and save time?  

10/28/20 04:54:09 PM 95
8. Technology & Knowledge
Transfer
 Training is the most important aspect of the ERP software implementation
process. 
 It ensures there are fewer issues and more success, especially when ERP is
implemented for the first time in the company or when the platform is changed
from one ERP solution to another.
 The company’s management must ensure proper vendor detailing and
technological know-how to the company’s in-house IT support staff.
 Proper use of technology and an effective knowledge transfer, along with
proper training should be considered since they are the parties responsible for
the entire project's success.
 Considering the consultant to be a part of the project would not only assist in
a smooth operation, but would also reduce the time gap between the untimely
glitch and the solution.

10/28/20 04:54:09 PM 96
9. Project Management &
Testing
 After evaluation of all available options, selecting the best-suited and
then training the employees, the real aspect of implementation is the
project implementation itself.
 According to a research study, 40% of ERP implementations cause
major operational disruptions after go-live; therefore, proper
implementation is imperative.
 The rigidity may backfire since there are a lot of time gaps between the
processes of selection, evaluation and implementation.

10/28/20 04:54:09 PM 97
10. Final Touch & On-Going
Support
 Once the ERP solution is properly-checked and implemented, it is the
time to go live.
 It is advisable to pursue one additional functionality test, just as a
safety precaution.
 An ERP solution is not a one-time event, but rather a continuous
process.
 It is something that the company has to continuously keep tabs on to
avoid any aberrations or systemic glitches which could affect the ERP
software functionality.

10/28/20 04:54:09 PM 98