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ERP Implementation: A Complete Guide
Ijaz Haider Malik weboriez@hotmail.com



Abstract                                            Despite of the many reasons, the biggest
                                                    challenges are choosing the right solution with
ERP implementations in the South Asian              the right vendor and its effective implementation
countries, are comparatively different, harder      according to the requirements of the business. In
and financially very expensive than the other       fact, in 42% of the cases when new business
parts of the worlds. This is because of different   applications are under consideration, the ERP is
socio-economic conditions, working style of         the default decision without even looking
businesses, their operation methods and low         anywhere else[2]. Rapid changes in businesses
currency     comparative      to    international   have thrown away the idea of bespoke and
currencies. Most of the well renowned ERP           fusion solutions. The biggest fear of an
solutions and their licenses are in foreign         enterprise for the ERP implementation is the
currencies such as Dollar, Pound or Sterling.       failure rate: 51% have experienced their ERP
When, a third world country would like to           implementation as unsuccessful [1]. It becomes
implement an ERP solution, investment               more painful as the ERP implementation is the
becomes many folds due to the currency              most expensive in the field of IT.
difference. But, the post implementation cost is
lesser than the international market due to the     Generally, the ERP is considered as the back
cheaper labor cost. With the growing market of      bone of an organization. But, the ERP is in fact
mobile operators in Pakistan, PTCL as a             the combination of backbone, reflex system and
landline operator needs the cutting edge            the back part of the brain i.e., organization’s
technology as its products and operations.          main support, assurance to comply with the
Though, the ERP implementation has high cost        processes and business rules and centralized
but without it, gap between expenses and            storage of data. There are three basic stages for
revenue could not be widened: profit only           an ERP implementation: pre-implementation,
comes with less cost and high revenue. Making       during and post implementation. All ERP
a decision for the ERP implementation is a huge     implementation stages are equally difficult and
and tough task for the management. But, the         full of challenges. Any loose brick can bring the
tougher is its proper implementation and post       whole implementation down. As the post stage
implementation monitoring and maintenance.          is dependent on the prior stages, hence the
                                                    importance sequence is pre, during and Post
1.0 Introduction                                    Implementation.

 A proper ERP solution has become a vital need      To keep up with the growing customer demands
of this era for the enterprises due to the market   and fast changes in business trends, the
globalization and day by day growing                enterprise must have the flexibility and agility to
competition. For the very fact, the ERP solution    change quickly. And this could only be possible
has become mandatory for an enterprise to run       if the ERP solution is implemented successfully:
the business in an effective and efficient way.     aligned with the business requirements along
But, before going for the implementation of an      with the seamless information flow between the
ERP solution, an enterprise has gone through        modules and across departments. In this space
immense hard-hitting times: choosing the right      age, everything is sought with extreme sense of
solution, planning, selection of implementation     urgency and there is no room for duplication of
team and managing the change. Whether it is an      data inputs and serial processing [11].
ERP implementation or reimplementation, it
should be well thought as its life spreads over
many years.
2.0 Pre Implementation                             implementation, but also it is evaluating the
                                                   implementation team and its progress towards
a) An ERP Solution Required or Not?                the end. While forming a steering committee,
                                                   the CEO of the organization must realizes that it
Before the ERP implementation, the first           should be of apt size with the best suited
question is to whether the organization does       members. Sometimes, a huge sized steering
require new ERP solution or not? And, the          committee cannot make decisions due to diverse
answer does not come easy. It needs an             members.
immense amount of work to come up with final
facts and figures. Writing the ERP Initial         d) Preparedness
Documentation needs combination of the
business experience and in depth knowledge of       An ERP implementation’s success depends
the ERP implementations. Once facts and            upon      the     preparedness     before    the
figures appear on the paper, budget approval       implementation. The business requirements and
from the Board of Directors along with a           business rules should be properly documented
convincing presentation is another hard part for   and signed off from stake holders and senior
the management. Without proper approved            potential users. The implementation with
budget, the implementation is just a dream with    inadequate documentation is an open invitation
no wings.                                          to failure. The legacy systems’ plus and minus
                                                   points should also be documented so that the
b) Scope of Work                                   plus can be a part of implementation and the
                                                   minus points can be avoided. Also record and
Scope of work should be clear with achievable      document legacy application users’ comments
objectives. A normal ERP implementation has        as they are the actual users and they might give
the following modules: Finance & Accounting,       inside of the application to be required.
Material Management and Human Capital              Processes should be identified and they should
Management. Though, organizational scope can       be intact. Identify the pain points and touch
be more or less than the above mentioned.          points.
Almost all ERP Solutions offer individual
modules or combination of more than one as per     Most of the time, the feedback from the actual
clients’ requirements. The organization can opt    users gets ignored with a thought that the ERP
for the modular scope. Even from some              application is only for the use of management
solutions, the organization may select desired     but actually it is for every one in an
sub modules and leave the rest. Many ERP           organization.
installations failed due to undefined scope of
work and project goals.                            e) Pre Evaluation

c) Steering Committee                              After the budget approval, next is to select the
                                                   apt ERP Solution. Almost all ERP systems
An ERP implementation can not be successful        available are good at some things, yet not so
without the support         from the highest       good at other. [3]. Selecting and implementing
management. For the very reason, the steering      the most appropriate software package to
committee should be formed with “C” level          support a company’s business processes is itself
management members. Few members from the           considered a best practice[5]. With the internet
board of directors in the committee may also be    and fast intelligent search engines an enterprise
helpful for the easy release of the budget         can browse through hundreds and thousands of
whenever required. The steering committee          the web sites for best suited ERP Solutions and
enables the project management team with           vendor profiles. Every ERP solution provider is
proper mandate and to overrule the red tape        claiming that they are the best ERP solution
issues which can be the bottlenecks for the ERP    providers. According to Boston-based AMR
implementation. Not only the steering              research about vendors ,”they will try their best
committee pushes the business towards the ERP      to dazzle you with spectacular product demos
and enticing promises of a smooth sailing             Following should be considered while selecting
deployment”. But, thanks to reviews and white         an ERP selection:
papers, a wide horizon of comparison between              o Ease Of Use
different ERP solutions has been reduced to top
                                                             The first and vital feature of an ERP
five: SAP AG, Oracle E-Business, J D Edwards,
People Soft and Baan. According to some, it is               solution should be its ease of use. As if
just among two big giants: SAP and Oracle E-                 ease of use is missing it would have
Business Suite.                                              been very difficult to convince the end
                                                             users to leave their legacy systems and
Even, the major competition is between two big               start using the new application. In
giants, it is a cumbersome activity for an                   addition, ease of use brings efficiency in
enterprise to choose the right Solution. ERP                 work and requires less resources to use
solutions are so expensive that one wrong                    it.
decision not only makes the implementation
project a failure but sometimes also destroys the         o   Cost
business itself. Ratio of ERP implementation’s                Cost is the major factor of an ERP
success is much lower than failure. In most of                Implementation. Cost of implementation
the cases, enterprises take one to two years just             and support should not impact business
to decide the apt solution according to their                 to run its normal operation. Cost of an
requirements.                                                 ERP implementation has different
                                                              aspects and faces. Few of them are:
An Organization should not believe on Vendor’s                license cost, support, maintenance, HR,
provided evidences and implementation                         hardware and infrastructure cost. Most
references. The Organization should also dig out              important is the post implementation
figures and facts of the particular ERP solution              cost for maintenance and operation. As
at their own. And, should contact the references              post implementation period is much
provided by the vendor to find out the exact                  larger than the implementation. 59% of
problems they have faced and are facing with                  implementations cost more than that
this solution.                                                initially assumed[8].

All organizations are different even if they are in       o   Customization
the same business. Requirements and business                  Major difference between bespoke and
processes are always different and so is the ERP              ERP off the shelf solution is
implementation and solution. Though, the best                 customization.    If   ERP      solution
practices might be followed to gain the best out              configuration module is not strong
of an ERP implementation.                                     enough to support the business and its
                                                              changes then successful implementation
Along with the ERP solution, an organization                  could not be possible. ERP solution
should evaluate the business partners who are                 should      provide    flexible     and
implementing the solution in your region. May                 comprehensive and easy to use
be during the evaluation you find out that                    configuration solution. Configuration
though the solution is excellent but the business             solution should accommodate business
partners of vendor have bad repute, financially               changes and new requirements without
unsound or are have inept resources for                       going into development. Though,
implementation. These really matter during the                development feature should also be
implementation.                                               there to cater exceptional cases. But,
configuration solution should be strong,         export to other applications such as
    flexible and easy to use to cater most of        Excel, CSV, PDF or text then there is a
    the business changes.                            problem for the business. Reports are
                                                     the source for information and hence
o   Efficiency                                       authorization control at the low level is
    If an ERP solution is giving business            very important. Without proper
    everything but not efficiency, it means it       authorization control on reports, it might
    is not a good ERP solution. As without           put an organization at risk.
    efficiency, business could not achieve
    its targets and business requirements.
    The biggest differences between manual       o   Integration
    and automated system are efficiency              ERP means modules integration and
    and accuracy. Efficiency can be                  flow of data and information from one
    measured by number of transaction                module to another module without
    processed per second                             effecting efficiency and accuracy. If
                                                     ERP solution modules are not well
o   Accuracy                                         integrated or there are issues with
    Reliability comes from accuracy. If              integration between modules then it
    solution has issue with accuracy then it         should not be considered as the ERP
    is    not     considered     for     ERP         Solution. As the strength of ERP is the
    implementation. Accuracy of ERP                  integration of modules and data flows.
    solution can be measured with number
    of accurate results per number of            o   Multi Currency
    transactions or queries. Accuracy is             ERP       solution     should      support
    considered as the basic salient feature of       Multicurrency feature and it should be
    an ERP solution and with it, the concept         across the application. As few solutions
    of ERP methodology could not be                  only provide the option on few
    achieved.                                        interfaces with limited functionalities.
                                                     The ERP implementation should be well
o   Comprehensive & Flexible Standard                thought and it should at least cover five
    Reports                                          to seven years. Even, an organization
    End product and crux of an ERP                   does not need a multicurrency option, it
    solution is the reporting solution which         should be part of implementation so that
    can provide management the right                 in future this could not be a bottleneck.
    reports at the right time to make timely
    correct decisions for the organization. If   o   Graphs
    the standard reports cover sixty to              ERP solution should have an option to
    seventy percent of an organization’s             see reports in graphical mode for the
    requirements, it should be considered as         management to see figures and trends in
    a good ERP Solution. Otherwise, more             less time. Graphical reports should be
    efforts will be required to develop the          flexible to change the view as per
    reports which result in an increase in           requirement.
    cost and time of implementation. If the
    reporting solution is not flexible in
    terms of parameters, display options and
o   Business Intelligence                            the management to provide apt access to
    ERP solution should provide its own              their users according to their role.
    Business Intelligence. The major
    advantage of ERP solution is to the              Security not only at the user’s
    Management to make quick decisions               authorization level but must also at the
    and for this very reason BI module               system level: protection from hackers or
    availability in ERP Solution is definitely       malicious computer applications.
    a plus. Using third party BI, slows down
    the main application and have more           o   Other considerations
    complexities and issues unlike if ERP            Most of the organizations fell into the
    solution has its own real time BI                traps of vendors and consultants. It is a
    module.                                          marketing gimmick of vendors and
                                                     consultants to come up with highly
o   Support                                          colored presentation with lots of good
    After implementation, support is very            references of big brands. Organizations
    important while considering the ERP              should not completely rely on vendors
    solution selection. After the successful         or consultants but they should check the
    implementation, there are chances that           actual truth by contacting the references
    the application could not run along with         provided by vendors or consultants.
    the business if after implementation             This will not only make their decision
    support is not good from the vendor or           more practical but also would help them
    consultants. Often vendors or business           to negotiate prices with them.
    partners put their all efforts to make the
    implementation successful but they               Following should be evaluated against
    vanish from the scene once their                 the ERP solution:
    implementation contract is over. After               Age in market (number of years).
    implementation support though often                  Stability in market.
    mentioned in RFP but when time comes                 Average Human Resources required
    organizations found out the support was              for each module.
    virtual and actual support. It is best               Average cost of Human Resources
    practice to check the real support                   required        for       operations,
    experience from the existing clientele of            development and its support.
    the vendor and consultants.                          How easy to find resources: human
                                                         and other.
o   Security                                             Number of platforms it can support:
    An ERP solution should have a tight                  Unix, Linux , Windows etc
    Security embedded into it and should                 Cost of Infrastructure required and
    have it at a granular level. In this era,            how easy to get that in market.
    security is considered to be the top most
                                                         Frequency of new releases and how
    priority of the organizations. Business
                                                         easy to upgrade it?
    data is the most important asset of an
                                                         Frequency of bug fixing patches.
    organization.             Comprehensive
                                                         Does it follow industry and business
    authorization mechanism is required to
                                                         standards like ISO, CMMI etc?
    every organization which will enable
Following should be evaluated against        holders, conduct other workshops to document
        the vendor and consultant:                   the TO-BE processes. To-Be processes should
            Their Financial Strength                 be evaluated with the help of technical staff
                                                     before proper sign off from the stake holders.
            Number of clientele                      Once the To-Be processes are signed off,
            Number of satisfied clients              processes will be handed over to consultants /
            Proposal submitted by vendor             technical team for further action. Focus on your
            should be reviewed legally and           business strategy and not just software selection
            technically.                             and implementation [9]. ERP implementation
                                                     could not bring benefits to an organization
            They should offer transfer of
                                                     unless its processes are optimized before
            technology (Knowledge transfer)          implementation.
            They should not sublet contract to
            other companies. They should have        To-Be processes should be well thought out to
            their own seasoned professionals         cover the requirements of the business for next
            for all modules.                         ten years. To understand the changes of next ten
                                                     years, rate of change should be doubled or
f) Project Planning                                  multiplied with the ratio of changes during last
                                                     ten years. As ERP solutions grows with the
Once the ERP solution is selected, project           company and its future strategies. History is the
planning is the major task to be performed           best predictor of the future[12].
between implementers and the organization.
Project plan is the track of activities with date    h) Implementation Team
stamps, resource allocation from both the sides
along with risks and dependencies. If project        Selecting     or    hiring    the     professional
plan is followed with right pace, it gets the        implementation team with apt skills and
organization success in the implementation and       experience is a must have. Team should be
open unlimited business opportunities. Project       combination of technical and functional
planning should follow the standards like PMP        members. Skills that are critical to the
or Prince2. Project plan should have activities      implementation include project management,
according to priorities. Risk should be covered      process improvement, requirement’s definition,
in the project planning and steps should be taken    data conversion, testing, separation of duties
to avoid risks and mitigation of risks. Regardless   analysis, and post go live analysis [10]. Proper
of your size and perceived resources, an ERP         trainings     should     be     conducted       for
implementation is not something that should be       implementation teams. Teams should not work
approached without a great deal of careful           in silos and work under one umbrella so that
planning [9].                                        integration can be done effectively. Moving
                                                     away from Functional silos and creating
g) Process Refinement (AS-IS , TO-BE)                effective cross functional processes that are truly
                                                     integrated via an ERP system is not an easy task
Documenting the AS-IS Business processes is          [9].
the crucial activity of the process identification
and its refinement. This could be achieved by        i)   SDC ( Environment )
conducting different sessions with the business
stake holders. As enterprise has a large number      Software Development Center should be
of employees so it is not possible to discuss AS-    established with the proper resources like PCs,
IS processes with everyone. The best approach        Laptops and Printers with proper infrastructure.
is to select the teams from each domain. Once        This SDC will be helpful during and after
draft version of AS-IS documents are ready, the      implementation.
second should be arranging the workshop to
further clarify the AS-IS processes with the
stake holders. After proper sign off from stake
j) Employees Buy-in.                                 j) BPM

Without      employees      buy-in,   successful     If ERP Solution supports Business Process
implementation is close to impossible. If            Management it will be an additional edge on
management       decide to go for the ERP            other ERP solutions as it enables employees to
implementation without buy-in from its               effectively manage the processes with dynamic
employees, issue starts popping up from day          approach: designing, configuring, executing,
one till the day of the final failure.ERP            monitoring, and analyzing.
implementation is for the whole enterprise and
not only for the management and that’s why it is
termed as ERP and not “Management
                                                     3.0 During Implementation
Planning”. Only 13% of respondents
characterize themselves as “very satisfied” with     Once it has been decided that which ERP
their company’s software implementation and          solution to implement, implementation has
38 % of respondents indicated “lack of               begun with all it challenges and activities.
employee buy-in” as the biggest challenge            During implementation if proper monitoring and
facing the ERP implementation teams[8].              execution plan has not been taken on, it could
Organization should also assure its employees
                                                     take the implementation towards the failure
that job losses will be minimum otherwise there
will be a considerable resistance from               without noticeable to the management. During
employees.                                           implementation, the biggest factor is time. As
                                                     loosing the time will impact budget and without
k) Interfaces for third party integration            budget implementation won’t be possible.

     It should also be considered that ERP           a) Data Collection
     solution must provide easy to implement
     integration interfaces for third party          First the most difficult of all is to collect the
     applications. Most of the off shelf ERP         data. To avoid “Garbage in garbage out”, Data
     solutions provide XML or web service            collection team of experienced members should
     interfaces. ERP solutions that do not provide
                                                     be formed. And, in the implementation plan
     integration interface costs lot of time,
     resources and money to develop interface        activities of data collection with proper time
     every time organization would like to share     lines should be mentioned. The vital part of data
     the data with ERP Solution.                     collection is to design the data collection
                                                     templates. Data collection template should be
l)   Declare Implementation as a Project             well thought of. Following should be considered
                                                     while designing the data collection templates:
As ERP implementation is a big task,
                                                     easy to understand, user friendly, validation
implementation should be declared as a Project.
Project should have project management team          checks to avoid wrong entries, examples, and
with execution mandate. According to PMP and         minimize data entry with lookups and drop
Prince2, “Project should have a definite start and   down options. Also provide data dictionary for
end”. Same implies to ERP Implementation.            each column. Before sending to users get the
                                                     evaluated template from easily approachable
As per Wikipedia, ”Project Management is the         users. Template should be communicated via
discipline of planning, organizing, and
                                                     highest managements email so that users take
managing resources to bring about the
successful completion of specific project goals      them seriously.
and objectives. It is often closely related to and
sometimes       conflated       with      program    Avoid sending same template again and again
management.”                                         with modifications as it will reduce the effect. If
                                                     possible conduct workshops to give template
overviews. No templates should be accepted
with proper sign off from the sender: sense of
ownership. If these issues are tackled with                          Third Level Support
proper planning and strategy, it will save
considerable cost and time.                                         Second Level Support

The biggest challenge is to convert legacy data                      First Level Support
into new format and also check for redundancy
and duplication (data cleansing). Most of the
cases legacy data do not provide the complete
data required for the new implementation. In         c) Quality Team
those cases special permissions and decisions        “A quick migration to an ERP system without
are required from the steering committee.            time for testing and validating the systems is not
                                                     wise nor advisable,”[7]. There should be proper
Communication teams                                  quality testing and assurance teams. Quality
                                                     begins with the initiation of the implementation.
Communication team should be formed to               To reduce the cost of implementation, some
communicate every possible achievement or            organizations ignore the formation of dedicated
hurdle to all the stake holders in order to          teams for quality testing and quality assurance.
                                                     But, after implementation low quality cost the
develop a sense of ownership among all. Also it
                                                     organization many folds then investing the
gives confidence to all that they are part of the    money on quality during implementation.
implementation. Communication team should            Despite other quality assurances, the most
build strategies to avoid the scenarios where        important for quality team is to keep check on
ERP implementation becomes scapegoat for             the unnecessary development of reports.
non performers. As it is a normal practice to
blame the solution if something goes wrong and       Without quality the objectives of successful
                                                     implementation could not be achieved. Quality
mostly common with new implementations.              should be checked and assured at every process
                                                     and step of implementation. Some of them are:
b) Support Team
                                                     documentation, AS-IS and TO-BE processes,
                                                     configuration, development.
No matter how much trainings are conducted
during the implementation, end users always          d) Documentation with Configuration
need support to use the new implemented
solution. There should be three levels support:      The prime focus of implementation and Project
first, second and third level. In First level,       Management office is on            configuration,
representatives who are good in operating the        testing, and     deploying the ERP solution in
system and should guide the end users how to         the best         possible manner. However,
                                                     the importance of proper documentation and it
use the application effectively. If first level      configuration is         placed aside And logic
support could not solve the problem they should      presented by the PMO office          or       the
forward the problem or issue to second level         implementation team is that     documentation
support. Second level support should be of team      slows down the entire project. But, it is proved
leads of different modules. If second level          that lack of documentation cost more           in
support could not solve the issue or problem it      implementation than maintaining proper
                                                     documentation.
should be forwarded to third level support. Third
level support should be of consultants or internal
technical teams.
end users. Competency center will reduce the
                                                   cost of after implementation support from third
4.0 Post Implementation                            party. Enabling organizations’ own staff will
                                                   definitely reduce cost and time for new changes,
                                                   development and improvements in the system.
After implementation, organizations celebrate
the GO-LIVE, they forget about the fact that
post implementation is as important as             5.0Advantages
implementation. No matter how successful is the
                                                   Successful ERP implementation comes with a
implementation, if not used or maintained          bouquet of advantages. Visibility across the
properly it causes more harm to the organization   company figures saves time, resources and
then the implementation it self.                   money. With one centralized database and
                                                   integrated modules, fast and accurate
e) Change Management                               information helps the management to make
                                                   decisions and act quickly on decisions. Easy and
People do not accept change easily. The biggest    automated fore casting, reduces the stock
post implementation problem is the resistance to   keeping      and      investment.      Enhanced
the change. Organizations which do not form a      empowerment of employees through increased
strategy for change management could not get       information sharing [4], Real time processing
the benefits from the ERP solution. End users      enables the organization for fast business
would like to remain in their comfort zone:        moves, Reduces operations, paper environment,
using legacy applications with which they are      pain points and bottlenecks. Optimized
familiar with. Cultural change and insecurities    processes and cycles which reduces resources
are the biggest threats.                           and cost factors. The purpose of ERP
                                                   technology is to support the company’s strategic
f) Support                                         opportunities [9]. In a 2001, survey by
                                                   information technology toolbox, 59% of 1124
ERP implementation is the outcome for huge         respondents, by a margin of 3 to 1, saw their
financial investment and exhaustive hard work      highest return on investment(ROI) coming from
of teams. Organizations do not realize that        ERP [12].
ongoing support of ERP solution is the major
part of the total ERP cost. ERP support cost       6.0 Disadvantages
depends on the size of the solution, number of
users, nature of business, vendor (Oracle, SAP,    Every picture has two sides and so does the ERP
etc) and frequency of system’s modifications.
                                                   implementation. With flowers come thorns:
g) Human Resource Retention                        disadvantages: huge investment on ERP
                                                   implementation and its maintenance, too much
HR retention is the most difficult of all after    reliability on the system and limitation ERP
post implementation. Internal staff not only       solution brings with it as inheritance. Some
gained the technical expertise but also in depth   limitations of off shelf ERP solutions, also limit
business knowledge which enabled them to get       the business to grow in a particular direction.
highly paid job very easily in the market. To
retain the HR, different strategies can be
adopted: incentives, salary increase and clarity   7.0 Basic Causes of Failure
to their future growth.
                                                   Cause of failure may vary from organization to
h) Competency Center                               organization, business type to business type,
                                                   ERP solution to ERP solution. But, basic failure
Formation of competency center will enable the     reasons remain the same: not prepared for
teams for continuous improvements through          implementation, rely on available resources
extensive training for competency of staff and     regardless of their skills and experience, opt for
a wrong solution, budget constraints to buy low                             Selection of apt solution, right technical and
cadre solution, management was not on board,                                business team, management on board, whole
wrong choice of business users, decisions                                   organization taken into confidence and their buy
making in close rooms, teams working on                                     in, proper and exact requirement gathering, best
different islands and are not on the same page,                             approach, processes in place, best plan, PMO
solving problems on fire fighting mode, high                                office in place with proper mandate of
expectations raised. Also sometimes cause of                                execution, exhaustive trainings to all type of
failure is the management who is so busy in                                 users, dedicated team for implementation,
other     operations    and    consider       ERP                           looking for KPIs after implementation.
implementation is the sole responsibility of IT.                            Kimberling said "I think that's where a lot of
                                                                            companies fall short," he said. "Their finish line
8.0 Basic reasons of Success                                                is the go-live, and there's very little that gets
                                                                            done after the fact."




9.0 Conclusions

ERP implementation is different from conventional IT Software Projects.ERP implementation involves
process reengineering and optimization. It brings a new culture and a fresh breath to an organization if
implemented in the right way. It takes an average of two and a half years from project initiation to achieve a
quantifiable return on investment for an ERP system. Ninety percent of those quantified benefits are the
result of a cost reduction, according to the study [6]. ERP implementation if would have been done with
proper planning and long thought out process brings its benefits. But, if planning or processes are not in
place, it would be a disaster for the organization. Studies showed that ERP implementation could only be
possible if well planned along with organizations well placed processes.

10.0 Acknowledgements
We would like to acknowledge Mr. Wasif Ihsan who has provided us the support and cooperation during
our case study.


References:
[1] The Robins-Gioia Survey 2001.
[2] Supply Chain Digest, Springboro, OH, 2005]
[3] Successful ERP Implementation required planning by Robert W.Stanisky-2000
[4] A Case Study of ERP Implementation Issues by Dr. Tom Bramorski University of Wisconsin USA
[5] Paul Wahl SAP America
[6] Meta Group study
[7]Dr. John T. Whiting
[8] Panorama Consulting Group Dec 05-Nov 08
[9] Successful ERP Implementation the first time by R. Machael Donovan.
[10] Global ERP Implementation Challenges by KPMG’s Global Energy Institute – 2008
[11] Implementation issues in ERP by R.Appuswamy Deakin University, Australia
[12] Epicor® - 11 criteria for selecting The Best ERP system replacement
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                                                                                                      10
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                       Proper planning of project
                                     Role of PMO
     Was there sufficient Management support?
  Were there any conflicts with the consultants?
Is there any integration with other applications?
       How effective was the inter-departmental…
How many revisions to the base lined schedule?
How well you achieve the objective of your ERP?
                              Increase in revenue
                                  Increase in Sale
                          Increase in productivity
                           Paperless environment
           Collaboration with other departments
                     Transparency improvement
                         Were Trainings Effective
      How much you have gained from Trainings
      People do not understand ERP advantages
                                                                                                                TABLE 1.1 : Questionnaire Survey (Graph with Trends)




                     How effective reports were?
      Integration Issues with other applications?
                              Team Preparedness

                 After Implementation Support
  Cross-functional process orientation with high…
               Advantage after implementation
           Disadvantages after implementation
                                                                        One
                                                                  Two


                                                Four
                                    5-Highest
                                                                              0- Lowest




                                                       3-Midium
TABLE 1.2 : Questionnaire Survey




                                                                                    3-Midium
                                                            0- Lowest




                                                                                                      5-Highest
                                                                                               Four
                                                                              Two
                                                                        One
Questions
Proper planning of project                                  0           2     0     4          7      1
Role of PMO                                                 0           2     0     4          7      5
Was there sufficient Management support?                    0           0     0     4          5      5
Were there any conflicts with the consultants?              1           0     2     6          4      1
Is there any integration with other applications?           0           2     0     5          3      4
How effective was the inter-departmental communication?     0           2     1     1          10     0
How many revisions to the base lined schedule?              0           0     2     7          3      2
How well you achieve the objective of your ERP?             0           1     2     2          6      3
Increase in revenue                                         0           2     3     4          4      1
Increase in Sale                                            2           1     3     5          2      1
Increase in productivity                                    1           0     2     4          4      3
Paperless environment                                       0           1     2     3          8      0
Collaboration with other departments                        0           1     1     4          5      3
Transparency improvement                                    0           0     0     3          7      4
Were Trainings Effective                                    0           0     2     5          3      4
How much you have gained from Trainings                     0           0     2     4          4      4
People do not understand ERP advantages                     0           1     1     6          3      3
How effective reports were?                                 0           1     2     1          6      4
Integration Issues with other applications?                 0           2     3     4          4      1
Team Preparedness                                           0           1     5     3          5      0
Efficient support to end user during Implementation         0           1     2     1          6      4
After Implementation Support                                1           0     1     4          5      3
Cross-functional process orientation with high visibility   1           0     1     4          7      1
Advantage after implementation                              0           1     1     3          6      3
Disadvantages after implementation                          2           7     3     2          0      0

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ERP Implementation A Complete Guide

  • 1. ERP Implementation: A Complete Guide Ijaz Haider Malik weboriez@hotmail.com Abstract Despite of the many reasons, the biggest challenges are choosing the right solution with ERP implementations in the South Asian the right vendor and its effective implementation countries, are comparatively different, harder according to the requirements of the business. In and financially very expensive than the other fact, in 42% of the cases when new business parts of the worlds. This is because of different applications are under consideration, the ERP is socio-economic conditions, working style of the default decision without even looking businesses, their operation methods and low anywhere else[2]. Rapid changes in businesses currency comparative to international have thrown away the idea of bespoke and currencies. Most of the well renowned ERP fusion solutions. The biggest fear of an solutions and their licenses are in foreign enterprise for the ERP implementation is the currencies such as Dollar, Pound or Sterling. failure rate: 51% have experienced their ERP When, a third world country would like to implementation as unsuccessful [1]. It becomes implement an ERP solution, investment more painful as the ERP implementation is the becomes many folds due to the currency most expensive in the field of IT. difference. But, the post implementation cost is lesser than the international market due to the Generally, the ERP is considered as the back cheaper labor cost. With the growing market of bone of an organization. But, the ERP is in fact mobile operators in Pakistan, PTCL as a the combination of backbone, reflex system and landline operator needs the cutting edge the back part of the brain i.e., organization’s technology as its products and operations. main support, assurance to comply with the Though, the ERP implementation has high cost processes and business rules and centralized but without it, gap between expenses and storage of data. There are three basic stages for revenue could not be widened: profit only an ERP implementation: pre-implementation, comes with less cost and high revenue. Making during and post implementation. All ERP a decision for the ERP implementation is a huge implementation stages are equally difficult and and tough task for the management. But, the full of challenges. Any loose brick can bring the tougher is its proper implementation and post whole implementation down. As the post stage implementation monitoring and maintenance. is dependent on the prior stages, hence the importance sequence is pre, during and Post 1.0 Introduction Implementation. A proper ERP solution has become a vital need To keep up with the growing customer demands of this era for the enterprises due to the market and fast changes in business trends, the globalization and day by day growing enterprise must have the flexibility and agility to competition. For the very fact, the ERP solution change quickly. And this could only be possible has become mandatory for an enterprise to run if the ERP solution is implemented successfully: the business in an effective and efficient way. aligned with the business requirements along But, before going for the implementation of an with the seamless information flow between the ERP solution, an enterprise has gone through modules and across departments. In this space immense hard-hitting times: choosing the right age, everything is sought with extreme sense of solution, planning, selection of implementation urgency and there is no room for duplication of team and managing the change. Whether it is an data inputs and serial processing [11]. ERP implementation or reimplementation, it should be well thought as its life spreads over many years.
  • 2. 2.0 Pre Implementation implementation, but also it is evaluating the implementation team and its progress towards a) An ERP Solution Required or Not? the end. While forming a steering committee, the CEO of the organization must realizes that it Before the ERP implementation, the first should be of apt size with the best suited question is to whether the organization does members. Sometimes, a huge sized steering require new ERP solution or not? And, the committee cannot make decisions due to diverse answer does not come easy. It needs an members. immense amount of work to come up with final facts and figures. Writing the ERP Initial d) Preparedness Documentation needs combination of the business experience and in depth knowledge of An ERP implementation’s success depends the ERP implementations. Once facts and upon the preparedness before the figures appear on the paper, budget approval implementation. The business requirements and from the Board of Directors along with a business rules should be properly documented convincing presentation is another hard part for and signed off from stake holders and senior the management. Without proper approved potential users. The implementation with budget, the implementation is just a dream with inadequate documentation is an open invitation no wings. to failure. The legacy systems’ plus and minus points should also be documented so that the b) Scope of Work plus can be a part of implementation and the minus points can be avoided. Also record and Scope of work should be clear with achievable document legacy application users’ comments objectives. A normal ERP implementation has as they are the actual users and they might give the following modules: Finance & Accounting, inside of the application to be required. Material Management and Human Capital Processes should be identified and they should Management. Though, organizational scope can be intact. Identify the pain points and touch be more or less than the above mentioned. points. Almost all ERP Solutions offer individual modules or combination of more than one as per Most of the time, the feedback from the actual clients’ requirements. The organization can opt users gets ignored with a thought that the ERP for the modular scope. Even from some application is only for the use of management solutions, the organization may select desired but actually it is for every one in an sub modules and leave the rest. Many ERP organization. installations failed due to undefined scope of work and project goals. e) Pre Evaluation c) Steering Committee After the budget approval, next is to select the apt ERP Solution. Almost all ERP systems An ERP implementation can not be successful available are good at some things, yet not so without the support from the highest good at other. [3]. Selecting and implementing management. For the very reason, the steering the most appropriate software package to committee should be formed with “C” level support a company’s business processes is itself management members. Few members from the considered a best practice[5]. With the internet board of directors in the committee may also be and fast intelligent search engines an enterprise helpful for the easy release of the budget can browse through hundreds and thousands of whenever required. The steering committee the web sites for best suited ERP Solutions and enables the project management team with vendor profiles. Every ERP solution provider is proper mandate and to overrule the red tape claiming that they are the best ERP solution issues which can be the bottlenecks for the ERP providers. According to Boston-based AMR implementation. Not only the steering research about vendors ,”they will try their best committee pushes the business towards the ERP to dazzle you with spectacular product demos
  • 3. and enticing promises of a smooth sailing Following should be considered while selecting deployment”. But, thanks to reviews and white an ERP selection: papers, a wide horizon of comparison between o Ease Of Use different ERP solutions has been reduced to top The first and vital feature of an ERP five: SAP AG, Oracle E-Business, J D Edwards, People Soft and Baan. According to some, it is solution should be its ease of use. As if just among two big giants: SAP and Oracle E- ease of use is missing it would have Business Suite. been very difficult to convince the end users to leave their legacy systems and Even, the major competition is between two big start using the new application. In giants, it is a cumbersome activity for an addition, ease of use brings efficiency in enterprise to choose the right Solution. ERP work and requires less resources to use solutions are so expensive that one wrong it. decision not only makes the implementation project a failure but sometimes also destroys the o Cost business itself. Ratio of ERP implementation’s Cost is the major factor of an ERP success is much lower than failure. In most of Implementation. Cost of implementation the cases, enterprises take one to two years just and support should not impact business to decide the apt solution according to their to run its normal operation. Cost of an requirements. ERP implementation has different aspects and faces. Few of them are: An Organization should not believe on Vendor’s license cost, support, maintenance, HR, provided evidences and implementation hardware and infrastructure cost. Most references. The Organization should also dig out important is the post implementation figures and facts of the particular ERP solution cost for maintenance and operation. As at their own. And, should contact the references post implementation period is much provided by the vendor to find out the exact larger than the implementation. 59% of problems they have faced and are facing with implementations cost more than that this solution. initially assumed[8]. All organizations are different even if they are in o Customization the same business. Requirements and business Major difference between bespoke and processes are always different and so is the ERP ERP off the shelf solution is implementation and solution. Though, the best customization. If ERP solution practices might be followed to gain the best out configuration module is not strong of an ERP implementation. enough to support the business and its changes then successful implementation Along with the ERP solution, an organization could not be possible. ERP solution should evaluate the business partners who are should provide flexible and implementing the solution in your region. May comprehensive and easy to use be during the evaluation you find out that configuration solution. Configuration though the solution is excellent but the business solution should accommodate business partners of vendor have bad repute, financially changes and new requirements without unsound or are have inept resources for going into development. Though, implementation. These really matter during the development feature should also be implementation. there to cater exceptional cases. But,
  • 4. configuration solution should be strong, export to other applications such as flexible and easy to use to cater most of Excel, CSV, PDF or text then there is a the business changes. problem for the business. Reports are the source for information and hence o Efficiency authorization control at the low level is If an ERP solution is giving business very important. Without proper everything but not efficiency, it means it authorization control on reports, it might is not a good ERP solution. As without put an organization at risk. efficiency, business could not achieve its targets and business requirements. The biggest differences between manual o Integration and automated system are efficiency ERP means modules integration and and accuracy. Efficiency can be flow of data and information from one measured by number of transaction module to another module without processed per second effecting efficiency and accuracy. If ERP solution modules are not well o Accuracy integrated or there are issues with Reliability comes from accuracy. If integration between modules then it solution has issue with accuracy then it should not be considered as the ERP is not considered for ERP Solution. As the strength of ERP is the implementation. Accuracy of ERP integration of modules and data flows. solution can be measured with number of accurate results per number of o Multi Currency transactions or queries. Accuracy is ERP solution should support considered as the basic salient feature of Multicurrency feature and it should be an ERP solution and with it, the concept across the application. As few solutions of ERP methodology could not be only provide the option on few achieved. interfaces with limited functionalities. The ERP implementation should be well o Comprehensive & Flexible Standard thought and it should at least cover five Reports to seven years. Even, an organization End product and crux of an ERP does not need a multicurrency option, it solution is the reporting solution which should be part of implementation so that can provide management the right in future this could not be a bottleneck. reports at the right time to make timely correct decisions for the organization. If o Graphs the standard reports cover sixty to ERP solution should have an option to seventy percent of an organization’s see reports in graphical mode for the requirements, it should be considered as management to see figures and trends in a good ERP Solution. Otherwise, more less time. Graphical reports should be efforts will be required to develop the flexible to change the view as per reports which result in an increase in requirement. cost and time of implementation. If the reporting solution is not flexible in terms of parameters, display options and
  • 5. o Business Intelligence the management to provide apt access to ERP solution should provide its own their users according to their role. Business Intelligence. The major advantage of ERP solution is to the Security not only at the user’s Management to make quick decisions authorization level but must also at the and for this very reason BI module system level: protection from hackers or availability in ERP Solution is definitely malicious computer applications. a plus. Using third party BI, slows down the main application and have more o Other considerations complexities and issues unlike if ERP Most of the organizations fell into the solution has its own real time BI traps of vendors and consultants. It is a module. marketing gimmick of vendors and consultants to come up with highly o Support colored presentation with lots of good After implementation, support is very references of big brands. Organizations important while considering the ERP should not completely rely on vendors solution selection. After the successful or consultants but they should check the implementation, there are chances that actual truth by contacting the references the application could not run along with provided by vendors or consultants. the business if after implementation This will not only make their decision support is not good from the vendor or more practical but also would help them consultants. Often vendors or business to negotiate prices with them. partners put their all efforts to make the implementation successful but they Following should be evaluated against vanish from the scene once their the ERP solution: implementation contract is over. After Age in market (number of years). implementation support though often Stability in market. mentioned in RFP but when time comes Average Human Resources required organizations found out the support was for each module. virtual and actual support. It is best Average cost of Human Resources practice to check the real support required for operations, experience from the existing clientele of development and its support. the vendor and consultants. How easy to find resources: human and other. o Security Number of platforms it can support: An ERP solution should have a tight Unix, Linux , Windows etc Security embedded into it and should Cost of Infrastructure required and have it at a granular level. In this era, how easy to get that in market. security is considered to be the top most Frequency of new releases and how priority of the organizations. Business easy to upgrade it? data is the most important asset of an Frequency of bug fixing patches. organization. Comprehensive Does it follow industry and business authorization mechanism is required to standards like ISO, CMMI etc? every organization which will enable
  • 6. Following should be evaluated against holders, conduct other workshops to document the vendor and consultant: the TO-BE processes. To-Be processes should Their Financial Strength be evaluated with the help of technical staff before proper sign off from the stake holders. Number of clientele Once the To-Be processes are signed off, Number of satisfied clients processes will be handed over to consultants / Proposal submitted by vendor technical team for further action. Focus on your should be reviewed legally and business strategy and not just software selection technically. and implementation [9]. ERP implementation could not bring benefits to an organization They should offer transfer of unless its processes are optimized before technology (Knowledge transfer) implementation. They should not sublet contract to other companies. They should have To-Be processes should be well thought out to their own seasoned professionals cover the requirements of the business for next for all modules. ten years. To understand the changes of next ten years, rate of change should be doubled or f) Project Planning multiplied with the ratio of changes during last ten years. As ERP solutions grows with the Once the ERP solution is selected, project company and its future strategies. History is the planning is the major task to be performed best predictor of the future[12]. between implementers and the organization. Project plan is the track of activities with date h) Implementation Team stamps, resource allocation from both the sides along with risks and dependencies. If project Selecting or hiring the professional plan is followed with right pace, it gets the implementation team with apt skills and organization success in the implementation and experience is a must have. Team should be open unlimited business opportunities. Project combination of technical and functional planning should follow the standards like PMP members. Skills that are critical to the or Prince2. Project plan should have activities implementation include project management, according to priorities. Risk should be covered process improvement, requirement’s definition, in the project planning and steps should be taken data conversion, testing, separation of duties to avoid risks and mitigation of risks. Regardless analysis, and post go live analysis [10]. Proper of your size and perceived resources, an ERP trainings should be conducted for implementation is not something that should be implementation teams. Teams should not work approached without a great deal of careful in silos and work under one umbrella so that planning [9]. integration can be done effectively. Moving away from Functional silos and creating g) Process Refinement (AS-IS , TO-BE) effective cross functional processes that are truly integrated via an ERP system is not an easy task Documenting the AS-IS Business processes is [9]. the crucial activity of the process identification and its refinement. This could be achieved by i) SDC ( Environment ) conducting different sessions with the business stake holders. As enterprise has a large number Software Development Center should be of employees so it is not possible to discuss AS- established with the proper resources like PCs, IS processes with everyone. The best approach Laptops and Printers with proper infrastructure. is to select the teams from each domain. Once This SDC will be helpful during and after draft version of AS-IS documents are ready, the implementation. second should be arranging the workshop to further clarify the AS-IS processes with the stake holders. After proper sign off from stake
  • 7. j) Employees Buy-in. j) BPM Without employees buy-in, successful If ERP Solution supports Business Process implementation is close to impossible. If Management it will be an additional edge on management decide to go for the ERP other ERP solutions as it enables employees to implementation without buy-in from its effectively manage the processes with dynamic employees, issue starts popping up from day approach: designing, configuring, executing, one till the day of the final failure.ERP monitoring, and analyzing. implementation is for the whole enterprise and not only for the management and that’s why it is termed as ERP and not “Management 3.0 During Implementation Planning”. Only 13% of respondents characterize themselves as “very satisfied” with Once it has been decided that which ERP their company’s software implementation and solution to implement, implementation has 38 % of respondents indicated “lack of begun with all it challenges and activities. employee buy-in” as the biggest challenge During implementation if proper monitoring and facing the ERP implementation teams[8]. execution plan has not been taken on, it could Organization should also assure its employees take the implementation towards the failure that job losses will be minimum otherwise there will be a considerable resistance from without noticeable to the management. During employees. implementation, the biggest factor is time. As loosing the time will impact budget and without k) Interfaces for third party integration budget implementation won’t be possible. It should also be considered that ERP a) Data Collection solution must provide easy to implement integration interfaces for third party First the most difficult of all is to collect the applications. Most of the off shelf ERP data. To avoid “Garbage in garbage out”, Data solutions provide XML or web service collection team of experienced members should interfaces. ERP solutions that do not provide be formed. And, in the implementation plan integration interface costs lot of time, resources and money to develop interface activities of data collection with proper time every time organization would like to share lines should be mentioned. The vital part of data the data with ERP Solution. collection is to design the data collection templates. Data collection template should be l) Declare Implementation as a Project well thought of. Following should be considered while designing the data collection templates: As ERP implementation is a big task, easy to understand, user friendly, validation implementation should be declared as a Project. Project should have project management team checks to avoid wrong entries, examples, and with execution mandate. According to PMP and minimize data entry with lookups and drop Prince2, “Project should have a definite start and down options. Also provide data dictionary for end”. Same implies to ERP Implementation. each column. Before sending to users get the evaluated template from easily approachable As per Wikipedia, ”Project Management is the users. Template should be communicated via discipline of planning, organizing, and highest managements email so that users take managing resources to bring about the successful completion of specific project goals them seriously. and objectives. It is often closely related to and sometimes conflated with program Avoid sending same template again and again management.” with modifications as it will reduce the effect. If possible conduct workshops to give template
  • 8. overviews. No templates should be accepted with proper sign off from the sender: sense of ownership. If these issues are tackled with Third Level Support proper planning and strategy, it will save considerable cost and time. Second Level Support The biggest challenge is to convert legacy data First Level Support into new format and also check for redundancy and duplication (data cleansing). Most of the cases legacy data do not provide the complete data required for the new implementation. In c) Quality Team those cases special permissions and decisions “A quick migration to an ERP system without are required from the steering committee. time for testing and validating the systems is not wise nor advisable,”[7]. There should be proper Communication teams quality testing and assurance teams. Quality begins with the initiation of the implementation. Communication team should be formed to To reduce the cost of implementation, some communicate every possible achievement or organizations ignore the formation of dedicated hurdle to all the stake holders in order to teams for quality testing and quality assurance. But, after implementation low quality cost the develop a sense of ownership among all. Also it organization many folds then investing the gives confidence to all that they are part of the money on quality during implementation. implementation. Communication team should Despite other quality assurances, the most build strategies to avoid the scenarios where important for quality team is to keep check on ERP implementation becomes scapegoat for the unnecessary development of reports. non performers. As it is a normal practice to blame the solution if something goes wrong and Without quality the objectives of successful implementation could not be achieved. Quality mostly common with new implementations. should be checked and assured at every process and step of implementation. Some of them are: b) Support Team documentation, AS-IS and TO-BE processes, configuration, development. No matter how much trainings are conducted during the implementation, end users always d) Documentation with Configuration need support to use the new implemented solution. There should be three levels support: The prime focus of implementation and Project first, second and third level. In First level, Management office is on configuration, representatives who are good in operating the testing, and deploying the ERP solution in system and should guide the end users how to the best possible manner. However, the importance of proper documentation and it use the application effectively. If first level configuration is placed aside And logic support could not solve the problem they should presented by the PMO office or the forward the problem or issue to second level implementation team is that documentation support. Second level support should be of team slows down the entire project. But, it is proved leads of different modules. If second level that lack of documentation cost more in support could not solve the issue or problem it implementation than maintaining proper documentation. should be forwarded to third level support. Third level support should be of consultants or internal technical teams.
  • 9. end users. Competency center will reduce the cost of after implementation support from third 4.0 Post Implementation party. Enabling organizations’ own staff will definitely reduce cost and time for new changes, development and improvements in the system. After implementation, organizations celebrate the GO-LIVE, they forget about the fact that post implementation is as important as 5.0Advantages implementation. No matter how successful is the Successful ERP implementation comes with a implementation, if not used or maintained bouquet of advantages. Visibility across the properly it causes more harm to the organization company figures saves time, resources and then the implementation it self. money. With one centralized database and integrated modules, fast and accurate e) Change Management information helps the management to make decisions and act quickly on decisions. Easy and People do not accept change easily. The biggest automated fore casting, reduces the stock post implementation problem is the resistance to keeping and investment. Enhanced the change. Organizations which do not form a empowerment of employees through increased strategy for change management could not get information sharing [4], Real time processing the benefits from the ERP solution. End users enables the organization for fast business would like to remain in their comfort zone: moves, Reduces operations, paper environment, using legacy applications with which they are pain points and bottlenecks. Optimized familiar with. Cultural change and insecurities processes and cycles which reduces resources are the biggest threats. and cost factors. The purpose of ERP technology is to support the company’s strategic f) Support opportunities [9]. In a 2001, survey by information technology toolbox, 59% of 1124 ERP implementation is the outcome for huge respondents, by a margin of 3 to 1, saw their financial investment and exhaustive hard work highest return on investment(ROI) coming from of teams. Organizations do not realize that ERP [12]. ongoing support of ERP solution is the major part of the total ERP cost. ERP support cost 6.0 Disadvantages depends on the size of the solution, number of users, nature of business, vendor (Oracle, SAP, Every picture has two sides and so does the ERP etc) and frequency of system’s modifications. implementation. With flowers come thorns: g) Human Resource Retention disadvantages: huge investment on ERP implementation and its maintenance, too much HR retention is the most difficult of all after reliability on the system and limitation ERP post implementation. Internal staff not only solution brings with it as inheritance. Some gained the technical expertise but also in depth limitations of off shelf ERP solutions, also limit business knowledge which enabled them to get the business to grow in a particular direction. highly paid job very easily in the market. To retain the HR, different strategies can be adopted: incentives, salary increase and clarity 7.0 Basic Causes of Failure to their future growth. Cause of failure may vary from organization to h) Competency Center organization, business type to business type, ERP solution to ERP solution. But, basic failure Formation of competency center will enable the reasons remain the same: not prepared for teams for continuous improvements through implementation, rely on available resources extensive training for competency of staff and regardless of their skills and experience, opt for
  • 10. a wrong solution, budget constraints to buy low Selection of apt solution, right technical and cadre solution, management was not on board, business team, management on board, whole wrong choice of business users, decisions organization taken into confidence and their buy making in close rooms, teams working on in, proper and exact requirement gathering, best different islands and are not on the same page, approach, processes in place, best plan, PMO solving problems on fire fighting mode, high office in place with proper mandate of expectations raised. Also sometimes cause of execution, exhaustive trainings to all type of failure is the management who is so busy in users, dedicated team for implementation, other operations and consider ERP looking for KPIs after implementation. implementation is the sole responsibility of IT. Kimberling said "I think that's where a lot of companies fall short," he said. "Their finish line 8.0 Basic reasons of Success is the go-live, and there's very little that gets done after the fact." 9.0 Conclusions ERP implementation is different from conventional IT Software Projects.ERP implementation involves process reengineering and optimization. It brings a new culture and a fresh breath to an organization if implemented in the right way. It takes an average of two and a half years from project initiation to achieve a quantifiable return on investment for an ERP system. Ninety percent of those quantified benefits are the result of a cost reduction, according to the study [6]. ERP implementation if would have been done with proper planning and long thought out process brings its benefits. But, if planning or processes are not in place, it would be a disaster for the organization. Studies showed that ERP implementation could only be possible if well planned along with organizations well placed processes. 10.0 Acknowledgements We would like to acknowledge Mr. Wasif Ihsan who has provided us the support and cooperation during our case study. References: [1] The Robins-Gioia Survey 2001. [2] Supply Chain Digest, Springboro, OH, 2005] [3] Successful ERP Implementation required planning by Robert W.Stanisky-2000 [4] A Case Study of ERP Implementation Issues by Dr. Tom Bramorski University of Wisconsin USA [5] Paul Wahl SAP America [6] Meta Group study [7]Dr. John T. Whiting [8] Panorama Consulting Group Dec 05-Nov 08 [9] Successful ERP Implementation the first time by R. Machael Donovan. [10] Global ERP Implementation Challenges by KPMG’s Global Energy Institute – 2008 [11] Implementation issues in ERP by R.Appuswamy Deakin University, Australia [12] Epicor® - 11 criteria for selecting The Best ERP system replacement
  • 11. 0 2 4 6 8 10 12 Proper planning of project Role of PMO Was there sufficient Management support? Were there any conflicts with the consultants? Is there any integration with other applications? How effective was the inter-departmental… How many revisions to the base lined schedule? How well you achieve the objective of your ERP? Increase in revenue Increase in Sale Increase in productivity Paperless environment Collaboration with other departments Transparency improvement Were Trainings Effective How much you have gained from Trainings People do not understand ERP advantages TABLE 1.1 : Questionnaire Survey (Graph with Trends) How effective reports were? Integration Issues with other applications? Team Preparedness After Implementation Support Cross-functional process orientation with high… Advantage after implementation Disadvantages after implementation One Two Four 5-Highest 0- Lowest 3-Midium
  • 12. TABLE 1.2 : Questionnaire Survey 3-Midium 0- Lowest 5-Highest Four Two One Questions Proper planning of project 0 2 0 4 7 1 Role of PMO 0 2 0 4 7 5 Was there sufficient Management support? 0 0 0 4 5 5 Were there any conflicts with the consultants? 1 0 2 6 4 1 Is there any integration with other applications? 0 2 0 5 3 4 How effective was the inter-departmental communication? 0 2 1 1 10 0 How many revisions to the base lined schedule? 0 0 2 7 3 2 How well you achieve the objective of your ERP? 0 1 2 2 6 3 Increase in revenue 0 2 3 4 4 1 Increase in Sale 2 1 3 5 2 1 Increase in productivity 1 0 2 4 4 3 Paperless environment 0 1 2 3 8 0 Collaboration with other departments 0 1 1 4 5 3 Transparency improvement 0 0 0 3 7 4 Were Trainings Effective 0 0 2 5 3 4 How much you have gained from Trainings 0 0 2 4 4 4 People do not understand ERP advantages 0 1 1 6 3 3 How effective reports were? 0 1 2 1 6 4 Integration Issues with other applications? 0 2 3 4 4 1 Team Preparedness 0 1 5 3 5 0 Efficient support to end user during Implementation 0 1 2 1 6 4 After Implementation Support 1 0 1 4 5 3 Cross-functional process orientation with high visibility 1 0 1 4 7 1 Advantage after implementation 0 1 1 3 6 3 Disadvantages after implementation 2 7 3 2 0 0