ERP Implementation

Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions

SUMMER 2005
JUNE 6-10 2005

ERP Implementation
Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions

SUMMER 2005
JUNE 6-10 2005

ERP Implementation Phases

Can

be used for any ERP implementation

Based on Project Management Methodology

Project Initiation
Planning
Controlling
Execution
Closeout

IST 600 ERP Systems: Key Implementation Issues

ERP Implementation Phases

According to Ross:

Design
Implementation
Stabilization
Continuous Improvement
Transformation

Markus and Tanis:

Chartering
Project
Shakedown
Onward and Upward

IST 600 ERP Systems: Key Implementation Issues

ERP Implementation
Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions

SUMMER 2005
JUNE 6-10 2005

SAP Implementation Timeline

Accelerated SAP (ASAP) Implementation Methodology

IST 600 ERP Systems: Key Implementation Issues

What is ASAP Methodology?

IST 600 ERP Systems: Key Implementation Issues

Project Success With ASAP Meth.

IST 600 ERP Systems: Key Implementation Issues

Phase-1 Project Preparation

IST 600 ERP Systems: Key Implementation Issues

Phase- 2 Business Blueprint

IST 600 ERP Systems: Key Implementation Issues

Phase-3 Realization

IST 600 ERP Systems: Key Implementation Issues

Project Plan Outline for Realization

IST 600 ERP Systems: Key Implementation Issues

Phase-4 Final Preparation

IST 600 ERP Systems: Key Implementation Issues

Phase-5 Go Live & Support

IST 600 ERP Systems: Key Implementation Issues

ERP Implementation
Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions

SUMMER 2005
JUNE 6-10 2005

Strategic ERP Implementation

Choices

Timeline

Big Bang Implementation

Pros and Cons?
Phased (Roll Out) Implementation
Mini Big Bang (Combination of big bang and roll-out)

Staff/Resources

Outsourcing
In-house

Customization

Pros and Cons?

Level

Pros and Cons?

IST 600 ERP Systems: Key Implementation Issues

Customization in ERP Environment

Technical

Process

Customization

Customization

IST 600 ERP Systems: Key Implementation Issues

ERP Technical Customization

Davenport:

Module Selection
Table Configuration
Code Modification

Brehm, et.al. :

Configuration
Bolt-ons
Screen masks
(eg: 3 screens into 1)
Extended Reporting
Workflow Programming
User Exits
ERP Programming
(eg: ABAP/4)
Interface Development
Package Code Modification

IST 600 ERP Systems: Key Implementation Issues

Module Selection
Implement

one or more modules

Default configuration of the vendor
May be appropriate for small companies
Rarely sufficient for many companies

IST 600 ERP Systems: Key Implementation Issues

Configuration
Configuration:

Changing parameters in tables in

SAP R/3
SAP promises that configuration specifications
will transfer without problems to later versions of
their software
SAP calls configuration customization

IST 600 ERP Systems: Key Implementation Issues

Configuration in SAP R/3: SPRO

IST 600 ERP Systems: Key Implementation Issues

The Implementation Guide (IMG)

IST 600 ERP Systems: Key Implementation Issues

Defining Companies

IST 600 ERP Systems: Key Implementation Issues

Code Modification (Customization)

Customization:

Changing code in SAP R/3.

Today such changes are done in a programming
language developed by SAP called ABAP/4.

(In future it will also be possible in J2EE.)

May

involve defining new database tables

It is possible to make changes to the code that
SAP will not support.
Future upgrades will need to be re-customized
(expensive).
IST 600 ERP Systems: Key Implementation Issues

Process Customization
Process

Customization: The degree to which

the business process is changed to fit the
system.
Business process:

Tasks
Resources
Outcome
Relationships among tasks
Relationships among resources and tasks

IST 600 ERP Systems: Key Implementation Issues

Process Customization Categories

No change

Change in tasks and resources

No changes in relationships among task and configuration of
resources
Eg: Task automation

Incremental change

Improvements in tasks and resources

Improvements in relationships among tasks
Improvements in relationships among tasks and resources.
Nature of process and outcome measures unchanged
Eg: Total Quality Management (TQM)

IST 600 ERP Systems: Key Implementation Issues

Process Customization Categories

Radical

Change

Fundamental rethinking and radical redesign of

elements in a business process including measures
of performance
Eg: Business Process Reengineering
Eg: Move from functional view of organizations to
process view of orgs.

IST 600 ERP Systems: Key Implementation Issues

ERP Customization Choices

IST 600 ERP Systems: Key Implementation Issues

Questions?

IST 600 ERP Systems: Key Implementation Issues

Sources
Kenny

Leung- SAP Summit 2005 Hong Kong

Luo, W., & Strong, D. M. (2004). A framework for
evaluating erp implementation choices. IEEE
Transactions on Engineering Management,
51(3), 322-333.
Brehm,

Heinzl, and Markus, Tailoring ERP

Systems: A Spectrum of Choices, 2000

IST 600 ERP Systems: Key Implementation Issues

Some Terminology

Basis Software. The R/3 Basis is similar to an operating

system that specifically has the capability of processing
any of the SAP R/3 transactions. Its a middleware
between the operating system and the servers that
allow for smooth operations across different servers,
operating systems, and databases.
ABAP: Advanced Business Application Programming
(ABAP/4), is a specialpurpose, fourth generation
language developed by SAP, is used to write programs
for the specialized requirements of creating custom
reports, screens, userdefined functions, and special
industry solutions for use with the SAP R/3 System.

IST 600 ERP Systems: Key Implementation Issues

What is SAP Netweaver?

A comprehensive integration and application platform,

SAP NetWeaver works with your existing IT
infrastructure to enable and manage change.
SAP NetWeaver embraces Internet standards such as

HTTP,
XML, and
Web services.
Ensuring openness and interoperability with Microsoft .NET
and Java 2 Platform Enterprise Edition (J2EE) environments
such as IBM WebSphere.

IST 600 ERP Systems: Key Implementation Issues