ERP Implementation and Change Management

SAP implementation at Pantaloons

Presented by Group 4
Vineet Taneja (240)
Vishal Verma (255)
Deep Agarwal (402)
Nishant Sharda (443)
Rishikesh Jathar (451)
Laura Grangaud
AGENDA

• Introduction

• Process-oriented implementation methodology

• Change Management

• Benefits

• Areas of improvement and Risk mitigation

• Conclusion
Introduction
The context

• Pantaloons was expanding its retail stores across all metros

• The need of the time was- a reliable enterprise wide application

• They were looking for a solution to integrate businesses and processes

• There was also a need of a robust transaction management system

• After different evaluations management decided to go for SAP

Pantaloons- At a glance

• Pantaloons Retail is the flagship enterprise of the Future

• Group, with a presence across multiple lines of business.
• Headquartered in Mumbai (Bombay),
• Operates through four million square feet of retail space,
• Over 450 stores across 40 cities in India and employs over 14,000 people.
• It launched Big Bazaar, a hypermarket chain in 2001.
• This was followed by Food Bazaar, a food and grocery chain
• Subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon
Industries Ltd, Galaxy Entertainment and Indus League Clothing
ERP system in Pantaloons
Expectations from the ERP system
• Support product development
 Ideation,
 Trend analysis,

 Collaboration with partners in the supply chain

 Support sourcing and procurement

 Optimizing cost, quality and speed variables

• Managing supply chain

 Handling the logistics of moving finished goods from the source into stores

• Selling goods across a variety of channels to customers

 Marketing
 Brand management

• Managing mark-downs and capturing customer reactions

• Data Analysis
Why SAP Was Selected?

• Software’s scalability and ease of integration

• A “perfect fit” for an enterprise-wide implementation
• Complete data integrity and real-time updates
• Expert support during migration effort
• Low Total Cost of Ownership
• Significantly reduced infrastructure
• Expected timely completion of the project
Process-Oriented Implementation Methodology
 Planning for ERP Implementation

Addressed Primarily
by Organizational
Change Management

People
Addressed Primarily Addressed
by Business Primarily
Process Redesign Process Technology by Package
Type Type Type

Type
Type

Type

People and process issues are sometimes overlooked in planning

for this type of project. They need to be addressed for the project to
be a success.
SAP implementation Plan
Aim : To deploy a robust transaction
management system and an enterprise-
wide platform to run its operations.

Solution : SAP retail solution

Implemented by : SAP team with the help of Novasoft,

Singapore

Number of users : Around 1,200

Implementation Phases
• Outsourced to third party – Novasoft

• Management also involved

• Project divided into three phases

ERP Implementation- 3 Phases
1st Phase
• Blueprinting of existing processes of Pantaloon and mapping them to the
desired state
• Worked on current processes within the structure of the organization,
analyzed and drafted them
• Each and every one of processes had to be evaluated

Spo Steeri ng
Projec Functional
End
nsor t team entities
• The project team consists of following experts User
team
Consultant team (functions, technical), Company, Global team ,Partners
(SAP),Vendors

Discipline of Execution

Speed Quality Sense of Urgency

ERP Implementation- 3 Phases Contd.
2nd Phase: Novasoft developed SAP platform
• SAP platform was developed after evaluation of Pantaloon’s needs and
Setups
expertise in retail solutions
Walk UAT UAT Trai
& Tes Envir
Config thro Read onme nin
uratio ting ugh iness g
nt to be ported
3rd Phase:nStores to switch to new system and data
• Last phase was for stores to switch over
• Current data to be migrated to the new SAP application

Data
Gap Mi
Ver Ident
Migr
ificat gra
ation ify ion te
Change Management
Change Management for ERP Implementation
• Hard facts which were considered:
 42% Leadership
 27% Organizational & Cultural Issues
 23% People Issues
 4% Technology Issues
 4% Other
 Organizational issues left unchecked often lead to project
failure

“Change management in general is the organized, systematic application of knowledge,

tools, and resources of change that provide organizations with a key process to achieve
their strategy”
Objectives of Change Management

• Provide awareness among all the stakeholders

• Ensure understanding across the organization
• Facilitate acceptance by the employees and partners

• Care, listen, and respond to stakeholders’ concerns

• Manage people’s expectations
• Ensure readiness
Process Integration

Project Management Change Management

Project Initiation
Preparing for Change
Project Planning
Managing Change-Planning
Project Executing
Managing Change-Execute

Project Controlling
Transition

Project Closing
Monitoring Change
Greatest Obstacles

• Migrating unorganized data to an organized format

• No immediate benefits perceived throughout the organization
• Resistance from employees and managers
• Inadequate senior management & sponsorship
• Cultural barriers during the transition

• Lack of change management expertise with the company

Pantaloons : Change Management Standards

Prepare with the project team

• Assess change/culture
• Develop/educate team
Manage the strategy
• Develop and manage the plan
• Track/report readiness
• Develop training strategy
Reinforce/Support
• Celebrate success
• Analyze feedback and prepare to manage resistance
CM Team at Pantaloons
•Manage the resources
Team Lead •Manages the CM project plan
•Receives status from the Readiness Lead
•Reports status to the Project Manager and
Project Director

Project Lead

Team member

Communications
Coordinator
CM Team at Pantaloons

Team Lead
•Works with the coaches to compile
checklist activities, communications,
workshops etc.

Project Lead •Receives status of organizations from the

coaches

•Reports status to the Pantaloons CM Team

Leader
Team member

Communications
Coordinator
CM Team at Pantaloons

Team Lead

•Communicate activities to the Readiness

Project Lead Coordinator

•Track organizations’ progress

•Report status to Change Management Lead

Team member
•Help facilitate workshops & focus groups

Communications
Coordinator
CM Team at Pantaloons

Team Lead

Project Lead

Team member

•Develops communication plan

•Creates branding/logo
Communications
Coordinator
•Tracks communications sent
•Develops PPT presentations
Readiness at Pantaloons

• Preparing
• Tracking
• Reporting

• Communication

Senior Executives : Why the system is necessary ?

Managers/ Supervisors : What is in it for me ?

Training at Pantaloons

• Develop Training plan, Training strategy, Training Design

and documents

• Training plan Strategy

• Identify different audiences who require training

• Conduct training needs assessment and skill gap analysis
• Document requirements for the training team
- Training development schedule
Methodology for Change implementation
A Successful Organizational Change

1. Dedicate resources to Organizational Change

Management

2. Secure visible executive sponsorship early in the

project

3. Repeat key messages early and often

4. Involve employees in the change process

5. Create a transition strategy with achievable timeframes

Integration was the Key
Pantaloons : Benefits of ERP
Financial and Strategic Benefits

• Greater business insights through more accurate and timely financial

information

• Lower costs via convergence of financial accounting and controlling

• Enhanced data quality

• Easier compliance with regulatory requirements via the SAP parallel

accounting feature
Operational Benefits

• Increased business transparency via drilldown reporting capabilities

• Real-time, continuous reconciliation of cost elements and expense

accounts,

• Ability to close books 15% to 20% faster

• 5% to 10% reduction in accounts receivables

Organizational Benefits

• Uniform Organization Structure

• Unified single platform & Information Architecture
• Integrated work environment – Provided an enterprise wide view of the
workflow
• Improved management reporting & decision making
• Allowed integration with systems of associates and business partners
• Helped in routine decision making
• Allowed streamlining of business processes
Conclusion
Pantaloons : Areas of Improvement for ERP

• Expensive to procure

• High switching costs

• Low flexibility

• Limited scope for customization

• Security concerns

• Requires significant employee training

• Compatibility issues with other legacy systems

• Higher Complexity
Risk Mitigation at Pantaloons

• Phased instead "big bang" approach to migration - No fitment Issues

• Sufficient Training 
• Thorough Testing - Unit and integration testing

• Providing Plenty of IT Support - More support center call volume and

staff accordingly during go-live. Making sure that there are clearly
defined escalation procedures in place for ERP issues that support staff
isn't able to handle
• Developing a Contingency Plan 
Conclusion
• At Pantaloons ERP system made management of business a lot easier by
utilizing the computing power offered by the modern day Information
Systems (IS) in an integrated and consistent manner.

• The ERP Information Systems facilitates faster and better management

decisions  in Pantaloons by providing crucial information in a timely
manner.

• It also eliminates errors caused by multiple input of the same data required
in disparate legacy systems.  

• ERP Systems have been found to deliver high ROI despite their high
initial and maintenance costs.
THANK YOU