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ERP Implementation Choices

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

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ERP Implementation Choices

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

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

  3. 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 U. Yeliz Eseryel

  4. According to Ross: Design Implementation Stabilization Continuous Improvement Transformation Markus and Tanis: Chartering Project Shakedown Onward and Upward ERP Implementation Phases IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

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

  6. Accelerated SAP (ASAP) Implementation Methodology SAP Implementation Timeline IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  7. What is ASAP Methodology? IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  8. Project Success With ASAP Meth. What does this slide tell you? IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  9. Phase-1 Project Preparation IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  10. Phase- 2 Business Blueprint IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  11. Phase-3 Realization IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  12. Project Plan Outline for Realization IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  13. Phase-4 Final Preparation IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  14. Phase-5 Go Live & Support IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

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

  16. Strategic ERP Implementation Choices • Timeline • Big Bang Implementation • Phased (Roll Out) Implementation • Mini Big Bang (Combination of big bang and roll-out) • Staff/Resources • Outsourcing • In-house • Customization Level Pro’s and Con’s? Pro’s and Con’s? Pro’s and Con’s? IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  17. Customization in ERP Environment • Technical Customization • Process Customization IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  18. Davenport: Module Selection Table Configuration Code Modification Brehm, et.al. : Configuration Bolt-on’s Screen masks (eg: 3 screens into 1) Extended Reporting Workflow Programming User Exits ERP Programming (eg: ABAP/4) Interface Development Package Code Modification ERP Technical Customization IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  19. 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 U. Yeliz Eseryel

  20. 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 U. Yeliz Eseryel

  21. Configuration in SAP R/3: SPRO IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  22. The Implementation Guide (IMG) IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  23. Defining Companies IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  24. 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 U. Yeliz Eseryel

  25. 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 U. Yeliz Eseryel

  26. 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 U. Yeliz Eseryel

  27. 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 U. Yeliz Eseryel

  28. ERP Customization Choices IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  29. Questions? IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  30. 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 U. Yeliz Eseryel

  31. 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. It’s 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 special‑purpose, fourth generation language developed by SAP, is used to write programs for the specialized requirements of creating custom reports, screens, user‑defined functions, and special industry solutions for use with the SAP R/3 System. IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel

  32. 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 U. Yeliz Eseryel

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