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ERP Final Report and Presentation

Discover a methodology grounded in task-technology fits theory for measuring misfits, reducing ERP project risks. Explore goal-based use cases, activity diagrams, and more for informed software selection.

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ERP Final Report and Presentation

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  1. ERP Final Report and Presentation 指導老師: 吳思佩 教授

  2. Our ERP Literatures • Wu et al. A Methodology for ERP Misfit Analysis, Information & Management, 44, 666-680, 2007 • Hitt et al., “Investment in ERP: Business Impact and Productivity Measures, JMIS, 19:1, 71-98, 2002.

  3. Our Members • 932654 留毓吟 • 951612 張豐疇 • 951616 李采霞 • 951634 趙子萱 • 951640 柯廷蓁

  4. A methodology for ERP misfit analysis 951612 張豐疇 951634 趙子萱 Wu et al. A Methodology for ERP Misfit Analysis, Information & Management, 44, 666-680, 2007

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  6. Abstract • Research has indicated that about three quarters of attempted ERP projects are unsuccessful: a common problem encountered in adopting ERP software has been the issue of fit or alignment . • This paper presents an ERP selection methodology, grounded in task-technology fits theory, for measuring, at a high-level, the misfit between ERP candidates and the enterprise's requirements ex-ante implementation. 951634

  7. Introduction • A common problem results from misfits: the gaps between the functions offered by ERP and the adopting organization's requirements. The misfit types can be clustered into four categories: • Goal • Functional • Data and output • Better understanding of these provides insight into ERP selection decisions and thus reduces the risk of project failure. 951634

  8. ERP selection • Several approaches, e.g., from a financial, socio-technical or functional perspective, have been developed to help select software packages. However, in ERP selection, it may not be possible to express everything in dollar figures. • From a TTF standpoint, the ERP selection methodology involves the fit between the enterprise requirements and ERP provided functions. Therefore, we focus on the requirement phase of the software development process. 951634

  9. Modeling tools • Goal-based use case • Activity diagram • Drawing and data glossary 951634

  10. Goal-based use case • The use case is valuable in goal modeling. • The goal-based use-case approach classifies goals into two facets: soft and rigid goals. • Rigid goal：a target system's minimum requirement; it must be completely satisfied. • Soft goal：can be partially satisfied; it describes a desirable property. 951634

  11. Activity diagram • An activity diagram represented using UML is commonly used today in modeling business process flow. • It includes several elements: Activity, Start Activity, End Activity, Transition, Fork, Branch, Merge, and Join. 951634

  12. Drawing and data glossary • A drawing is a way of effectively expressing input and output information, such as the title, presentation position, lines, figures, and tables; these are widely used in systems analysis and design. • One data glossary record format might contain the Data_type, Origin_type, Source_field, and Computing_rules that describe the data fields that make up an activity. 951634

  13. ERP system selection methodology • The selection process consists of three phases: goal, functional, and data/output misfit matching. 951634

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  15. Goal misfit matching • （1）A goal-based use-case models the goals in the enterprise against the capabilities if the candidates. • （2）The firm in conjunction with the vendor analyzes the output for each rigid goal. 951634

  16. Goal misfit matching • If this rigid goal is not matched, a misfit exists, but if the rigid goal is matched, soft goal matching will be performed and a goal matching report generated. • Purpose：Firm and vendor know the location of the goal misfits, and thus whether the firm's minimum requirements are achieved and how many desired soft goals are satisfied. 951634

  17. Goal misfit matching(Case study) • Its goal-based use case contained eight use cases, four rigid goals and two soft goals. • After reviewing the diagram and discussing them with consultants, the ERP project team felt that all functions were satisfied by SAP except that of application approval. there was a goal misfit. 951634

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  20. Functional misfit matching • This consists of scenario modeling and matching appraisal. 951612

  21. Scenario modeling • Scenario modeling involves the comparison of required business process flow and the capabilities of the best practice candidate using the activity diagram, drawing, and data glossary for further requirement mapping and gap analysis. 951612

  22. Scenario matching appraisal • The scenario matching appraisal is intended to show where the misfits lie based on the scenario modeling results. 951612

  23. Activity correspondence identification • The appraisal identifies the activity provided by the candidate system based on the firm's activity for each scenario. 951612

  24. Scenario matrix model generation 951612

  25. Scenario matching • This step identifies the connection and condition misfits. • MisFit(PF,PE): Identifying where the connection and condition misfits lie, as follows. 951612

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  27. Functional misfit matching（Case study） • Scenario modeling : The procurement scenario required by AEIC and the equivalent SAP scenario (J49: Procurement of Stock Materials) were modeled using activity diagrams, drawing and a data glossary 951612

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  29. Functional misfit matching（Case study） • Scenario matching appraisal : • Activity correspondence identification Seven pairs of activities were found to be identical. The ‘Negotiate Price’ was not found in SAP R/3. 951612

  30. Functional misfit matching（Case study） • Scenario matrix model generation • Scenario matching (Full-size table) There were four possible situations: (1) fail (2) BPR (3) add-on (4) reconfiguration 951612

  31. Output misfit matching • Output misfit analysis • Field correspondence identification • This step is used to check whether each data field needed by the firm exists in the corresponding activity of the candidate. If it does not exist, we mark it as an output misfit. • Data_type and Origin_type analysis • This step determines the Data_type and Origin_type fields for each activity and records it in the data glossary. 951612

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  33. Data misfit analysis • It has of four sub-steps: • activity selection • field selection • Which field are independent of others should be analyzed first. • Data_type misfit analysis (data misfit) • Different data category is not compatible with other data type. • Origin_type misfit analysis (data misfit) • This is found by comparing the data glossaries of the activities. 951612

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  35. Output misfit analysis（Case study） 951612

  36. Data misfit analysis（Case study） 951612

  37. Conclusion • The paper has presented an approach for identifying goal (enterprise level), functional (scenario level), data, and output misfits (activity level) in ERP selection. • contribution • It provides a systematic method that reduces the difficulty and complexity in identifying goals, functional, data, and output misfits. • It integrates several concepts and models into the process to facilitate misfit identification. • The method with modeling tools (e.g., UML, drawing) provides a conceptual link between the enterprise requirement and subsequence system design and allows a form's IT professionals and users and its consultants discuss on the requirement at different levels of details. • This also provides a way to its convenient use with an output that can be reused in the subsequent implementation phase. 951612

  38. Enterprise Resource Planning Systems: A Case Study 932654 留毓吟 951616 李采霞 951640 柯廷蓁 Anand et al., :Enterprise Resource Planning Systems: A Case Study, NUS, 2004

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  40. Experts1 – Ms. Xiao Liu, SAP • Expert’s background • Ms. Xiao Liu • Currently Regional NetWeaver/Technology Consulting Director, Asia Pacific, Sap Asia Private Limited. 951640

  41. Interview Abstract • SAP focuses on full-blown ERP. It comprise of many modules. • SAP is solid, but not be very user-friendly. • Clients combine the business re-engineering with the SAP product expertise will have a lethal combination. • SAP now provides a generic implementation provides guidance on the whole process. • Two success key factor of SAP – the big bang and the phased implementation. 951640

  42. Experts2 –Mr. Chris Ip and Mr. Dino Ho • Expert’s background • Mr. Chris Ip • A partner at McKinsey & Company and a leader of Business Technology Office in Greater China, based in Hong Kong. • Mr. Dino John Ho • An Engagement Manager with McKinsey & Company and a core leader of Asia Business Technology Office, McKinsey’s Information Technology practice, based in Hong Kong. 951640

  43. Interview Abstract • Values to enterprise by ERP • An enabler for operations consolidation. • The best practice efficient process. • Rationalizes company’s IT legacy. 951640

  44. Interview Abstract (continue) • Reasons for failure to ERP implementation • Misguided efforts result in cost overruns. • A wrong scope with data structure. • Only focus on implementing ERP system. • Lack of or ineffectiveness in complexity management. • Mismatch between objectives and motivation of different players involved. 951640

  45. Interview Abstract (continue) • Points consider before implementation • Risk management. • Prioritize the functionality. • Cost-benefit analysis. 951640

  46. 932654 留毓吟 932654

  47. ERP Report 從FoxMeyer看ERP導入 932654

  48. What is the case about? -The character which appear in this case Characters’ Relationships: 932654

  49. What is the case about? -The character which appear in this case (cont.) • FoxMeyer Drug Co. ►Was the fourth largest distributor of pharmaceuticals to drug stores and hospital in USA till 1996. ►In the mid-1990s, FoxMeyer planned for upgrading its ageing Unisys systems using ERP for managing the expected increase in volumes coming from surge in pharmaceutical sales. ►It decided to also upgrade its warehouse operations simultaneously to develop cost advantages over the competitors and successfully under-bid contracts. 932654

  50. What is the case about? -The character which appear in this case (cont.) • SAP – the software vendor ►In the mid 1990s,was considered to be the leader supplier of ERP systems. ► ERP systems provide an overview of the various aspects of a business – production, development, sales etc. 932654

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