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Best Practices

Best Practices. In ERP. Overview. What is Best Practices? What is Benchmarking? How is Best Practices use? Why is Best Practices Important? SAP Best Practices Best Practices-the downside. Best Practices. What is it? “A method that has been judged to be superior to other methods” Or

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Best Practices

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  1. Best Practices In ERP

  2. Overview • What is Best Practices? • What is Benchmarking? • How is Best Practices use? • Why is Best Practices Important? • SAP Best Practices • Best Practices-the downside

  3. Best Practices • What is it? • “A method that has been judged to be superior to other methods” Or • The most efficient way to perform a task

  4. Benchmarking • What is it? • “The search for industry best practices that an organization can utilize to improve its performance and productivity” • Compares and organizations methods with peer groups, with purpose of identifying the best practices that lead to superior performance. • Best practices usually identified through the benchmarking phase of a business process reengineering activity.

  5. How is it Used? • Business process engineering is designed to identify a best practice. • Once a best practice is identified, it can be incorporated into an ERP system. • Often change the organizational climate • Attempts to bring about dramatic improvements in performance.

  6. Why is it important? • ERP systems provide a better way of doing things • Essence of Best Practices • Key component of SAP ERP product • SAP devotes considerable research to identifying the best way of doing conventional ERP tasks • Between 800 and 1000 best practices are included in SAP’s R/3 software

  7. SAP Best Practices • Benefits • Developed with partners and customers. • Provides a fully documented and reusable prototype that can be turned into a productive solution quickly. • Provides companies: • A proven methodology • Thoroughly documented scenarios (business and a technical) • Proven preconfigurations of SAP solutions

  8. SAP Best Practices

  9. SAP Best Practices • Follow-up study showed that SAP helped: • Decrease the effort needed to conduct mission-critical project tasks. • Reduce overall project risk by 71 percent on average • Lower total cost of ownership (TCO). • By 11 percent on average. • One company reported that lowered TCO by more than 53 percent.

  10. Best Practices • Downside • Takes a lot of effort to identify • Significantly changes the way organizations do their work • A large ERP system change will take between one and three years to implement • What is best by some is not by all • Changing the business practice to fit the software may hinder competitive advantages • People get lost

  11. References • Irani, Zahir, & Themistocleous,Marinos. (2001) Benchmarking the benefits and barriers of application integration. Benchmarking, 317-332. • Olson, David L. (2004). Managerial Issues of Enterprise Resource Planning Systems. New York: McGraw-Hill. • SAP Best Practices: Empowering Your Company. Available: http://www.sap.com/services/servsuptech/bestpractices/index.epx [2005, February 15]. • Schulz, John D. (2000, September 25). Hunt for best practices. Traffic World , 41-42.

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