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ERP IMPLEMENTATION: A COMPLETE GUIDE
*1   Mr. Ijaz Haider Malik , weboriez@hotmail.com
*2   Mr. Umar Malik        , umarmalik.128@gmail.com


Abstract                                               Despite of the many reasons, the biggest
                                                       challenges are choosing the right solution with
ERP implementations in the South Asian                 the right vendor and its effective implementation
countries, are comparatively different, harder         according to the requirements of the business. In
and financially very expensive than the other          fact, in 42% of the cases when new business
parts of the worlds. This is because of different      applications are under consideration, the ERP is
socio-economic conditions, working style of            the default decision without even looking
businesses, their operation methods and low            anywhere else[2]. Rapid changes in businesses
currency     comparative      to    international      have thrown away the idea of bespoke and
currencies. Most of the well renowned ERP              fusion solutions. The biggest fear of an
solutions and their licenses are in foreign            enterprise for the ERP implementation is the
currencies such as Dollar, Pound or Sterling.          failure rate: 51% have experienced their ERP
When, a third world country would like to              implementation as unsuccessful [1]. It becomes
implement an ERP solution, investment                  more painful as the ERP implementation is the
becomes many folds due to the currency                 most expensive in the field of IT.
difference. But, the post implementation cost is
lesser than the international market due to the        Generally, the ERP is considered as the back
cheaper labor cost. With the growing market of         bone of an organization. But, the ERP is in fact
mobile operators in Pakistan, PTCL as a                the combination of backbone, reflex system and
landline operator needs the cutting edge               the back part of the brain i.e., organization’s
technology as its products and operations.             main support, assurance to comply with the
Though, the ERP implementation has high cost           processes and business rules and centralized
but without it, gap between expenses and               storage of data. There are three basic stages for
revenue could not be widened: profit only              an ERP implementation: pre-implementation,
comes with less cost and high revenue. Making          during and post implementation. All ERP
a decision for the ERP implementation is a huge        implementation stages are equally difficult and
and tough task for the management. But, the            full of challenges. Any loose brick can bring the
tougher is its proper implementation and post          whole implementation down. As the post stage
implementation monitoring and maintenance.             is dependent on the prior stages, hence the
                                                       importance sequence is pre, during and Post
1.0 Introduction                                       Implementation.

 A proper ERP solution has become a vital need         To keep up with the growing customer demands
of this era for the enterprises due to the market      and fast changes in business trends, the
globalization and day by day growing                   enterprise must have the flexibility and agility to
competition. For the very fact, the ERP solution       change quickly. And this could only be possible
has become mandatory for an enterprise to run          if the ERP solution is implemented successfully:
the business in an effective and efficient way.        aligned with the business requirements along
But, before going for the implementation of an         with the seamless information flow between the
ERP solution, an enterprise has gone through           modules and across departments. In this space
immense hard-hitting times: choosing the right         age, everything is sought with extreme sense of
solution, planning, selection of implementation        urgency and there is no room for duplication of
team and managing the change. Whether it is an         data inputs and serial processing [11].
ERP implementation or reimplementation, it
should be well thought as its life spreads over
many years.
2.0 Pre Implementation                             the end. While forming a steering committee,
                                                   the CEO of the organization must realizes that it
a) An ERP Solution Required or Not?                should be of apt size with the best suited
                                                   members. Sometimes, a huge sized steering
Before the ERP implementation, the first           committee cannot make decisions due to diverse
question is to whether the organization does       members.
require new ERP solution or not? And, the
answer does not come easy. It needs an             d) Preparedness
immense amount of work to come up with final
facts and figures. Writing the ERP Initial          An ERP implementation’s success depends
Documentation needs combination of the             upon      the     preparedness     before    the
business experience and in depth knowledge of      implementation. The business requirements and
the ERP implementations. Once facts and            business rules should be properly documented
figures appear on the paper, budget approval       and signed off from stake holders and senior
from the Board of Directors along with a           potential users. The implementation with
convincing presentation is another hard part for   inadequate documentation is an open invitation
the management. Without proper approved            to failure. The legacy systems’ plus and minus
budget, the implementation is just a dream with    points should also be documented so that the
no wings.                                          plus can be a part of implementation and the
                                                   minus points can be avoided. Also record and
b) Scope of Work                                   document legacy application users’ comments
                                                   as they are the actual users and they might give
Scope of work should be clear with achievable      inside of the application to be required.
objectives. A normal ERP implementation has        Processes should be identified and they should
the following modules: Finance & Accounting,       be intact. Identify the pain points and touch
Material Management and Human Capital              points.
Management. Though, organizational scope can
be more or less than the above mentioned.          Most of the time, the feedback from the actual
Almost all ERP Solutions offer individual          users gets ignored with a thought that the ERP
modules or combination of more than one as per     application is not only for the use of
clients’ requirements. The organization can opt    management but also for the real operators /
for the modular scope. Even from some              users.
solutions, the organization may select desired
sub modules and leave the rest.                    e) Pre Evaluation

c) Steering Committee                              After the budget approval, next is to select the
                                                   apt ERP Solution. Almost all ERP systems
An ERP implementation can not be successful        available are good at some things, yet not so
without the support         from the highest       good at other. [3]. Selecting and implementing
management. For the very reason, the steering      the most appropriate software package to
committee should be formed with “C” level          support a company’s business processes is itself
management members. Few members from the           considered a best practice[5]. With the internet
board of directors in the committee may also be    and fast intelligent search engines an enterprise
helpful for the easy release of the budget         can browse through hundreds and thousands of
whenever required. The steering committee          the web sites for best suited ERP Solutions and
enables the project management team with           vendor profiles. Every ERP solution provider is
proper mandate and to overrule the red tape        claiming that they are the best ERP solution
issues which can be the bottlenecks for the ERP    providers. But, thanks to reviews and white
implementation. Not only the steering              papers, a wide horizon of comparison between
committee pushes the business towards the ERP      different ERP solutions has been reduced to top
implementation, but also it is evaluating the      five: SAP AG, Oracle E-Business, J D Edwards,
implementation team and its progress towards       People Soft and Baan. According to some, it is
just among two big giants: SAP and Oracle E-          o   Ease Of Use
Business Suite.                                           The first and vital feature of an ERP
                                                          solution should be its ease of use. As if
Even, the major competition is between two big
                                                          ease of use is missing it would have
giants, it is a cumbersome activity for an
                                                          been very difficult to convince the end
enterprise to choose the right Solution. ERP
                                                          users to leave their legacy systems and
solutions are so expensive that one wrong
                                                          start using the new application. In
decision not only makes the implementation
                                                          addition, ease of use brings efficiency in
project a failure but sometimes also destroys the
                                                          work and requires less resources to use
business itself. Ratio of ERP implementation’s
                                                          it.
success is much lower than failure. In most of
the cases, enterprises take one to two years just
                                                      o   Cost
to decide the apt solution according to their
                                                          Cost is the major factor of an ERP
requirements.
                                                          Implementation. Cost of implementation
                                                          and support should not impact business
An Organization should not believe on Vendor’s
                                                          to run its normal operation. Cost of an
provided evidences and implementation
                                                          ERP implementation has different
references. The Organization should also dig out
                                                          aspects and faces. Few of them are:
figures and facts of the particular ERP solution
                                                          license cost, support, maintenance, HR,
at their own. And, should contact the references
                                                          hardware and infrastructure cost. Most
provided by the vendor to find out the exact
                                                          important is the post implementation
problems they have faced and are facing with
                                                          cost for maintenance and operation. As
this solution.
                                                          post implementation period is much
                                                          larger than the implementation. 59% of
All organizations are different even if they are in
                                                          implementations cost more than that
the same business. Requirements and business
                                                          initially assumed[8].
processes are always different and so is the ERP
implementation and solution. Though, the best
                                                      o   Customization
practices might be followed to gain the best out
                                                          Major difference between bespoke and
of an ERP implementation.
                                                          ERP off the shelf solution is
                                                          customization.    If    ERP      solution
Along with the ERP solution, an organization
                                                          configuration module is not strong
should evaluate the business partners who are
                                                          enough to support the business and its
implementing the solution in your region. May
                                                          changes then successful implementation
be during the evaluation you find out that
                                                          could not be possible. ERP solution
though the solution is excellent but the business
                                                          should      provide     flexible     and
partners of vendor have bad repute, financially
                                                          comprehensive and easy to use
unsound or are have inept resources for
                                                          configuration solution. Configuration
implementation. These really matter during the
                                                          solution should accommodate business
implementation.
                                                          changes and new requirements without
                                                          going into development. Though,
Following should be considered while selecting
                                                          development feature should also be
an ERP selection:
                                                          there to cater exceptional cases. But,
                                                          configuration solution should be strong,
flexible and easy to use to cater most of        Excel, CSV, PDF or text then there is a
    the business changes.                            problem for the business. Reports are
                                                     the source for information and hence
o   Efficiency                                       authorization control at the low level is
    If an ERP solution is giving business            very important. Without proper
    everything but not efficiency, it means it       authorization control on reports, it might
    is not a good ERP solution. As without           put an organization at risk.
    efficiency, business could not achieve
    its targets and business requirements.
    The biggest differences between manual       o   Integration
    and automated system are efficiency              ERP means modules integration and
    and accuracy. Efficiency can be                  flow of data and information from one
    measured by number of transaction                module to another module without
    processed per second                             effecting efficiency and accuracy. If
                                                     ERP solution modules are not well
o   Accuracy                                         integrated or there are issues with
    Reliability comes from accuracy. If              integration between modules then it
    solution has issue with accuracy then it         should not be considered as the ERP
    is    not     considered     for     ERP         Solution. As the strength of ERP is the
    implementation. Accuracy of ERP                  integration of modules and data flows.
    solution can be measured with number
    of accurate results per number of            o   Multi Currency
    transactions or queries. Accuracy is             ERP       solution     should      support
    considered as the basic salient feature of       Multicurrency feature and it should be
    an ERP solution and with it, the concept         across the application. As few solutions
    of ERP methodology could not be                  only provide the option on few
    achieved.                                        interfaces with limited functionalities.
                                                     The ERP implementation should be well
o   Comprehensive & Flexible Standard                thought and it should at least cover five
    Reports                                          to seven years. Even, an organization
    End product and crux of an ERP                   does not need a multicurrency option, it
    solution is the reporting solution which         should be part of implementation so that
    can provide management the right                 in future this could not be a bottleneck.
    reports at the right time to make timely
    correct decisions for the organization. If   o   Graphs
    the standard reports cover sixty to              ERP solution should have an option to
    seventy percent of an organization’s             see reports in graphical mode for the
    requirements, it should be considered as         management to see figures and trends in
    a good ERP Solution. Otherwise, more             less time. Graphical reports should be
    efforts will be required to develop the          flexible to change the view as per
    reports which result in an increase in           requirement.
    cost and time of implementation. If the
    reporting solution is not flexible in        o   Business Intelligence
    terms of parameters, display options and         ERP solution should provide its own
    export to other applications such as             Business Intelligence. The major
advantage of ERP solution is to the              Security not only at the user’s
    Management to make quick decisions               authorization level but must also at the
    and for this very reason BI module               system level: protection from hackers or
    availability in ERP Solution is definitely       malicious computer applications.
    a plus. Using third party BI, slows down
    the main application and have more           o   Other considerations
    complexities and issues unlike if ERP            Most of the organizations fell into the
    solution has its own real time BI                traps of vendors and consultants. It is a
    module.                                          marketing gimmick of vendors and
                                                     consultants to come up with highly
o   Support                                          colored presentation with lots of good
    After implementation, support is very            references of big brands. Organizations
    important while considering the ERP              should not completely rely on vendors
    solution selection. After the successful         or consultants but they should check the
    implementation, there are chances that           actual truth by contacting the references
    the application could not run along with         provided by vendors or consultants.
    the business if after implementation             This will not only make their decision
    support is not good from the vendor or           more practical but also would help them
    consultants. Often vendors or business           to negotiate prices with them.
    partners put their all efforts to make the
    implementation successful but they               Following should be evaluated against
    vanish from the scene once their                 the ERP solution:
    implementation contract is over. After               Age in market (number of years).
    implementation support though often                  Stability in market.
    mentioned in RFP but when time comes                 Average Human Resources required
    organizations found out the support was              for each module.
    virtual and actual support. It is best               Average cost of Human Resources
    practice to check the real support                   required        for      operations,
    experience from the existing clientele of            development and its support.
    the vendor and consultants.                          How easy to find resources: human
                                                         and other.
o   Security                                             Number of platforms it can support:
    An ERP solution should have a tight                  Unix, Linux , Windows etc
    Security embedded into it and should                 Cost of Infrastructure required and
    have it at a granular level. In this era,
                                                         how easy to get that in market.
    security is considered to be the top most
                                                         Frequency of new releases and how
    priority of the organizations. Business
                                                         easy to upgrade it?
    data is the most important asset of an
                                                         Frequency of bug fixing patches.
    organization.             Comprehensive
                                                         Does it follow industry and business
    authorization mechanism is required to
                                                         standards like ISO, CMMI etc?
    every organization which will enable
    the management to provide apt access to
                                                     Following should be evaluated against
    their users according to their role.
                                                     the vendor and consultant:
                                                         Their Financial Strength
                                                         Number of clientele
Number of satisfied clients              technical team for further action. Focus on your
            Proposal submitted by vendor             business strategy and not just software selection
            should be reviewed legally and           and implementation [9]. ERP implementation
                                                     could not bring benefits to an organization
            technically.                             unless its processes are optimized before
            They should offer transfer of            implementation.
            technology (Knowledge transfer)
            They should not sublet contract to
            other companies. They should have
            their own seasoned professionals
            for all modules.

f) Project Planning
                                                     h) Implementation Team
Once the ERP solution is selected, project
                                                     Selecting     or    hiring    the     professional
planning is the major task to be performed
                                                     implementation team with apt skills and
between implementers and the organization.
                                                     experience is a must have. Team should be
Project plan is the track of activities with date
                                                     combination of technical and functional
stamps, resource allocation from both the sides
                                                     members. Skills that are critical to the
along with risks and dependencies. If project
                                                     implementation include project management,
plan is followed with right pace, it gets the
                                                     process improvement, requirement’s definition,
organization success in the implementation.
                                                     data conversion, testing, separation of duties
Project planning should follow the standards
                                                     analysis, and post go live analysis [10]. Proper
like PMP or Prince2. Project plan should have
                                                     trainings     should     be     conducted       for
activities according to priorities. Risk should be
                                                     implementation teams. Teams should not work
covered in the project planning and steps should
                                                     in silos and work under one umbrella so that
be taken to avoid risks and mitigation of risks.
                                                     integration can be done effectively. Moving
Regardless of your size and perceived resources,
                                                     away from Functional silos and creating
an ERP implementation is not something that
                                                     effective cross functional processes that are truly
should be approached without a great deal of
                                                     integrated via an ERP system is not an easy task
careful planning [9].
                                                     [9].
g) Process Refinement (AS-IS , TO-BE)                i)   SDC ( Environment )
Documenting the AS-IS Business processes is          Software Development Center should be
the crucial activity of the process identification   established with the proper resources like PCs,
and its refinement. This could be achieved by        Laptops and Printers with proper infrastructure.
conducting different sessions with the business      This SDC will be helpful during and after
stake holders. As enterprise has a large number      implementation.
of employees so it is not possible to discuss AS-
IS processes with everyone. The best approach        j) Employees Buy-in.
is to select the teams from each domain. Once
draft version of AS-IS documents are ready, the      Without      employees    buy-in,    successful
second should be arranging the workshop to           implementation is close to impossible. If
further clarify the AS-IS processes with the         management       decide to go for the ERP
stake holders. After proper sign off from stake      implementation without buy-in from its
holders, conduct other workshops to document         employees, issue starts popping up from day
the TO-BE processes. To-Be processes should          one till the day of the final failure.ERP
be evaluated with the help of technical staff        implementation is for the whole enterprise and
before proper sign off from the stake holders.       not only for the management and that’s why it is
Once the To-Be processes are signed off,             termed as ERP and not “Management
processes will be handed over to consultants /
Planning”. Only 13% of respondents
characterize themselves as “very satisfied” with
their company’s software implementation and          3.0 During Implementation
38 % of respondents indicated “lack of
employee buy-in” as the biggest challenge            Once it has been decided that which ERP
facing the ERP implementation teams[8].
                                                     solution to implement, implementation has
Organization should also assure its employees
that job losses will be minimum otherwise there      begun with all it challenges and activities.
will be a considerable resistance from               During implementation if proper monitoring and
employees.                                           execution plan has not been taken on, it could
                                                     take the implementation towards the failure
                                                     without noticeable to the management. During
                                                     implementation, the biggest factor is time. As
                                                     loosing the time will impact budget and without
k) Interfaces for third party integration
                                                     budget implementation won’t be possible.
     It should also be considered that ERP
     solution must provide easy to implement
     integration interfaces for third party          a) Data Collection
     applications. Most of the off shelf ERP
     solutions provide XML or web service            First the most difficult of all is to collect the
     interfaces. ERP solutions that do not provide   data. To avoid “Garbage in garbage out”, Data
     integration interface costs lot of time,        collection team of experienced members should
     resources and money to develop interface        be formed. And, in the implementation plan
     every time organization would like to share     activities of data collection with proper time
     the data with ERP Solution.
                                                     lines should be mentioned. The vital part of data
l)   Declare Implementation as a Project             collection is to design the data collection
                                                     templates. Data collection template should be
As ERP implementation is a big task,                 well thought of. Following should be considered
implementation should be declared as a Project.      while designing the data collection templates:
Project should have project management team          easy to understand, user friendly, validation
with execution mandate. According to PMP and
                                                     checks to avoid wrong entries, examples, and
Prince2, “Project should have a definite start and
end”. Same implies to ERP Implementation.            minimize data entry with lookups and drop
                                                     down options. Also provide data dictionary for
As per Wikipedia, ”Project Management is the         each column. Before sending to users get the
discipline of planning, organizing, and              evaluated template from easily approachable
managing resources to bring about the                users. Template should be communicated via
successful completion of specific project goals      highest managements email so that users take
and objectives. It is often closely related to and
                                                     them seriously.
sometimes       conflated       with      program
management.”
                                                     Avoid sending same template again and again
j) BPM                                               with modifications as it will reduce the effect. If
                                                     possible conduct workshops to give template
If ERP Solution supports Business Process            overviews. No templates should be accepted
Management it will be an additional edge on          with proper sign off from the sender: sense of
other ERP solutions as it enables employees to       ownership. If these issues are tackled with
effectively manage the processes with dynamic        proper planning and strategy, it will save
approach: designing, configuring, executing,
                                                     considerable cost and time.
monitoring, and analyzing.
The biggest challenge is to convert legacy data
into new format and also check for redundancy
and duplication (data cleansing). Most of the
                                                             c) Quality Team
cases legacy data do not provide the complete
data required for the new implementation. In                 “A quick migration to an ERP system without
those cases special permissions and decisions                time for testing and validating the systems is not
are required from the steering committee.                    wise nor advisable,”[7]. There should be proper
                                                             quality testing and assurance teams. Quality
Communication teams                                          begins with the initiation of the implementation.
                                                             To reduce the cost of implementation, some
Communication team should be formed to                       organizations ignore the formation of dedicated
                                                             teams for quality testing and quality assurance.
communicate every possible achievement or
                                                             But, after implementation low quality cost the
hurdle to all the stake holders in order to                  organization many folds then investing the
develop a sense of ownership among all. Also it              money on quality during implementation.
gives confidence to all that they are part of the            Despite other quality assurances, the most
implementation. Communication team should                    important for quality team is to keep check on
build strategies to avoid the scenarios where                the unnecessary development of reports.
ERP implementation becomes scapegoat for
                                                             Without quality the objectives of successful
non performers. As it is a normal practice to
                                                             implementation could not be achieved. Quality
blame the solution if something goes wrong and               should be checked and assured at every process
mostly common with new implementations.                      and step of implementation. Some of them are:
                                                             documentation, AS-IS and TO-BE processes,
                                                             configuration, development.
b) Support Team                                              d) Documentation with Configuration
No matter how much trainings are conducted                    The prime focus of implementation and Project
during the implementation, end users always                   Management office is on             configuration,
need support to use the new implemented              testing, and      deploying the ERP solution in the best
solution. There should be three levels support:               possible manner. However,         the importance
first, second and third level. In First level,                of proper documentation and it configuration is
representatives who are good in operating the                 placed aside And logic presented by the PMO
                                                              office or the implementation team is that
system and should guide the end users how to                  documentation slows down the entire project.
use the application effectively. If first level               But, it is proved that lack of documentation cost
support could not solve the problem they should               more in implementation than maintaining proper
forward the problem or issue to second level                  documentation.
support. Second level support should be of team
leads of different modules. If second level                  4.0 Post Implementation
support could not solve the issue or problem it
should be forwarded to third level support. Third            After implementation, organizations celebrate
level support should be of consultants or internal           the GO-LIVE, they forget about the fact that
technical teams.                                             post implementation is as important as
                                                             implementation. No matter how successful is the
                Third Level Support                          implementation, if not used or maintained
                                                             properly it causes more harm to the organization
               Second Level Support                          then the implementation itself.

                First Level Support
e) Change Management                               decisions and act quickly on decisions. Easy and
                                                   automated forecasting, reduces the stock
People do not accept change easily. The biggest    keeping      and      investment.      Enhanced
post implementation problem is the resistance to   empowerment of employees through increased
the change. Organizations which do not form a      information sharing [4], Real time processing
strategy for change management could not get       enables the organization for fast business
the benefits from the ERP solution. End users      moves, Reduces operations, paper environment,
would like to remain in their comfort zone:        pain points and bottlenecks. Optimized
using legacy applications with which they are      processes and cycles which reduces resources
familiar with. Cultural change and insecurities    and cost factors. The purpose of ERP
are the biggest threats.                           technology is to support the company’s strategic
                                                   opportunities [9].
f) Support

ERP implementation is the outcome for huge
financial investment and exhaustive hard work      6.0 Disadvantages
of teams. Organizations do not realize that
ongoing support of ERP solution is the major       Every picture has two sides and so does the ERP
part of the total ERP cost. ERP support cost       implementation. With flowers come thorns:
depends on the size of the solution, number of     disadvantages: huge investment on ERP
users, nature of business, vendor (Oracle, SAP,    implementation and its maintenance, too much
etc) and frequency of system’s modifications.      reliability on the system and limitation ERP
                                                   solution brings with it as inheritance. Some
g) Human Resource Retention
                                                   limitations of off shelf ERP solutions, also limit
HR retention is the most difficult of all after    the business to grow in a particular direction.
post implementation. Internal staff not only
gained the technical expertise but also in depth   7.0 Basic Causes of Failure
business knowledge which enabled them to get
highly paid job very easily in the market. To      Cause of failure may vary from organization to
retain the HR, different strategies can be         organization, business type to business type,
adopted: incentives, salary increase and clarity   ERP solution to ERP solution. But, basic failure
to their future growth.                            reasons remain the same: not prepared for
h) Competency Center                               implementation, rely on available resources
                                                   regardless of their skills and experience, opt for
Formation of competency center will enable the     a wrong solution, budget constraints to buy low
teams for continuous improvements through          cadre solution, management was not on board,
extensive training for competency of staff and     wrong choice of business users, decisions
end users. Competency center will reduce the       making in close rooms, teams working on
cost of after implementation support from third    different islands and are not on the same page,
party. Enabling organizations’ own staff will      solving problems on fire fighting mode, high
definitely reduce cost and time for new changes,   expectations raised. Also sometimes cause of
development and improvements in the system.        failure is the management who is so busy in
                                                   other     operations     and     consider     ERP
5.0Advantages                                      implementation is the sole responsibility of IT.

Successful ERP implementation comes with a         8.0 Basic reasons of Success
bouquet of advantages. Visibility across the
company figures saves time, resources and          Selection of apt solution, right technical and
money. With one centralized database and           business team, management on board, whole
integrated modules, fast and accurate              organization taken into confidence and their buy
information helps the management to make           in, proper and exact requirement gathering, best
approach, processes in place, best plan, PMO                                Kimberling said "I think that's where a lot of
office in place with proper mandate of                                      companies fall short," he said. "Their finish line
execution, exhaustive trainings to all type of                              is the go-live, and there's very little that gets
users, dedicated team for implementation,                                   done after the fact."
looking for KPIs after implementation.


9.0 Conclusions

ERP implementation is different from conventional IT Software Projects.ERP implementation involves
process reengineering and optimization. It brings a new culture and a fresh breath to an organization if
implemented in the right way. It takes an average of two and a half years from project initiation to achieve a
quantifiable return on investment for an ERP system. Ninety percent of those quantified benefits are the
result of a cost reduction, according to the study [6]. ERP implementation if would have been done with
proper planning and long thought out process brings its benefits. But, if planning or processes are not in
place, it would be a disaster for the organization. Studies showed that ERP implementation could only be
possible if well planned along with organizations well placed processes.

10.0 Acknowledgements
We would like to acknowledge Mr. Wasif Ihsan who has provided us the support and cooperation during
our case study.


References:
[1] The Robins-Gioia Survey 2001.
[2] Supply Chain Digest, Springboro, OH, 2005]
[3] Successful ERP Implementation required planning by Robert W.Stanisky-2000
[4] A Case Study of ERP Implementation Issues by Dr. Tom Bramorski University of Wisconsin USA
[5] Paul Wahl SAP America
[6] Meta Group study
[7]Dr. John T. Whiting
[8] Panorama Consulting Group Dec 05-Nov 08
[9] Successful ERP Implementation the first time by R. Machael Donovan.
[10] Global ERP Implementation Challenges by KPMG’s Global Energy Institute – 2008
[11] Implementation issues in ERP by R.Appuswamy Deakin University, Australia
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                       Proper planning of project
                                     Role of PMO
     Was there sufficient Management support?
  Were there any conflicts with the consultants?
Is there any integration with other applications?
       How effective was the inter-departmental …
How many revisions to the base lined schedule?
How well you achieve the objective of your ERP?
                              Increase in revenue
                                  Increase in Sale
                          Increase in productivity
                           Paperless environment
           Collaboration with other departments
                     Transparency improvement
                         Were Trainings Effective
      How much you have gained from Trainings
      People do not understand ERP advantages
                                                                                                                TABLE 1.1 : Questionnaire Survey (Graph with Trends)




                     How effective reports were?
      Integration Issues with other applications?
                              Team Preparedness

                 After Implementation Support
  Cross-functional process orientation with high …
               Advantage after implementation
           Disadvantages after implementation
                                                                        One
                                                                  Two


                                                Four
                                    5-Highest
                                                                              0- Lowest




                                                       3-Midium
TABLE 1.2 : Questionnaire Survey




                                                                                    3-Midium
                                                            0- Lowest




                                                                                                      5-Highest
                                                                                               Four
                                                                              Two
                                                                        One
Questions
Proper planning of project                                  0           2     0     4          7      1
Role of PMO                                                 0           2     0     4          7      5
Was there sufficient Management support?                    0           0     0     4          5      5
Were there any conflicts with the consultants?              1           0     2     6          4      1
Is there any integration with other applications?           0           2     0     5          3      4
How effective was the inter-departmental communication?     0           2     1     1          10     0
How many revisions to the base lined schedule?              0           0     2     7          3      2
How well you achieve the objective of your ERP?             0           1     2     2          6      3
Increase in revenue                                         0           2     3     4          4      1
Increase in Sale                                            2           1     3     5          2      1
Increase in productivity                                    1           0     2     4          4      3
Paperless environment                                       0           1     2     3          8      0
Collaboration with other departments                        0           1     1     4          5      3
Transparency improvement                                    0           0     0     3          7      4
Were Trainings Effective                                    0           0     2     5          3      4
How much you have gained from Trainings                     0           0     2     4          4      4
People do not understand ERP advantages                     0           1     1     6          3      3
How effective reports were?                                 0           1     2     1          6      4
Integration Issues with other applications?                 0           2     3     4          4      1
Team Preparedness                                           0           1     5     3          5      0
Efficient support to end user during Implementation         0           1     2     1          6      4
After Implementation Support                                1           0     1     4          5      3
Cross-functional process orientation with high visibility   1           0     1     4          7      1
Advantage after implementation                              0           1     1     3          6      3
Disadvantages after implementation                          2           7     3     2          0      0

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ERP implementation A Complete Guide

  • 1. ERP IMPLEMENTATION: A COMPLETE GUIDE *1 Mr. Ijaz Haider Malik , weboriez@hotmail.com *2 Mr. Umar Malik , umarmalik.128@gmail.com Abstract Despite of the many reasons, the biggest challenges are choosing the right solution with ERP implementations in the South Asian the right vendor and its effective implementation countries, are comparatively different, harder according to the requirements of the business. In and financially very expensive than the other fact, in 42% of the cases when new business parts of the worlds. This is because of different applications are under consideration, the ERP is socio-economic conditions, working style of the default decision without even looking businesses, their operation methods and low anywhere else[2]. Rapid changes in businesses currency comparative to international have thrown away the idea of bespoke and currencies. Most of the well renowned ERP fusion solutions. The biggest fear of an solutions and their licenses are in foreign enterprise for the ERP implementation is the currencies such as Dollar, Pound or Sterling. failure rate: 51% have experienced their ERP When, a third world country would like to implementation as unsuccessful [1]. It becomes implement an ERP solution, investment more painful as the ERP implementation is the becomes many folds due to the currency most expensive in the field of IT. difference. But, the post implementation cost is lesser than the international market due to the Generally, the ERP is considered as the back cheaper labor cost. With the growing market of bone of an organization. But, the ERP is in fact mobile operators in Pakistan, PTCL as a the combination of backbone, reflex system and landline operator needs the cutting edge the back part of the brain i.e., organization’s technology as its products and operations. main support, assurance to comply with the Though, the ERP implementation has high cost processes and business rules and centralized but without it, gap between expenses and storage of data. There are three basic stages for revenue could not be widened: profit only an ERP implementation: pre-implementation, comes with less cost and high revenue. Making during and post implementation. All ERP a decision for the ERP implementation is a huge implementation stages are equally difficult and and tough task for the management. But, the full of challenges. Any loose brick can bring the tougher is its proper implementation and post whole implementation down. As the post stage implementation monitoring and maintenance. is dependent on the prior stages, hence the importance sequence is pre, during and Post 1.0 Introduction Implementation. A proper ERP solution has become a vital need To keep up with the growing customer demands of this era for the enterprises due to the market and fast changes in business trends, the globalization and day by day growing enterprise must have the flexibility and agility to competition. For the very fact, the ERP solution change quickly. And this could only be possible has become mandatory for an enterprise to run if the ERP solution is implemented successfully: the business in an effective and efficient way. aligned with the business requirements along But, before going for the implementation of an with the seamless information flow between the ERP solution, an enterprise has gone through modules and across departments. In this space immense hard-hitting times: choosing the right age, everything is sought with extreme sense of solution, planning, selection of implementation urgency and there is no room for duplication of team and managing the change. Whether it is an data inputs and serial processing [11]. ERP implementation or reimplementation, it should be well thought as its life spreads over many years.
  • 2. 2.0 Pre Implementation the end. While forming a steering committee, the CEO of the organization must realizes that it a) An ERP Solution Required or Not? should be of apt size with the best suited members. Sometimes, a huge sized steering Before the ERP implementation, the first committee cannot make decisions due to diverse question is to whether the organization does members. require new ERP solution or not? And, the answer does not come easy. It needs an d) Preparedness immense amount of work to come up with final facts and figures. Writing the ERP Initial An ERP implementation’s success depends Documentation needs combination of the upon the preparedness before the business experience and in depth knowledge of implementation. The business requirements and the ERP implementations. Once facts and business rules should be properly documented figures appear on the paper, budget approval and signed off from stake holders and senior from the Board of Directors along with a potential users. The implementation with convincing presentation is another hard part for inadequate documentation is an open invitation the management. Without proper approved to failure. The legacy systems’ plus and minus budget, the implementation is just a dream with points should also be documented so that the no wings. plus can be a part of implementation and the minus points can be avoided. Also record and b) Scope of Work document legacy application users’ comments as they are the actual users and they might give Scope of work should be clear with achievable inside of the application to be required. objectives. A normal ERP implementation has Processes should be identified and they should the following modules: Finance & Accounting, be intact. Identify the pain points and touch Material Management and Human Capital points. Management. Though, organizational scope can be more or less than the above mentioned. Most of the time, the feedback from the actual Almost all ERP Solutions offer individual users gets ignored with a thought that the ERP modules or combination of more than one as per application is not only for the use of clients’ requirements. The organization can opt management but also for the real operators / for the modular scope. Even from some users. solutions, the organization may select desired sub modules and leave the rest. e) Pre Evaluation c) Steering Committee After the budget approval, next is to select the apt ERP Solution. Almost all ERP systems An ERP implementation can not be successful available are good at some things, yet not so without the support from the highest good at other. [3]. Selecting and implementing management. For the very reason, the steering the most appropriate software package to committee should be formed with “C” level support a company’s business processes is itself management members. Few members from the considered a best practice[5]. With the internet board of directors in the committee may also be and fast intelligent search engines an enterprise helpful for the easy release of the budget can browse through hundreds and thousands of whenever required. The steering committee the web sites for best suited ERP Solutions and enables the project management team with vendor profiles. Every ERP solution provider is proper mandate and to overrule the red tape claiming that they are the best ERP solution issues which can be the bottlenecks for the ERP providers. But, thanks to reviews and white implementation. Not only the steering papers, a wide horizon of comparison between committee pushes the business towards the ERP different ERP solutions has been reduced to top implementation, but also it is evaluating the five: SAP AG, Oracle E-Business, J D Edwards, implementation team and its progress towards People Soft and Baan. According to some, it is
  • 3. just among two big giants: SAP and Oracle E- o Ease Of Use Business Suite. The first and vital feature of an ERP solution should be its ease of use. As if Even, the major competition is between two big ease of use is missing it would have giants, it is a cumbersome activity for an been very difficult to convince the end enterprise to choose the right Solution. ERP users to leave their legacy systems and solutions are so expensive that one wrong start using the new application. In decision not only makes the implementation addition, ease of use brings efficiency in project a failure but sometimes also destroys the work and requires less resources to use business itself. Ratio of ERP implementation’s it. success is much lower than failure. In most of the cases, enterprises take one to two years just o Cost to decide the apt solution according to their Cost is the major factor of an ERP requirements. Implementation. Cost of implementation and support should not impact business An Organization should not believe on Vendor’s to run its normal operation. Cost of an provided evidences and implementation ERP implementation has different references. The Organization should also dig out aspects and faces. Few of them are: figures and facts of the particular ERP solution license cost, support, maintenance, HR, at their own. And, should contact the references hardware and infrastructure cost. Most provided by the vendor to find out the exact important is the post implementation problems they have faced and are facing with cost for maintenance and operation. As this solution. post implementation period is much larger than the implementation. 59% of All organizations are different even if they are in implementations cost more than that the same business. Requirements and business initially assumed[8]. processes are always different and so is the ERP implementation and solution. Though, the best o Customization practices might be followed to gain the best out Major difference between bespoke and of an ERP implementation. ERP off the shelf solution is customization. If ERP solution Along with the ERP solution, an organization configuration module is not strong should evaluate the business partners who are enough to support the business and its implementing the solution in your region. May changes then successful implementation be during the evaluation you find out that could not be possible. ERP solution though the solution is excellent but the business should provide flexible and partners of vendor have bad repute, financially comprehensive and easy to use unsound or are have inept resources for configuration solution. Configuration implementation. These really matter during the solution should accommodate business implementation. changes and new requirements without going into development. Though, Following should be considered while selecting development feature should also be an ERP selection: there to cater exceptional cases. But, configuration solution should be strong,
  • 4. flexible and easy to use to cater most of Excel, CSV, PDF or text then there is a the business changes. problem for the business. Reports are the source for information and hence o Efficiency authorization control at the low level is If an ERP solution is giving business very important. Without proper everything but not efficiency, it means it authorization control on reports, it might is not a good ERP solution. As without put an organization at risk. efficiency, business could not achieve its targets and business requirements. The biggest differences between manual o Integration and automated system are efficiency ERP means modules integration and and accuracy. Efficiency can be flow of data and information from one measured by number of transaction module to another module without processed per second effecting efficiency and accuracy. If ERP solution modules are not well o Accuracy integrated or there are issues with Reliability comes from accuracy. If integration between modules then it solution has issue with accuracy then it should not be considered as the ERP is not considered for ERP Solution. As the strength of ERP is the implementation. Accuracy of ERP integration of modules and data flows. solution can be measured with number of accurate results per number of o Multi Currency transactions or queries. Accuracy is ERP solution should support considered as the basic salient feature of Multicurrency feature and it should be an ERP solution and with it, the concept across the application. As few solutions of ERP methodology could not be only provide the option on few achieved. interfaces with limited functionalities. The ERP implementation should be well o Comprehensive & Flexible Standard thought and it should at least cover five Reports to seven years. Even, an organization End product and crux of an ERP does not need a multicurrency option, it solution is the reporting solution which should be part of implementation so that can provide management the right in future this could not be a bottleneck. reports at the right time to make timely correct decisions for the organization. If o Graphs the standard reports cover sixty to ERP solution should have an option to seventy percent of an organization’s see reports in graphical mode for the requirements, it should be considered as management to see figures and trends in a good ERP Solution. Otherwise, more less time. Graphical reports should be efforts will be required to develop the flexible to change the view as per reports which result in an increase in requirement. cost and time of implementation. If the reporting solution is not flexible in o Business Intelligence terms of parameters, display options and ERP solution should provide its own export to other applications such as Business Intelligence. The major
  • 5. advantage of ERP solution is to the Security not only at the user’s Management to make quick decisions authorization level but must also at the and for this very reason BI module system level: protection from hackers or availability in ERP Solution is definitely malicious computer applications. a plus. Using third party BI, slows down the main application and have more o Other considerations complexities and issues unlike if ERP Most of the organizations fell into the solution has its own real time BI traps of vendors and consultants. It is a module. marketing gimmick of vendors and consultants to come up with highly o Support colored presentation with lots of good After implementation, support is very references of big brands. Organizations important while considering the ERP should not completely rely on vendors solution selection. After the successful or consultants but they should check the implementation, there are chances that actual truth by contacting the references the application could not run along with provided by vendors or consultants. the business if after implementation This will not only make their decision support is not good from the vendor or more practical but also would help them consultants. Often vendors or business to negotiate prices with them. partners put their all efforts to make the implementation successful but they Following should be evaluated against vanish from the scene once their the ERP solution: implementation contract is over. After Age in market (number of years). implementation support though often Stability in market. mentioned in RFP but when time comes Average Human Resources required organizations found out the support was for each module. virtual and actual support. It is best Average cost of Human Resources practice to check the real support required for operations, experience from the existing clientele of development and its support. the vendor and consultants. How easy to find resources: human and other. o Security Number of platforms it can support: An ERP solution should have a tight Unix, Linux , Windows etc Security embedded into it and should Cost of Infrastructure required and have it at a granular level. In this era, how easy to get that in market. security is considered to be the top most Frequency of new releases and how priority of the organizations. Business easy to upgrade it? data is the most important asset of an Frequency of bug fixing patches. organization. Comprehensive Does it follow industry and business authorization mechanism is required to standards like ISO, CMMI etc? every organization which will enable the management to provide apt access to Following should be evaluated against their users according to their role. the vendor and consultant: Their Financial Strength Number of clientele
  • 6. Number of satisfied clients technical team for further action. Focus on your Proposal submitted by vendor business strategy and not just software selection should be reviewed legally and and implementation [9]. ERP implementation could not bring benefits to an organization technically. unless its processes are optimized before They should offer transfer of implementation. technology (Knowledge transfer) They should not sublet contract to other companies. They should have their own seasoned professionals for all modules. f) Project Planning h) Implementation Team Once the ERP solution is selected, project Selecting or hiring the professional planning is the major task to be performed implementation team with apt skills and between implementers and the organization. experience is a must have. Team should be Project plan is the track of activities with date combination of technical and functional stamps, resource allocation from both the sides members. Skills that are critical to the along with risks and dependencies. If project implementation include project management, plan is followed with right pace, it gets the process improvement, requirement’s definition, organization success in the implementation. data conversion, testing, separation of duties Project planning should follow the standards analysis, and post go live analysis [10]. Proper like PMP or Prince2. Project plan should have trainings should be conducted for activities according to priorities. Risk should be implementation teams. Teams should not work covered in the project planning and steps should in silos and work under one umbrella so that be taken to avoid risks and mitigation of risks. integration can be done effectively. Moving Regardless of your size and perceived resources, away from Functional silos and creating an ERP implementation is not something that effective cross functional processes that are truly should be approached without a great deal of integrated via an ERP system is not an easy task careful planning [9]. [9]. g) Process Refinement (AS-IS , TO-BE) i) SDC ( Environment ) Documenting the AS-IS Business processes is Software Development Center should be the crucial activity of the process identification established with the proper resources like PCs, and its refinement. This could be achieved by Laptops and Printers with proper infrastructure. conducting different sessions with the business This SDC will be helpful during and after stake holders. As enterprise has a large number implementation. of employees so it is not possible to discuss AS- IS processes with everyone. The best approach j) Employees Buy-in. is to select the teams from each domain. Once draft version of AS-IS documents are ready, the Without employees buy-in, successful second should be arranging the workshop to implementation is close to impossible. If further clarify the AS-IS processes with the management decide to go for the ERP stake holders. After proper sign off from stake implementation without buy-in from its holders, conduct other workshops to document employees, issue starts popping up from day the TO-BE processes. To-Be processes should one till the day of the final failure.ERP be evaluated with the help of technical staff implementation is for the whole enterprise and before proper sign off from the stake holders. not only for the management and that’s why it is Once the To-Be processes are signed off, termed as ERP and not “Management processes will be handed over to consultants /
  • 7. Planning”. Only 13% of respondents characterize themselves as “very satisfied” with their company’s software implementation and 3.0 During Implementation 38 % of respondents indicated “lack of employee buy-in” as the biggest challenge Once it has been decided that which ERP facing the ERP implementation teams[8]. solution to implement, implementation has Organization should also assure its employees that job losses will be minimum otherwise there begun with all it challenges and activities. will be a considerable resistance from During implementation if proper monitoring and employees. execution plan has not been taken on, it could take the implementation towards the failure without noticeable to the management. During implementation, the biggest factor is time. As loosing the time will impact budget and without k) Interfaces for third party integration budget implementation won’t be possible. It should also be considered that ERP solution must provide easy to implement integration interfaces for third party a) Data Collection applications. Most of the off shelf ERP solutions provide XML or web service First the most difficult of all is to collect the interfaces. ERP solutions that do not provide data. To avoid “Garbage in garbage out”, Data integration interface costs lot of time, collection team of experienced members should resources and money to develop interface be formed. And, in the implementation plan every time organization would like to share activities of data collection with proper time the data with ERP Solution. lines should be mentioned. The vital part of data l) Declare Implementation as a Project collection is to design the data collection templates. Data collection template should be As ERP implementation is a big task, well thought of. Following should be considered implementation should be declared as a Project. while designing the data collection templates: Project should have project management team easy to understand, user friendly, validation with execution mandate. According to PMP and checks to avoid wrong entries, examples, and Prince2, “Project should have a definite start and end”. Same implies to ERP Implementation. minimize data entry with lookups and drop down options. Also provide data dictionary for As per Wikipedia, ”Project Management is the each column. Before sending to users get the discipline of planning, organizing, and evaluated template from easily approachable managing resources to bring about the users. Template should be communicated via successful completion of specific project goals highest managements email so that users take and objectives. It is often closely related to and them seriously. sometimes conflated with program management.” Avoid sending same template again and again j) BPM with modifications as it will reduce the effect. If possible conduct workshops to give template If ERP Solution supports Business Process overviews. No templates should be accepted Management it will be an additional edge on with proper sign off from the sender: sense of other ERP solutions as it enables employees to ownership. If these issues are tackled with effectively manage the processes with dynamic proper planning and strategy, it will save approach: designing, configuring, executing, considerable cost and time. monitoring, and analyzing.
  • 8. The biggest challenge is to convert legacy data into new format and also check for redundancy and duplication (data cleansing). Most of the c) Quality Team cases legacy data do not provide the complete data required for the new implementation. In “A quick migration to an ERP system without those cases special permissions and decisions time for testing and validating the systems is not are required from the steering committee. wise nor advisable,”[7]. There should be proper quality testing and assurance teams. Quality Communication teams begins with the initiation of the implementation. To reduce the cost of implementation, some Communication team should be formed to organizations ignore the formation of dedicated teams for quality testing and quality assurance. communicate every possible achievement or But, after implementation low quality cost the hurdle to all the stake holders in order to organization many folds then investing the develop a sense of ownership among all. Also it money on quality during implementation. gives confidence to all that they are part of the Despite other quality assurances, the most implementation. Communication team should important for quality team is to keep check on build strategies to avoid the scenarios where the unnecessary development of reports. ERP implementation becomes scapegoat for Without quality the objectives of successful non performers. As it is a normal practice to implementation could not be achieved. Quality blame the solution if something goes wrong and should be checked and assured at every process mostly common with new implementations. and step of implementation. Some of them are: documentation, AS-IS and TO-BE processes, configuration, development. b) Support Team d) Documentation with Configuration No matter how much trainings are conducted The prime focus of implementation and Project during the implementation, end users always Management office is on configuration, need support to use the new implemented testing, and deploying the ERP solution in the best solution. There should be three levels support: possible manner. However, the importance first, second and third level. In First level, of proper documentation and it configuration is representatives who are good in operating the placed aside And logic presented by the PMO office or the implementation team is that system and should guide the end users how to documentation slows down the entire project. use the application effectively. If first level But, it is proved that lack of documentation cost support could not solve the problem they should more in implementation than maintaining proper forward the problem or issue to second level documentation. support. Second level support should be of team leads of different modules. If second level 4.0 Post Implementation support could not solve the issue or problem it should be forwarded to third level support. Third After implementation, organizations celebrate level support should be of consultants or internal the GO-LIVE, they forget about the fact that technical teams. post implementation is as important as implementation. No matter how successful is the Third Level Support implementation, if not used or maintained properly it causes more harm to the organization Second Level Support then the implementation itself. First Level Support
  • 9. e) Change Management decisions and act quickly on decisions. Easy and automated forecasting, reduces the stock People do not accept change easily. The biggest keeping and investment. Enhanced post implementation problem is the resistance to empowerment of employees through increased the change. Organizations which do not form a information sharing [4], Real time processing strategy for change management could not get enables the organization for fast business the benefits from the ERP solution. End users moves, Reduces operations, paper environment, would like to remain in their comfort zone: pain points and bottlenecks. Optimized using legacy applications with which they are processes and cycles which reduces resources familiar with. Cultural change and insecurities and cost factors. The purpose of ERP are the biggest threats. technology is to support the company’s strategic opportunities [9]. f) Support ERP implementation is the outcome for huge financial investment and exhaustive hard work 6.0 Disadvantages of teams. Organizations do not realize that ongoing support of ERP solution is the major Every picture has two sides and so does the ERP part of the total ERP cost. ERP support cost implementation. With flowers come thorns: depends on the size of the solution, number of disadvantages: huge investment on ERP users, nature of business, vendor (Oracle, SAP, implementation and its maintenance, too much etc) and frequency of system’s modifications. reliability on the system and limitation ERP solution brings with it as inheritance. Some g) Human Resource Retention limitations of off shelf ERP solutions, also limit HR retention is the most difficult of all after the business to grow in a particular direction. post implementation. Internal staff not only gained the technical expertise but also in depth 7.0 Basic Causes of Failure business knowledge which enabled them to get highly paid job very easily in the market. To Cause of failure may vary from organization to retain the HR, different strategies can be organization, business type to business type, adopted: incentives, salary increase and clarity ERP solution to ERP solution. But, basic failure to their future growth. reasons remain the same: not prepared for h) Competency Center implementation, rely on available resources regardless of their skills and experience, opt for Formation of competency center will enable the a wrong solution, budget constraints to buy low teams for continuous improvements through cadre solution, management was not on board, extensive training for competency of staff and wrong choice of business users, decisions end users. Competency center will reduce the making in close rooms, teams working on cost of after implementation support from third different islands and are not on the same page, party. Enabling organizations’ own staff will solving problems on fire fighting mode, high definitely reduce cost and time for new changes, expectations raised. Also sometimes cause of development and improvements in the system. failure is the management who is so busy in other operations and consider ERP 5.0Advantages implementation is the sole responsibility of IT. Successful ERP implementation comes with a 8.0 Basic reasons of Success bouquet of advantages. Visibility across the company figures saves time, resources and Selection of apt solution, right technical and money. With one centralized database and business team, management on board, whole integrated modules, fast and accurate organization taken into confidence and their buy information helps the management to make in, proper and exact requirement gathering, best
  • 10. approach, processes in place, best plan, PMO Kimberling said "I think that's where a lot of office in place with proper mandate of companies fall short," he said. "Their finish line execution, exhaustive trainings to all type of is the go-live, and there's very little that gets users, dedicated team for implementation, done after the fact." looking for KPIs after implementation. 9.0 Conclusions ERP implementation is different from conventional IT Software Projects.ERP implementation involves process reengineering and optimization. It brings a new culture and a fresh breath to an organization if implemented in the right way. It takes an average of two and a half years from project initiation to achieve a quantifiable return on investment for an ERP system. Ninety percent of those quantified benefits are the result of a cost reduction, according to the study [6]. ERP implementation if would have been done with proper planning and long thought out process brings its benefits. But, if planning or processes are not in place, it would be a disaster for the organization. Studies showed that ERP implementation could only be possible if well planned along with organizations well placed processes. 10.0 Acknowledgements We would like to acknowledge Mr. Wasif Ihsan who has provided us the support and cooperation during our case study. References: [1] The Robins-Gioia Survey 2001. [2] Supply Chain Digest, Springboro, OH, 2005] [3] Successful ERP Implementation required planning by Robert W.Stanisky-2000 [4] A Case Study of ERP Implementation Issues by Dr. Tom Bramorski University of Wisconsin USA [5] Paul Wahl SAP America [6] Meta Group study [7]Dr. John T. Whiting [8] Panorama Consulting Group Dec 05-Nov 08 [9] Successful ERP Implementation the first time by R. Machael Donovan. [10] Global ERP Implementation Challenges by KPMG’s Global Energy Institute – 2008 [11] Implementation issues in ERP by R.Appuswamy Deakin University, Australia
  • 11. 0 2 4 6 8 10 12 Proper planning of project Role of PMO Was there sufficient Management support? Were there any conflicts with the consultants? Is there any integration with other applications? How effective was the inter-departmental … How many revisions to the base lined schedule? How well you achieve the objective of your ERP? Increase in revenue Increase in Sale Increase in productivity Paperless environment Collaboration with other departments Transparency improvement Were Trainings Effective How much you have gained from Trainings People do not understand ERP advantages TABLE 1.1 : Questionnaire Survey (Graph with Trends) How effective reports were? Integration Issues with other applications? Team Preparedness After Implementation Support Cross-functional process orientation with high … Advantage after implementation Disadvantages after implementation One Two Four 5-Highest 0- Lowest 3-Midium
  • 12. TABLE 1.2 : Questionnaire Survey 3-Midium 0- Lowest 5-Highest Four Two One Questions Proper planning of project 0 2 0 4 7 1 Role of PMO 0 2 0 4 7 5 Was there sufficient Management support? 0 0 0 4 5 5 Were there any conflicts with the consultants? 1 0 2 6 4 1 Is there any integration with other applications? 0 2 0 5 3 4 How effective was the inter-departmental communication? 0 2 1 1 10 0 How many revisions to the base lined schedule? 0 0 2 7 3 2 How well you achieve the objective of your ERP? 0 1 2 2 6 3 Increase in revenue 0 2 3 4 4 1 Increase in Sale 2 1 3 5 2 1 Increase in productivity 1 0 2 4 4 3 Paperless environment 0 1 2 3 8 0 Collaboration with other departments 0 1 1 4 5 3 Transparency improvement 0 0 0 3 7 4 Were Trainings Effective 0 0 2 5 3 4 How much you have gained from Trainings 0 0 2 4 4 4 People do not understand ERP advantages 0 1 1 6 3 3 How effective reports were? 0 1 2 1 6 4 Integration Issues with other applications? 0 2 3 4 4 1 Team Preparedness 0 1 5 3 5 0 Efficient support to end user during Implementation 0 1 2 1 6 4 After Implementation Support 1 0 1 4 5 3 Cross-functional process orientation with high visibility 1 0 1 4 7 1 Advantage after implementation 0 1 1 3 6 3 Disadvantages after implementation 2 7 3 2 0 0