ERP Systems Implementation

Prepared by:

Chandra Agarwal

PGDM V SEC A

INTRODUCTION- ERP SOFTWARE SOLUTION

Enterprise Resource Planning – An information system (multi-module application software) that integrates all manufacturing and related applications for an entire enterprise.

Different ERP Software solutions vendors– BAAN,– RAMCO,– Oracle,– People soft,– JD Edwards,– SAP, etc

SAP is the market leader in ERP Software solutions.

SAP ORGANISATION

S.A.P

The name SAP being a German company, is acronym for “Systeme Anwendungen, Produkte in der Datenverarbeitung”.

This is translated into English as

“System ,Applications and Products in Data Processing ”

COMPANY PROFILE

Founded Weinheim (1972) Headquarters Walldorf, Germany

Key people Henning Kagermann, CEO Shai Agassi Development ERP INDUSTRY COMPUTER SOFTWARE Revenue 8.5 billion EUR (2005) (or 10.2 billion USD) Employees 35,873 (2005) Website www.sap.com

SAP AG is the largest European software enterprise.

SAP is the 3rd largest software company in the world.

It ranks after Microsoft, IBM, in terms of market capitalization.

It is also the largest business application and Enterprise Resource Planning (ERP) solution software provider in terms of revenue.

R/3

R/3 Real Time Three TierArchitecture

Architecture

BASIS• BASIS is similar to a kernel for R/3.

• It provides the runtime environment for ABAP/4 programs. Basis is essential to run ABAP/4 programs.

• It is a collection of R/3 system programs that present you with an interface

ABAP

• ABAP stands for Advanced Business Application Programming / 4th Generation Language

• ABAP/4 cannot run directly on an operating system. It requires a set of programs to load, interpret, and buffer its input and output.

Task-Technology Fit (TTF)

DeLone & McLean (Updated) Model of Information Systems Success

Unified Theory of Use and Acceptance of Technology (UTAUT)

IS Project Failure (CHAOS Report)• Incomplete Requirements 13.1%• Lack of User Involvement 12.4%• Lack of Resources 10.6%• Unrealistic Expectations 9.9%• Lack of Executive Support 9.3%• Changing Requirements & Specifications 8.7%• Lack of Planning 8.1%• Didn't Need it any Longer 7.5%• Lack of IT Management 6.2%• Technology Illiteracy 4.3%• Other 9.9%

POOR DUMP SAP LET BE THE LESSON

Lessons for ERP Systems …• "Those who fail to learn history are doomed to

repeat it" (Winston Churchill)

• In the field of MIS, “issues seen as ‘new’ turn out to have long roots” (Keen, 1991)

• What of ERP Systems ?– ERP systems are large scale, expensive projects– ERP systems may involve dramatic changes to work

practices and organisational processes– They are not “quick fix” solutions and need to be

implemented with care

It’s All About the Requirements !

• “In nearly every software project that fails to meet performance and cost goals, requirements inadequacies play a major and expensive role in project failure” (Alford & Lawson, 1979)

• “The hardest single part of building a software system is deciding precisely what to build. No other part of the conceptual work is as difficult as establishing the detailed technical requirements ... No other part of the work so cripples the resulting system if done wrong.” (Brooks, 1987)

• Build the correct system (product) + Build the system correctly (process)

Playing Catch-up with User NeedsF

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User NeedsActual System

Capabilities

t0 t1 t3t2 t5t4

SAP R/3 TYPICAL BUSINESS BLUEPRINT

ERP Implementation Framework

ERP Critical Success Factors

THANK YOUFor Your Kind Attention