Decisions and actions required to advance ERP system adoption at Zambeef Products PLC through the

product selection and system implementation stages

Brian Katjaerua 13375199 bkatjaerua@fnbnamibia.com.na +264 81 306 4754

Mark Labuschagne 16469674 markl@mweb.co.za +27 83 400 0958

Amos Mboweni 16388712 amboweni@gmail.com +27 82 454 4458

Murray Moore 16469712 muzmoore71@gmail.com +26 0977 999003

Anthony Struik 16403150 struik@iwayafrica.com +26 0966 804784

Graeme Venables 16399102 graemev@kemklean.co.za +27 83 644 6023

Operations & Information System ManagementMBA Modular 2010 E2 – Group 7

WHY?• Zambeef Products PLC – dominant agro-processing company• adds value to all common protein and carbohydrate sources• broadly diversified national footprint + Nigeria & Ghana • website paints a picture of structured corporate efficiency

• but “Heuston – ggggggrrrrhh – we have a problem”…

• company needs an ERP system but it does not know the decisions and actions required to successfully implement one

• hostage to a dysfunctional, disparate information system• sub-division specific, non-integrated information ‘silos’

WHAT?• What is an ERP system?• enterprise-wide set of management tools• balances supply & demand• links customers & suppliers• employs proven business processes• provides integration among sales, marketing,

manufacturing, operations, logistics, procurement, finance & HR

• enables better decision making, customer service & productivity at lower cost (Wallace & Kremzar 2001)

HOW?• ERP adoption comprises 3 phases:

Product Selection System Implementation System Management

• STAGE 1: PRODUCT SELECTION• function of vendor support, functionality, cost of ownership,

testimonials

• Vendor and Product Competency• must provide a ‘rock solid’, ‘future proof’ strategy which

delivers relevant technology, functionality, value and competitive advantage

• must accommodate market & training needs, change management and scalability.

HOW (II)?• Backup not found: (A)bort (R)etry (P)anic... Hit any user to continue

• STAGE 2: SYSTEM IMPLEMENTATION• Two important concepts associated with ERP implementation

• CRITICAL SUCCESS FACTORS• factors identified as critical to successful implementation - 10• business plan/ERP integration – aligned, goals/focus/scope – clear• vendor package – suited, project manager – dedicated & competent• training – quality & quantity, ERP consultants – guidance• project champion – committed, change management program,• top management support - engaged, steering committee - involved• these CSF’s must be assessed context-specifically – are they important

in the Zambeef context?

HOW (II)?• SUCCESS CRITERIA• CSF’s must be judged according to a set of success criteria• “Project success has long been considered the ability to fall within

time, cost and quality constraints” (Lavagnon 2009)• researchers added a 4th - client/user/stakeholder satisfaction• cost & time are quantitative and easily measurable• cost estimate is 1 to 3% annual turnover – 1.5 to 4.5 million USD• time estimate a function of scope / implementation strategy• projections in this case vary between 6 and 12 months • satisfaction is qualitative and hard to measure but very important

to client perception of project success• context specific importance of each CSF will be assessed according

to the above framework prior to implementation

FOR WHOM?

• Executive Committee (CEO, FD, Executive Director)

and once approved

• Board of Directors

• User: Err hello... I can't print.• HelpDesk: Would you click on "start" for me and...• User: Listen y’all - don't start all getting technical on me! I'm

not @#&*ing Bill Gates man!