ERP system and selection methodologies

Transcription

1 ERP system and selection methodologies Primož Vreček Miha Volovšek poslovno svetovanje d.o.o. Gerbičeva 57, 1000 Ljubljana t: f: e: info@aggregata.com w:

2 Table of contents Introduction ERP system Selection methodologies Requirements analysis Gap analysis: comparing As is and To be Alternative approach Conclusion

3 Introduction In the past many selection and implementation projects failed Good selection key to potential succes Other reasons for failure

4 Introduction Source: Deloitte & Touche 1998 CIO survey

5 ERP system ERP enterprise resource planning system Set of integrated application with structured approach to optimization Change of data in one part makes the changes in whole system coordination Organization and standardization of business processes

6 ERP system Many different sest of modules Terminology problems

7 ERP system Murrel G. Schields, E-business and ERP, Rapid implementation and project planning, John Wiley & Sons, Inc. 2001

8 Selection methodologies Selecting ERP is important decision Selecting system to satisfy 80%-90% of needs Two main selection methodologies Requirements analysis Gap analysis: comparing As is and To be

9 Requirements analysis Review of system requirements for organizational models Requirements summarized in document-request for proposal or RFP

10 Requirements analysis Advantages: list of requirements can be used to benchmark different software packages, provides basis for communication and discussion of different models, better understanding of the limitation of existing model, ensures, that specific needs are met.

11 Requirements analysis Disadvantages: requirements can be very time-consuming requirements analysis can be very costly if RFP is too large, vendors may be too busy to reply in an appropriate time requirements analysis may lock organizations into old working patterns

12 Gap analysis: comparing As is and To be As is refers to current system functionality Decide and research the To be Modifications necessary to reach To be

13 Gap analysis: comparing As is and To be Advantages: provides better practical insight into new system all functions and modifications of the new system can be directly tested it offers better cooperation with the vendors

14 Gap analysis: comparing As is and To be Disadvantages: how is a gap defined? can the gap be calculated by requirements? should only the critical requirements be considered?

15 Alternative approach Increasingly organizations are doing only to be analysis Arguments are for such approach are: each ERP package is assumed to meet organizational needs, reengineer existing business processes using ERP technology best practice analysis only within specific ERP software chosen, implementation costs are minimized by making few changes in the software

16 Alternative approach Extra information have to be included: are there any similar organizations, that have implemented an ERP system, ERP system recommended by the consultant, who has specific knowledge of some ERP systems

17 Conclusion Advantages as well as disadvantages of all methodologies Each selection process has one best-suited methodology Technology is constantly improving, also needs are changing Critically consider all possible approaches, truly evaluate all needs and gather as much possible information

18 Sources Murrel G. Schields, E-business and ERP, Rapid implementation and project planning, John Wiley & Sons, Inc Grant Norris, James R. Hurley, Kenneth M, Hartley, John R. Dunleavy, John D. Balls, E-Business and ERP, Transforming the Enterprise,, John Wiley & Sons, Inc Daniel E. O`Leary, Enterprise resource planning systems, systems, life cycle, electronic commerce and risk, Cambridge university press 2002