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ERP Readiness

The document outlines the concept of Enterprise Resource Planning (ERP) and the necessary steps for ERP readiness, including assessing current processes, team, infrastructure, budget, and potential risks. It emphasizes the importance of clear goals, stakeholder communication, and support from management for successful ERP implementation. Additionally, it highlights the ERP implementation life cycle, from pre-selection to post-implementation phases.

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8 views20 pages

ERP Readiness

The document outlines the concept of Enterprise Resource Planning (ERP) and the necessary steps for ERP readiness, including assessing current processes, team, infrastructure, budget, and potential risks. It emphasizes the importance of clear goals, stakeholder communication, and support from management for successful ERP implementation. Additionally, it highlights the ERP implementation life cycle, from pre-selection to post-implementation phases.

Uploaded by

soliwork1363
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ERP Readiness

Enterprise Resource Planning


• What is ERP?
• ERP Readiness
• Best Practices
What is ERP?
• Integrated suite of software applications
designed to manage and automate core
business processes
• Streamline operations, reduce costs and
enhance overall productivity
DO YOU REALLY NEED AN ERP FOR
YOUR BUSINESS?
Current processes
1) How efficient & effective your current processes are?
2) Is there a scope for improvement of processes or NOT?
3) Do you find it difficult to access information about your Business?
4) Is there a lack of coordination between various departments?
5) Do you struggle to have a full visibility into your inventory?
6) Do you have trouble meeting delivery schedules?
7) Is there a lack of centralized processes in your organization?
8) Do you have a difficulty in implementing business discipline?
9) Are you able to provide right information to right people at right
time?
10) Are you spending significant amount of time dealing with multiple
non-integrated systems?
11) Do you feel the need to automate your business processes?
ERP Readiness
How to become Ready for an ERP

1) What are the Goals to be achieved from ERP Implementation?


2) What are the Key Results to measure the success of ERP
implementation?
3) Have you communicated the Project expectations and Expectations
of Key Results to all stakeholders?
4) Do the Key Stakeholders understand the Goals, Key Results
Expectations clearly and concur with them?
Check your business process readiness

1) Are you ready with standard business process/ standard


operating procedure to be implemented through ERP?
2) Do you know “How” and “When” the data flows or Interacts
with different Processes?
3) Have you prepared important checkpoints and workflow
required in the ERP?
Check your team readiness

1) Have you identified a Project Lead for ERP Implementation


Project?
2) Have you identified module wise key stakeholders?
3) Does the process owner know the actual Process and its
interaction with other Processes to be achieved through ERP?
4) Are the end users computer savvy?
Check your infrastructure readiness
1) Have you assessed current hardware?
2) Have you reviewed hardware required for ERP system?
3) Do you need multi location access and assess infra requirements
for the same?
4) Have you decided on cloud vs on-premise implementation?
Check your Budget and Time Required
1) Have you identified the amount of money and time required to
implement ERP?
2) Have you secured sufficient budget for ERP implementation?
3) Do you have sufficient time and skilled resources for ERP
implementation?
Risk Sources in the Project Environment
• insufficient documentation on business processes
• no experience with software implementation projects of
this type and scope
• insufficiently high status of the ERP implementation
project
• end-user requirements not adequately taken into
account
• requirements of the ERP system not prioritized
• change requests made continually throughout duration
of project
Risk Sources Associated with the project
goals
• insufficient communication of goals that were set for
implementation
• hidden goals that were set for implementation
• unrealistic goals
• unclear requirments
Risk Sources in project management
• unstructured projects procedures, milestones unknown
• insufficient monitoring of deadlines and costs
• poor planning leading to retroactive change requests
• poor information flow in project
Risk Sources Associated with Project
Organization
• lack of clarity regarding competencies, contact persons
and responsibilities
• work overload; project team members not made free for
project work
• inadequate equipment (such as PCs and software)
Risk Sources Associated with Project Team

• insufficient management of and specialist IT


knowledge among project team members
• insufficient know-how on the part of consultants
• carelessness in selection of consultants
• lack of staff, not enough project team members
• poor motivation among project team members
Risk Sources in project flow
• inadequate project budget
• not enough time for project planning
• not enough buffer time, unrealistic completion date
• unexpected delays, deadline postponements
• insufficient quality assurance
Top Success Factors
Very
Success Factors Ranking
Important
Support from top
1 82.2%
management
Competent project
2 78.1%
management
Good collaboration 3 67.1%
Structured procedures 4 67.1%
Inclusion of all parties
5 65.8%
involved
Technical competence
6 64.4%
of staff
Clear goals 7 61.6%
Realistic scheduling 8 57.5%
ERP Implementation Life Cycle
Pre-selection Process

Package Evaluation

Project Planning

Gap Analysis Reengineering Configuration

Implementation End-User
Testing
Team Training Training

Going Live

Post Implementation
Phase

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