“ Tr u s t e d P a r t n e r f o r S t r a t e g y & Te c h n o l o g y C o n s u l t i n g &Tr a i n i n g ”

Training Session on - ERP Implementation Planning

Date: 11.02.2025

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 ERP’S TRAINNING SESSION

A Traning Session on ERP/SAP

Date: 06.01.2025

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THE BEST – RUN BUSINESS RUN SAP
 Please put your mobile phone in silent mode

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THE BEST – RUN BUSINESS RUN SAP
 Planning of ERP

Class-2
ERP Implementation Planning

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 Planning of ERP ?
Enterprise resource planning (ERP) planning is the process of using software to manage and streamline an
organization's business operations. ERP systems can help with planning, production, and project management.
How does ERP planning work?
• ERP systems collect, store, and manage data from various business activities
• ERP systems can automate and integrate business processes.
• ERP systems can help companies achieve operational excellence

What types of ERP systems are there?

• On-premise: ERP systems that are installed on the organization's own servers
• Cloud: ERP systems that are hosted on remote servers and accessed through the internet
• Hybrid: ERP systems that combine on-premise and cloud-based deployments

What can ERP systems help with?

• Best practice functionality within departments and high level of integration across all enterprise functions
Accounting & Procurement.
• Project management & Risk management and compliance
• Supply chain operations & Manufacturing
• Finance & Costing

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 ERP Implementation Planning
Objective:

❑ Understand various planning phases and it’s issues during the ERP System implementation in the
organization

❑ Develop a justification for ERP implementation

❑ Identify the various resources required for ERP implementation

❑ Understand the role of organizational commitment to change

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 ERP Implementation Planning
❑ Understanding the organizational needs and requirements

❑ Understanding the economic and strategic justification of the project

❑ Analyzing project scope and the broad implementation approach

❑ Determining resources available

❑ Comprehending the top management’s commitment to the change

❑ Realizing organizational commitment to change and implement ERP

❑ Matching business process with the ERP system

❑ Budgeting for ERP implementation

❑ Selecting the Right ERP Package & Determining resources available

❑ Analyzing project scope and the broad implementation approach
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ERP Planning Components

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 ERP Planning Components

❑ Matching business process with the ERP system

❑ Budgeting for ERP implementation

❑ Selecting the Right ERP Package

❑ Analyzing project scope and the broad implementation approach

❑ Determining resources available

The ERP resource determination sub-phase can be quantified as follow:

❑ Infrastructure resource determination

❑ Training facilities and education about ERP

❑ HR planning and commitment to deploy the right people for the right job

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Understanding Organizational Requirements

❑ Legacy systems use multiple points of input with duplicated effort.

❑ Most legacy systems are unable to support organizational needs.

❑ Companies require extensive resources for supporting and maintaining legacy systems.

❑ Legacy systems are limited by their inability to respond to customer and supplier requests.

❑ The average legacy system is incapable of incorporating organizational growth.

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Understanding Economic and Strategic Justification

The strategic benefits given below can be used to devise an instrument to further
justify ERP implementation:
❑ Improved response time

❑ Streamlined communication

❑ Real-time access to data

❑ Cost reduction

❑ Supply/demand chain

❑ Improved business processes

❑ System integration and flexibility

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Analyzing Project Scope and Broad Implementation Approach

Organization can provide answers to some of the following questions when establishing the scope
of an ERP project:

❑ What functional areas should ERP cover in this organization?

❑ What other systems should ERP integrate to?

❑ What benefits do I hope to realize?

❑ Will business processes change?

❑ Should the new ERP system be implemented in phases?

❑ How should ERP be deployed: on-premises, hosted, or in the cloud?

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How to Draft the Scope of an ERP Project?

Together with a more detailed analysis of your demands, such as accounts payable and accounts
receivable, as well as specific requirements within those areas, the ERP project scope document
should include your high level functional ERP module requirements, such as finance, accounting,
inventory management, sales, and CRM.

How to Determining Resources

A typical ERP implementation requires resources in the following three categories:

❑ IT infrastructure resources (hardware/software)

❑ Training and education facilities for ERP

❑ HR planning and commitment to deploy the right people for the purpose

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 IT infrastructure components

❑ LAN, WAN, and hardware supporting the application.

❑ Hardware supporting metadata, database, and data storage.

❑ Software versions, service packs, and configurations details of software.

❑ Security and access control measures.

❑ Support functions: data backup and restore, audit trials, maintenance, etc.

❑ Establishing suitable communication infrastructure to facilitate worldwide data transmission.

❑ Network enhancement (throughput, propagation latency, employment, and heterogeneity).

❑ Support and backup (offering 24/7 assistance, worldwide security and catastrophe recovery, and global
support).

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HR Planning and Commitment to Deploy the Right People for the Purpose

HR planning is one of key steps in planning phase for ERP Implementation.

A typical process that can be followed for HR planning is explained following figure.

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Comprehending Top Management Commitment

❑ Requisite funding

❑ Recognizing the necessary requirements and identifying the right people for implementation

❑ Allocating people, organizing them into an inter-disciplinary team, and empowering them to take
responsibility of the project

❑ Spending a significant amount of time serving the steering committee

Steering Committee

A high-level committee meant for ERP implementation comprising the project manager, top
management, and people from the consulting firm.

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Realizing Organizational Commitment to Change and Implementation

❑ Enterprise resource planning is a package of ideas that requires people to change the way they work in order
to realize their full potential.

❑ In the absence of a determined and clear-headed leadership and commitment of the top management, the
functionaries down the line will always find creative ways to maintain status quo.

Matching Business Processes with the Right ERP System

❑ Abstracting the set of requirements from existing ERP functionality.

❑ Performing the alignment at the requirement level.

❑ Deriving from the aligned requirements the adoptions and extensions of the selected functionality by
using the ERP requirements to functionality links.

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ERP Requirement-driven Process

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Selecting the Right ERP Package

❑ Do the features and functions meet your needs?

❑ How compatible is the ERP package with the organization’s business?

❑ Should an integrated package be bought from a single-vendor, or best-breed solutions be

purchased from several vendors?

❑ Have you considered the implications of the package on your IT infrastructure?

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Phases for ERP Software Package Selections

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Request for Information (RFI)

❑ It is a standard business process, the purpose of which is to collect written information about the
capabilities of various suppliers.

❑ Normally, it follows a format that can be used by the adopting organization for the purpose of
comparison.

Request for Information Tips:

❑ Provide background information and a summary of the problem.

❑ Make information requests that are simple to compare.

❑ Provide vendor responses an understandable format.

❑ Request generic information rather than becoming overly detailed.

❑ Be succinct and considerate of the supplier’s time.

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Preparing Organizations for ERP Implementation

According to Thomas L. Legere (2002), there are six different dimensions to assess organizational
preparedness for ERP implementation, which are:

❑ Leadership

❑ Vision

❑ Change strategy

❑ Building employee commitment

❑ Managing performance

❑ Organizational alignment

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SAP Implementation Components

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