Introduction to ERP Systems

1
Introduction to ERP Systems

• Chapter 12 Implementing ERP Systems
• After Going Live
• AND
• Chapter 13 Training

2
Chapter 12 and 13 Objectives

• The stabilization period
• ERP support organization
• Identify needed revisions
• Evaluate success
• Training Considerations

3

• Stabilization Period
• Period in which new MAPs are implemented
• New processes, new software being used
• Impacts both quantity and quality of work
• Very often causes drop in performance
• one out of four firms experience significant drop
• can last from three to nine monthsor longer
• can be minimized by thorough testingthe 5 levels
• can be minimized by excellent training right
  level at right time dont want to train users
  too early..why not?
• can be caused by need for hardware / database
  tuning
• Return to optimal performance
• goal is to return as quickly as possible
• requires a quality internal support organization

4

• ERP Support Organization
• Project team needs to stay in place after
  implementation through stabilization period.
• Responsibilities
• fix system bugs
• answer user questions.who are ideal resources to
  do this?
• change system parameters and MAPs when necessary
• Responding to requests for information (reports,
  etc.)
• updating documentation and training
  materials.why might updates be required?
• Key impact on effectiveness
• Retaining key resources
• allocation of adequate financial and human
  resources

5

• Identify Needed Revisions
• Revisions may be required due to
• issues arising from poor data conversion..can
  only see results of poor data conversion over
  time
• Example monthly, quarterly processes
• What revision do you think is needed?
• process bottlenecks
• may still exist from legacy
• May arise as new, cross-functional processes are
  implemented may learn some process choices
  wont work.
• Identify issues by listeningor by performing
  data analysis/exception reporting
• Revision(s) needed eliminate bottlenecks?
• inability to include less critical, yet desired
  functions or features in initial implementation
  schedule
• need for additional training and documentation
• May not be able to assess needs until after
  implementation
• Revision?

6
Plan vs. reality

• An effective way to determine what needs still
  needs to be done
• Deviations often caused by implementation
  compromises
• Short cuts to save time and/or money
• well do it later
• Examples
• Reduced security
• Lack of reporting
• Evaluations
• Planned vs. Actual Use
• System functionality expected vs. actual

7
Upgrades and extensions

• Post-stabilization, capabilities can be upgraded
  or extended
• Build required links to other systems
• Implement additional functionality from modules
  already implemented
• Extend capabilities (e.g. implement additional
  modules, etc.)
• Upgrade to latest version of software
• Requires planning and prioritization
• Prioritization choose options that provide most
  value, move organization toward vision (meet
  business rationales)

8
Evaluate success

• Key activity needed to declare project a
  success
• Need to determine how success is to measured
• Rule of thumb Not possible to determine if
  project a success for at least a year after
  implementation
• Important to establish baselines prior to
  implementation
• Meaning?

9
Success Criteria

• Tangible Return on Investment
• The return that can be had through investing in
  an ERP system. There are a number of ways ROI
  can be realized
• Provable / Measurable
• Lower supply chain / production cost (better
  inventory management Walmart!)
• Lower IT costs
• Improved productivity both from IT and end user
  staff.
• Intangible ROI
• Employee satisfaction?
• Process Improvements?
• Customer Satisfaction?
• Expected vs. actual project costs
• Expected vs. actual project timeline

10
Additional Success Criteria

• The ERP system is Used!

11
Training Case

• What is a major non-technical reason that ERP
  implementations fail?
• What kind(s) of training are required?
• Who needs to be trained and why?

12
Training

• Training
• Executives
• Project / Implementation Team
• End-Users

13
Training

• Executive Training
• Often Overlooked / Under Estimated!!
• Essential to obtain necessary commitment
• Must have an accurate understanding of
• the degree of organizational impact
• the costs, effort, and expertise required
• the critical success factors and their ownership
  of them
• the pacing of the implementation life cycle
• Timing
• BEFORE starting an implementation project

14
Training

• Executive Training
• Case Studies
• Videos
• Luncheon Meetings
• Put in Touch with other Executive Mentors
• Adult Education Techniques

15
Training

• Project Team Training
• Team cant be effective without it
• Preparatory Training
• ERP business overview
• ERP business process capabilities
• ERP technical overview
• Systems, network, db administration
• Implementation methodology training
• Timing
• BEFORE requirements definition starts

16
Training

• Project Team Training (cont.)
• Development Proficiency Training
• ERP process configuration
  
• Automated test tools
• ABAP/4 (SAP)
• Reporting tools
• Timing
• Immediately AFTER requirements definition ends

17
Training

• End User Training
• Requires lots of
• Effort (Internal and External)
• Time
• Money
• Timing of training development
• Starts at the inception of the project (Training
  Strategy)
• Continues through requirements phase (Prototype)
• Built and tested parallel with ERP process
  configuration
• Completed before end user training classes start

18
Training

• End User Training (cont.)
• Timing of training delivery
• Too early and it will be forgotten
• Too late and it will be rushed and/or incomplete
• How much training is needed?
• Depends upon modules?
• Depends upon user preparedness?
• Depends of user technical proficiency (do they
  point the mouse at the screen like a remote
  control)?
• Depends upon degree of process/job/role change?

19
Training

• End User Training (cont.)
• Wont training interfere with a users work day?
• Get managers to fill in
• Hire temporary helpstudents / graduates
• Make employees work overtime
• How can the importance of training be conveyed?
• Schedule it during regular working hours
• Institute penalties and/or incentives
• Conduct post-training skills assessments

20
Training

• End User Training (cont.)
• Whats included in the context of training?
• Technology
• Process
• Job responsibilities / changes
• Script-based versus General Support materials
• Script-based Context-relevant step-by-step
  recipe instructions
• General Support Context-independent online help
  library
• Customized to user environmentlogo, name
  especially DATA!

21
Training

• End User Training (cont.)
• How should training be structured?
• Classroom instruction
• CBT (Computer-Based Training)
• Web-based (Virtual Training)
• Self-study
• Who should lead end-user training?
• Consultant or business employee
• Business super-user

22
Training

• End User Training (cont.)
• Can training be accelerated or shortened?
• Skill / preparedness of the people to be trained
• Similarity of new system and processes to the old
• Small ratio of project team members to end users
• Is always a dangerous approach
• Attending training versus being trained
• Post-training skills assessment
• Remedial courses
• Mandatory practice

23
Training

• Training Summary
• Training is of critical importance to project
  success
• Executives, Project Team, and End Users need to
  be trained
• Training of some type will occur throughout the
  implementation life cycle
• Training must convey
• the right level of understanding
• using the right materials
• to the right people
• in the right way
• at the right time