is 466 Advanced topics in information Systems Lecturer : Nouf Almujally 21 – 9 – 2011

1. is 466Advanced topics in information SystemsLecturer : Nouf Almujally21 – 9 – 2011 College Of Computer Science and Information, Information Systems Department

2. Lessons Learnt from Lecture2 • What does Legacy System mean? • Obsolete, old , and traditional information system where its data cannot be changed to newer or standard formats, or its application programs cannot be upgraded. • What are the ERP implementation methodologies? • big bang • Phased • explain: • GAP Analysis • Evaluating the ERP package

3. Objectives • ERP Lifecycle (Con.) • Critical Success Factors of ERP

4. Different phases of ERP Lifecycle • Pre-Evaluation Screening • Package Evaluation • Project Planning Phase • Gap Analysis • Reengineering • Configuration • Implementation Team Training • Testing • End-User Training • Going Live • Post Implementation Phase

5. 8- TESTING • Here we reach a point where we are testing real case scenarios. • The system is configured & now we must come up with extreme case scenarios: • system overloads • multiple users logging on at the same time with the same query • users entering invalid data • hackers trying to access restricted areas & so on. • The test case must be designed specifically to find the weak links in the system & these bugs should be fixed before going live.

6. 9- GOING LIVE • On the technical side, the work is almost complete- data conversions is done, databases are up & running. • on the functional side, the configuration is complete & testing is done. • The system is officially announced. • But once the system is ‘live’, the old system is removed & the new system is used for doing business.

7. 10- END USER TRAINING • Success & failure • The success or failure of an ERP system depends on how the actual users use the system. • The most successful implemented ERP packages fail due to lack of end user training. • People are divided into groups • ERP system changes the job descriptions of the people, so it is important to identify the people who are going to use the system. The current skills of the people are identified & they are divided into groups. • Every group is provided training on the new system. • Training sections • The training section gives the overall view of the system & how the individual actions will be affecting the entire system.

8. 11- POST IMPLEMENTATION (MAINTENANCE MODE) • Important factors • One important factor that should be kept in mind is that the post implementation phase is very critical. • Once the implementation is over the vendors & the hired consultants will go. • Necessary enhancements & upgrades • There should be people within the company who have the technical processes to make the necessary enhancements to the system as & when required. • The system must be upgraded as & when new versions or technologies are introduced. • Training is needed • Everyone who uses these systems needs to be trained on how they work, how they relate to the business process & how a transaction ripples through the entire company whenever they press a key. • The training will never end; it is an ongoing process; new people will always be coming in & new functionality will always be entering the organization.

9. Critical Success Factors

10. Critical Success Factors of ERP • Top Management Support • Project Champion • User Training and Education • Management of Expectation • Vendor and Customer Partnerships • Use of Vendor Development Tools • Selection of the appropriate package • Project Management • Steering Committee • Use of Consultants • Minimal Customization • Data analysis and Conversion

11. Critical Success Factors of ES (Cont.) • Business Process Re-engineering • Dedicated Resources • Project Team Competence • Clear Goals and Objectives • Change Management • Education on New Business Processes • Inter-departmental Communication • Inter-departmental Corporation • On-going Vendor support

12. 1. Top Management Support • Top management support has been identified as the most important and crucial success factor in ERP system implementation projects • The role of top management in IT implementations include: • From deciding to purchase the new enterprise system to ERP going live step • Direct and coordinate all activities to meet the objectives of the project within budget and schedule • Establishing the goals for IT systems • providing leadership • Top management should monitor the implementation progress and provide clear direction of the project.

13. 2. Project Champion • the project champion is the project sponsor. • project sponsor is the person devoted to promote the ERP project • Project champions should understand both the technology as well as the business and organizational context. • The project champion must resolve conflicts and manage resistance against the project. • Top management should have sufficient commitment to allocate required and valuable resources to project

14. 3. User Training and Education • Everyone who uses ERP systems needs to be trained on how they work and how they relate to the business process early on in the implementation process. • Many companies use consultants to help during the implementation process. • it is important that knowledge is transferred from the consultant to internal employees. • The main reasons for training program is: • to make the user comfortable with the system • increase the expertise and knowledge level of the people.

15. Con. • Basic training forms are as • Web-based virtual training • Computer-based training • Video courses • Self-study books • Pop-up help screens

16. 5. Vendor/Customer Partnerships • The relationship between the software buyer and vendor should be strategic in nature with the ERP provider enhancing an organization's competitiveness and efficiency. • Research has shown that a better fit between the software vendor and user organization is positively associated with packaged software implementation success and that organizations should attempt to maximize their compatibility with their vendors.

17. 6. Use of Vendors’ Development Tools • There are indications that rapid implementation technologies and programs provided by the vendors can significantly reduce the cost and time of deploying ERP systems.

18. 7. Careful Selection of the Appropriate Package • The choice of the package involves important decisions regarding: • budgets • Timeframes • Goals • and deliverables that will shape the entire project. • Choosing the right ERP packaged software that best matches the organizational information needs and processes is critical to ensure minimal modification and successful implementation and use.

19. 8. Project Management • A proper mange of scope is critical to avoid schedule and cost overruns. • Effective project management refers to the effective planning and execution of the implementation process.

20. Con. • the areas of Project Management:

21. 9. Steering Committee • A project management structure with a “steering committee” consisting of senior management from across different corporate functions, project management representatives, and end users who will have daily contact with ERP, is an effective means of ensuring appropriate involvement. • Key Focus Areas • The Steering Committee Member is primarily responsible for understanding all important project issues and making appropriate decisions to keep the project on track • This role entails gathering the updated action items status, communicating steering committee decisions, and ensuring that decisions are carried out • Monitors progress, reviews reports, makes decisions if necessary and attends regular Steering Committee meetings

22. 10. Use of Consultants • Consultants may be involved in various stages of the implementation: performing requirements analysis, recommending a suitable solution, and managing the implementation. • Help the project manager and provide them sufficient training and education to help the employees to accept and use the new ERP system quickly.

23. 11. Minimal Customization • A recent survey indicates that: • 41% of the companies re-engineer their business to fit the application, • 37% of the companies choose applications that fit their business and customize a bit, • and only 5% customize the application to fit their business. • Customizations are usually associate with : • Increase the costs • long implementation time • and the inability to benefit from vendor software maintenance and upgrades.

24. 12. Data Analysis and Conversion • Data problems can cause serious implementation delays, and as such, the management of data entering the ERP system represents a critical issue throughout the implementation process. • Finding proper data for the new ERP; • Selection data format for conversion; and

25. 13. Business Process Reengineering • Business process reengineering refers to aligning the company business processes with the ERP software that will be implemented. • Organizations should be willing to change their businesses to fit the ERP software in order to minimize the degree of customization needed.

26. 14. Dedicated resources • One of the main critical factors for ERP success is determining the human and financial resources needed to implement the system. • This should be done at an early stage of the project. • Failing to commit the required resources often results in schedule and cost overruns..

27. 15. Project Team Competence • Another key element of ERP success or failure is related to the knowledge, skills, abilities, and experience of the project manager and team members. • The project team should work in a coordinated way to achieve one goal. • Therefore, it is vital for team members to have technical and business skills to complement their work.

28. 16. Clear goals and objectives • The initial phase of any project should begin with a conceptualization of the goals and possible ways to accomplish these goals • It is important to set the goals of the project before even seeking top management support. • The three competing and interrelated goals that need to be met: scope, time, and cost goals. • Many ERP installations face scope creep as a result of lacking a clear plan.

29. 17. Change Management • one of the main obstacles facing ERP implementation is resistance to change. • Companies need to adopt a comprehensive approach toward the large-scale process and system changes associated with the ERP implementations and make change everyone’s first priority.

30. 18. Education on New Business Processes • When considering implementation coupled with business process reengineering, it is essential for managers to educate and communicate their goals and long-term perspectives in order to win support of all members of the organization affected by the changes.

31. 19. Interdepartmental Communication • Communication is the oil that keeps everything working properly. • it is essential to communicate effectively between team members and the rest of the organization, in order to keep everything working properly. • Poor communication between reengineering team members and other organizational members was found to be a problem in business process reengineering implementations.

32. 20. Interdepartmental Cooperation • As ERP systems cross-functional and departmental boundaries, cooperation and involvement of all involved appears to be critical.

33. 21. Ongoing Vendor Support • ERP systems require ongoing vendor support to keep them up to date with the latest modules and version • Vendor support provides • Extended technical assistance • Emergency maintenance • Updates • And special user training.

34. Questions ??

35. What should you do this week ? • Review the lectures. • Do the Tutorial and submit it online: is_466@hotmail.com Due date: Friday. • Reading : 1- The Impact of Critical Success Factors across the Stages of Enterprise Resource Planning Implementations • Consult Lecturer if any questions related to the subject.