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Hour 6: ERP Implementation & Training. User Training Maintenance. BENEFITS OF ERP Shang and Seddon, AMCIS 2000 Proceedings. Operational Managerial Strategic IT Infrastructure Organizational. Organizational Benefits. Cost reduction Cycle time reduction Productivity improvement

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hour 6 erp implementation training

Hour 6:ERP Implementation & Training

User Training

Maintenance

benefits of erp shang and seddon amcis 2000 proceedings
BENEFITS OF ERPShang and Seddon, AMCIS 2000 Proceedings
  • Operational
  • Managerial
  • Strategic
  • IT Infrastructure
  • Organizational
organizational benefits
Organizational Benefits
  • Cost reduction
  • Cycle time reduction
  • Productivity improvement
  • Quality improvement
  • Customer services improvement
managerial improvement
Managerial Improvement
  • Improved resource management
  • Better decision making
    • Hard to prove
  • Better planning
  • Performance improvement
strategic improvement
Strategic Improvement
  • Support business growth
  • Support business alliances
    • If they have the same system
  • Build business innovations
    • ? System can be constraining
  • Build cost leadership
  • Generate product differentiation
    • ?? Over time, only if you customize
  • Build external linkages
    • ? If they have the same system
it infrastructure improvement
IT Infrastructure Improvement
  • Build business flexibility
    • ??? ERP inherently a rigid system
  • IT cost reduction
    • The main reason CEOs adopt ERP
  • Increased IT capability
organizational
Organizational
  • Support organizational change
    • FORCE organizational change!!
  • Facilitate business learning
    • BPR does a good job of this
  • Empower employees
    • Within the system!!
  • Build common vision
    • FORCES common vision
organizational change from erp
Organizational Change from ERP
  • Productivity decline
    • Jobs redefined, new procedures established, ERP fine tuned, organization learns to process new information streams
  • Productivity gain
    • Develop new skills, structural changes, process integration, add bolt-ons
  • Payoff
    • Transform organizational operations to efficient level
critical success factors
Critical Success Factors
  • What the organization must do well to succeed
  • For IS Projects:
    • Top management support
      • Inherent in ERP
    • Clearly stated objectives
      • Inherent in ERP
    • End User involvement
csf taxonomy al mashari et al ejor 2003
CSF TaxonomyAl-Mashari et al. (EJOR 2003)
  • SETTING UP
    • Management & Leadership
    • Visioning & Planning
  • IMPLEMENTATION
  • EVALUATION
    • Performance evaluation & management
implementation
IMPLEMENTATION
  • Financial
    • ERP package selection
  • Behavioral
    • Communication
    • Process management
    • Training & education
    • Cultural & structural changes
  • Technical
    • Project management
    • Legacy systems management
    • Systems integration
    • Systems testing
features of successful erp implementation willcocks sykes 2000
Features of Successful ERP ImplementationWillcocks & Sykes [2000]
  • IT Leadership
  • Business systems thinking
  • Relationship building
  • Have needed technical platform
  • Ability to troubleshoot
  • Informed buying
  • Contract efforts coordinated
  • Suppliers held accountable
  • Long-term relationships with suppliers
factors to reduce risk martin cheung business process management journal 2000
Factors to Reduce RiskMartin & Cheung [Business Process Management Journal, 2000]
  • Business case
    • Justify need for system, establish objectives
  • Benchmark
    • Import best practices
  • Implementation strategy
    • Align system with corporate strategy
  • Project management
  • Change management
  • BPR
  • Installation
erp critical success factors umble et al ejor 2003
ERP Critical Success FactorsUmble et al. [EJOR 2003]
  • Clear understanding – strategic goals
  • Top management commitment
  • Project management implementation
  • Great implementation team
  • Cope with technical issues
  • Organizational commitment to change
  • Extensive education & training
  • Data accuracy
  • Focused performance measures
  • Resolution of multi-site issues
levels of is it failure
Levels of IS/IT Failure
  • Corresponding failure
    • Don’t meet design objectives
  • Process failure
    • Not on time &/or not within budget
  • Interaction failure
    • System not used as designed
  • Expectation failure
    • Return not what stockholders expected
user training
User Training
  • Focus on business processes
    • Not on using system
  • Explain why
  • Don’t skimp on time
  • Show why new system superior to old
training delivery formats
Training Delivery Formats
  • Web-based virtual training
  • Computer-based training
  • Video courses
  • Self-study books
  • Pop-up help screens
implementation strategy options markus et al 2000
Implementation Strategy OptionsMarkus et al. [2000]
  • Business Strategy
    • Total local autonomy
    • Headquarters control – financial only
    • Headquarters coordination
    • Network coordination
    • Total centralization
  • Software Configuration
    • Single/multiple financial/operations
  • Technical Platform
    • Centralized/Distributed
  • Management Execution
    • Big bang/Phased rollout
implementation strategies
Implementation Strategies
  • Big bang seemingly cheapest
    • Dangerous
    • Often makes sense in ERP if carefully planned
  • Phased rollout reduces risk
    • Especially good for large organizations
erp maintenance nah et al 2001
ERP MaintenanceNah et al. (2001)
  • Corrective
    • Incorporate vendor patches, fix problems
  • Adaptive
    • Implement new features, internal customization, implement interfaces
  • Perfective
    • New versions
  • Preventive
    • Monitor response time, errors, track maintenance activities
erp system migration
ERP System Migration
  • Over time, need to adopt changes
    • Minor modifications
    • Maybe system replacement
    • Vendors change products
  • WHY
    • The longer the time between upgrades, the harder
    • Easier to support a smaller number of software versions
    • Migrations can increase sales of seats, add-ons
user reasons to migrate
User Reasons to Migrate
  • Added functionality
  • Compliance with new standards
  • Discontinued vendor support
  • Customer problems in linked systems
summary
Summary
  • Time, cost, functionality tradeoff
    • In ERP, functionality the most important
  • Critical success factors
    • Top support & clear objectives inherent in ERP
    • Need User Involvement
  • Phased implementation reduces risk
    • but increases time
  • Once installed, still many pitfalls
    • Vendors change products
    • User training critical