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Chapter 7: ERP Implementation & Training. User Training Maintenance. Organizational Change from ERP. Productivity decline Jobs redefined, new procedures established, ERP fine tuned, organization learns to process new information streams Productivity gain

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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
erp critical success factors umble et al 2003
ERP Critical Success FactorsUmble et al. (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
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
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
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
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
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