Name: Marks: 10(5%), Time: 40 minutes

Q. (Answers must not exceed 1-page)

a) How can you differentiate between strategic success factors and tactical success
factors for the Implementation of ERP applications? (4 marks)
b) Explain at least 3 strategic success factors and 3 tactical success factors with
reference to the implementation of ERP applications. (6 marks)
Answer Part A)
The Enterprise Resource Planning ERP systems are a suite or combination of various
software modules having a common data source through a central database. Different pre-
defined best business processes based on best practices from the relevant industry are built
into these systems. The data is collected from all functional and operational departments
from within the organization. A general accessibility and integration is ensured within the
system that information available at one end is also available readily for other users. The
main purpose of ERPs is to generate reports to be viewed by management for improved and
better informed decision making.
The ERP systems provide both tactical which are short term benefits and also strategic
which are long term benefits for the intended organization where it is implemented. The
companies which want to invest in their structural changes with larger sum of investment
and with a mindset of a longer commitment to upgradation and integration of their
information systems opt for strategic ERPs. And the companies having less capability or
inclination towards employing capital towards implementation of ERPs for their information
systems go for short term solution.
Answer Part B)

The implementation of ERPs at strategic level helps with the introduction of innovative applications
which can be used as competitive weapons, bring positive changes to processes within the company,
improve coordination with suppliers and clients, reduces costs and increases overall competitive
acumen of the company. They also help with improving overall productivity and create foundation
for future improvement within systems and products/services. All this interprets into long term
(strategic) improvement and contribution towards sales and profits growth.

When it comes to tactical level success factors of implementation of ERPs, we see improvement in
the efficiency of introduction and deployment of new products and the streamlining of operations
related to it. It also greatly helps with speedy and well-coordinated internal communication which is
very beneficial at a tactical level.

There are 3 types of ERP implementation strategies and their tactical and strategic benefits are
discussed below:

First is the step by step implementation, which involves a company which is deploying an ERP for the
first time but doing it with few modules at a time and integrating with their legacy systems few at a
time. At a tactical level it helps with reducing complexity and coordination within your teams for
deployment. The learning process of teams is also gradual and systematic. At strategic level you can
develop a team of internal consultants over time which will help in future implementations and cross
business applications as well. It also helps with a smooth changeover all across the complex and
large business at both tactical and then strategic level. And costs are spread on a longer span.

Then you have the second type which is called the big band implementation. In this type of
implementation, the company applies all or most of the primary systems in a single operation at
once. The tactical advantage here is that you can avoid having interfaces with new systems and the
legacy systems. There is also a short throughput and application time which helps improve on
strategic level implementation. It also helps with getting bogged down by too much tactical level
tweaking, fine tuning and customizing, and that makes its implementation more efficient and quick.

The third and last type of implementation is called a Roll out. It is used where an organization has
already implemented a similar ERP within their business unit and now want to expand it or apply it
to another business unit of their company which may even be in another geographic location. The
primary strategic benefit is that you have internal teams with experience of implementing the same
systems already and this improves upon a faster implementation at tactical level as well. Moreover,
costs are also saved in this implementation as there is less requirement and involvement of outside
factors.