e-Business Landscape

What is ERP?

Decisions to be Made Prior to

Implementation
Major ones:
What software package(s)?
Which consulting company?
What hardware?
What approach?
Re-engineering before or during the
ERP project?

SAP Helped KKR Win Pepsi IPL 2014

How?

SAP Helped KKR Win Pepsi IPL 2014

KKR team leveraged SAP HANA based platforms
SAP Auction Analytics, SAP Game Analytics and
SAP Lumira (a data visualization software) to
evaluate players during auction
Predictive analytics capability of SAP HANA helped
find similar players to provide alternatives during
auction
Derive post-game analytics following each of the
teams games.

Three Key Properties of ERP Systems

Multi-functional in scope
HR, mfg, financials,

Integrated in nature
Data updates across system

Modular in structure
Add functionality over time

The Architecture of HR module

People Intake

Recruitment
& Selection

People Maintenance

Personnel
Administration

Compensation
& Benefits
Administration

Labour
Relations

Time & Labour

And Knowledge
Management

Payroll
interface

Expense &
Travel Admin.

People Outgo
Training &
Development

Performance
Evaluation

Pension
Administration

Outplacement

Organisational
Management

Health &
Safety

Data Entry

Telephone

Employee
Self-Service

Enquiries

Reports

Evolution of ERP

Adoption Status of ERP in India

Small
(<50
employees)

Medium
(50-499
employees)

Large
(>500
employees)

No. organizations who are

aware of ERP across top 8
cities of India

45029

16572

4063

Implemented

0.9%

6.5%

35.6%

Planning/ Evaluation

2.7%

4.7%

33.5%

Not considering seriously

81.5%

75.9%

28.8%

Refused to answer

14.7%

13.0%

2.1%

* Source: IDC(India)

ERP Vendors
SAP the market leader
Oracle Number two, bought Peoplesoft
and Peoplesoft bought J.D. Edwards in
June 2003
Baan Smaller, European player
Microsofts Navision

Evaluation of ERP Systems:

Strategic Factors
ERPs contribution to business vision and strategy
Impact of ERP on the decision making process
Competitors adoption of ERP
Impact of ERP on cooperative business networks
Impact of the decision to implement or not an ERP
system on the competitive position and market
share
Estimation of the total cost of ERP ownership and
impact on organizations resources

Evaluation of ERP Systems:

Operational Factors
Impact of ERP on:
transactions costs
time to complete transactions
degree of business process integration
intra- and inter-organizational information
sharing
reporting
customer satisfaction

Cost of ERP
Difficult to answer - size of investment
can vary substantially depending on:
scope of project
technology involved
level of internal resources (staff!) available
level of reuse of existing equipment
outsourcing.

Cost of ERP
ERP Software Costs
Infrastructure Costs
Implementation Cost
Training Costs
Integration And
Testing Costs
Data Conversion
Costs
Data Analysis Costs
Consultants Cost
Post ERP
Depression

Decisions to be Made Prior to

Implementation
Major ones:
What software package(s)?
Which consulting company?
What hardware?
What approach?
Re-engineering before or during the
ERP project?

What Software Package?

Important decision criteria:
package functionality meets needs of company?
ample base installed?
quality of documentation?
cost of software acceptable?
local support provided by vendor?
quality of customization tools?
reputation/size of vendor?

ERP-How to implement?
Organizations employ information systems in three
different ways:
1. Custom-built Systems
2. Off-the-shelf Systems
3. Hybrid Systems
ERP systems be employed as either custom-built or
off-the-shelf or hybrid system. Since development
is too costly and technology demanding, ERP
systems generally appear as off-the-shelf
packages

Single Vendor vs. Best of Breed

or

Decisions to be Made Prior to

Implementation
Major ones:
What software package(s)?
Which consulting company?
What hardware?
What approach?
Re-engineering before or during the
ERP project?

Which Consulting Company?

Product knowledge/potential to add value: Do
consultants understand the particular product to be
implemented?

Do they understand the way we do business?

Implementation/industry experience: Have they worked
on similar projects?

Methodology:
Does the consulting firm have a sound methodology?
Are the consultants trained in the methodology?

ERP Service Providers

Europe

North America

Decisions What Hardware?

What kind of equipment is needed?
Server/s, fiber optics communication infrastructure,
satellite communication, desktops, etc.
Scalability? Customer support? Costs?
Compatibility with software?

When is it needed?
From the start (minimum: for training, simulation
and testing)

Decisions What Approach?

Big Bang = implementing all modules
at the same time, one cutover date for
the entire new system.
very risky
cheaper (in total - if everything goes well)
faster

Decisions What Approach?

Phased approach = implement modules
in different phases.
more expensive (development of temporary
interfaces)
takes longer (danger of losing speed)

Series of Small Bangs = implement

subgroups of modules in parallel.
Best of both worlds?

Roles to Play
by the Parties Involved!
Vendor: delivery of software, initial training for key
project support, quality control, conduct

users,
modifications.

Consultants: bring/transfer know-how about package

(beyond vendor training), development of detailed work-plans,

optimize fit between processes and software, analysis of
customization issues.

Company: learn/assimilate information about software

(independence!), make people sufficiently available

(reallocation of responsibilities), keep up motivation
(monitoring progress), responsibility for conversion (data
extraction, interfaces) programs.

How to Succeed in Implementation

Position project as business, not an IT, initiative.
Put the companys best people on the project!
Have a strong project leader (VP).

Build a strong cross-disciplinary team at project

through project completion
Continued commitment of senior management.
Get all affected parties to buy in.
Communication

Deal with organizational resistance quickly

Make decisions and manage change effectively

start-up and foster them

The Future of ERP

ERPs are getting easier:
to use
to implement
to adapt to individual user needs.
ERPs are moving away from being a
product towards being a service
SAAS