Professional Documents
Culture Documents
Process
System
Motives of Organization
The fundamental motive of any organization is creating more customers and manage them . For this company wants to : Be scalable Be agile Grow using opportunities
Three As
Attitude towards the project and Approach taken to achieve project will determine your Altitude at the project.
Introduction to ERP
It Integrates various business functions . It leads to effective utilization of resources. It Enables data simplification. It helps in strategy building based on centralized data. It leads to Single centralized data. Integrates different functions of business. Balances systems, process and people. Helps to create and retain customers. Helps organization to be agile and flexible. Helps acquire a competitive advantage.
Know about the organization. Know the growth parameters of the organization. Know the competitive advantage or the differentiation of the company from its competitors. Work towards strengthening the core competencies of the organization. Create and work as a team. Understand the country and the laws, regulations, compliances etc. prevalent in that country. Understand the Industry in which the company is operating. Know the current systems in place Know the purpose for ERP implementation Understand the concerns and challenges of implementation
Lack of understanding purpose of implementation.Inadequate requirements definition Being solution oriented rather than problem oriented Lack of top management commitment Package does not address the basic business functions of the client Inadequate resources employed by the client Internal resistance to changing the 'old' processes Unrealistic expectations of the benefits Inadequate training Unrealistic time frame expectations
Problems
The various problems in the above System which was implemented before ERP Systems came are as follows:
Delays Lost Orders Keying into different computer systems invites errors
ERP vendors
SAP - Systems Applications Products in Data Processing 29% market share - Honda, IBM, Bank of Canada , P &G
BAAN - Dutch - 5% - Russell Stover Candy, Mercedes Benz, Boeing, Nortel
Oracle - California - 10% - USPS, CBS, Nike, Kodak, Toronto Dominion Bank
J.D. Edwards - Colorado - 7% - Harley Davidson, Saab Automobile, BellSouth Cellular Corporation, Holiday Inns, Fox Television Stations
The company decided to implement SAP ERP 3 after careful consideration for they matched best with their requirements. In addition the company also forecasted on what would happen to their operations in the future while making this choice .This anticipation helped them to obtain the proper solution at the right point of time. The implementation process took a long span of about a year owing to the volume of operations and the major steps to be taken.
The company never got bogged down by the reported failure rate of ERP implementations especially in bigger units and kept continuing their endeavors with vigor to get the best and make the whole process learning cum experimental one. The net result brought substantial increase in profits.
This company is a concrete example and a living proof to substantiate the fact regarding the steps that a company needs to take and in not believing that a more implementation of ERP will give the necessary impetus for success in the organization. The basic factor for success in this company is backed by the fact that they believed software to be a tool and not the solution to the enterprise problems. This is backed up by the fact that the company successfully combined the business practices with the nuances of the software. The facts and figures were amazing and would not have happened if the company had not used the circumstance like a platform for doing their best and understanding the fundamental mistake of not aligning software with business process.
The manufacturing Company Jada Precisions Plastics INC was not happy within the initial ERP systems. software definitely helped them to reduce the complexity of the labor but it was not the ultimate answer.Then they changed the ERP software. Upon analysis it was found that the former ERP systems tried to give ready made solutions to their problems in the form of packaged solutions while the later facilitated tin creating an automatic system for data transfer. This resulted in ERP success.
The company said that the failure in the supply chain software installation by i2 Technologies was the cause of this revenue shortfall. Analysts pointed to lapses in project management, too much customization and an over reliance on demand forecasting software. Nike insiders raised doubts about the Single Instance Strategy being followed by Nike. Single Instance Strategy refers to one ERP application with one data store that serves the entire company. Everything a company needs from financials, order entry, supply chain to CRM comes from a single vendor By 2004, the company had successfully implemented its Nike Supply Chain (NSC) project, indicating that its centralized planning, production and delivery processes were right for the Single Instance Strategy. With this success, Nike's Single Instance Strategy became the desired approach for many companies implementing ERP software. Nike used SAP for 95% of its global business.
FoxMeyer Drug software helped drive the company into bankruptcy Dell computer software will not fit its decentralized management model Applied Materials overwhelmed by the organizational changes involved Dow Chemicals spent seven years and 500 million dollars on R/2 now starting again with R/3
Conclusion
Thus, ERP is a Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all the functions under a common software platform. Software logic and the company strategy may not match! : Thus proper consideration has to take place before implementation.
GE Workout Model
Infuses entrepreneurial spirit Creates ownership Quick and critical discussion of ideas Promotes lateral thinking
Experience
Enthusiasm
decides live on the recommendations Teams are empowered to implement their solutions Recommendations must be completed in 90 days
Top Down Leaders identify key business improvement goal then challenge those closest to work to recommend ways to reach goal
Bottom Up Those closest to work make specific recommendations then implement the approved recommendations within 90 days
Tough to implement
Business Opportunities
Special effort
Conducting a workout
Introduction Brain-storming within small teams Presenting the ideas Developing the top 4 business ideas Decision making by the key decision manager
Create forum for dialogue Eliminate bureaucracies and barriers Cultivate grass root solutions