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What is SAP R/3? SAP R/3 is the dominant leader in client/server enterprise resource planning (ERP) systems and one of the most used
standards to change business processes.
system with no batch interfaces. One single database for all corporate data, without any redundancy. Clear definition of a data model documented in a data dictionary. Software functionality configurable to different customers needs. Client/server architecture. Best practice and standardised business processes.
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STRATEGIC LEVEL
Implementation Strategy
Provides qualitative and quantitative statements on both strategic and tangible benefits. Captures best practices and enables transference of knowledge related to all aspects of SAP R/3 implementation. Describes plan for change that ensures alignment with overall corporate strategy. Defines various roles and responsibilities of both internal and external entities in the implementation efforts and determines forms of co-ordination, and co-operation among them. Facilitates the insertion of newly implemented systems, processes and structure into the working practice, and deals with resistance. Redesigns business procedures to accommodate SAP software modules within the entire business operation. Involves all technical activities, such as sourcing SAP applications, legacy systems migration, customisation and configuration. 1999 Al-Mashari 3
Directs
MANAGERIAL LEVEL
Change Management
OPERATIONAL LEVEL
BPR
OPTIMUM OUTCOMES
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Business Case
A Business Case must: Identified clearly at corporate level. Fit with broader vision of company. Allow equal comparison with other investments. Be developed on continuous basis, evolving from conceptual vision towards more detailed operational measures. Initially targets areas of order-of-magnitude and immediate impact.
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Benchmarking
Benchmarking highlights negative gaps in current performance and recommends appropriate approaches to improve them.
Implementation Strategy
Effective strategic discourse determines how SAP R/3 can be implemented and the related change successfully absorbed by the organisation concerned.
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Change Management
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BPR and SAP R/3 are interdependent in the sense that BPR must be supported by integrated and process-oriented IT systems such as SAP R/3, and SAP R/3 implementation forces BPR.
Structure Fragmented & Function-based Inefficient, costly, slow, complex
Integrated & Processoriented
SAP R/3
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Strategic Stages
Roll-Out
Conclusion (1)
The features of an organisations flexibility and adaptability are highly dependent on the way in which the core business processes have been designed, as well as the extent to which they have been integrated with other business majors. A study of how SAP R/3 can best be implemented and positioned answers the question of how business flexibility and adaptability can be ensured in SAP R/3 initiatives.
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Conclusion (2)
Organisation intending to implement SAP R/3 on a corporate level needs to establish its competencies in five core areas.
IT-Enabled BPR
Change Management
Change Strategy
Project Management
Conclusion (3)
The model proposed offers a great opportunity for further study across several dimensions, such as: Examining the relationship between standardisation and adaptability to innovation, and ways of increasing its alignment. Exploring how standardisation can be embraced as a strategic initiative and integrated with other long-term strategic activities. Examining the effectiveness of both rapid and incremental approaches to standardisation, as well as the conditions of their applications. Exploring the relationship between technology and knowledge transfer and standardisation.
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Conclusion (4)
Scrutinising the dynamic interaction between various implementation components. Identifying the implementation variables which determine a particular approach for a particular project context. Developing techniques to help make appropriate implementation decisions. Studying contextual factors that have control on the implementation process. Identifying implementation challenges and ways of dealing with them. Developing a set of critical success factors (CSF) for SAP implementation.
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THANK YOU
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