ERP Project implementation

Case Study

Author Author Position Date

Atanu Maity Program Manager August 05, 2009

Version: 1.0

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TA !E "# C"$TE$TS
%$TR"&'CT%"$ T" ERP(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((5 A&)A$TA*ES "# ERP(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((+ &%SA&)A$TA*ES "# ERP((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((9 ERP PAC,A*ES #EAT'RE C"MPAR%S"$((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((-RET'R$ "$ %$)ESTME$TS #"R ERP((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((2.

Working out the Myths of ERP in the nitia! stage....................................................2" Pro#er $#!e$entation an% &inan'e..........................................................................2" (tri't A%heren'e to )hanges......................................................................................2*
ERP S/STEM SE!ECT%"$ MET0"&"!"*/((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((29

Poor (yste$ (e!e'tion...............................................................................................30 A Pro#er (yste$ (e!e'tion Metho%o!ogy..................................................................33

%MP"RTA$T %SS'ES T" C"$S%&ER E#"RE ERP %MP!EME$TAT%"$((((((((((((((((((((((((((((((((((15 MET0"&S %$ %MP!EME$T%$* ERP((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((1+

+oint ,entures -ith the Res#e'ti,e n%ustry..............................................................3* Doing it a!! a!one........................................................................................................3. &u!!/Partia! $#!e$entation.......................................................................................3.
S'CCESS#'! ERP %MP!EME$TAT%"$((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((20

Pro'ess #re#aration..................................................................................................../1 )onfiguration............................................................................................................./2 )onsu!ting ser,i'es....................................................................................................// 0)ore syste$0 )usto$i1ation ,s )onfiguration......................................................../5 E2tension..................................................................................................................../3 Maintenan'e an% su##ort ser,i'es............................................................................./3
ERP %MP!EME$TAT%"$ P!A$(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((29 RE#ERE$CES(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((51 -( C!ASS A ERP %MP!EME$TAT%"$3 %$TE*RAT%$* !EA$ A$& S%4 S%*MA((((((((((((((((((((((((51 2( M"&ER$ ERP3 SE!ECT, %MP!EME$T 5 'SE T"&A/6S A&)A$CE& 'S%$ESS S/STEMS((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((51 1( MA4%M%7%$* /"'R ERP S/STEM3 A PRACT%CA! *'%&E #"R MA$A*ERS((((((((((((((((((((51 2( E$TERPR%SE RES"'RCE P!A$$%$*(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((51

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%ntroduction to ERP
4he initia!s ERP originate% as an e2tension of MRP 5$ateria! re6uire$ents #!anning7 !ater $anufa'turing resour'e #!anning8 an% ) M 5)o$#uter ntegrate% Manufa'turing8. t -as intro%u'e% 9y resear'h an% ana!ysis fir$ :artner in 1..0. ERP syste$s no- atte$#t to 'o,er a!! 'ore fun'tions of an enter#rise; regar%!ess of the organi1ation<s 9usiness or 'harter. 4hese syste$s 'an no- 9e foun% in non=$anufa'turing 9usinesses; non=#rofit organi1ations an% go,ern$ents. 4o 9e 'onsi%ere% an ERP syste$; a soft-are #a'kage $ust #ro,i%e the fun'tion of at !east t-o syste$s. &or e2a$#!e; a soft-are #a'kage that #ro,i%es 9oth #ayro!! an% a''ounting fun'tions 'ou!% te'hni'a!!y 9e 'onsi%ere% an ERP soft-are #a'kage E2a$#!es of $o%u!es in an ERP -hi'h for$er!y -ou!% ha,e 9een stan%=a!one a##!i'ations in'!u%e: Pro%u't !ife'y'!e $anage$ent; (u##!y 'hain $anage$ent 5e.g. Pur'hasing; Manufa'turing an% Distri9ution8; Warehouse Manage$ent; )usto$er Re!ationshi# Manage$ent 5)RM8; (a!es >r%er Pro'essing; >n!ine (a!es; &inan'ia!s; ?u$an Resour'es; an% De'ision (u##ort (yste$. (o$e organi1ations @ ty#i'a!!y those -ith suffi'ient in=house 4 ski!!s to integrate $u!ti#!e soft-are #ro%u'ts @ 'hoose to i$#!e$ent on!y #ortions of an ERP syste$ an% %e,e!o# an e2terna! interfa'e to other ERP or stan%=a!one syste$s for their other a##!i'ation nee%s. &or e2a$#!e; one $ay 'hoose to use hu$an resour'e $anage$ent syste$ fro$ one ,en%or; an% #erfor$ the integration 9et-een the syste$s the$se!,es. 4his is 'o$$on to retai!ers; -here e,en a $i%=si1e% retai!er -i!! ha,e a %is'rete Point=of= (a!e 5P>(8 #ro%u't an% finan'ia!s a##!i'ation; then a series of s#e'ia!i1e% a##!i'ations to han%!e 9usiness re6uire$ents su'h as -arehouse $anage$ent; staff rostering; $er'han%ising an% !ogisti's.

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%ea!!y; ERP %e!i,ers a sing!e %ata9ase that 'ontains a!! %ata for the soft-are $o%u!es; -hi'h -ou!% in'!u%e: Manu8acturing Engineering; 9i!!s of $ateria!; s'he%u!ing; 'a#a'ity; -orkf!o$anage$ent; 6ua!ity 'ontro!; 'ost $anage$ent; $anufa'turing #ro'ess; $anufa'turing #roAe'ts; $anufa'turing f!o Supply c9ain management >r%er to 'ash; in,entory; or%er entry; #ur'hasing; #ro%u't 'onfigurator; su##!y 'hain #!anning; su##!ier s'he%u!ing; ins#e'tion of goo%s; '!ai$ #ro'essing; 'o$$ission 'a!'u!ation #inancials :enera! !e%ger; 'ash $anage$ent; a''ounts #aya9!e; a''ounts re'ei,a9!e; fi2e% assets Project management )osting; 9i!!ing; ti$e an% e2#ense; #erfor$an'e units; a'ti,ity $anage$ent 0uman resources ?u$an resour'es; #ayro!!; training; ti$e an% atten%an'e; rostering; 9enefits Customer relations9ip management = (a!es an% $arketing; 'o$$issions; ser,i'e; 'usto$er 'onta't an% 'a!! 'enter su##ort &ata :are9ouse = an% ,arious se!f=ser,i'e interfa'es for 'usto$ers; su##!iers; an% e$#!oyees Access control = user #ri,i!ege as #er authority !e,e!s for #ro'ess e2e'ution Customi;ation = to $eet the e2tension; a%%ition; 'hange in #ro'ess f!o-

Enter#rise resour'e #!anning is a ter$ origina!!y %eri,e% fro$ $anufa'turing resour'e #!anning 5MRP 8 that fo!!o-e% $ateria! re6uire$ents #!anning 5MRP8. MRP e,o!,e% into ERP -hen 0routings0 9e'a$e a $aAor #art of the soft-are ar'hite'ture an% a 'o$#any<s 'a#a'ity #!anning a'ti,ity a!so 9e'a$e a #art of the stan%ar% soft-are a'ti,ity. ERP syste$s ty#i'a!!y han%!e the $anufa'turing; !ogisti's; %istri9ution; in,entory; shi##ing; in,oi'ing; an% a''ounting for a 'o$#any. ERP soft-are 'an ai% in the 'ontro! of $any 9usiness a'ti,ities; in'!u%ing sa!es; $arketing; %e!i,ery; 9i!!ing; #ro%u'tion; in,entory $anage$ent; 6ua!ity $anage$ent an% hu$an resour'e $anage$ent.

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ERP syste$s sa- a !arge 9oost in sa!es in the 1..0s as 'o$#anies fa'e% the B2C #ro9!e$ in their !ega'y syste$s. Many 'o$#anies took this o##ortunity to re#!a'e their !ega'y infor$ation syste$s -ith ERP syste$s. 4his ra#i% gro-th in sa!es -as fo!!o-e% 9y a s!u$# in 1...; at -hi'h ti$e $ost 'o$#anies ha% a!rea%y i$#!e$ente% their B2C so!ution. ERPs are often in'orre't!y 'a!!e% 9a'k offi'e syste$s in%i'ating that 'usto$ers an% the genera! #u9!i' are not %ire't!y in,o!,e%. 4his is 'ontraste% -ith front offi'e syste$s !ike 'usto$er re!ationshi# $anage$ent 5)RM8 syste$s that %ea! %ire't!y -ith the 'usto$ers; or the eDusiness syste$s su'h as e)o$$er'e; e:o,ern$ent; e4e!e'o$; an% e&inan'e; or su##!ier re!ationshi# $anage$ent 5(RM8 syste$s. ERPs are 'ross=fun'tiona! an% enter#rise -i%e. A!! fun'tiona! %e#art$ents that are in,o!,e% in o#erations or #ro%u'tion are integrate% in one syste$. n a%%ition to $anufa'turing; -arehousing; !ogisti's; an% infor$ation te'hno!ogy; this -ou!% in'!u%e a''ounting; hu$an resour'es; $arketing an% strategi' $anage$ent. ERP ; a ter$ 'oine% in the ear!y 2000<s; is often use% to %es'ri9e -hat -ou!% 9e the ne2t generation of ERP soft-are. 4his ne- generation of soft-are is -e9=9ase%; an% a!!o-e% 9oth interna! e$#!oyees; an% e2terna! resour'es su'h as su##!iers an% 'usto$ers rea!=ti$e a''ess to the %ata store% -ithin the syste$. ERP is a!so %ifferent in that the soft-are 'an 9e $a%e to fit the 9usiness; instea% of the 9usiness 9eing $a%e to fit the ERP soft-are. As of 200.; $any ERP so!ution #ro,i%ers ha,e in'or#orate% these features into their 'urrent offerings. EA( @ Enter#rise A##!i'ation (uite is a ne- na$e for for$er!y %e,e!o#e% ERP syste$s -hi'h in'!u%e 5a!$ost8 a!! seg$ents of 9usiness; using or%inary nternet 9ro-sers as thin '!ients. Dest #ra'ti'es are in'or#orate% into $ost ERP ,en%or<s soft-are #a'kages. When i$#!e$enting an ERP syste$; organi1ations 'an 'hoose 9et-een 'usto$i1ing the

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soft-are or $o%ifying their 9usiness #ro'esses to the 09est #ra'ti'e0 fun'tion %e!i,ere% in the 0out=of=the=9o20 ,ersion of the soft-are. Prior to ERP; soft-are -as %e,e!o#e% to fit the #ro'esses of an in%i,i%ua! 9usiness. Due to the 'o$#!e2ities of $ost ERP syste$s an% the negati,e 'onse6uen'es of a fai!e% ERP i$#!e$entation; $ost ,en%ors ha,e in'!u%e% 0Dest Pra'ti'es0 into their soft-are. 4hese 0Dest Pra'ti'es0 are -hat the Ven%or %ee$s as the $ost effi'ient -ay to 'arry out a #arti'u!ar 9usiness #ro'ess in an ntegrate% Enter#rise=Wi%e syste$. A stu%y 'on%u'te% 9y Eug-igshafen Fni,ersity of A##!ie% ('ien'e sur,eye% 1.2 'o$#anies an% 'on'!u%e% that 'o$#anies -hi'h i$#!e$ente% in%ustry 9est #ra'ti'es %e'rease% $ission='riti'a! #roAe't tasks su'h as 'onfiguration; %o'u$entation; testing an% training. n a%%ition; the use of 9est #ra'ti'es re%u'e% o,er risk 9y "1G -hen 'o$#are% to other soft-are i$#!e$entations. 4he use of 9est #ra'ti'es 'an $ake 'o$#!ying -ith re6uire$ents su'h as &R(; (ar9anes= >2!ey or Dase! easier. 4hey 'an a!so he!# -here the #ro'ess is a 'o$$o%ity su'h as e!e'troni' fun%s transfer. 4his is 9e'ause the #ro'e%ure of 'a#turing an% re#orting !egis!ati,e or 'o$$o%ity 'ontent 'an 9e rea%i!y 'o%ifie% -ithin the ERP soft-are; an% then re#!i'ate% -ith 'onfi%en'e a'ross $u!ti#!e 9usinesses -ho ha,e the sa$e 9usiness re6uire$ent.

Ad<antages o8 ERP
n the a9sen'e of an ERP syste$; a !arge $anufa'turer $ay fin% itse!f -ith $any soft-are a##!i'ations that 'annot 'o$$uni'ate or interfa'e effe'ti,e!y -ith one another. 4asks that nee% to interfa'e -ith one another $ay in,o!,e: ntegration a$ong %ifferent fun'tiona! areas to ensure #ro#er 'o$$uni'ation; #ro%u'ti,ity an% effi'ien'y Design engineering 5ho- to 9est $ake the #ro%u't8 >r%er tra'king; fro$ a''e#tan'e through fu!fi!!$ent

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4he re,enue 'y'!e; fro$ in,oi'e through 'ash re'ei#t Managing inter=%e#en%en'ies of 'o$#!e2 #ro'esses 9i!! of $ateria!s 4ra'king the three=-ay $at'h 9et-een #ur'hase or%ers 5-hat -as or%ere%8; in,entory re'ei#ts 5-hat arri,e%8; an% 'osting 5-hat the ,en%or in,oi'e%8 4he a''ounting for a!! of these tasks: tra'king the re,enue; 'ost an% #rofit at a granu!ar !e,e!.

ERP (yste$s 'entra!i1e the %ata in one #!a'e. Denefits of this in'!u%e: E!i$inates the #ro9!e$ of syn'hroni1ing 'hanges 9et-een $u!ti#!e syste$s Per$its 'ontro! of 9usiness #ro'esses that 'ross fun'tiona! 9oun%aries Pro,i%es to#=%o-n ,ie- of the enter#rise 5no 0is!an%s of infor$ation08 Re%u'es the risk of !oss of sensiti,e %ata 9y 'onso!i%ating $u!ti#!e #er$issions an% se'urity $o%e!s into a sing!e stru'ture. (o$e se'urity features are in'!u%e% -ithin an ERP syste$ to #rote't against 9oth outsi%er 'ri$e; su'h as in%ustria! es#ionage; an% insi%er 'ri$e; su'h as e$9e11!e$ent. A %ata=ta$#ering s'enario; for e2a$#!e; $ight in,o!,e a %isgrunt!e% e$#!oyee intentiona!!y $o%ifying #ri'es to 9e!o-=the=9reake,en #oint in or%er to atte$#t to interfere -ith the 'o$#any<s #rofit or other sa9otage. ERP syste$s ty#i'a!!y #ro,i%e fun'tiona!ity for i$#!e$enting interna! 'ontro!s to #re,ent a'tions of this kin%. ERP ,en%ors are a!so $o,ing to-ar% 9etter integration -ith other kin%s of infor$ation se'urity too!s.

&isad<antages o8 ERP
Pro9!e$s -ith ERP syste$s are $ain!y %ue to ina%e6uate in,est$ent in ongoing training for the in,o!,e% 4 #ersonne! = in'!u%ing those i$#!e$enting an% testing 'hanges = as -e!! as a !a'k of 'or#orate #o!i'y #rote'ting the integrity of the %ata in the ERP syste$s an% the -ays in -hi'h it is use%. Disa%,antages )usto$i1ation of the ERP soft-are is !i$ite%. Re=engineering of 9usiness #ro'esses to fit the 0in%ustry stan%ar%0 #res'ri9e% 9y the ERP syste$ $ay !ea% to a !oss of 'o$#etiti,e a%,antage.
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ERP syste$s 'an 9e ,ery e2#ensi,e 54his has !e% to a ne- 'ategory of 0ERP !ight0 HE2#an% se'tionI so!utions8 ERPs are often seen as too rigi% an% too %iffi'u!t to a%a#t to the s#e'ifi' -orkf!oan% 9usiness #ro'ess of so$e 'o$#anies@this is 'ite% as one of the $ain 'auses of their fai!ure.

Many of the integrate% !inks nee% high a''ura'y in other a##!i'ations to -ork effe'ti,e!y. A 'o$#any 'an a'hie,e $ini$u$ stan%ar%s; then o,er ti$e 0%irty %ata0 -i!! re%u'e the re!ia9i!ity of so$e a##!i'ations.

>n'e a syste$ is esta9!ishe%; s-it'hing 'osts are ,ery high for any one of the #artners 5re%u'ing f!e2i9i!ity an% strategi' 'ontro! at the 'or#orate !e,e!8. 4he 9!urring of 'o$#any 9oun%aries 'an 'ause #ro9!e$s in a''ounta9i!ity; !ines of res#onsi9i!ity; an% e$#!oyee $ora!e. Resistan'e in sharing sensiti,e interna! infor$ation 9et-een %e#art$ents 'an re%u'e the effe'ti,eness of the soft-are. (o$e !arge organi1ations $ay ha,e $u!ti#!e %e#art$ents -ith se#arate; in%e#en%ent resour'es; $issions; 'hains=of='o$$an%; et'; an% 'onso!i%ation into a sing!e enter#rise $ay yie!% !i$ite% 9enefits.

4he syste$ $ay 9e too 'o$#!e2 $easure% against the a'tua! nee%s of the 'usto$ers. ERP (yste$s 'entra!i1e the %ata in one #!a'e. 4his 'an in'rease the risk of !oss of sensiti,e infor$ation in the e,ent of a se'urity 9rea'h.

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ERP Pac=ages #eature Comparison

) >s ha,e e2#resse% gro-ing 'on'erns o,er the 4ota! )ost of >-nershi# 54)>8 of enter#rise soft-are an% ha,e high!ighte% 'osts as a 'ontri9uting fa'tor in the %e'!ine of 4 in,est$ents. As a resu!t; soft-are ,en%ors are trying to %e,e!o# $ore stru'ture% 0>-nershi# E2#erien'e0 strategies an%; in so$e 'ases; ha,e fo'use% RJD efforts an% resour'es on i$#ro,ing the o-nershi# e2#erien'e for 'usto$ers. n res#onse to these e2e'uti,e 'on'erns; Peo#!e(oft !aun'he% its 4ota! >-nershi# E2#erien'e 54>E8 initiati,e; fo!!o-e% 9y other $aAor a##!i'ation ,en%ors -ith ,arying kin%s of #rogra$s for; an% %egrees of su''ess in; 'ontro!!ing 'osts an% i$#ro,ing the o,era!! o-nershi# e2#erien'e. We ha,e 'onsi%ere% an% fin% in enter#rise a##!i'ation soft-are an% e,ery #hase of the o-nershi# !ife'y'!e has re,ie-e% an% e,a!uate% key soft-are features that %ire't!y i$#a't the o-nershi# e2#erien'e of enter#rise a##!i'ations. (o$e of these feature sets in'!u%e%: a%,an'e% %ata !oa%ing an% $o,ing %uring the i$#!e$entation #hase; task=oriente% na,igation for the usa9i!ity #hase; an% user='entri' #erfor$an'e testing for the $aintenan'e #hase. 4his resear'h offere% an o9Ae'ti,e assess$ent of these %etai!e% features; ,a!i%ate% through in=%e#th inter,ie-s -ith the #ane! of 'onsu!ting e2#erts %istinguishe% 9y $u!ti=,en%or an% $u!ti=!ife'y'!e e2#erien'e. 4he resu!ting stu%y #ro,i%es a 'o$#arati,e; $u!ti=,en%or assess$ent a'ross the three $aAor #hases of the a##!i'ation !ife'y'!e: i$#!e$entation; a##!i'ation usage; an% ongoing su##ort an% $aintenan'e. 4he #!ayers an% soft-are ,ersions e,a!uate% in the stu%y in'!u%e%: Mi'rosoft :reat P!ains ,ersion ".5 an% #re,ie-s of Mi'rosoft :reat P!ains ,ersion *.0 >ra'!e E=Dusiness (uite 11.5.. Peo#!e(oft Enter#rise *.* an% *.. an% Enter#rise>ne *.11

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(AP $y(AP Dusiness (uite R/3 /.3 an% (AP R/3 Enter#rise /." (ie9e! ".5 an% (ie9e! ".".

&ro$ a su$$ary #ers#e'ti,e a'ross the o-nershi# !ife'y'!e; Peo#!e(oft %e$onstrates 'onsistent a%,antages for the key features e,a!uate% in this stu%y. 4he resear'h ,a!i%ates Peo#!e(oft<s !ea%ershi# for key o-nershi# features in three 'ategories:

-( %mplementation3
Peo#!e(oft features for i$#!e$entation rate% higher than Mi'rosoft<s; (AP<s; an% (ie9e!<s in ena9!ing i$#!e$entation tea$s to insta!!; i$#!e$ent; an% %e#!oy enter#rise a##!i'ations through 'o$#rehensi,e 'onfiguration -i1ar%s an% #re=#a'kage% integration #a'ks for a!! $aAor enter#rise a##!i'ation ,en%ors. >ra'!e a!so rates 'onsistent!y high in the areas of 'onfiguration; %ata !oa%ing; #re=#a'kage% integrations; an% -e9 ser,i'es. Peo#!e(oft has $a%e $ore #rogress than other ,en%ors in ena9!ing an% strea$!ining its 'onfiguration an% integration too!s.

2( 'sa>ility3
A'ross the features e,a!uate%; Peo#!e(oft an% (ie9e! rate% highest in ter$s of the usa9i!ity features e,a!uate%. 4he task=oriente% organi1ation of a##!i'ation s'reens an% the 'onsisten'y of s'reen !ayouts a'ross a!! $o%u!es in Peo#!e(oft a##!i'ations i$#ro,e en% user #ro%u'ti,ity an% ena9!es en% users to 'o$#!ete tasks faster an% -ith fe-er errors. Mi'rosoft Dusiness (o!utions usa9i!ity is !i$ite% %ue to a 'ontinue% re!ian'e on a 0thi'k '!ient0 ar'hite'ture for $ost of the a##!i'ations; an% (AP -as foun% !a'king in task= oriente% %ash9oar%s.

1( Maintenance, Support, and 'pgrades3

Peo#!e(oft rate% 'onsistent!y high a'ross the $aintenan'e feature set #ri$ari!y %ue to the a9i!ity to #roa'ti,e!y an% ra#i%!y iso!ate an% reso!,e a##!i'ation issues through e$9e%%e%

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%iagnosti's s'ri#ts; thorough test s'enarios an% s'ri#ts; an% strea$!ine% u#gra%e #ro'ess. (#e'ifi'a!!y in re!ation to Mi'rosoft Dusiness (o!utions; Peo#!e(oft<s 'o$#!ete -e9 ena9!e$ent strea$!ines the u#gra%e #ro'ess 'o$#are% to an offering !ike Mi'rosoft :reat P!ains; -hi'h o#erates in a '!ient=ser,er en,iron$ent an% re6uires the '!ient to 9e u#gra%e% as -e!!. 4he resu!ts of this e,a!uation 9y this 'onsu!ting tea$ 'an #ro,i%e gui%an'e to %e'ision $akers on ho- to e,a!uate the $aAor enter#rise a##!i'ation ,en%ors re!ati,e to the o-nershi# e2#erien'e; -hi'h i$#a'ts 9oth the 'ost of o-nershi# an% the ,a!ue %eri,e% fro$ the a##!i'ations.

,ey Researc9 #indings

Ea'h #hase of the enter#rise a##!i'ation !ife'y'!e has #otentia! #itfa!!s that 'an affe't the u!ti$ate su''ess or fai!ure of the o-nershi# e2#erien'e. &or e2a$#!e; if an enter#rise soft-are a##!i'ation is not insta!!e% 'o$#!ete!y or 'orre't!y; then the rest of the i$#!e$entation -i!! ha,e #ro9!e$s. Maintenan'e 'osts often ref!e't re#etiti,e tasks; su'h as u#gra%es #erfor$e% $any ti$es o,er the !ife'y'!e of an enter#rise a##!i'ation; -hi!e #oor %iagnosti's too!s !ea% to un#re%i'ta9!e %o-nti$es an% 9usiness %isru#tion. &ina!!y; usa9i!ity features affe't en% user a%o#tion; an% #oor usa9i!ity 'an !ea% to in'rease% 'osts %ue to !ost #ro%u'ti,ity. 4he e2#erts !ooke% at these #otentia! out'o$es an% i%entifie% the key feature sets that ena9!e% i$#!e$enters; 4; or en% users to su''essfu!!y i$#!e$ent; $aintain; or use the a##!i'ations of the fi,e ,en%ors. 4hen; 9ase% on its #ri$ary an% se'on%ary resear'h; the tea$ rate% ea'h ,en%or as to -hether it offere% the feature an% then rate% ho- su''essfu!!y ea'h i$#!e$entation; usa9i!ity; an% $aintenan'e feature set 'ontri9ute% to the o-nershi# e2#erien'e. Ven%ors re'ei,e% either a fu!! 'ir'!e for a fu!! offering; a ha!f 'ir'!e for !ess than a fu!! offering; an% an e$#ty 'ir'!e for no offering. 4he fo!!o-ing ana!ysis re#resents a 'o$#i!ation of a %etai!e% ,en%or=to=,en%or 'o$#arison 9y a##!i'ation.

-( %mplementation

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4he i$#!e$entation #hase in'!u%es the initia! insta!!ation of the soft-are; its 'onfiguration; the initia! !oa% of %ata into the ne- a##!i'ation; an% any -ork that $ight 9e re6uire% for the a##!i'ation to interfa'e #ro#er!y -ith the 4 en,iron$ent of the 'usto$er; su'h as integration -ith other a##!i'ations; an% -hether the integration is 9at'h or rea! ti$e. 4he i$#!e$entation #hase is ty#i'a!!y 9roken into three $aAor ste#s: 1. (oft-are insta!!ation 2. )onfiguration 3. ntegration 4he insta!!ation ste# is i$#ortant sin'e an in'o$#!ete or in'orre't initia! insta!!ation of the soft-are 'an !ea% to signifi'ant !ost ti$e in further ste#s of the i$#!e$entation. (trea$!ine% 'onfiguration too!s are 'riti'a! in kee#ing an a##!i'ation i$#!e$entation #roAe't on ti$e; sin'e; %uring 'onfiguration; a!! the s#e'ifi's of 'usto$er 9usiness re6uire$ents are 'a#ture% an% share% a'ross i$#!e$entation staff. &ina!!y; the integration ste# is ty#i'a!!y one of the $ost 'ha!!enging = -ith $any hi%%en an% unanti'i#ate% 'osts. 4hree fa'tors = the 'o$#!e2ity of the a##!i'ations to interfa'e -ith; the 'o$#!e2ity of the 9usiness #ro'esses 9et-een a##!i'ations; an% the 'o$#!e2ity of the integration too!s that $ay re6uire $u!ti#!e e2#erts an% $u!ti#!e ty#es of e2#ertise = $ake it %iffi'u!t to esta9!ish %etai!e% #roAe't #!ans an% thus to a''urate!y esti$ate #roAe't 'osts. &or the ana!ysis an% 'o$#arison of ,en%or a##roa'hes to i$#!e$entation; the e2#erts uti!i1e% se,en 'riteria: 1. A##!i'ation insta!!ation -i1ar% 2. A%,an'e% 'onfiguration 3. Pro'ess $o%e!er /. A%,an'e% %ata !oa%ing an% $o,ing 5. Pro'ess=oriente% integration 3. Pre=#a'kage% integration 9et-een ,en%or a##!i'ations ". Dui!t=in -e9 ser,i'es integrations

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Peo#!e(oft an% >ra'!e e$erge -ith the $ost 'o$#rehensi,e feature set for the i$#!e$entation #hase. Peo#!e(oft e2'e!s in the areas of a##!i'ation insta!!ation -i1ar%; a%,an'e% 'onfiguration; a%,an'e% %ata !oa%ing an% $o,ing; #re=#a'kage% integration 9et-een ,en%or a##!i'ations; an% 9ui!t=in -e9 ser,i'es integration. >ra'!e sho-s strength in a%,an'e% 'onfiguration; the #ro'ess $o%e!er; a%,an'e% %ata !oa%ing an% $o,ing; an% 9ui!tin -e9 ser,i'es integration; 9ut not in #re=#a'kage% integration 9et-een ,en%or a##!i'ations. (AP an% (ie9e! s!ight!y a%%ress a!! se,en 'riteria; -hi!e Mi'rosoft is '!ear!y !a'king in four areas = a%,an'e% 'onfiguration; #ro'ess $o%e!er; a%,an'e% %ata !oa%ing an% $o,ing; an% #ro'ess=oriente% integration re#ository. Eet<s e2a$ine ea'h of the se,en feature sets in the insta!!ation 'ategory.

-(-( Application installation :i;ard

Doth Mi'rosoft an% (ie9e! offer a strea$!ine% insta!!ation -i1ar% that is 'o$#rehensi,e an% -e!! #a'kage%. Peo#!e(oft offers an a##!i'ation insta!!ation -i1ar% that re$o,es $anua! ste#s an% auto$ates key insta!!ation #ro'esses; in'!u%ing the 'onfiguration of the un%er!ying %ata9ase. Dy 'ontrast; -hi!e (AP a!so uses -i1ar%s; its insta!!ation #ro'e%ure an% -i1ar%s are #ro#rietary an% $ore 'o$#!e2 an% ,ery often re6uire the i$#!e$enters to ste# out of the auto$ate% #ro'ess to han%!e tasks that -ere o$itte% %uring the #!anning #hase. >ra'!e has i$#ro,e% its insta!!ation -i1ar% tre$en%ous!y o,er #re,ious re!eases; 9ut sti!! the -i1ar% is in'onsistent a'ross $o%u!es an% re6uires a%%itiona! $anua! ste#s to 9e a''o$#!ishe% outsi%e the -i1ar%.

-(2( Ad<anced con8iguration

Peo#!e(oft has gone further than any ,en%or in ena9!ing the a##!i'ation to 9e 'onfigure% 9y #ro%u't or 9y 9usiness #ro'esses. &or e2a$#!e; the Peo#!e(oft (etu# Manager 'onfiguration too! ena9!es i$#!e$entation staff to 'onne't to %o'u$entation on!ine an% na,igate through the %o'u$entation 9y se!e'ting #ro%u't an% features %ire't!y fro$ the

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'onfiguration s'reen. Doth (ie9e! an% >ra'!e #ro,i%e a%,an'e% too!s to su##ort the %efinition of 9usiness #ro'esses an% %ata f!o-s. (AP #ro,i%es too!s that are $ore 'o$#!e2 an% re6uire $ore te'hni'a! e2#ertise. Mi'rosoft !i$its en% user a9i!ity to fu!!y 'onfigure a##!i'ations.

-(1( Process modeler

Peo#!e(oft #ro,i%es 1;200 #re=%efine% $o%e!s that 'o,er Peo#!e(oft 9est #ra'ti'es 9usiness #ro'ess f!o-s. >ra'!e Workf!o- a!!o-s for 9usiness #ro'esses to 9e $o%e!e% using a %rag=an%=%ro# %esigner an% #ro%u'es a ,isua! %iagra$ of the 9usiness #ro'ess. With (ie9e!; 'usto$ers 'an a%% #re=%efine% or 'usto$ 9usiness #ro'esses; 9ran'hing; an% su9=#ro'esses to 'reate a -orkf!o- #ro'ess tai!ore% to their uni6ue 9usiness re6uire$ents. (AP offers fun'tiona!ity in #ro'ess $o%e!ing on!y -ithin the 'onte2t of its o-n a##!i'ations. 4he a9i!ity to $ani#u!ate e2isting 9usiness #ro'esses -ithin Mi'rosoft :reat P!ains is !i$ite% an% re6uires 'usto$i1ation -ork. Pro'ess $o%e!ing is in%e#en%ent fro$ integration 9ut is a 'riti'a! ste# for %e,e!o#ing #ro'essoriente% integration 5see 9e!o-8.

-(2( Ad<anced data loading and mo<ing

Mi'rosoft si$#!y %oes not a!!o- a%,an'e% %ata !oa%ing an% $o,ing. >ra'!e i(etu# auto$ates an% si$#!ifies the initia! setu# of %ata. >ra'!e i(etu# is a 6uestion=%ri,en -i1ar% that auto$ati'a!!y generates a##!i'ationre!ate% #ara$eters an% f!o-s su'h as 'hart of a''ounts; e2#ense #o!i'ies; an% ru!es. Peo#!e(oft #ro,i%es a%,an'e% %ata=!oa%ing an% $o,ing 'a#a9i!ities; in'!u%ing the a9i!ity to !oa% %ata on!ine fro$ E2'e! s#rea%sheets into Peo#!e(oft a##!i'ations through 'o$#onent interfa'es. (AP #ro,i%es a free set of too!s an% #ro'e%ures that $ake it #ossi9!e to transfer %ata fro$ a ,ariety of sour'es -ithout any #rogra$$ing. (ie9e! has a set of #ro#rietary too!s for the %ata !oa%7 the too!s 'an 9e use% as 9at'h !oa%ing for infor$ation that $ust 9e re!oa%e% on a regu!ar 9asis; on'e the $a##ing of %ata is %one.

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-( 5( Pre?pac=aged integration >et:een <endor applications

Peo#!e(oft Pro'ess ntegration Pa'ks %e!i,er a!! !e,e!s of re6uire% integration: %ata transfor$ation; routing; 'ross=referen'e $a#s; an% stan%ar%=9ase% 'onne'tors/a%a#ters for a 'o$#!ete en%=toen% integration. Peo#!e(oft 'urrent!y #ro,i%es fi,e #re=#a'kage% integrations for key (AP an% >ra'!e 9usiness #ro'esses out of the 9o2. 4hese #re= #a'kage% integrations re#!a'e the nee% for 'usto$ integrations; there9y sa,ing 'usto$ers u# to 30G off the 'ost of 'usto$ integration. Whi!e not offering #re=#a'kage% integration #a'ks; >ra'!e $aintains a%a#ters to $ost 'o$$on!y use% a##!i'ations. ts a%a#ters %o he!# re%u'e the effort for 'usto$ integration. (AP en'a#su!ates integration tasks -ithin its KetWea,er #!atfor$; 9ut sti!! re6uires %ee# te'hno!ogy e2#ertise to 'o$#!ete the integration. (ie9e! Fni,ersa! A##!i'ation Ket-ork #ro,i%es a 'o$$on interfa'e !ayer for (ie9e! A##!i'ation to interfa'e -ith non=(ie9e! a##!i'ations 9ut re6uires thir%=#arty 'o$#onents. Mi'rosoft intro%u'e% a too!9o2 for integration to re#!a'e :reat P!ains integration too!s 5 ntegration Manager8. t is re#orte% to 9e a great i$#ro,e$ent o,er the #re,ious #ro#rietary too!s 9ut has not yet rea'he% a !e,e! of usa9i!ity an% 'o$#!eteness 'o$#ara9!e to other ,en%ors.

-(@( Process?oriented integration

Within >ra'!e E=Dusiness (uite; >ra'!e Workf!o- su##orts 9asi' #ro'ess=oriente% integration an% the $o%e!ing of it. (ie9e!<s a##roa'h to #ro'ess=oriente% integration is to #u9!ish a!! its #ro'ess=oriente% 9usiness ser,i'es as -e9 ser,i'es. Peo#!e(oft<s neintera'ti,e integration re#ository ena9!es 'usto$ers to %is#!ay integration #oints fro$ a 9usiness #ro'ess #oint of ,ie- an% generate integration #ro'ess #!ans. (AP<s integration a##roa'h has 9een ,ery fo'use% on 9usiness #ro'esses; 9ut it re!ies hea,i!y on #ro#rietary te'hno!ogies. Mi'rosoft ntegration Manager in'!u%es a set of te$#!ates that a!!o- the 'ontro! of the un%er!ying 9usiness !ogi'.

-(.( uilt?in :e> ser<ices integrations

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Peo#!e(oft #ro,i%es 9ui!t=in -e9 ser,i'es an% fu!!y su##orts in%ustry stan%ar%s for -e9 ser,i'es. n a%%ition; >ra'!e su##orts -e9 ser,i'es integration at e,ery !ayer of its a##!i'ation fra$e-ork 5%ata9ase; $i%%!e=tier; an% a##!i'ation !ayer8 using o#en 'onne'tor stan%ar%s su'h as (>AP; W(DE an% FDD . (ie9e!<s strategy is to e2#ose a!! its 9usiness #ro'esses as -e9 ser,i'es to %e!i,er 9usiness ser,i'es=%ri,en integration. (AP #ro,i%es integration 9ase% on -e9 ser,i'es through its (AP KetWea,er #!atfor$.

2( 'sa>ility
4he usa9i!ity #hase in'!u%es a!! key fun'tiona!ity that is re!ate% to the a##!i'ation ease of use. Fsa9i!ity 'o,ers to#i's su'h as a9i!ity to #erfor$ tasks -ith the $ini$u$ a$ount of errors; intuiti,e use of the a##!i'ation; en% user #ro%u'ti,ity; a9i!ity to !earn ho- to use the a##!i'ation effe'ti,e!y -ith the $ini$u$ a$ount of training; nu$9er of s'reens or '!i'ks re6uire% to #erfor$ a s#e'ifi' task; su##ort for no,i'e as -e!! as a%,an'e% users; a!ign$ent -ith in%ustry stan%ar% interfa'es; res#onse ti$es; an% ease of a%a#ting a##!i'ation ter$ino!ogy to 'usto$er 9usiness 'ases. With this kin% of s'o#e to the issue of usa9i!ity; it %oes #ro,i%e ,a!ue to e,a!uate an% 9ui!% an o9Ae'ti,e 'o$#arison on the usa9i!ity of ,arious a##!i'ations. Fsa9i!ity; in fa't; 'an i$#a't #ositi,e!y or negati,e!y the tota! o-nershi# e2#erien'e. &irst an% fore$ost; usa9i!ity has a %ire't i$#a't on en% user a%o#tion; -hi'h 'an $ake or 9reak a %e#!oy$ent. Poor usa9i!ity 'an !ea% to on going hi%%en 'osts through !o-er en% user #ro%u'ti,ity; error=#rone a##!i'ations; or a##!i'ations that are $isa!igne% -ith a 'o$#any<s 9usiness #ro'esses. &i,e 'riteria -ere in,o!,e% in the ana!ysis assess$ent of usa9i!ity: 1. 4ask=oriente% na,igation 2. Ka,igation 'onfigura9i!ity 3. 4ask=oriente% %ash9oar%s /. We9 '!ient 5. ntegrate% offi'e #ro%u'ti,ity.

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Doth Peo#!e(oft an% (ie9e! ha,e o9,ious!y $a%e usa9i!ity a key %e!i,era9!e to 'usto$ers an%; a$ong the fi,e ,en%ors; #ro,i%e the fu!!est feature set for usa9i!ity; in'!u%ing taskoriente% na,igation; the a9i!ity to 'onfigure na,igation; task=oriente% %ash9oar%s; an% -e9 '!ients. >n!y (AP #ro,i%es no task=oriente% %ash9oar%s; an% Mi'rosoft #ro,i%es no -e9 '!ients. Eet<s e2a$ine ea'h of the fi,e feature sets in the usa9i!ity 'ategory.

2(-( Tas=?oriented na<igation

A task=oriente% na,igation is %esigne% to a!!o- users to use 9usiness #ro'ess 9ase% na,igation to 'o$#!ete tasks. Peo#!e(oft %e!i,ers an easy=torea% gra#hi'a! !ayout that %is#!ays task=9ase% ter$ino!ogy an% i'ons re#resenting the #orta! registry 'ontent. Ka,igation #ages not on!y ha,e a 'onsistent !ayout throughout the a##!i'ation; 9ut users 'an $ore easi!y an% 6ui'k!y !o'ate na,igation ite$s 9y s'anning the ne- 2=!e,e! na,igation short'ut 'o!!e'tion. 4his #ro'ess 9ase% f!o- for the a##!i'ation is 'onsistent fro$ the to# !e,e! #orta! #age %o-n to the s#e'ifi' a##!i'ation #ages; -here a##!i'ation #ages ha,e #ro'ess %ri,en re'o$$en%e% a'tions an% se!e'ti,e!y sho- on!y the fie!%s that are re!e,ant to the 'urrent stage of a s#e'ifi' 9usiness #ro'ess. 4o ensure o#ti$a! %esign of this task 9ase% na,igation $eta#hor; Peo#!e(oft #erfor$s usa9i!ity tests -ith at !east 100 'usto$ers #er a##!i'ation #er re!ease. 4his 'ontinuous in,est$ent in 'usto$er %ri,en so!ution %esign ena9!es Peo#!e(oft to 'ontinua!!y i$#ro,e usa9i!ity an% e2#!ains the high %egree of usa9i!ity 'o$#are% to other ,en%ors. >ra'!e<s s'reens 'an 9e rearrange% s!ight!y to a!ign 9etter -ith the 'usto$er<s 9usiness #ro'esses an% tasks; 9ut this a9i!ity is not syste$ati' a'ross a!! $o%u!es an% re6uires a high !e,e! of e2#ertise in >ra'!e. Within (AP; na,igation 'an 9e 'usto$i1e% 9ut re6uires 'usto$ %e,e!o#$ent on to# of the (AP Porta!; -hi'h is #art of (AP KetWea,er an% is not 'urrent!y use% 9y $ost 'usto$ers. Doth Mi'rosoft an% (ie9e! ha,e fo'use% $u'h %e,e!o#$ent effort on usa9i!ity an% 9oth %e!i,er a si$#!ifie% user interfa'e; !ea%ing to a##!i'ations that are re!ati,e!y easy to na,igate.

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2(2( $a<igation con8igura>ility

Most ,en%ors #ro,i%e too!s to the te'hni'a! staff an% the i$#!e$entation tea$ to 'usto$i1e the a##!i'ation interfa'e in or%er to 9etter fit the 9usiness nee%s an% 9usiness #ro'esses of the 'usto$er. Mi'rosoft #ro,i%es on!y !i$ite% too!s to 'usto$i1e the a##!i'ation interfa'e. A!! $o%ifi'ations $a%e to Mi'rosoft :reat P!ains< interfa'e an% na,igation are %one through 'usto$ 'o%ing rather than 'onfiguration an% -i1ar%=%ri,en; #oint=an%='!i'k too!s. With Peo#!e(oft; >ra'!e; an% (ie9e!; it is easy to 'reate 'usto$i1e% an% #ersona!i1e% na,igation #ages an% 'hoose to use these #ages in a%%ition to; or instea% of; the %efau!t na,igation #ages that are #ro,i%e% out of the 9o2. (AP re6uires a%,an'e% #rogra$$ing to a'hie,e a !e,e! of 'onfiguration an% 'usto$i1ation of the interfa'e that $ight 9e fit for the a,erage user.

2(1( Tas=?oriented das9>oards

Mi'rosoft an% >ra'!e offer on!y !i$ite% fun'tiona!ity -ith task=oriente% %ash9oar%s. 4hrough task=oriente%; #re=9ui!t %ash9oar%s that organi1e key tasks; su'h as a##!i'ant Ao9 tra'king an% re#orting; Peo#!e(oft %e!i,ers greater #ro%u'ti,ity to en% users. Peo#!e(oft is so fo'use% on usa9i!ity an% en% user #ro%u'ti,ity that ne- re!eases 'an shi# on!y -hen a $aAority of ne- users teste% 'an 'o$#!ete key tasks -ithout any assistan'e in a ti$e% usa9i!ity e2er'ise. (ie9e! a!so su##orts taskoriente% %ash9oar%s that are en% user=oriente%. Dy 'o$#arison; ,en%ors su'h as (AP ha,e not fu!!y $igrate% their interfa'e to-ar% a $ore task=oriente% na,igation an% sti!! re6uire users to '!i'k 9a'k an% forth 9et-een $u!ti#!e s'reens to 'o$#!ete the ,arious ste#s ne'essary for a s#e'ifi' 9usiness task.

2(2( Ae> client

A!! Peo#!e(oft $o%u!es an% a##!i'ations; in'!u%ing Peo#!e(oft Enter#rise >ne; are fu!!y -e9=ena9!e% an% %o not re6uire the %o-n!oa% of any a##!i'ation 'o%e on the en% user

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-orkstation. 4his feature fa'i!itates u#gra%es that are ,ery trans#arent to the en% users an% that %o not re6uire the attention of either the en% user or the te'hni'a! staff regar%ing '!ient si%e issues. (ie9e! has a%%e% 100G -e9 %e#!oy$ent in the $ost re'ent ,ersion of its soft-are. Pre,ious!y -ith (ie9e!; so$e 'o%e ha% to 9e %o-n!oa%e% to the '!ient. Whi!e >ra'!e '!ai$s to 9e 100G -e9 ena9!e%; so$e 'o%e 'o$#onents are sti!! %o-n!oa%e% to the '!ient. An% unfortunate!y; >ra'!e<s -e9 ar'hite'ture is not 'onsistent a'ross a!! >ra'!e $o%u!es. (AP is not yet fu!!y -e9=ena9!e%. Dy 'ontrast; Mi'rosoft<s a##!i'ations are sti!! $ost!y '!ient=ser,er; an% re!ease u#gra%es 'an trigger signifi'ant %isru#tion to 9usiness o#erations through a%%itiona! %o-nti$e an% unne'essary in're$enta! 'osts to u#gra%e ea'h en% user -orkstation.

2(5( %ntegrated o88ice producti<ity

Mi'rosoft has %e,e!o#e% the $ost integration #oints 9et-een its 9usiness a##!i'ations an% its %eskto# a##!i'ations; su'h as Mi'rosoft >ffi'e an% >ut!ook. (ie9e! #ro,i%es 9asi' integration 9et-een its sa!es for'e auto$ation $o%u!es an% e$ai!. Mean-hi!e; Peo#!e(oft )RM #ro,i%es integration to stan%ar% %eskto# soft-are too!s !ike Mi'rosoft >ffi'e (uite an% Eotus Kotes as -e!! as $o9i!e %e,i'es in'!u%ing !a#to#s; Po'ket P) an% D!a'k9erry %e,i'es to ensure user a%o#tion an% ena9!e ne- !e,e!s of user effe'ti,eness. ntegration -ith #ersona! #ro%u'ti,ity too!s is an area that re$ains un%er%e,e!o#e% for >ra'!e an% (AP; 9ut ea'h ,en%or %oes offer so$e 'a#a9i!ities in this area.

Maintenance, Support, and 'pgrades

4he $aintenan'e in'!u%es a!! #ost=i$#!e$entation a'ti,ities that are re6uire% to kee# the a##!i'ation o#erationa! un%er nor$a! an% stresse% 'on%itions. t in'!u%es on going su##ort; u#gra%es 5#at'hes an% $inor an% $aAor u#gra%es8; a!! %iagnosti's an% tuning a'ti,ities $anage% 9y a%$inistrators to $aintain the a##!i'ation running in o#ti$a! 'on%itions; an% the ar'hi,ing of histori'a! %ata. Maintenan'e 'osts ha,e an i$#ortant i$#a't on the o,era!! o-nershi# e2#erien'e; %ue to the tra%itiona!!y !a9or=intensi,e an% re#etiti,e nature of these a'ti,ities. Diagnosti's an% tuning fa'i!itate the u#gra%e #ro'ess

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9y staying 'urrent on re!eases; -hi!e #oor %iagnosti's too!s !ea% to un#re%i'ta9!e %o-nti$es an% 9usiness %isru#tion. (e,en 'riteria -ere in,o!,e% in the e2#ertise assess$ent of the $aintenan'e #hase: 1. Diagnosti' an% te'hni'a! su##ort 2. Re$ote an% on!ine su##ort 3. Perfor$an'e %iagnosti's an% tuning /. Pat'h $anage$ent 5. Auto$ate% u#gra%e #ro'ess an% too!sets 3. Fser='entri' #erfor$an'e testing ". Data ar'hi,ing. n this #hase; Peo#!e(oft offers the fu!!est feature sets 'o,ering %iagnosti' an% te'hni'a! su##ort; #erfor$an'e %iagnosti's; #at'h $anage$ent; user 'entri' #erfor$an'e testing; an% %ata ar'hi,ing. Peo#!e(oft; >ra'!e; an% (AP a!! offer fu!! #erfor$an'e %iagnosti's an% tuning. An% Peo#!e(oft; Mi'rosoft; an% (ie9e! fu!!y a%%ress #at'h $anage$ent; -hi!e on!y Peo#!e(oft an% (ie9e! fu!!y a%%ress the issue of user='entri' #erfor$an'e testing. A!! ,en%ors ha,e 9asi' auto$ate% u#gra%e too!s; an% a!! ha,e sho-n #rogress in a%%ressing $aintenan'e i$#ro,e$ents to the o-nershi# e2#erien'e. Eet<s e2a$ine ea'h of the se,en feature sets in the $aintenan'e; su##ort an% u#gra%e 'ategory.

1(-( &iagnostic and tec9nical support

Mi'rosoft; (AP; >ra'!e; an% (ie9e! su##ort is %e!i,ere% the 0tra%itiona!0 -ay: a kno-!e%ge 9ase on the -e9 an% #hone 'a!!s -ith te'hni'a! su##ort. Peo#!e(oft is the on!y ,en%or to #ro,i%e a 9ui!t=in %iagnosti' fra$e-ork through e$9e%%e% %iagnosti's s'ri#ts that !et 'usto$ers sen% se'ure; rea!ti$e #ro%u'tion syste$ sna#shots to Peo#!e(oft<s su##ort 'enter. 4his uni6ue 'a#a9i!ity ensures faster issue %iagnosis an% reso!ution. With (AP; >ra'!e; an% (ie9e!; %iagnosti's an% reso!ution infor$ation is e2'hange% 9et-een the 'usto$er an% the ,en%or through tai!ore% e$ai!s that %e#en% on the a,ai!a9i!ity; the

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res#onsi,eness; an% the kno-!e%ge of the ,en%or<s su##ort staff. n so$e 'ases; su##ort re6uires e2tensi,e 'o$$uni'ation an% e2'hange of fi!es su'h as !og fi!es that 'ontain the e2a't 'onfiguration of the 'usto$er i$#!e$entation.

1(2( Remote and online support

A!! ,en%ors #ro,i%e so$e for$ of a re$ote su##ort an% on!ine 'a#a9i!ities to he!# 'usto$ers se!f=%iagnose issues. Doth Peo#!e(oft<s an% >ra'!e<s on!ine su##ort %ata9ases are ri'h in 'ontent 9ut 'an 9e ti$e 'onsu$ing to na,igate. (ie9e! #ro,i%es so$e su##ort 'ontent o,er the -e9 9ut; on'e a #ro9!e$ has 9een !ogge% on!ine; a!-ays #ro$otes intera'tion -ith the 'usto$ers o,er -e9 se!f ser,i'e su##ort. (AP has re'ent!y intro%u'e% $u!ti#!e -e9 sites to #ro,i%e 9etter #ost i$#!e$entation infor$ation to its 'usto$ers; 9ut the efforts re$ain frag$ente% a'ross ,arious intera'tion #oints -ith 'usto$ers.

1(1( Per8ormance diagnostics and tuning

>ra'!e; Peo#!e(oft; an% (AP #ro,i%e a 9ui!t=in; instru$ente% #erfor$an'e $onitoring too! that tra'ks the a##!i'ation #erfor$an'e in rea! ti$e as -e!! as 9y 'o$#onent. 4he too! #ro,i%es 'o$#arisons to a,erage #erfor$an'e !e,e!s to #roa'ti,e!y i%entify an% trou9!eshoot non=#erfor$ing 'o$#onents. (ie9e! su##orts in%ustry=stan%ar% a##!i'ation res#onse=ti$e $anage$ent that i$#!ifies #erfor$an'e tuning a'ross a!! tiers of the (ie9e! ($art We9 Ar'hite'ture an% su##orts #roa'ti,e #erfor$an'e $onitoring 9y a thir%=#arty ARM='o$#!iant $onitoring a##!i'ation. De'ause it re6uires thir%=#arty soft-are; (ie9e! is not rate% as high!y. With Mi'rosoft; #erfor$an'e $onitoring is %one at the #!atfor$ !e,e! 5Win%o-s/K487 no s#e'ifi' a##!i'ation #erfor$ing too!s are a,ai!a9!e.

1(2( Patc9 management

A##!ying #at'hes to enter#rise a##!i'ations 'an 9e a ,ery ti$e 'onsu$ing an% %isru#ti,e a'ti,ity. (AP; >ra'!e; an% (ie9e! $ake their !ist of #at'hes fu!!y a,ai!a9!e on the -e9 9ut #ro,i%e !i$ite% gui%an'e an% auto$ate% too!s to se!e't -hi'h #at'hes are re!e,ant to a

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s#e'ifi' 'onfiguration. Peo#!e(oft has strea$!ine% this task 9y offering a )hange Assistant too!set that su##orts the auto$ati' 'he'king of #re an% #ost= re6uisites an% 9y auto$ati'a!!y se!e'ting -hi'h #at'h shou!% 9e a##!ie% for the 'usto$er to 9e 'urrent. Mi'rosoft re!eases ne- ,ersions of #at'hes for its a##!i'ations ,ery infre6uent!y 5!ess than on'e a year8; so the features -ith res#e't to #at'h $anage$ent are -e!! suite%.

1(5( Automated upgrade process and toolsets

(AP offers too!s to i%entify #re=re6uisites an% gui%e te'hni'a! staff through the ,arious ste#s of an u#gra%e. 4he (AP u#gra%e #ro'ess is on!y #artia!!y auto$ate%; -ith $any 'o$#!e2 tasks to 9e #erfor$e% $anua!!y. Peo#!e(oft #ro,i%es F#gra%e Assistant; an auto$ate% u#gra%e too! -ith -e!! teste% an% 'o$#!ete u#gra%e s'ri#ts. (tarting -ith Enter#rise ?u$an )a#ita! Manage$ent *.. 'usto$ers; Peo#!e(oft has re=engineere% the u#gra%e #ro'ess fro$ eight ste#s to fi,e -ith A''e!erate% F#gra%es. Ko- 'usto$ers 'an use a ,isua! 'o$#are too! to i%entify 'usto$i1ations an% an E4E=9ase% %ata $igration too! to ensure %o-nti$e is !ess than a %ay. >ra'!e offers u#gra%e s'ri#ts an% too!s 9ut -ith a !esser %egree of auto$ation. Mi'rosoft #ro,i%es 9asi' u#gra%e auto$ation too!s that are a%e6uate for Mi'rosoft<s !o- fre6uen'y of re!eases.

1(@( 'ser?centric per8ormance testing

Peo#!e(oft a!!o-s 'usto$ers to su9$it test 'ases; -hi'h are use% as #art of the a##!i'ation testing an% re!ease #ro'ess. Peo#!e(oft is the on!y ,en%or to test fun'tiona!ity an% #erfor$an'e using rea! 'usto$er %ata on ,o!u$e %ata9ase syste$s. >ra'!e re!ies $ost!y on its %ata9ase #erfor$an'e test to ,a!i%ate the #erfor$an'e of its a##!i'ation. (AP offers test ser,i'es re#orte% to 9e so e2#ensi,e that ,ery fe- 'usto$ers o#t to use the$. (ie9e! has 9een fo'use% on usa9i!ity sin'e it re!ease% its first )RM a##!i'ation; an% user='entri' testing is an integra! #art of its #ro%u't %e,e!o#$ent 'y'!e. Mi'rosoft %e!i,ers goo% usa9i!ity 9ut the fun'tiona!ity %e!i,ere% is !ess so#histi'ate%.

1(.( &ata arc9i<ing

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>ra'!e on!y #ro,i%es #urge 'a#a9i!ities an% %oes not a!!o- 'usto$ers to ar'hi,e or restore/reinstate ar'hi,e% %ata into #ro%u'tion. Doth (AP an% Peo#!e(oft #ro,i%e ar'hi,e; #urge; an% restore 'a#a9i!ities nati,e!y. n a%%ition; Peo#!e(oft #ro,i%es ru!es=9ase% ar'hi,ing te$#!ates ena9!ing a%$inistrators to set u# %ifferent ar'hi,ing ru!es for %ifferent regions for 9etter g!o9a! 'o$#!ian'e su##ort. (ie9e! an% Mi'rosoft %o not %ire't!y offer ar'hi,e; #urge or restore 'a#a9i!ities.

ERP Vendors
Microso8t
Mi'rosoft has no for$a! o-nershi# e2#erien'e #rogra$ %efine%. Mi'rosoft has %e,e!o#e% its 'ost $anage$ent strategy 9ase% on a ,ery !o- soft-are #ri'e #oint an% '!ose to 100G out=of=the=9o2 %e#!oy$ents -ith !itt!e a9i!ity to 'usto$i1e the soft-are. As a resu!t; Mi'rosoft offers 9asi' fun'tiona!ity that %oes not re6uire e2tensi,e training; 9ut it a!so %oes not ne'essari!y %e!i,er the fu!! ,a!ue e2#e'te% 9y the 'usto$er in ,ie- of the o-nershi# e2#erien'e.

"racle
A%%ressing 'ost of o-nershi# is at the heart of >ra'!e<s #hi!oso#hy for Enter#rise A##!i'ations. Dase% on the >ra'!e eDusiness (uite; an integrate% suite of a##!i'ations; >ra'!e '!ai$s that it 'an !o-er i$#!e$entation 'osts 9y a,oi%ing unne'essary 'osts; su'h as those asso'iate% -ith 'ost!y 'usto$ integration 9et-een a##!i'ations. A!though >ra'!e<s a##roa'h has so$e $erit = so$e $easura9!e 9enefits ha,e 9een high!ighte% through R> 'ase stu%ies; serious 'on'erns are sti!! 9eing raise% regar%ing -hat >ra'!e has %e!i,ere% to %ate.

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PeopleSo8t
(tru'ture% in a for$a! #rogra$; Peo#!e(oft %e%i'ate% o,er 1;000 %e,e!o#ers an% L*00 $i!!ion to i$#ro,e the 4ota! >-nershi# E2#erien'e for 'usto$ers. Rather than fo'using si$#!y on 9est #ra'ti'es that i$#ro,e the o-nershi# e2#erien'e; Peo#!e(oft has rethought its entire set of a##!i'ations to ensure that they are 9ui!t fro$ the groun% u# to $ini$i1e %e#!oy$ent an% $aintenan'e 'osts.

SAP
Many users of (AP a##!i'ations ha,e; o,er the years; note% the 'o$#!e2ity of (AP a##!i'ations; the resu!ting high i$#!e$entation 'osts; an% 'onse6uent 9u%get o,erruns. n res#onse to these issues; (AP to%ay high!ights (AP KetWea,er as the 'enter#ie'e to (AP<s #ro%u't strategy for %e'reasing the 'o$#!e2ity an% 'ost of o-nershi# for (AP a##!i'ations. )urrent!y; the i$#a't of (AP KetWea,er on the o,era!! (AP 'ost of o-nershi# re$ains to 9e #ro,en. (AP has not yet #ro,i%e% #roof #oints ,a!i%ating that its 'usto$ers 9enefit fro$ i$#ro,e% o-nershi# e2#erien'e through the i$#!e$entation of (AP<s !atest te'hno!ogy.

Sie>el
(ie9e!<s 'usto$er e2#erien'e initiati,e -as first fo'use% on 'usto$er satisfa'tion an% high=!e,e! R> $easure$ents. t is on!y re'ent!y 512M$onths8 that (ie9e! has fo'use% $ore s#e'ifi'a!!y on 'ost=of=o-nershi# issues 5$ain!y in res#onse to 'usto$ers< 'o$#!aints8. (ie9e!<s i$#ro,e$ents to its soft-are %e,e!o#$ent #ro'ess are gui%e% 9y the e2#erien'e an% insight gaine% fro$ '!ose e2a$ination of 200 (ie9e! ".2 %e#!oy$ents.

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Return on in<estments 8or ERP

(o$e of the instru'tions that ha,e to 9e fo!!o-e% to ensure a%e6uate Return on n,est$ents are gi,en 9e!o-:

Aor=ing out t9e Myt9s o8 ERP in t9e %nitial stage

4he 6uestion of Erg<s R> re$ains a #u11!e to 'o$#anies -ho are e2#erien'ing %iffi'u!ties e,en in i$#!e$enting it. 4here is a si$#!e an% straight ans-er to the 6uestion of R> on ERP. )o$#anies 'an %efinite!y 9e assure% of R> fro$ ERP if they #ro#er!y fo!!o- the #ro'e%ures an% i$#!e$ent the right #ra'ti'es. 4his is often -e!! sai% than %one. >ne 'o$$on 9!un%er 'o$$itte% 9y the 'o$#any is fo!!o-ing the age o!% $etho%o!ogies an% there9y the ERP #ro'ess -i!! not a%% any ,a!ue to the 'o$#any an% 9usiness #ro'ess. 4he %iffi'u!ty in i$#!e$entation #ro'ess $akes the$ think it i%s %iffi'u!t to e$9ra'e ERP an% the returns -i!! not 9e guarantee%. 4his $in%set is not true an% hen'e 'o$#anies ha,e to -ork $ore as the #ro'ess %ee#ens an% not ,i'e ,ersa; in or%er to a'hie,e o#ti$u$ 9enefits fro$ ERP. >ther-ise the o#erations %one 9y ERPR> 'a!'u!ator -i!! not 9e true. E,en using ERPR> too!s -i!! ser,e no #ur#ose.

Proper %mplementation and #inance

4here i$#!e$entation #ro'ess shou!% take #!a'e in a s$ooth $anner an% in a''or%an'e -ith the set stan%ar%s .4here shou!% 9e no 'o$#ro$ise or 'ontro,ersy in the fun%s a!!o'ate%. >ne $istake -hi'h is nor$a!!y %one 9y 'o$#anies is that they ten% to 'ut %o-n the e2#en%itures on so$e areas in or%er to 9e $onetari!y 9enefite%. ?o-e,er the fa't is that it -i!! affe't the 'o$#any in the !ong run un!ess the ste# is $eant to 'hange the %e'ision !ike #artia! i$#!e$entation 5#ro,i%e% it is su##orte% 9y so$e !ogi'a! reasons. Whi!e ta!king a9out the i$#!e$entation #ro'ess it is i$#ortant to ensure

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that it 'onfir$s -ith the stan%ar%s an% as #er the instru'tion of the ,en%or/ERP 'onsu!tant.

Strict Ad9erence to C9anges

Many of ERP<s -e!fare $easures are ,isi9!e to the nake% eye. ?o-e,er there are so$e e!e$ents that are unseen 9ut sti!! i$#a't the organi1ation in a !arge $anner. 4hese e!e$ents $ake the 'o$#any to assu$e that ERP is not -orth the $oney an% hen'e they e,en go to the e2tent of ,io!ating/%is'ar%ing it ha!f-ay an% not fo!!o-ing the 'hanges that -ere arri,e% after a !ong suggestion an% %e!i9erate #!anning. 4hey -i!! %efeat the ,ery o9Ae'ti,e of ERP R> .4here -i!! 9e no use e,en in %isgrunt!ing on ERPR> too!s.

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ERP System Selection Met9odology

An ERP syste$ se!e'tion $etho%o!ogy is a for$a! #ro'ess for se!e'ting an Enter#rise Resour'e P!anning 5ERP8 syste$. rres#e'ti,e of -hether the 'o$#any is a $u!ti nationa! $u!ti=$i!!ion %o!!ar organisation or a s$a!! 'o$#any -ith sing!e %igit $i!!ion turno,er; the goa! of syste$ se!e'tion is to sour'e a syste$ that 'an #ro,i%e fun'tiona!ity for a!! of the 9usiness #ro'esses7 that -i!! get 'o$#!ete user a''e#tan'e7 $anage$ent a##ro,a! an%; $ost i$#ortant!y; 'an #ro,i%e signifi'ant return on in,est$ent for the shareho!%ers. (in'e in the $i%="0s ; -hen there -as -i%e=s#rea% intro%u'tion of 'o$#uter #a'kages into !ea%ing 'o$#anies to assist in Materia! Re6uire$ents P!anning soft-are 'o$#anies ha,e stri,e%; an% for the $ost #art su''ee%e%; to 'reate #a'kages that assist in a!! as#e'ts of running a 9usiness fro$ Manufa'turing7 (u##!y )hain Manage$ent7 ?u$an Resour'es7 through to &inan'ia!s. 4his !e% to the e,o!ution of ERP (yste$s. A''or%ing!y; a signifi'ant nu$9er of #a'kages #ur#orting to 9e ERP syste$s ha,e entere% into the $arket#!a'e sin'e 1..0. 4here are #a'kages at the u##er en% of the $arket su'h as (AP7 >ra'!e7 Mo,e27 an% &( a$ong others in a%%ition to $e%iu$ enter#rise syste$s su'h as Mi'rosoft Ka,ision7 A2a#ta7 4ro#os7 :reat P!ains; Dyna$i's7 iRenaissan'e7 (age7 an% E#i'or Vantage an% a ,ast 6uantity of other #a'kages that ,en%ors '!ai$ to 9e ERP (yste$s. 4here are a!so #a'kages that '!ai$ to 9e 9est of 9ree% for 'ertain #ro'esses an% so!% $ere!y as an a%%=on to an ERP (yste$. 4he o#tions are $any an% this; in rea!ity; 'reates a #ro9!e$ for the 'o$#any -ho has to $ake a %e'ision. Atte$#ting to se!e't an ERP syste$ is further e2a'er9ate% 9y the fa't that so$e syste$s are geare% for %is'rete $anufa'turing en,iron$ent -here a %istin't a$ount of ite$s $ake u# a finishe% #ro%u't -hi!e others are $ore suite% to #ro'ess in%ustries su'h as

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'he$i'a! an% foo% #ro'essing -here the ingre%ients are not e2a't an% -here there $ight 9e re=-ork an% 9y#ro%u'ts of a #ro'ess. n the !ast %e'a%e; 'o$#anies ha,e a!so 9e'o$e intereste% in enhan'e% fun'tiona!ity su'h as )usto$er Re!ationshi# Manage$ent an% e=)o$$er'e 'a#a9i!ity. :i,en a!! of the #otentia! so!utions; it is not un'o$$on for 'o$#anies to 'hoose a syste$ that is not the 9est fit for the 9usiness an% this nor$a!!y !ea%s to a $ore e2#ensi,e i$#!e$entation. 4hus; it is un%erstan%a9!e that 0ERP )osts 'an run as high as t-o or three #er'ent of re,enues0 . A Pro#er ERP (yste$ (e!e'tion Metho%o!ogy -i!! %e!i,er; -ithin ti$e an% 9u%get; an ERP syste$ that is 9est fit for the 9usiness #ro'esses an% the user in an enter#rise.

Poor System Selection

t is se!%o$ that 'o$#anies a%o#t a fu!!y o9Ae'ti,e syste$ se!e'tion $etho%o!ogy -hen 'hoosing an ERP (yste$. (o$e of the 'o$$on $istakes that 'o$#anies resort to are:

%ncomplete Set o8 ReBuirements

When a ne- ERP has 9een i$#!e$ente% in an enter#rise; Wa!!a'e J Cre$1ar state that 0it re6uires #eo#!e to %o their Ao9 %ifferent!y0 . 4herefore; it is ,ery i$#ortant to un%erstan% the re6uire$ents of ea'h user for 'urrent #ro'esses an% for future #ro'esses Ni.e. 9efore an% after the ne- syste$ is insta!!e%O. >ne 'an then re,ie- syste$s that ha,e the 9est fit fro$ a fun'tiona!ity #ers#e'ti,e. t is a!so i$#erati,e that the re6uire$ents go into great %etai! for 'o$#!i'ate% #ro'esses or #ro'esses that $ay 9e uni6ue to a #arti'u!ar 9usiness.

Reliance on )endor &emos

Ven%or De$onstrations ten% to 9e fo'us on ,ery si$#!isti' #ro'esses. A ty#i'a! %e$onstration -i!! sho- an i%ea! or%er to 'ash #ro'ess -here a 'usto$er or%ers a 6uantity of #ro%u't that is in sto'k. 4he rea!ity in $ost 9usinesses is that $ost 'usto$ers

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ha,e ,arying an% $ore 'o$#!i'ate% 'o$$er'ia! arrange$ents an% #ro%u'ts are not a!-ays in sto'k.

"<er?Emp9asis on System Cost

A''or%ing to &in!ay an% (er,ant P4he %ifferentia! in #ur'hase #ri'e 9et-een #a'kages is un!ike!y to 9e the %o$inant fa'tor0. Whi!e the 'ost of an ERP syste$ is ,ery i$#ortant for a 'o$#any; there ten%s to 9e a !a'k of fo'us on the other i$#ortant %e'ision 'riteria su'h as fun'tiona!ity7 future #roofing7 un%er!ying infrastru'ture Nnet-ork J %ata9aseO7 an% e='o$$er'e 'a#a9i!ity a$ong others.

Selection ias
t is not unusua! that the %e'ision on -hi'h syste$ to #ur'hase is $a%e 9y one in%i,i%ua! or 9y one %e#art$ent -ithin the 'o$#any. n these situations; an ERP syste$ that $ay 9e e2'e!!ent at one fun'tion 9ut -eak at other #ro'esses $ay 9e i$#ose% on the entire enter#rise -ith serious 'onse6uen'es for the 9usiness.

#ailure to use ">jecti<e Pro8essional Ser<ices

>ne the $ain reasons for fai!ure in syste$ se!e'tion is the un%erstan%a9!e !a'k of kno-!e%ge -ithin the 'o$#any. E2#erien'e% )onsu!tants 'an #ro,i%e e2'e!!ent infor$ation on a!! of the #a'kages that are a,ai!a9!e in the $arket#!a'e7 the !atest fun'tiona!ity a,ai!a9!e in the $ost 'o$$on #a'kages an%; $ost i$#ortant!y; 'an assist the user in %e'i%ing -hether a s#e'ifi' re6uire$ent -ou!% #ro,i%e a%%e% ,a!ue to the user an% to the 9usiness. ?o-e,er; it is -orth noting that the #rofessiona! he!# $ust 9e #ro,i%e% 9y o9Ae'ti,e 'onsu!tants -ho ha,e no affi!iation -ith ERP (yste$ ,en%ors. 0 f a 'onsu!tan'y has 9ui!t u# an e2#ertise in the use of a #arti'u!ar #a'kage then it is in its interest to re'o$$en% that #a'kage to its '!ientQ.

%na>ility to 'nderstand "88ering >y ERP )endor

0 t is esti$ate% that a##ro2i$ate!y .0G of enter#rise syste$ i$#!e$entations are !ate or o,er 9u%get0. A #!ausi9!e e2#!anation for i$#!e$entations 9eing !ate an% o,er 9u%get is that the 'o$#any %i% not un%erstan% the offering 9y the ,en%or 9efore the 'ontra't -as

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signe%. A ty#i'a! e2a$#!e of this -ou!% 9e the s'enario -here a ,en%or $ay offer 5 %ays of ser,i'es for the #ur#ose of %ata $igration. 4he rea!ity is that there is a huge a$ount of -ork re6uire% to in#ut %ata onto a ne- syste$. 4he ,en%or -i!! i$#ort the %ata into the ne- syste$ 9ut e2#e'ts the 'o$#any to #ut the %ata into a fi!e that is easy to i$#ort into the syste$. 4he 'o$#any are a!so e2#e'te% to e2tra't the %ata fro$ the o!% syste$7 '!ean the %ata an% a%% ne- %ata that is re6uire% 9y the ne- syste$. 0ERP; to 9e su''essfu!; re6uires !e,e!s of %ata integrity far higher than $ost 'o$#anies ha,e e,er a'hie,e% R or e,en 'onsi%ere%. n,entory re'or%s; 9i!! of $ateria!s 5D>M8; for$u!as; re'i#es; routings; an% other %ata nee% to 9e'o$e high!y a''urate; 'o$#!ete an% #ro#er!y stru'ture%0. 4his ty#i'a! s'enario is one of $any issues that 'ause i$#!e$entations to 9e %e!aye% an% in,aria9!y !ea% to re6uests for $ore resour'es.

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A Proper System Selection Met9odology

4o a%%ress the 'o$$on $istakes that !ea% to a #oor syste$ se!e'tion. t is i$#ortant to a##!y key #rin'i#!es to the #ro'ess; so$e of -hi'h are !iste% hereun%er:

Structured Approac9
4he first ste# in se!e'tion of a ne- syste$ is to a%o#t a stru'ture% a##roa'h to the #ro'ess. 4he set of #ra'ti'es are #resente% to a!! the stakeho!%ers -ithin the enter#rise 9efore the syste$ se!e'tion #ro'ess 9egins. E,eryone nee%s to un%erstan% the $etho% of gathering re6uire$ents7 in,itation to ten%er7 ho- #otentia! ,en%ors -i!! 9e se!e'te%7 the for$at of %e$onstrations an% the #ro'ess for se!e'ting the ,en%or. 4hus; ea'h stakeho!%er is a-are that the %e'ision -i!! 9e $a%e on an o9Ae'ti,e an% 'o!!e'ti,e 9asis an% this -i!! a!-ays !ea% to a high !e,e! of 'o=o#eration -ithin the #ro'ess.

#ocused &emonstrations
De$onstrations 9y #otentia! ,en%ors $ust 9e re!e,ant to the 9usiness. ?o-e,er; it is i$#ortant to un%erstan% that there is 'onsi%era9!e a$ount of #re#aration re6uire% 9y ,en%ors to #erfor$ %e$onstrations that are s#e'ifi' to a 9usiness. 4herefore it is i$#erati,e that ,en%ors are treate% e6ua!!y in re6uests for %e$onstrations an% it is in'u$9ent on the 'o$#any Nan% the o9Ae'ti,e 'onsu!tant assisting the 'o$#any in the se!e'tion #ro'essO to i%entify suffi'ient %e$onstrations that -i!! a!!o- a #ro#er %e'ision to 9e $a%e 9ut -i!! a!so ensure that ,en%ors %o not o#t out of the se!e'tion #ro'ess %ue to the e2tent of #re#aration re6uire%.

">jecti<e &ecision Process

0)hoosing -hi'h ERP to use is a 'o$#!e2 %e'ision that has signifi'ant e'ono$i' 'onse6uen'es; thus it re6uires a $u!ti='riterion a##roa'h.0. 4here are t-o key #oints to note -hen the $aAor %e'ision $akers are agreeing on se!e'tion 'riteria that -i!! 9e use% in e,a!uating #otentia! ,en%ors. &irst!y; the 'riteria an% the s'oring syste$ $ust 9e agree% in a%,an'e #rior to ,ie-ing any #otentia! syste$s. 4he 'riteria $ust 9e -i%e=ranging an%

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%e'i%e% u#on 9y as $any o9Ae'ti,e #eo#!e as #ossi9!e -ithin an% e2terna! to the enter#rise. n no 'ir'u$stan'e shou!% #eo#!e -ith affi!iations to one or $ore syste$s 9e a!!o-e% to a%,ise in this regar%.

#ull %n<ol<ement >y all Personnel

4he %e'ision on the syste$ $ust 9e $a%e 9y a!! stakeho!%ers -ithin the enter#rise. 0 t re6uires to# $anage$ent !ea%ershi# an% #arti'i#ationSS it in,o!,es ,irtua!!y e,ery %e#art$ent -ithin the 'o$#any0. Re#resentati,es of a!! users shou!%: De in,o!,e% in the #roAe't initiation #hase -here the %e'ision $aking #ro'ess is agree%7 Assist in the gathering of re6uire$ents7 Atten% the Ven%or De$onstrations7 ?a,e a signifi'ant #arti'i#ation in the short=!isting an% fina! se!e'tion of a ,en%or.

4he i$#!e$entation of an ERP syste$ takes a signifi'ant!y !onger ti$e an% !e,e! of resour'e than the se!e'tion #ro'ess. ?o-e,er; the e2tent of the i$#!e$entation -i!! 9e #rofoun%!y inf!uen'e% 9y the !e,e! of resour'e an% o9Ae'ti,ity -ithin the se!e'tion. )o$#anies that use a #ro#er (yste$ (e!e'tion Metho%o!ogy rea# the 9enefit not on!y %uring the i$#!e$entation #hase 9ut a!so an% $ost signifi'ant!y %uring the !ife of the ERP (yste$.

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%mportant %ssues to Consider e8ore ERP %mplementation

Defore integrating 9usiness fun'tions; $anagers $ust 'onsi%er se,era! i$#ortant issues that -i!! he!# the$ %e'i%e -hether an ERP integration is the right 'hoi'e for their organi1ation. 4hese #ertinent issues are '!assifie% un%er the fo!!o-ing 'ategories: fun%a$enta! issues; organi1ationa! 'hange #ro'ess; #eo#!e; an% the %ifferent a##roa'hes to i$#!e$enting ERP.

#undamental %ssues
&irst; $anagers $ust 'onsi%er the fun%a$enta! issues of syste$ integration 9y ana!y1ing the organi1ationTs ,ision an% 'or#orate o9Ae'ti,es. &or instan'e; %oes $anage$ent fu!!y un%erstan% its 'urrent 9usiness #ro'esses; an% 'an it $ake i$#!e$entation %e'isions in a ti$e!y $annerU s $anage$ent rea%y to un%ertake %rasti' 9usiness #ro'ess reengineering efforts to yie!% %ra$ati' out'o$esU s $anage$ent rea%y to $ake any 'hanges in the stru'ture; o#erations; an% 'u!tura! en,iron$ent to a''o$$o%ate the o#tions 'onfigure% in the ERP syste$U s the organi1ation finan'ia!!y an% e'ono$i'a!!y #re#are% to in,est hea,i!y in an ERP i$#!e$entationU Ke2t; $anage$ent nee%s to %e'i%e on the key re!ate% i$#!e$entation an% 9usiness issues an% ho- to #ro'ee%. )ertain!y; ERP is not suita9!e for 'o$#anies that are e2#erien'ing ra#i% gro-th an% 'hange in an unsta9!e en,iron$ent are un%ergoing 'hange in the 'or#orate $anage$ent an% #hi!oso#hy; or that -i!! 9e e2#erien'ing $erger or !i6ui%ation in the near future. Fn%erstan%a9!y; there -i!! 9e $ore foreseea9!e syste$ integration #ro9!e$s if one of the $erging 'o$#anies is in the $i%st of an ERP u#gra%e 9e'ause it $ust %ea! -ith s'a!a9i!ity; a ne- 4 infrastru'ture; an% a %ifferent 'or#orate 'u!ture si$u!taneous!y. &urther; ERP integration is not re'o$$en%e% for 'o$#anies -hi'h re6uire a !ot of f!e2i9i!ity to su''ee% or -hi'h $anufa'ture #ro%u'ts that are 'onstant!y 'hanging. (i$i!ar!y; 'o$#anies that ha,e ,ery !itt!e e2#erien'e -ith for$a! infor$ation syste$s or ha,e 'onstant!y 'hanging infor$ation syste$s re6uire$ents -i!! not 9enefit fro$ an ERP i$#!e$entation. &ina!!y; organi1ations nee% to e2#!oit future 'o$$uni'ation an% 'o$#uting te'hno!ogy to integrate the ERP syste$

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-ith e=9usiness a##!i'ations. >ftenti$es; a%%itiona! ne- har%-are an% s#e'ia!i1e% #rofessiona!s are nee%e% to run the #o-erfu! soft-are syste$. De#en%ing on the si1e of the 'o$#any an% the $o%u!es insta!!e%; the 'ost of i$#!e$entation 'an range fro$ one $i!!ion to fi,e hun%re% $i!!ion %o!!ars; an% -i!! take as !ong as t-o years for a $i%=si1e 'o$#any an% se,en years for a !arge; $u!tinationa! 'or#oration to 'o$#!ete.

People
Peo#!e=re!ate% issues su'h as 'or#orate #hi!oso#hy an% !ea%ershi# sty!e 'an #!ay an i$#ortant ro!e in the ERP i$#!e$entation #ro'ess. Resear'h has 'on'!u%e% that a'ti,e to# $anage$ent su##ort an% 'o$$it$ent are essentia! to the su''ess of any syste$ i$#!e$entation. &re6uent!y; e2e'uti,e 'oun'i!s an% steering 'o$$ittees 'onsisting of to# $anagers are %e,e!o#e% to #!an an% $anage the 4 initiati,es. (u'h senior $anageria! in,o!,e$ent ten%s to in'rease the o#ti$i1ation of 4 9usiness ,a!ues. E$#!oyees 'an 9e 6uite -ary of any kin% of 'hange in the 9usiness #ro'esses; #arti'u!ar!y %uring #erio%s of e'ono$i' %o-nturn. !!=traine% e$#!oyees -ho fight the 'hanges in the 9usiness #ro'ess ten% to 9e #oor #erfor$ers. 4herefore; to in'rease the 'han'e of a su''essfu! ERP i$#!e$entation an% to re%u'e usersT resistan'e to 'hange; en% users; es#e'ia!!y those -ho are ,ery kno-!e%gea9!e -ith the o#erations; $ust 9e in,o!,e% in a!! stages of the i$#!e$entation #ro'ess. E$#!oyees $ust a!so 9e e%u'ate% a9out the ERP insta!!ation. (u'h e%u'ationa! en%ea,or shou!% in'!u%e a 'on'ise intro%u'tion to the 9asi' 'on'e#ts an% ar'hite'ture of ERP syste$s; in'!u%ing a'tua! s'reen shots of the fun'tion $o%u!es. During these training sessions; it is i$#ortant to %is'uss the $anageria! issues in,o!,e% an% to 9ui!% a 9asi' un%erstan%ing of the integration 'on'e#ts #rior to the a'tua! insta!!ation of the ERP syste$. &urther; any Dusiness=to=Dusiness initiati,es; reengineering #roAe'ts; a!!ian'es; an% the intro%u'tion of ne- te'hno!ogies shou!% a!so 9e a%%resse%. ProAe't $anagers $ust take 'harge of the i$#!e$entation #ro'ess at a!! ti$es. 4hey $ust o,ersee the reengineering of the key 9usiness #ro'esses; reassign Ao9 res#onsi9i!ities; restru'ture the organi1ationTs 'hart; an% re%efine -ork re!ationshi#s. &urther; they $ust a!so !earn ho- to $anage the soft-are ,en%ors an% any outsi%e 'onsu!tants.

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T9e "rgani;ational C9ange Process

ERP i$#!e$entation re6uires organi1ations to reengineer their key 9usiness #ro'esses in fun%a$enta! -ays; re,a$#ing o!% -ays of 'on%u'ting 9usiness; re%efining Ao9 res#onsi9i!ities; an% restru'turing the organi1ation. &or $aAor $u!tinationa! 'or#orations 5MK)8; the ERP syste$s $ust 9e 'usto$i1e% to a%%ress g!o9a! issues -here %ifferent 'ountries ha,e %ifferent -ays of %oing 9usiness; an% to in'or#orate 'ountry=s#e'ifi' 9usiness #ra'ti'es #ertaining to a''ounting; ta2 re6uire$ents; en,iron$enta! regu!ations; hu$an resour'es; $anufa'turing; an% 'urren'y 'on,ersion into the integrate% syste$s. Whi!e integrating the infor$ation syste$s a'ross ,arious 'ountries; three ty#es of $isfits 5re!ating to %ata; #ro'ess; an% out#ut8 'an o''ur %ue to in'o$#ati9i!ities 9et-een soft-are fun'tiona!ity an% organi1ationa! re6uire$ents as -e!! as %ifferen'es in 'u!tura! an% regu!atory en,iron$ents. 4he uni6ue 'onte2t of ea'h 'ountry in -hi'h an organi1ation o#erates $ust 9e 'arefu!!y en$eshe% into the tra%itiona!!y Western=9iase% 9usiness #ra'ti'es inherent in the ERP syste$s. Diese; et a!. 520008 %es'ri9es an eight=!e,e! #ro'ess that $anagers 'an use to $anage 'hange. 4he first ste# is to 'reate a 'o$#rehensi,e 'hange ,ision an% to $ake the ,ision o#erationa!. 4hen; a 'hange strategy is %efine% to assess rea%iness 'hange -ithin the organi1ation; to se!e't the 9est 'hange 'onfiguration; an% to esta9!ish 'hange go,ernan'e. 4he thir% #ro'ess is to %e,e!o# !ea%ershi#; in or%er to !ea% the 'hange #rogra$ an% to %e,e!o# !ea%ershi# 'a#a9i!ity. )o$$it$ent fro$ tea$s is 9ui!t through 'o$$uni'ation; $anaging resistan'e; an% transferring of kno-!e%ge an% ski!!s. 4he fifth #ro'ess is to $anage e$#!oyee an% stakeho!%ersT #erfor$an'e 9y esta9!ishing nee%s; an% i$#!e$enting #erfor$an'e $anage$ent an% #eo#!e #ra'ti'es. Dusiness 9enefits are %e!i,ere% through the 9ui!%ing of 9usiness 'ases; an% 6uantifying an% sustaining 9enefits. 4he ne2t #ro'ess is to %e,e!o# 'u!ture in the organi1ation 9y un%erstan%ing the 'urrent 'u!ture; an% then to %esign the target 'u!ture an% to i$#!e$ent 'u!tura! 'hange. 4he fina! #ro'ess is to %esign the organi1ation 9y un%erstan%ing the 'urrent organi1ation; an% then to %esign the target organi1ation an% to i$#!e$ent organi1ationa! 'hange.

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Met9ods in implementing ERP

ERP i$#!e$entation su##ort in'!u%es a!! the ser,i'es of the ,en%or. )o$#anies s#en% a !ot of ti$e in %is'ussing a9out the nee% to go for ERP. 4hey $ake a!! sorts of assess$ents an% 9ring the ne'essary resour'es to -ork on ERP. 4hey e,en 'arry the e2er'ises suggeste% in restru'turing. When the stage is a!! set to take ERP the ne2t $i!!ion %o!!ar 6uestion that 'o$es to the$ is the a##ro#riate $etho% of i$#!e$entation %ue to the risk for ERP i$#!e$entation. (o$e #o#u!ar $etho%s for i$#!e$entation are as fo!!o-s:

Coint <entures :it9 t9e Respecti<e %ndustry

4he 'o$#any nee% not ne'essari!y i$#!e$ent ERP a!! on its o-n. 4hey 'an as -e!! share it -ith !ea%ing #!ayers in the sa$e in%ustry. 4his -i!! ensure that the risks -i!! not 9e hea,y in the 'ase of !oss. 4his #ra'ti'e is assu$ing greater signifi'an'e in the 'urrent s'enario. 4he sharing a!!o-s the$ to ha,e an interfa'e -ith the syste$s on the 9asis of a 'o$$on #!atfor$. 4his is 'at'hing u# in the $arket -ith the on!y trou9!e 9eing re!u'tan'e of 'o$#etiti,e fir$s to 'o$e together on a $utua! agree$ent for fear of !osing 9usiness ta'ti's. t is a!so seen as ERP i$#!e$entation #ro9!e$ so!ution. 4hough the 'o$#anies are at !i9erty to 'reate se'urity for their res#e'ti,e infor$ation there -i!! not 9e any #rote'tion for the 5#oo! of8 re'or%s in the 'o$$on %ata9ase. ?o-e,er this has he!#e% !arge!y in $any as#e'ts. &or e.g. the $e%i'a! history of a #atient 9rought in an e$ergen'y 'on%ition 'an 9e i$$e%iate!y a''esse% though ERP. 4his #arti'u!ar fa't has itse!f sa,e% $any !i,es. >n the 'ontrary they -ou!% ha,e to go through the rigorous #ro'ess of fin%ing the #atient<s i%entity an% the ste#s after$ath -hi'h 9rings %o-n the 'han'es of the #atient<s sur,i,a! are ,ery $ini$a!; in the a9sen'e of ERP. 4his is one of ERP i$#!e$entation su##ort. Perha#s there are $any risks for ERP i$#!e$entation.

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&oing it all alone

4his is in fa't one of the #ri$iti,e $etho%s an% is no %ou9t fo!!o-e% ti!! %ate. 4his $etho% takes a !ot of risks in this $etho%. Dut if they are 'a!'u!ate% #ro#er!y then the regi$e -ou!% 9e ins'ri9e% as a go!%en #erio% in the 'o$#any<s history. 4he si$#!e for$u!a 9ehin% this #heno$enon is that the 'o$#any shou!% go for it su9Ae't to its finan'ia! #otentia!; re6uire$ents; te'hni'a! a'u$en $anage$ent #o!i'y an% si$i!ar fa'ts. A!! these -i!! he!# the$ to arri,e at ERP i$#!e$entation #ro9!e$ so!ution.

#ullDPartial %mplementation
t has a!-ays 9een sai% that ERP #ro%u'ts an% ser,i'es are #ure!y 9ase% on the nee%s an% resour'es of the 'o$#any. 4his is not a risk for ERP i$#!e$entation. ?en'e the 'o$#anies 'an 'hoose to go for a fu!! f!e%ge% ERP syste$ an% i$#!e$ent it throught the organi1ation an% there9y inter!ink the -ho!e #ro'ess an% the #eo#!e 'on'erne%. >ther-ise they $ay #refer to go for an ERP syste$ that #erfor$s a #arti'u!ar fun'tion of the 'o$#any. 4his is an i$#ortant ste# in 'hoosing the a##ro#riate ERP soft-are 9ut at the sa$e ti$e it a!so a%%s $ore ,a!ue to the i$#!e$entation #ro'ess. t is a!so an i$#ortant ERP #ro9!e$ so!ution.

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Success8ul ERP %mplementation

Dusinesses ha,e a -i%e s'o#e of a##!i'ations an% #ro'esses throughout their fun'tiona! units7 #ro%u'ing ERP soft-are syste$s that are ty#i'a!!y 'o$#!e2 an% usua!!y i$#ose signifi'ant 'hanges on staff -ork #ra'ti'es. $#!e$enting ERP soft-are is ty#i'a!!y too 'o$#!e2 for 0in=house0 ski!!; so it is %esira9!e an% high!y a%,ise% to hire outsi%e 'onsu!tants -ho are #rofessiona!!y traine% to i$#!e$ent these syste$s. 4his is ty#i'a!!y the $ost 'ost effe'ti,e -ay. 4here are three ty#es of ser,i'es that $ay 9e e$#!oye% for = )onsu!ting; )usto$i1ation; (u##ort. 4he !ength of ti$e to i$#!e$ent an ERP syste$ %e#en%s on the si1e of the 9usiness; the nu$9er of $o%u!es; the e2tent of 'usto$i1ation; the s'o#e of the 'hange an% the -i!!ingness of the 'usto$er to take o-nershi# for the #roAe't. ERP syste$s are $o%u!ar; so they %on<t a!! nee% 9e i$#!e$ente% at on'e. t 'an 9e %i,i%e% into ,arious stages; or #hase=ins. 4he ty#i'a! #roAe't is a9out 1/ $onths an% re6uires aroun% 150 'onsu!tants. A s$a!! #roAe't 5e.g.; a 'o$#any of !ess than 100 staff8 $ay 9e #!anne% an% %e!i,ere% -ithin 3=. $onths7 ho-e,er; a !arge; $u!ti=site or $u!ti= 'ountry i$#!e$entation $ay take years.N'itation nee%e%O 4he !ength of the i$#!e$entations is '!ose!y tie% to the a$ount of 'usto$i1ation %esire%. 4o i$#!e$ent ERP syste$s; 'o$#anies often seek the he!# of an ERP ,en%or or of thir%= #arty 'onsu!ting 'o$#anies. 4hese fir$s ty#i'a!!y #ro,i%e three areas of #rofessiona! ser,i'es: 'onsu!ting; 'usto$i1ation an% su##ort. 4he '!ient organisation $ay a!so e$#!oy in%e#en%ent #rogra$ $anage$ent; 9usiness ana!ysis; 'hange $anage$ent an% FA4 s#e'ia!ists to ensure their 9usiness re6uire$ents re$ain a #riority %uring i$#!e$entation. Data $igration is one of the $ost i$#ortant a'ti,ities in %eter$ining the su''ess of an ERP i$#!e$entation. (in'e $any %e'isions $ust 9e $a%e 9efore $igration; a signifi'ant a$ount of #!anning $ust o''ur. Fnfortunate!y; %ata $igration is the !ast a'ti,ity 9efore the #ro%u'tion #hase of an ERP i$#!e$entation; an% therefore re'ei,es $ini$a! attention %ue to ti$e 'onstraints. 4he fo!!o-ing are ste#s of a %ata $igration strategy that 'an he!# -ith the su''ess of an ERP i$#!e$entation:

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%entifying the %ata to 9e $igrate% Deter$ining the ti$ing of %ata $igration :enerating the %ata te$#!ates &ree1ing the too!s for %ata $igration De'i%ing on $igration re!ate% setu#s De'i%ing on %ata ar'hi,ing

Process preparation
ERP ,en%ors ha,e %esigne% their syste$s aroun% stan%ar% 9usiness #ro'esses; 9ase% u#on 9est 9usiness #ra'ti'es. Different ,en%or5s8 ha,e %ifferent ty#es of #ro'esses 9ut they are a!! of a stan%ar%; $o%u!ar nature. &ir$s that -ant to i$#!e$ent ERP syste$s are 'onse6uent!y for'e% to a%a#t their organi1ations to stan%ar%i1e% #ro'esses as o##ose% to a%a#ting the ERP #a'kage to the e2isting #ro'esses. Keg!e'ting to $a# 'urrent 9usiness #ro'esses #rior to starting ERP i$#!e$entation is a $ain reason for fai!ure of ERP #roAe'ts. t is therefore 'ru'ia! that organi1ations #erfor$ a thorough 9usiness #ro'ess ana!ysis 9efore se!e'ting an ERP ,en%or an% setting off on the i$#!e$entation tra'k. 4his ana!ysis shou!% $a# out a!! #resent o#erationa! #ro'esses; ena9!ing se!e'tion of an ERP ,en%or -hose stan%ar% $o%u!es are $ost '!ose!y a!igne% -ith the esta9!ishe% organi1ation. Re%esign 'an then 9e i$#!e$ente% to a'hie,e further #ro'ess 'ongruen'e. Resear'h in%i'ates that the risk of 9usiness #ro'ess $is$at'h is %e'rease% 9y: !inking ea'h 'urrent organi1ationa! #ro'ess to the organi1ation<s strategy7 ana!y1ing the effe'ti,eness of ea'h #ro'ess in !ight of its 'urrent re!ate% 9usiness 'a#a9i!ity7 un%erstan%ing the auto$ate% so!utions 'urrent!y i$#!e$ente%. ERP i$#!e$entation is 'onsi%era9!y $ore %iffi'u!t 5an% #o!iti'a!!y 'harge%8 in organi1ations stru'ture% into near!y in%e#en%ent 9usiness units; ea'h res#onsi9!e for their o-n #rofit an% !oss; 9e'ause they -i!! ea'h ha,e %ifferent #ro'esses; 9usiness ru!es; %ata se$anti's; authori1ation hierar'hies an% %e'ision 'enters. (o!utions in'!u%e re6uire$ents

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'oor%ination negotiate% 9y !o'a! 'hange $anage$ent #rofessiona!s or; if this is not #ossi9!e; fe%erate% i$#!e$entation using !oose!y integrate% instan'es 5e.g. !inke% ,ia Master Data Manage$ent8 s#e'ifi'a!!y 'onfigure% an%/or 'usto$i1e% to $eet !o'a! nee%s. A %isa%,antage usua!!y attri9ute% to ERP is that 9usiness #ro'ess re%esign to fit the stan%ar%i1e% ERP $o%u!es 'an !ea% to a !oss of 'o$#etiti,e a%,antage. Whi!e %o'u$ente% 'ases e2ist -here this has in%ee% $ateria!i1e%; other 'ases sho- that fo!!o-ing thorough #ro'ess #re#aration ERP syste$s 'an a'tua!!y in'rease sustaina9!e 'o$#etiti,e a%,antage.

Con8iguration
)onfiguring an ERP syste$ is !arge!y a $atter of 9a!an'ing the -ay you -ant the syste$ to -ork -ith the -ay the syste$ !ets you -ork. Degin 9y %e'i%ing -hi'h $o%u!es to insta!!; then a%Aust the syste$ using 'onfiguration ta9!es to a'hie,e the 9est #ossi9!e fit in -orking -ith your 'o$#anyTs #ro'esses. Modules @ Most syste$s are $o%u!ar si$#!y for the f!e2i9i!ity of i$#!e$enting so$e fun'tions 9ut not others. (o$e 'o$$on $o%u!es; su'h as finan'e an% a''ounting are a%o#te% 9y near!y a!! 'o$#anies i$#!e$enting enter#rise syste$s7 others ho-e,er su'h as hu$an resour'e $anage$ent are not nee%e% 9y so$e 'o$#anies an% therefore not a%o#te%. A ser,i'e 'o$#any for e2a$#!e -i!! not !ike!y nee% a $o%u!e for $anufa'turing. >ther ti$es 'o$#anies -i!! not a%o#t a $o%u!e 9e'ause they a!rea%y ha,e their o-n #ro#rietary syste$ they 9e!ie,e to 9e su#erior. :enera!!y s#eaking the greater nu$9er of $o%u!es se!e'te%; the greater the integration 9enefits; 9ut a!so the in'rease in 'osts; risks an% 'hanges in,o!,e%. Con8iguration Ta>les R A 'onfiguration ta9!e ena9!es a 'o$#any to tai!or a #arti'u!ar as#e't of the syste$ to the -ay it 'hooses to %o 9usiness. &or e2a$#!e; an organi1ation 'an se!e't the ty#e of in,entory a''ounting R & &> or E &> R it -i!! e$#!oy or -hether it -ants to re'ogni1e re,enue 9y geogra#hi'a! unit; #ro%u't !ine; or %istri9ution 'hanne!.
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(o -hat ha##ens -hen the o#tions the syste$ a!!o-s Aust arenTt goo% enoughU At this #oint a 'o$#any has t-o 'hoi'es; 9oth of -hi'h are not i%ea!. t 'an re=-rite so$e of the enter#rise syste$Ts 'o%e; or it 'an 'ontinue to use an e2isting syste$ an% 9ui!% interfa'es 9et-een it an% the ne- enter#rise syste$. Doth o#tions -i!! a%% ti$e an% 'ost to the i$#!e$entation #ro'ess. A%%itiona!!y they 'an %i!ute the syste$Ts integration 9enefits. 4he $ore 'usto$i1e% the syste$ 9e'o$es the !ess #ossi9!e sea$!ess 'o$$uni'ation 9et-een su##!iers an% 'usto$ers.

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Consulting ser<ices
Many organi1ations %i% not ha,e suffi'ient interna! ski!!s to i$#!e$ent an ERP #roAe't. 4his resu!te% in $any organi1ations offering 'onsu!ting ser,i'es for ERP i$#!e$entation. 4y#i'a!!y; a 'onsu!ting tea$ -as res#onsi9!e for the entire ERP i$#!e$entation in'!u%ing #!anning; training; testing; i$#!e$entation; an% %e!i,ery of any 'usto$i1e% $o%u!es. E2a$#!es of 'usto$i1ation in'!u%es a%%itiona! #ro%u't training7 'reation of #ro'ess triggers an% -orkf!o-7 s#e'ia!ist a%,i'e to i$#ro,e ho- the ERP is use% in the 9usiness7 syste$ o#ti$i1ation7 an% assistan'e -riting re#orts; 'o$#!e2 %ata e2tra'ts or i$#!e$enting Dusiness nte!!igen'e. &or $ost $i%=si1e% 'o$#anies; the 'ost of the i$#!e$entation -i!! range fro$ aroun% the !ist #ri'e of the ERP user !i'enses to u# to t-i'e this a$ount 5%e#en%ing on the !e,e! of 'usto$i1ation re6uire%8. Earge 'o$#anies; an% es#e'ia!!y those -ith $u!ti#!e sites or 'ountries; -i!! often s#en% 'onsi%era9!y $ore on the i$#!e$entation than the 'ost of the user !i'enses == three to fi,e ti$es $ore is not un'o$$on for a $u!ti=site i$#!e$entation. Fn!ike $ost sing!e=#ur#ose a##!i'ations; ERP #a'kages ha,e histori'a!!y in'!u%e% fu!! sour'e 'o%e an% shi##e% -ith ,en%or=su##orte% tea$ DEs for 'usto$i1ing an% e2ten%ing the %e!i,ere% 'o%e. During the ear!y years of ERP the guarantee of $ature too!s an% su##ort for e2tensi,e 'usto$i1ation -as an i$#ortant sa!es argu$ent -hen a #otentia! 'usto$er -as 'onsi%ering %e,e!o#ing their o-n uni6ue so!ution in=house; or asse$9!ing a 'ross=fun'tiona! so!ution 9y integrating $u!ti#!e 09est of 9ree%0 a##!i'ations.

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ECore systemE Customi;ation <s Con8iguration

n'reasing!y; ERP ,en%ors ha,e trie% to re%u'e the nee% for 'usto$i1ation 9y #ro,i%ing 9ui!t=in 0'onfiguration0 too!s to a%%ress $ost 'usto$ers< nee%s for 'hanging ho- the out= of=the=9o2 'ore syste$ -orks. Cey %ifferen'es 9et-een 'usto$i1ation an% 'onfiguration in'!u%e: )usto$i1ation is a!-ays o#tiona!; -hereas so$e %egree of 'onfiguration 5e.g. setting u# 'ost/#rofit 'entre stru'tures; organisationa! trees; #ur'hase a##ro,a! ru!es; et'.8 $ay 9e nee%e% 9efore the soft-are -i!! -ork at a!!. )onfiguration is a,ai!a9!e to a!! 'usto$ers; -hereas 'usto$i1ation a!!o-s in%i,i%ua! 'usto$er to i$#!e$ent #ro#rietary 0$arket=9eating0 #ro'esses. )onfiguration 'hanges ten% to 9e re'or%e% as entries in ,en%or=su##!ie% %ata ta9!es; -hereas 'usto$i1ation usua!!y re6uires so$e e!e$ent of #rogra$$ing an%/or 'hanges to ta9!e stru'tures or ,ie-s. 4he effe't of 'onfiguration 'hanges on the #erfor$an'e of the syste$ is re!ati,e!y #re%i'ta9!e an% is !arge!y the res#onsi9i!ity of the ERP ,en%or. 4he effe't of 'usto$i1ation is un#re%i'ta9!e an% $ay re6uire ti$e='onsu$ing stress testing 9y the i$#!e$entation tea$. )onfiguration 'hanges are a!$ost a!-ays guarantee% to sur,i,e u#gra%es to ne- soft-are ,ersions. (o$e 'usto$i1ations 5e.g. 'o%e that uses #re=%efine% 0hooks0 that are 'a!!e% 9efore/after %is#!aying %ata s'reens8 -i!! sur,i,e u#gra%es; though they -i!! sti!! nee% to 9e re=teste%. More e2tensi,e 'usto$i1ations 5e.g. those in,o!,ing 'hanges to fun%a$enta! %ata stru'tures8 -i!! 9e o,er-ritten %uring u#gra%es an% $ust 9e re=i$#!e$ente% $anua!!y. Dy this ana!ysis; 'usto$i1ing an ERP #a'kage 'an 9e une2#e'te%!y e2#ensi,e an% 'o$#!i'ate%; an% ten%s to %e!ay %e!i,ery of the o9,ious 9enefits of an integrate% syste$. Ke,erthe!ess; 'usto$i1ing an ERP suite gi,es the s'o#e to i$#!e$ent se'ret re'i#es for
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e2'e!!en'e in s#e'ifi' areas -hi!e ensuring that in%ustry 9est #ra'ti'es are a'hie,e% in !ess sensiti,e areas.

EFtension
n this 'onte2t 0E2tension0 refers to -ays that the %e!i,ere% ERP en,iron$ent 'an 9e e2ten%e% -ith thir%=#arty #rogra$s. t is te'hni'a!!y easy to e2#ose $ost ERP transa'tions to outsi%e #rogra$s; e.g. ('enarios to %o -ith ar'hi,ing; re#orting an% re#u9!ishing 5these easiest to a'hie,e; 9e'ause they $ain!y a%%ress stati' %ata87 4ransa'tiona! %ata 'a#ture s'enarios; e.g. using s'anners; ti!!s or R& Ds; are re!ati,e!y easy 59e'ause they tou'h e2isting %ata87 ho-e,er 9e'ause ERP a##!i'ations ty#i'a!!y 'ontain so#histi'ate% ru!es that 'ontro! ho- $aster %ata 'an 9e 'reate% or 'hange%; so$e s'enarios are ,ery %iffi'u!t to i$#!e$ent.

Maintenance and support ser<ices

Maintenan'e an% su##ort ser,i'es in,o!,es $onitoring an% $anaging an o#erationa! ERP syste$. 4his fun'tion is often #ro,i%e% in=house using $e$9ers of the 4 %e#art$ent; or $ay 9e #ro,i%e% 9y a s#e'ia!ist e2terna! 'onsu!ting an% ser,i'es 'o$#any.

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Researc9 Met9odology
&or this stu%y; the resear'h -as organi1e% a!ong key o-nershi# e2#erien'e 'riteria that a!!o-e% the resear'h to 'a#ture 6uantitati,e an% 6ua!itati,e infor$ation a'ross the $aAor 'o$#onents of enter#rise a##!i'ations. 4he !ist of 'riteria -as thorough!y %efine% to take into a''ount the e2#erien'e of not on!y the te'hni'a! staff; 9ut a!so en% users -ho $ust a''o$#!ish s#e'ifi' 9usiness tasks -ith the a##!i'ation. 4he soft-are ,ersions that -ere 'o$#are% in'!u%e%: Mi'rosoft :reat P!ains ,ersion ".5 an% #re,ie-s of Mi'rosoft :reat P!ains ,ersion *.0 >ra'!e E=Dusiness (uite 11.5.. Peo#!e(oft Enter#rise *.* an% *.. an% Enter#rise>ne *.11 (AP: $y(AP Dusiness (uite R/3 /.3 an% (AP R/3 Enter#rise /." (ie9e! ".5 an% (ie9e! "."

4he resear'h a!so in'!u%e% fun'tiona! areas su'h as &inan'ia! an% ?u$an )a#ita! Manage$ent (yste$s 5&M( J ?)M8; (u##!y )hain Manage$ent 5()M8; )usto$er Re!ationshi# Manage$ent 5)RM87 an% a##!i'ation !ife'y'!e #hases su'h as insta!!ation; i$#!e$entation; 'onfiguration; usage; $aintenan'e; su##ort; an% u#gra%es. We ha,e 9roken the entire #ro'ess %o-n into fi,e ste#s: Re,ie-e% ,en%ors< -e9 sites an% their #ositioning %o'u$ents; as -e!! as their on!ine an% har% 'o#y %o'u$entation. Fti!i1e% ana!yst re#orts; #ress arti'!es; an% te'hni'a! re,ie-s that are a,ai!a9!e to the genera! #u9!i'. Va!i%ate%; using the %efine% 'riteria; the infor$ation 'o!!e'te% in ste#s 1 an% 2 through in=%e#th inter,ie-s -ith the 'onsu!ting #ane! of e2#erts. &or the inter,ie- #ro'ess; #referen'e -as gi,en to res#on%ents -ith $u!ti=year

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e2#erien'e an% e2#erien'e -ith the !atest ,ersion of the a##!i'ation to ensure that the entire a##!i'ation !ife'y'!e -as #ro#er!y 'o,ere%. )o$#are% an% ana!y1e% fin%ings fro$ this #ri$ary an% se'on%ary resear'h to generate a rating for ea'h ,en%or on s#e'ifi' 'riteria. n this 'o$#arison an% ana!ysis; the res#on%ent<s e2#erien'e -ith $u!ti#!e ,en%ors -as !e,erage% as -e!!. Aggregate% 'o$#arisons an% ratings a!ong three $aAor #hases of the enter#rise a##!i'ation o-nershi# !ife'y'!e.

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ERP %mplementation Plan

4he f!o-'hart in &igure 1 %e#i'ts se,era! a'ti,ities that $ust 9e #erfor$e% 9efore i$#!e$enting an ERP syste$. &irst; $anagers $ust 'on%u't a feasi9i!ity stu%y of the 'urrent situation to assess the organi1ationTs nee%s 9y ana!y1ing the a,ai!a9i!ity of har%-are; soft-are; %ata9ases; an% inhouse 'o$#uter e2#ertise; an% $ake the %e'ision to i$#!e$ent ERP -here integration is essentia! 528. 4hey $ust a!so set goa!s for i$#ro,e$ent an% esta9!ish o9Ae'ti,es for thei$#!e$entation; an% 'a!'u!ate the 9reak= e,en #oints an% 9enefits to 9e re'ei,e% fro$ this e2#ensi,e 4 in,est$ent. 4he se'on% $aAor a'ti,ity in,o!,es e%u'ating an% re'ruiting en% users to 9e in,o!,e% throughout the i$#!e$entation #ro'ess. 4hir%; $anagers -i!! for$ a #roAe't tea$ or steering 'o$$ittee that 'onsists of e2#erts fro$ a!! fun'tiona! areas to !ea% the #roAe't. After a %e'ision is $a%e; a tea$ of syste$ 'onsu!tants -i!! 9e hire% to e,a!uate the a##ro#riateness of i$#!e$enting an ERP syste$; an% to he!# se!e't the 9est enter#rise soft-are #ro,i%er an% the 9est a##roa'h to i$#!e$enting ERP. n $ost situations; the 'onsu!tant tea$ -i!! a!so re'o$$en% the $o%u!es that are 9est suite% to the 'o$#anyTs o#erations 5$anufa'turing; finan'ia!s; hu$an resour'es; !ogisti's; fore'asting; et'.8; syste$ 'onfigurations; an% Dusiness=to= Dusiness a##!i'ations su'h as su##!y='hain $anage$ent; 'usto$er re!ationshi# $anage$ent; e=#ro'ure$ent; an% e=$arket#!a'e. 4he i$#ortan'e of a%e6uate e$#!oyee an% $anager training 'an ne,er 9e o,eresti$ate%. 4 ana!ysts usua!!y re'o$$en% that $anagers reser,e 11G of the #roAe'tTs 9u%get for training. Different kin%s an% %ifferent !e,e!s of training $ust 9e #ro,i%e% to a!! 9usiness stakeho!%ers; in'!u%ing $anagers; en% users; 'usto$ers; an% ,en%ors; 9efore the syste$ is i$#!e$ente%. (u'h training are usua!!y 'usto$i1e% an% 'an 9e #ro,i%e% 9y either interna! or outsi%e trainers. 4he syste$ insta!!ation #ro'ess -i!! a%%ress issues su'h as soft-are 'onfiguration; har%-are a'6uisition; an% soft-are testing. Data an% infor$ation in the %ata9ases $ust 9e
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'on,erte% to the for$at use% in the ne- ERP syste$ an% ser,ers an% net-orks nee% to 9e u#gra%e%. (yste$ $aintenan'e -i!! a%%ress issues an% #ro9!e$s that arise %uring o#erations. A #ost i$#!e$entation re,ie- is re'o$$en%e% to ensure that a!! 9usiness o9Ae'ti,es esta9!ishe% %uring the #!anning #hase are a'hie,e%. Kee%e% $o%ifi'ations are ta'k!e% %uring this #hase too.

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ERP $#!e$entation P!an

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Conclusion
An ERP i$#!e$entation is a huge 'o$$it$ent fro$ the organi1ation; 'ausing $i!!ions of ru#ees an% 'an take u# to se,era! years to 'o$#!ete. ?o-e,er; -hen it is integrate% su''essfu!!y; the 9enefits 'an 9e enor$ous. A -e!!=%esigne% an% #ro#er!y integrate% ERP syste$ a!!o-s the $ost u#%ate% infor$ation to 9e share% a$ong ,arious 9usiness fun'tions; there9y resu!ting in tre$en%ous 'ost sa,ings an% in'rease% effi'ien'y. When $aking the i$#!e$entation %e'ision; $anage$ent $ust 'onsi%ere% fun%a$enta! issues su'h as the organi1ationTs rea%iness for a %ra$ati' 'hange; the %egree of integration; key 9usiness #ro'esses to 9e i$#!e$ente%; e=9usiness a##!i'ations to 9e in'!u%e%; an% -hether or not ne- har%-are nee% to 9e a'6uire%. n or%er to in'rease the 'han'e of user a''e#tan'e; e$#!oyees $ust 9e 'onsu!te% an% 9e in,o!,e% in a!! stages of the i$#!e$entation #ro'ess. Pro,i%ing #ro#er e%u'ation an% a##ro#riate training are a!so t-o i$#ortant strategies to in'rease the en% user a''e#tan'e rate. 4he organi1ation is a!so going through a %rasti' 'hange; -ith 'hanges in the -ay 9usinesses are 'on%u'te%; the organi1ation 9eing restru'ture%; an% Ao9 res#onsi9i!ities 9eing re%efine%. 4o fa'i!itate the 'hange #ro'ess; $anagers are en'ourage% to uti!i1e the eight=!e,e! organi1ationa! 'hange #ro'ess. Managers 'an i$#!e$ent their ERP syste$s in se,era! -ays; -hi'h in'!u%e the -ho!e integration; the fran'hise a##roa'h; an% the sing!e= $o%u!e a##roa'h. &ina!!y; the #a#er 'on'!u%es -ith a f!o- 'hart; %e#i'ting $any of the a'ti,ities that $anagers $ust #erfor$ to ensure a #ro#er ERP i$#!e$entation.

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Re8erences
1. )!ass A ERP $#!e$entation: ntegrating Eean an% (i2 (ig$a = 9y Dona!% ?. (he!%on 2( Mo%ern ERP: (e!e't; $#!e$ent J Fse 4o%ay<s A%,an'e% Dusiness (yste$s = 9y Marianne Dra%for% 1( Ma2i$i1ing Bour ERP (yste$: A Pra'ti'a! :ui%e for Managers = 9y ('ott ?a$i!ton 2( Enter#rise Resour'e P!anning = 9y Dret Wagner 5. 3. ". *. .. ---.-iki#e%ia.org ---.sa#.'o$ ---.ora'!e.'o$ ---.nass'o$.'o$ ---.goog!e.'o$

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