Reference Book: "Enterprise Systems For Management": Implementation Strategies
Reference Book: "Enterprise Systems For Management": Implementation Strategies
Reference Book: "Enterprise Systems For Management": Implementation Strategies
IMPLEMENTATION STRATEGIES
Reference Book:
“Enterprise Systems for Management”
1
Learning Objectives
• Acquire a greater knowledge base of
– ERP components and how they work together to support business.
• Understand …
– implementation approaches,
– the differences between vanilla and chocolate implementations, and
– the short and long term impacts on the system and company.
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Preview
• A start-up process involves assessing the business environment, culture, and skills of
the staff and “readiness” of the company.
• Early in the project, open and honest assessments are critical to project planning.
• With any ERP implementation strategy, all the implementation components need to be
identified and planned.
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ERP Components
• Hardware
– An ERP system will require a powerful set of servers for development, testing, and
production environments.
– Key Resources
• Servers. High-end multiprocessor systems, several gigabytes of main memory and
several terabytes of secondary storage
• Clients. People accessing ERP systems (e.g., end-users, IT support staff, and
developers)
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ERP Components (Cont’d)
• Software
– A set of operating instructions and logic called programs that control and direct the
computer hardware to perform its functions.
– Key Components
• System Software. Operating system platform (e.g., Microsoft Windows Server,
Linux, and Sun Solaris)
• Database Management System (DBMS). (SAP/R3 works with IBM-DB2, Oracle,
Microsoft SQL)
• Application Software. These are programs or software utilities that help in the
development, monitoring, and integration of ERP software. Many ERP
implementations will require project management software, development software,
remote access software, and automated software for monitoring system traffic, virus
protection, etc.
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Figure 5-1 Typical ERP Architecture
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Table 5-1 Software Components with Oracle/PeopleSoft ERP
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ERP Components (Cont’d)
• People Resources
– End-users. Employees, clients, vendors, and others who will ultimately use the system.
– The project manager. Puts together a harmonious team, works with top management
in getting support and resources for the project, and champion the system and its
benefits to the end-users.
• Strategic Partners
– Assist in addressing integration and interface issues with third party products
• Middleware
– Assists with the development of reporting databases that use Extract Translate and
Load tools (ETL)
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Database Requirements
• Large ERP system implementations require
– a robust relational database system (Oracle, DB2, Sybase, Microsoft SQL).
• Benefits
– A single-system instance is easier to maintain and support.
– Assessing organizational change along with modifying the system to meet the
needs of the business will help to minimize risk.
• Drawbacks
– If a system is modified, each modification will need to be analyzed in light of the
upgrade to see if it needs to be incorporated in the upgrade or removed.
– An upgrade can sometimes turn into a re-implementation, which requires more
resources and time.
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Platform Issues
• Servers
– Servers that make up the infrastructure will need to grow as the system grows and expands
with enough storage to ensure data is quickly retrievable.
• Network
– Businesses need a reliable and secure network in place.
• Security
– Several components must be installed and implemented to ensure that the ERP system is
secure from unauthorized access.
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Summary
• Many components make up an ERP system.
– The software, as well as the surrounding operational software and third party
software are needed to ensure that the business can accomplish its goals.
• ERPs are all about change,
– both to business flows and, more importantly, to employees making it very high risk.
• Managing the risk throughout the project with a proven implementation methodology
is key to being successful.
• One key decision to make before the implementation is
– whether or not to modify the system,
– change business processes, or
– use some combination of modification and business change.
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Summary (Cont’d)
Hardware Software
•Application servers •Operating system
•Database servers •Database management system
•Web servers •ERP system
•Personal computers •Software development
•Storage devices •System performance
•Printers •Virus protection
•Networking equipment •Report distribution
•Uninterruptible power supply •Batch run control
•Software version control
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