AbaKus

Technology Interest Group at IIMK

Preparatory Material for PGP19 SET 2

Anuj Sachan | Atibhi Lehakra | Bhavna Verma | Ranjith Babu

Part A

 Technology Means Smart Business

Software Implementation
Implementing New Systems
The systems implementation stage involves

Hardware and software acquisition

Software development
Testing of programs and procedures
Conversion of data resources
Conversion alternatives
Education/training of end users and specialists who will operate the new system

Project Management
The skills and knowledge necessary to be a good project manager will translate into virtually
any project environment.The people who have acquired them are sought after by most
organizations. As in any project there are Risk, Requirements, Configuration, Change,
Release management activities.
Every project has

A set of activities with a clear beginning and end

Goals
Objectives
Tasks
Limitations or constraints
A series of steps or phases

Managing a project effectively requires Process, Tools and Techniques.

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Sample Implementation Process

Phases of Project Management

There are five phases in most projects

Initiating/Defining
Planning
Executing
Controlling
Closing

Example activities of each phase

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Initiating/Defining
Phase

Planning Phase

State the problem and/or goal

Identify the objectives
Secure resources
Explore the costs/benefits in feasibility study

Identify and sequence activities

Identify the critical path
Estimate the time and resources needed for
project completion
Write a detailed project plan

Execution Phase

Commit resources to specific tasks

Add additional resources and/or personnel
if necessary
Initiate work on the project

Controlling Phase

Establish reporting obligations

Create reporting tools
Compare actual progress with baseline
Initiate control interventions, if necessary

Closing Phase

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Install all deliverables

Finalize all obligations and commitments
Meet with stakeholders
Release project resources
Document the project
Issue a final report

 Technology Means Smart Business

Evaluating Hardware, Software, Services

Set minimum physical, performance characteristics for all hardware and software

Formalize these requirements in an RFP/RFQ

Send RFP to appropriate vendors

Evaluate bids when received

All claims must be demonstrated

Obtain recommendations from other users
Search independent sources for evaluations
Benchmark test programs and test data

Evaluation Factors

Hardware
Evaluation
Factors

Performance
Cost
Reliability
Compatibility
Technology
Ergonomics
Connectivity
Scalability
Bundled Software
Support

Software
Evaluation
Factors

Quality
Efficiency
Flexibility
Security
Maintenance
Documentation

Hardware evaluation factors apply to software as well. Software that is slow, hard to use,
bug filled or poorly documented is not a good choice at any price.
Evaluating IS Services
Examples of IS services

Developing a company website

Installation or conversion of hardware/software

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 Technology Means Smart Business

Employee training
Hardware maintenance
System design and/or integration
Contract programming
Consulting services

IS Service Evaluation Factors

IS service evaluation factors include

Performance
Systems development
Maintenance
Conversion
Training
Backup facilities and services
Accessibility to sales and support

Other Implementation Activities

Successful implementation of a new business system depends on Testing, Data
conversion, Documentation and Training.
Acceptance Testing
Acceptance Testing is a level of the software testing process where a system is tested for
acceptability.
The purpose of this test is to evaluate the systems compliance with the business
requirements and assess whether it is acceptable for delivery.

ANALOGY
During the process of manufacturing a ballpoint pen, the cap, the body, the tail and clip, the
ink cartridge and the ballpoint are produced separately and unit tested separately. When
two or more units are ready, they are assembled and Integration Testing is performed.
When the complete pen is integrated, System Testing is performed. Once the System
Testing is complete, Acceptance Testing is performed so as to confirm that the ballpoint pen
is ready to be made available to the end-users.
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METHOD
Usually, Black Box Testing method is used in Acceptance Testing.
Testing does not usually follow a strict procedure and is not scripted but is rather ad-hoc.
TASKS
Acceptance Test Plan

Prepare
Review
Rework
Baseline

Acceptance Test Cases/Checklist

Prepare
Review
Rework
Baseline

Acceptance Test

Perform

When is it performed?
Acceptance Testing is performed after System Testing and before making the system
available for actual use.
Who performs it?
Internal Acceptance Testing (Also known as Alpha Testing) is performed by members of the
organization that developed the software but who are not directly involved in the project
(Development or Testing). Usually, it is the members of Product Management, Sales and/or
Customer Support.
External Acceptance Testing is performed by people who are not employees of the
organization that developed the software.
Customer Acceptance Testing is performed by the customers of the organization that
developed the software. They are the ones who asked the organization to develop the
software for them. [This is in the case of the software not being owned by the organization
that developed it.]
User Acceptance Testing (Also known as Beta Testing) is performed by the end users of the
software. They can be the customers themselves or the customers customers.

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 Technology Means Smart Business

System Testing
System Testing is a level of the software testing process where a complete, integrated
system/software is tested.
The purpose of this test is to evaluate the systems compliance with the specified
requirements.

ANALOGY
During the process of manufacturing a ballpoint pen, the cap, the body, the tail, the ink
cartridge and the ballpoint are produced separately and unit tested separately. When two
or more units are ready, they are assembled and Integration Testing is performed. When the
complete pen is integrated, System Testing is performed.
METHOD
Usually, Black Box Testing method is used.
TASKS
System Test Plan

Prepare
Review
Rework
Baseline

System Test Cases

Prepare
Review
Rework
Baseline

System Test

Perform

When is it performed?
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System Testing is performed after Integration Testing and before Acceptance Testing.
Who performs it?
Normally, independent Testers perform System Testing.
Integration Testing
Integration Testing is a level of the software testing process where individual units are
combined and tested as a group.
The purpose of this level of testing is to expose faults in the interaction between integrated
units.
Test drivers and test stubs are used to assist in Integration Testing.

Note: The definition of a unit is debatable and it could mean any of the following:

the smallest testable part of a software

a module which could consist of many of 1
a component which could consist of many of 2

ANALOGY
During the process of manufacturing a ballpoint pen, the cap, the body, the tail and clip, the
ink cartridge and the ballpoint are produced separately and unit tested separately. When
two or more units are ready, they are assembled and Integration Testing is performed. For
example, whether the cap fits into the body or not.
METHOD
Any of Black Box Testing, White Box Testing, and Gray Box Testing methods can be used.
Normally, the method depends on your definition of unit.
TASKS
Integration Test Plan

Prepare
Review
Rework
Baseline

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 Technology Means Smart Business

Integration Test Cases/Scripts

Prepare
Review
Rework
Baseline

Integration Test

Perform

When is Integration Testing performed?

Integration Testing is performed after Unit Testing and before System Testing.
Who performs Integration Testing?
Either Developers themselves or independent Testers perform Integration Testing.
APPROACHES
Big Bang is an approach to Integration Testing where all or most of the units are combined
together and tested at one go. This approach is taken when the testing team receives the
entire software in a bundle. So what is the difference between Big Bang Integration Testing
and System Testing? Well, the former tests only the interactions between the units while
the latter tests the entire system.
Top Down is an approach to Integration Testing where top level units are tested first and
lower level units are tested step by step after that. This approach is taken when top down
development approach is followed. Test Stubs are needed to simulate lower level units
which may not be available during the initial phases.
Bottom Up is an approach to Integration Testing where bottom level units are tested first
and upper level units step by step after that. This approach is taken when bottom up
development approach is followed. Test Drivers are needed to simulate higher level units
which may not be available during the initial phases.
Sandwich/Hybrid is an approach to Integration Testing which is a combination of Top Down
and Bottom Up approaches.
Unit Testing
Unit Testing is a level of the software testing process where individual units/components of
a software/system are tested. The purpose is to validate that each unit of the software
performs as designed.

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A unit is the smallest testable part of software. It usually has one or a few inputs and usually
a single output. In procedural programming a unit may be an individual program, function,
procedure, etc. In object-oriented programming, the smallest unit is a method, which may
belong to a base/super class, abstract class or derived/child class. (Some treat a module of
an application as a unit. This is to be discouraged as there will probably be many individual
units within that module.)
Unit testing frameworks, drivers, stubs and mock or fake objects are used to assist in unit
testing.
METHOD
Unit Testing is performed by using the White Box Testing method.
When is it performed?
Unit Testing is the first level of testing and is performed prior to Integration Testing.
Who performs it?
Unit Testing is normally performed by software developers themselves or their peers. In
rare cases it may also be performed by independent software testers.
TASKS
Unit Test Plan

Prepare
Review
Rework
Baseline

Unit Test Cases/Scripts

Prepare
Review
Rework
Baseline

Unit Test
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Perform

BENEFITS

Unit testing increases confidence in changing/maintaining code. If good unit tests are
written and if they are run every time any code is changed, the likelihood of any
defects due to the change being promptly caught is very high. If unit testing is not in
place, the most one can do is hope for the best and wait till the test results at higher
levels of testing are out. Also, if codes are already made less interdependent to make
unit testing possible, the unintended impact of changes to any code is less.
Codes are more reusable. In order to make unit testing possible, codes need to be
modular. This means that codes are easier to reuse.
Development is faster. How? If you do not have unit testing in place, you write your
code and perform that fuzzy developer test (You set some breakpoints, fire up the
GUI, provide a few inputs that hopefully hit your code and hope that you are all set.)
In case you have unit testing in place, you write the test, code and run the tests.
Writing tests takes time but the time is compensated by the time it takes to run the
tests. The test runs take very less time: You need not fire up the GUI and provide all
those inputs. And, of course, unit tests are more reliable than developer tests.
Development is faster in the long run too. How? The effort required to find and fix
defects found during unit testing is peanuts in comparison to those found during
system testing or acceptance testing.
The cost of fixing a defect detected during unit testing is lesser in comparison to that
of defects detected at higher levels. Compare the cost (time, effort, destruction,
humiliation) of a defect detected during acceptance testing or say when the
software is live.
Debugging is easy. When a test fails, only the latest changes need to be debugged.
With testing at higher levels, changes made over the span of several
days/weeks/months need to be debugged.
Codes are more reliable. Why? I think there is no need to explain this to a sane
person.

Data Conversion
Data conversion includes Converting data elements from the old database to the new
database. Consolidating data from several databases and organizing data into new data
subsets. Correcting data errors and Filtering out unwanted data.
Improperly organized and formatted data is a major cause of implementation failures.
Documentation
User Documentation includes Sample data entry screens, forms, reports and System
operating instructions.

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Systems Documentation includes Protocol of communication among those developing,
implementing, and maintaining the system and detailed record of the system design along
with key to diagnosing problems, making system changes.
Training
End users must be trained to operate a new system or its implementation will fail. May
involve only activities, such as data entry, or all aspects of system use May start earlier than
actual deployment of software Managers and end users must understand how the new
technology impacts business operations. System training supplemented with training
related to Hardware devices and Software packages.
Major System Conversion Strategies
When a new ICT system has been tested thoroughly by the programmers then it is
ready is be implemented into the working environment, replacing the original system. There
are four strategies that can be used to do this: direct; phased; pilot or parallel running.
Direct implementation:
With this strategy, the changeover is done in one operation, completely replacing the old
system in one go. This usually takes place on a set date, often after a break in production or
a holiday period so that time can be used to get the hardware and software for the new
system installed without causing too much disruption.
Advantages:

The most rapid of all the strategies, provided it works!

Less risk of confusion between old and new systems.

Disadvantages:

Most stressful for the users - the old system has gone so there is no going back if they have
difficulties.
Most difficult to train staff on as the new system was not in place to learn on before the
changeover.
Most stressful for the developers - all the data and files from the old system will have to be
converted ready for use on the new one.
Most risky - if the new system does not work properly then there is nothing to fall back on.

Phased implementation:
With this strategy, the new brought in in stages (phases). If each phase is successful then
the next phase is started, eventually leading to the final phase when the new system fully
replaces the old one.
Advantages:

Very structured, each phase can be fully evaluated before moving onto the next one.

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Lower risk, a well-planned and controlled introduction of the new system.

Easy to train staff by letting them learn new skills on each phase as it is introduced.

Disadvantages:

Slower than direct implementation.

Although each phase is easy to evaluate, you have to wait until all the phases are complete
before you can evaluate the whole change over.

Pilot implementation:
With this strategy, the new system replaces the old one in one operation but only on a small
scale. For example it might be tried out in one branch of the company or in one location. If
successful then the pilot is extended until it eventually replaces the old system completely.
Advantages:

Easy to control, the pilot can be halted at any time.

Easy to evaluate because the new and old systems are both running.
Low risk, if a small-scale pilot fails then not too much has been lost.
Easy to train staff by letting them learn new skills on the pilot system.

Disadvantages:

It can be slow to get a pilot to completely replace the old system.

A pilot may not show up problems that a full-scale implementation would. This is because a
system can work well as a small-scale pilot but has difficulties when it is scaled up to a full
operating system with more realistic volumes of data to be processed.

Parallel running implementation:

With this strategy, the old and the new system are both used alongside each other, both
being able to operate independently. If all goes well, the old system is stopped and new
system carries on as the only system.
Advantages:

If there are initial problems with the new system then the old one can still be used.
Both systems can easily be compared.
Easy to train staff by letting them learn new skills on the parallel system.
Easy to evaluate because the new and old systems are both running.

Disadvantages:

Expensive - both systems are being run as fully operating versions so both are doing the
same job. This may mean duplication of staff and hardware.
Some risk - there is a greater chance of confusion or errors if the two different systems are
being run side-by-side.

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Post-Implementation Activities
It is the single but most costly activity. It corrects errors or faults in the system. Improve
system performance and adapt the system to changes in the operating or business
environment. It requires more programmers than application development and may exist
for years.
Systems Maintenance
There are 4 basic categories of system maintenance
Corrective: fix bugs and logical errors
Adaptive: add new functionality
Perfective: improve performance
Preventive: reduce chances of failure

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Post-Implementation Review
It ensures that newly implemented system meets the established business objectives. Errors
must be corrected by the maintenance process. It also includes a periodic review/audit of
the system as well as continuous monitoring.

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Part B

Customer Relationship Management

Managing the full range of the customer relationship involves two objectives

Providing the organization and all of its customer-facing employees with a single,
complete view of every customer at every touch point and across all channels
Providing the customer with a single, complete view of the company and its extended
channels.

Thats why companies are turning to customer relationship management to improve their
customer focus.
Key Features
Usage of information technology to create a cross-functional enterprise system that
integrates and automates many of the customer-serving processes in sales, marketing,
and customer services that interact with a companys customers
Creates an IT framework of Web-enabled software and databases that
Integrates these processes with the rest of a companys business operations

Application clusters in CRM

Contact and Account Management

Helps sales, marketing, and service professionals capture and track relevant data
about every past and planned contact with prospects and customers
Stores the data in a common customer database that integrates all customer account
information
Makes data available throughout the company via Internet, intranet, or other network
links for sales, marketing, service, and other CRM applications
Sales
Provides sales representatives with the software tools and company data sources they
need to support and manage their sales activities and optimize cross-selling and upselling.

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 Provides real-time access to a single common view of the customer, enabling sales
representatives to check on all aspects of a customers account status and history
before scheduling their sales calls
Cross-selling
It is an approach in which a customer of one product or service,might also be
interested in purchasing a related product or service.
Up-selling
It is a process of finding ways to sell a new or existing customer a better product than
they are currently seeking
Marketing and Fulfilment
Automating such tasks as qualifying leads for targeted marketing, and scheduling and
tracking direct marketing mailings
Assisting in the fulfilment of prospect and customer responses and requests by
quickly scheduling sales contacts and providing appropriate information on products
and services to them, while capturing relevant information for the CRM database
Customer Service and Support
Provideservice reps with software tools and real-time access to the common customer
database shared by sales and marketing professionals.
Helps customer service managers create, assign, and manage requests for service by
customers.
Retention and Loyalty Programs
CRM systems try to help a company identify, reward, and market to their most loyal
and profitable customers.
CRM analytical software includes data mining tools and other analytical marketing
software, while CRM databases may consist of a customer data warehouse and CRM
data marts.

Three Phases of CRM

Acquire
CRM software tools and databases to help a business acquire new customers by doing a
superior job of contact management, sales prospecting, selling, direct marketing, and
fulfilment.
Enhance
Web-enabled CRM account management and customer service and support tools help keep
customers happy by supporting superior service from a responsive networked team of sales
and service specialists and business partners. Also CRM sales force automation and direct
marketing and fulfilment tools help companies cross-sell and up-sell to their customers, thus
increasing their profitability to the business

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Retain
CRM analytical software and databases help a company proactively identify and reward its
most loyal and profitable customers to retain and expand their business via targeted
marketing and relationship marketing programs

Benefits of CRM
It allows a business to identify and target its best customers
It makes possible real-time customization and personalization of products and
services
It keeps track of when a customer contacts the company, regardless of the contact
point
It enables a company to provide a consistent customer experience and superior service
and support across all the contact points a customer chooses.

CRM Failures
Common causes for CRM failure

Lack of senior management sponsorship

Improper change management
Elongated projects that take on too much, too fast
Lack of or poor integration between CRM and core business systems
Lack of end-user incentives leading to poor user adoption rates

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Enterprise Resource Planning

ERP is the technological backbone of e-business, an enterprise wide transaction framework
with links into sales order processing, inventory management and control, production and
distribution planning, and finance.
It is a cross-functional enterprise system driven by an integrated suite of software modules
that supports the basic internal business processes of a company. For example, ERP software
for a manufacturing company will typically process the data from and track the status of
sales, inventory, shipping, and invoicing, as well as forecast raw material and human resource
requirements.
ERP gives a company an integrated real-time view of its core business processes, such as
production, order processing, and inventory management, tied together by the ERP
application software and a common database maintained by a database management system.
ERP systems track business resources, and the status of commitments made by the business,
no matter which department has entered the data into the system.

Some of the business process flows and customer and supplier information flows supported by ERP systems

The business processes and functions supported by the ERP system implemented by the ColgatePalmolive Company.

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Benefits of ERP
ERP creates a framework for integrating and improving a companys internal business
processes that result in significant improvements in the quality and efficiency of
customer service, production, and distribution.
Many companies report significant reductions in transaction processing costs and
hardware, software, and IT support staff compared to the non integrated legacy
systems that were replaced by their new ERP systems.
ERP provides vital cross-functional information on business performance to managers
quickly to significantly improve their ability to make better decisions in a timely
manner across the entire business enterprise.
Implementing ERP systems breaks down many former departmental and functional
walls or silos of business processes, information systems, and information
resources. This results in more flexible organizational structures, managerial
responsibilities, and work roles, and therefore a more agile and adaptive organization
and workforce that can more easily capitalize on new business opportunities.

Challenges in Implementing ERP

The costs and risks of failure in implementing a new ERP system are substantial
Hardware and software costs are a small part of total costs, and that the costs of
developing new business processes (reengineering) and preparing employees for the
new system (training and change management) make up the bulk of implementing a
new ERP system
Converting data from previous legacy systems to the new cross-functional ERP
system is another major category of ERP implementation costs

Typical costs of implementing a new ERP system

Causes of ERP Failures

Underestimation of the complexity of the planning, development, and training that is
needed to prepare for a new ERP system that will radically change the business
processes and information systems.
Failure to involve affected employees in the planning and development phases and to
change management programs

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 Trying to do too much too fast in the conversion process

Due to overreliance by company or IT management on the claims of ERP software
vendors or on the assistance of prestigious consulting firms hired to lead the
implementation
Insufficient training in the new work tasks required by the ERP system and failure to
do enough data conversion and testing

Trends in ERP
At present major ERP software companies have developed modular, Web-enabled software
suites that integrate ERP, customer relationship management, supply chain management,
procurement, decision support, enterprise portals, health care functionality, and other
business applications and functions. Ex. Oracles e-Business Suite and SAPs mySAP

Trends in the evolution of ERP applications

Part B Source: Management Information System by OBrien, Marakas and Behl 10th Edition.

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