Challenges in Implementing an Enterprise

Resource Planning (ERP) software

System Analysis point of view
11 August 2009
PRESENTED BY-

Nijara Das (42/D/2009)

Nilakhi Bora (43/D/2009)

Nimisha Kotoky (45/D/2009)

Nitin Kumar Kalita (46/D/2009)

Slide Number 2
August 2009
What is an ERP software?

 ERP stands for Enterprise Resource Planning

 ERP is a company-wide computer software system used to manage and

coordinate all the resources, information, and functions of a business

 ERP's main goal is to integrate data and processes from all areas of an
organization

 ERP's usually accomplish integration by creating one single database that

manages different areas of an organization with various business functions

 Functions such as Human Resources, Supply Chain Management, Customer

Relations Management, Financials, Manufacturing functions which were once
stand alone software applications now can all fit under one umbrella - the
ERP system

 The most popular ERP software is from a Germany based company called
SAP

Slide Number 3
August 2009
Why do companies implement ERP softwares?

 ERP is a way to integrate the data and processes of an organization into one
single system

 Once an ERP system is in place, usually all departments of an organization

can work in harmony as it eliminates the individual computer systems of the
different departments

 Advantages of ERP Systems:

• A totally integrated system
• The ability to streamline different processes
• The ability to easily share data across various departments in an organization
• Improved efficiency and productivity levels
• Better tracking and forecasting
• Lower costs
• Improved customer service

Slide Number 4
August 2009
Steps in implementing an ERP software

Steps
Understanding the customer
requirements

Analyzing the ‘As-Is’ scenario The length of time to implement an ERP

of the customers IT applications
Developing the blue print of the
‘To-Be’ scenario of the customers
IT applications
Implementing the ERP software
system depends on the:
• Size of the business
• Scope of the project
• Willingness of the customer to take
ownership for the project

Training the customers to use

the ERP software effectively

Slide Number 5
August 2009
Challenges faced during implementation of an ERP software?

 Understanding the customer requirements

• Many a times the customer is not clear in explaining its requirements to the software provider
• There is a likelihood of expectation mismatch between what the customer desires and what is finally delivered to
it

 Analyzing the ‘As-Is’ scenario of the customers IT applications

• Many a times there is a lack of documentation available with the customer about its applications
• The Subject Matter Experts (SME’s) for the respective may not cooperate to share knowledge for the fear of
losing their jobs

 Developing the blue print of the ‘To-Be’ scenario of the customers IT applications
• Developing the blue print is difficult when the ‘As-Is’ scenario is not clearly understood because of the above
reasons

 Implementing the ERP software

• Implementing is very challenging if the customer is a large organization spread across the globe
• It is always debatable as to in which location the ERP software should first be implemented, and which are the
other locations subsequently

 Training the customers to use the ERP software effectively

• The users of the customers organization may be reluctant to learn and get trained on a new IT application
• It is difficult to train old employees who are not very computer savvy

Slide Number 6
August 2009
How to tackle the Challenges?
 Understanding the customer requirements
• The software company should have proper checks to ensure that the customer requirements are
understood properly

 Analyzing the ‘As-Is’ scenario of the customers IT applications

• The software company should involve its own SME’s to capture knowledge of the ‘As-Is’ scenario

 Developing the blue print of the ‘To-Be’ scenario of the customers IT applications
• The blue print developed would be accurate if the above two steps are taken care of

 Implementing the ERP software

• Proper planning should be done before going ahead to implement the ERP software

 Training the customers to use the ERP software effectively

• The software company should design the training program after taking opinions from the Human
Resource (HR) department of the customer
• Training incentives should be provided to the employees of the customer’s organization after
successful completion of the training. E.g. Training Bonus

Slide Number 7
August 2009
Questions & Answers

Slide Number 8
August 2009
Thank You!!!

Slide Number 9
August 2009