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Enterprise Resource Planning

Authors:
Kushal Ganesh at Teesside University
Kushal Ganesh
Sanjay Mohapatra at Xavier Institute of Management, Bhubaneswar (XIMB)
Sanjay Mohapatra
Anbuudayasankar S.P. at Guru Ghasidas Vishwavidyalaya (A Central University)
Anbuudayasankar S.P.
  • Guru Ghasidas Vishwavidyalaya (A Central University)
P. Sivakumar at Arignar Anna Government Arts College, Namakkal - 637 002
P. Sivakumar
  • Arignar Anna Government Arts College, Namakkal - 637 002
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INDEX
ERP phases
ERP design processes
ERP implementation processes
Activity Flow Diagram
Implementation Schedule
Prerequisites
Detailed Activities containing the Tasks corresponding to that activity
Phase Deliverables
Decision Matrix / Checklist to gauge the successful completion of the phase and
a prerequisite to proceed to the next phase
Critical Success Factor
Project Initiation
Core Process Analysis
Conference Room Pilot
Customization Design / Build
Interface / Conversion Design/ Build
System Integration Testing
Training
User Acceptance support
Production Go-Live
Roll Out
Project Management
System Administration
Change Management
Control and Reporting
Work Management
Resource management
Quality Management
Con0guration management
Planning tasks
Controlling tasks
Completing tasks
Know your Client
De0ne the Project
Manage the Risks
Field a winning Team.
Produce formal Documentation
Plan for Completion
Communicate with Honesty and
Contract review
0rm-up project scope,
assumptions,
exclusions
deliverables
uni0ed Project Plan
Field a Project team
Install the software
Contractual agreement documents
Consultant proposal
Client policies
Consulting policies
Resource costs
Environment requirement
Business Requirement De0nition
Business Requirement Mapping
Conducting Current Business Baseline
Gathering Business Volumes and Metrics
Gather Business Requirement Scenarios
Determine Audit and Control Requirements
Audit and Control Requirements
Identify Business Availability Requirements
Identify Reporting and Information Access Requirements
Reporting and Information
Core Process Analysis
Key Process Owners Training
Prepare a Training Plan
Develop Training Material
Prepare Training Environment
Conduct Key Process Owners Training
Preparation for Mapping
Map Business Requirement
Mapping Process
Business Data Mapping
Integrated Fit Analysis
Conduct Reporting Fit Analysis
Reporting
Gap Resolutions
SCOPE MANAGEMENT
Core Process Analysis
Custom Reports Prioritization
Reports Prioritization
Integrated Business Solutions
Decision Matrix/Checklist
Conference Room Pilot
Business Flow Diagram
Implementation Schedule
Instance Strategy
Backup Strategy
CRP instance
Application Setup
Critical Setup
Unit Testing and CRP
Business System Testing
Testing Process
Parallel Process
Customisations
Gap Analysis
Analyze Dependency
Design
Development
Business Flow Diagram
Implementation Schedule
TO BE Process
ERP Application Standard Functionalities.
Interface Program
Steering Committee
Interface Analysis
Interface Building Team
User Acceptance Testing
source data 0les
Business Flow Diagram
Implementation Schedule
Testing
Training
Work 7ow Diagram
User Requirements
UAT Strategy
UAT
Go Live
Transition
Cutover
Production Readiness
Data Migration
Roll out
Data Migration
Project Management
Risk Management
Change Control Management
Status Monitoring
Project Completion

Chapters (12)

ERP as a Business Enabler
Full-text available
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.1-35
In order to sustain and grow further, an organization must deal with all sales holders such as employees, stakeholders and the environment. The organization must design an information system that would collect information as well as provide required information to all these stakeholders. Accordingly, business processes must be organized in such a way that these processes use designed information systems to operate efficiently and enhance the overall performance of the organization. The business processes are organized in such a way that they provide value to their stakeholders by a prioritizing strategy that would provide a faster and higher return on investment (ROI). This prioritization ensures focus of these organizations in relation to their corporate objectives. Since resources are limited, efforts are prioritized on certain business processes which would yield tremendous and faster benefits to the stakeholders. To achieve this, information systems are designed across the entire enterprise, which would help in providing information for tracking and monitoring progress of different processes. These enterprise-wide applications (known as enterprise resource planning, ERP) help in assisting in designing, integrating and automating these prioritized information systems.
Core Process Analysis
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.49-70
The purpose of the core process analysis is to define the business requirements of the new application system aligned to the future business model as conceived by the client. The principle activities during the business requirement definition are as follows: Business requirement mapping and gap analysis is an iterative approach with the following objectives: Areas that are necessary to map include:
Conference Room Pilot
Full-text available
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.71-84
The purpose of the Conference Room Pilot (CRP) is to install the CRP instance, configure the core application, and perform business transactions with the client key process owners to establish that the basic client’s business process framework is properly configured within the core enterprise resource planning (ERP) application installation at the client site.
Customizations
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.85-90
Enterprise resource planning (ERP) application provides the users the flexibility to customize the standard application functionality to suit the specific business needs, which is not supported by the standard application product. Developing additional reports as per business requirement of the organization also falls under the scope of customization.
Interface and Conversion
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.91-99
Although enterprise resource planning (ERP) application is meant for capture and to process the entire gamut of enterprise business, there are areas where a bridge between an existing and legacy application is very much required. These are required in the following two conditions:
System Integration Testing
Full-text available
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.101-107
The purpose of the system integration test is to test the operation of the business system across and between application systems. Business system testing emphasizes on a common planning approach for all types of testing and advocates the reuse of deliverable components to test successively larger aspects of the application system.
Training
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.109-121
The skill transfer is an essential step in an enterprise resource planning (ERP) implementation project. The training is required at two levels for the client members in the project. In the first level, the key users/process owners are required to be trained on the functionality and major features of the software package. This training, if given before the business process analysis, helps to improve the communication between the consultants and the key users/process owners during the analysis phase. The next level of training is conducted for the end users where more stress is given on the transactions, reports/interface/other programs, user security, and system administration activities (applicable for the system administrator only). This training is required before the commencement of acceptance testing. Any other training may be arranged also, if required.
User Acceptance Test
Full-text available
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.123-127
This is the phase where the client validates the software to find out whether the solution provided is fit for their use and satisfies their business needs. After successful testing of each software component by the consultants themselves, it is handed over to the client for acceptance testing. Bugs/defects detected during acceptance testing are to be rectified accordingly before obtaining the certificate of acceptance from the client.
Production Go Live
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.129-140
The objective of production migration is to migrate the organization, systems, and people to the new enterprise system. The production environment is prepared in this phase. The database instances are created, applications are set up, and initial data (master data, open transaction, and required historical transactions) are migrated from the legacy systems to the new enterprise resource planning (ERP) applications. The system is audited and performance check is carried out. The system is assessed again after the Go Live and necessary measures are taken.
Rollout
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.141-149
While implementing enterprise resource planning applications in multisite organization environment, it is implemented first at one pilot site. After stabilization of the system at the pilot site, the system is implemented at other sites using the procedures and configuration data, and customization of the pilot site is carried out as far as possible. The rollout strategy is formulated first. Then the difference in the requirement of the business processes, interfaces, data migration, and other technical aspects of the respective sites with respect to the pilot site are studied and defined. The next step is to update the corresponding documents based on the requirement definitions. Setups of the application package are changed accordingly. Customization, interface, and data migration programs are also modified or new programs are added and validated. Go-Live operations at rollout sites are similar to those of pilot sites.
Project Management
Full-text available
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.151-160
The objective of project management is to provide a framework in which all types of enterprise resource planning (ERP) application projects can be planned, estimated, controlled, and completed in a consistent manner. ERP application projects are characterized by a high degree of uncertainty. The project management concept focuses on the additional discipline needed to ensure that client expectations are clearly defined at the outset of the project and remain visible throughout the project life cycle. Project management also formalizes control mechanisms to help the project team share critical project information and coordinate with external stakeholders. The overall organization of project management is expressed as a process-based methodology, which can be tailored to a project’s specific needs. The five management processes are: 1. Control and reporting 2. Work management 3. Resource management 4. Quality management 5. Configuration management The project management tasks can be divided under the following five categories which constitute the project management life cycle: 1. Project planning 2. Phase planning 3. Phase control 4. Phase completion 5. Project completion
ERP in B School
Chapter
  • Jun 2014
  • Enterprise Resource Planning
  • pp.161-168
This chapter discusses the holistic integration approach that a management school has to adopt so that the students are equipped with enough skills and techniques to face the challenges of the varying business dynamics. There is a need for B schools to integrate academic activities with all other relevant processes such that at the end of their tenure, the students are ready to tackle issues related to society, business and technology. However, for this to happen, the B schools need to redesign their approach to designing the curriculum. Instead of designing a stand-alone curriculum, the B schools need to understand the requirements of all stakeholders, such as recruiters, business, etc. The B schools can achieve this by gaining knowledge through research, consulting and delivering through an improved pedagogy using technology. The data were collected through a case study by sending a set of questions to the participating B schools and using a secondary source to get details of their processes. The findings can be used by any other B school aspiring to produce effective managers.
... Implementation of the ERP system is not an easy task as it is anchored on socio-technical factors relating to people, organization and technology. The failure pace of the ERP system implementation is disappointing (Moohebat et al., 2010;Leon, 2008). Varied challenges that organizations commonly faced during the ERP implementation had been addressed in the past research (Spitze, 2001;Thavapragasam, 2003). ...
... Varied challenges that organizations commonly faced during the ERP implementation had been addressed in the past research (Spitze, 2001;Thavapragasam, 2003). A study done in New Zealand by Leon (2008) mentioned that 69%, 28% and 13% failure rate of the ERP systems due to people, process and technological troubles respectively. It shows that people problems are more significant as opposed to the rest ones. ...
... Diverse challenges that organizations commonly faced during the ERP implementation had been addressed in the past research (Spitze, 2001;Thavapragasam, 2003). A study done in New Zealand by Leon (2008) mentioned that 69%, 28% and 13% failure rate of the ERP systems due to people, process and technological troubles in that order. It reveals that people problems are more critical as opposed to the rest ones. ...
impediments-in-implementing-the-enterpri-2b01304f
Article
Full-text available
  • Mar 2024
Despite the heavy investment in the ERP systems, it is not yet vivid how Kenyan Universities have involved users in the implementation of the enterprise resource planning system for the realization of their operations to obtain the benefits from the investment. In close examination of previous studies on whether the ERP system implementation at the university was successful or a failure, most of the users responded that it was a success while a few indicated that the implementation was below average. This study sought to evaluate the challenges encountered in implementing the ERP systems in public universities in reference to user involvement. This research was guided by Information Systems Success Model and Diffusion of Innovation Theory. The researcher adopted a descriptive survey research design and the area of the study was at Kisii University. The target population comprised of 300 respondents. The researcher used questionnaires for data collection from the sample size of 65 respondents who were picked randomly. The collected data was analyzed by descriptive statistics methods of mean and standard deviation. Then the results were presented in form of tables. The overall results revealed that respondents agreed (M=2.31; SD=0.972) that there were challenges facing the implementation of the ERP systems in public universities in Kenya. The study concluded that the ERP system implementations are faced by varied impediments which should be overcome to ensure smooth information systems implementation. Further the study recommended that in as much as the university rolled out the implementation of the ERP system which is ongoing, it has not fully done so to realize its full value of the system and as such the university should consider the ERP system implementation challenges for they are fundamental for the success of the ERP system implementation in public universities.
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... The W variable is used later in the While loop Algorithm 1 New Sharknap algorithm. Input: KSP instance K Output: An optimal solution x with a total profit z 1 z ← Heuristic(K) ; 2 W ← 1; 3 while (W > 0) do 4 Sort classes in M according to non-increasing order of their total profits; 5 Compute the bound U W ; 11 Call Algorithm 2 on the i th class with parameters:items, U W , and L B ; 12 Let d i be the resulting reduced weight from the i th class ; 23 Update z min and L B 24 end while 25 ...
Knapsack-Sharing Model for Hybrid Hosting of Enterprise Resource Planning Software on IaaS Clouds
Article
Full-text available
  • Dec 2024
The knapsack-sharing problem is a classical NP-Complete problem in Operational Research area with many application domains. Cloud Computing and Enterprise Resource Planning constitute hot research and application topics thanks to their direct impact on the success or failure of contemporary organizations. The competitive value of an organization relies on how much it adopts Cloud Computing and Enterprise Resource Planning solutions. This paper proposes a new improvement of the Sharknap exact algorithm to solve the knapsack-sharing problem instances with a large number of items and classes. In addition, it describes the use of the knapsack-sharing problem to solve the problem of hybrid hosting of Enterprise Resource Planning software on cloud environments. This study widens the application fields of the knapsack-sharing problem to include Enterprise Resource Planning systems and Cloud Computing. On one hand, the proposed approach helps the Cloud Service Provider in computing the cost of hosting such complex Enterprise software by solving a knapsack-sharing problem instance. On the other hand, it helps the organization’s management in the fair distribution of the budget among departments and business areas. Further, the proposed approach helps the organization’s management in deciding what processes to move to the cloud platform and what other processes to keep in the in-house servers. The experimental work reveals a substantial improvement in running time to find the optimal solution of the proposed enhancements against the Sharknap exact algorithm. Thus, the improved Sharknap algorithm can be applied to the problem of Hybrid Hosting of ERP Modules on the Cloud thanks to its runtime performance.
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... Despite the advantages of ERP system, it faces resistance to change during transition to another system as opined by Tarhini et al., 2015 [5] and Finney and Corbett, 2007 [6] resulting in implementation di culties because of employees' resistance. Leon [7] in 2008 mentioned that 13%, 69% and 28% failure rate of the ERP systems as a result of technological issues, people and method respectively. Therefore, attention should be paid towards the stakeholders of change strategy. ...
Exploring reasons behind low usage of ERP in Plant Maintenance in an engineering workshop
Preprint
Full-text available
  • Sep 2024
Maintenance in an asset intensive industry like steel significantly affects its organizational efficiency along with other critical areas like safety, reliability, environment etc. This study has been carried out in an engineering workshop of an integrated steel plant of a public sector behemoth. Here, ERP (Enterprise Resource Planning) had primarily rolled out in three modules- plant production (PP), materials management (MM) and plant maintenance (PM) in 2010. Despite the multiple benefits that can be accrued, it is observed that the system has not percolated seamlessly across the organization. Seamless diffusion had been interrupted over the last decade due to host of internal and external factors. This paper is not a study about the binary adoption (yes/ no) of the ERP system. This paper explores the usage levels of the system in plant maintenance and focuses on the reasons of low diffusion.
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... Enterprise Resource Planning software constitutes a major market in today's business [4]. It is a must software for the success of today's organizations because of its multi-module, integrated nature, and coverage of almost all areas of business in the organization [5]. ...
Knapsack-Sharing Model for Hybrid Hosting of Enterprise Resource Planning Software on IaaS Clouds
Preprint
Full-text available
  • Jul 2024
Cloud Computing and Enterprise Resource Planning constitute hot research and application topics thanks to their direct impact on the success or failure of contemporary organizations. The competitive value of an organization relies on how much it adopts Cloud Computing and Enterprise Resource Planning solutions. This paper describes a knapsack-sharing model for the hybrid hosting of Enterprise Resource Planning software in a cloud environment. Kanpasack-sharing is a combinatorial optimization approach that uses Integer Linear Programming models. On the one hand, the proposed approach allows the Cloud Service Provider to estimate the cost of hosting such complex software by solving a knapsack-sharing problem instance. On the other hand, it helps the organization's management in the fair distribution of the budget among departments and business areas since budget constraints are often present. In addition, the proposed approach helps the organization's management decide what processes to move to the cloud platform and what other processes remain on in-house servers. Moreover, we describe a new improvement of an exact algorithm to solve the knapsack-sharing problem instances with a large number of classes. The experimental work reveals a substantial improvement in running time compared to the most recent algorithm in the literature.
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... These two disciplines have been differentiated by how they view the relative contribution of the two disciplines in undertaking specific project activities [37]. Furthermore, the purpose of this study is to examine the impact of two management disciplines on the success criteria of a project or organization. ...
Impact of Change Management in Achieving Objectives in IT Project Management
Article
Full-text available
  • Aug 2023
Management of Information Technology projects is a trending topic in Sri Lanka, due to considerable number of project failures that happened during the last decade. Most of the failures happened during the project management process as projects get affected due to various changes. All the processes handled by humans and therefore, errors can be happened, but if project managers can handle the changes in a project with a proper change management process, it will be a concrete reason to get success in an IT project. The author used the deductive approach for the research and with the help of existing literature, the researcher has identified the factors that affect the change management of IT projects as change of project scope, budget, managers, quality, resource allocation and technology. With those findings, author came up with the conceptual model followed by hypothesis to proceed with primary data gathering using quantitative method. It is based on Colombo District as the population of IT Industry in Sri Lanka is huge. Stratified random sampling technique is used to determine a sample that can gather data with high reliability and accuracy. Survey is limited IT professionals with direct and indirect experience in project management. Experience and good education qualifications are also considered to get a good interpretation on Project Management integrated with change management. Secondary data is extracted from the literature available. Reliability and validity tests have performed to assess the validity of questionnaire. The Pearson correlation and liner regression have executed to evaluate hypothesis in relation to each independent variable with dependent variable. Analysis of multiple regression is done to assess the impact of all independent variables towards the dependent variable. The results of the study showed that there is a strong relationship between the independent variables towards the dependent variable and the impact is evaluated deeply. Based on that further recommendation are depicted together with contribution to both theory and future studies by filling the gaps in existing literature.
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... Resource planning is one of the aspects of project management. Resources consists of people, equipment, finances and everything that is needed in order for a given project activity to materialize (Leon, 2014). Prior to assigning resources to a given project, their availability has to be addressed first. ...
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... Improving IT features and data quality are the two extra reasons with joining of information and data, the advantages that an appropriately chose and carried out ERP framework can offer an association remember time and cost decrease for business measures, quicker exchange handling, improvement of operational execution, monetary administration and client care, electronic interfaces and more powerful correspondence. From a frameworks outlook, these advantages incorporate coordinated frameworks and information, uniform support, basic interfaces across frameworks, reliable continuous data, a best in class customer worker model, predictable business cycles and single applications [13]. ERP frameworks emerged as improvisation of Materials Requirements Planning (MRP) frameworks, which answered the creation of fundamental programming bundles for stock control. ...
Enhancement of supply chain surplus by ERP implementation in retail industries – A brief review
Conference Paper
Full-text available
  • Jan 2023
This paper briefs about ERP as part of supply chain management, is essential in Retail industry, Supply chainsurplus can be achieved using ERP tool in Retail industry and the benefits of ERP tool in Retail industry. As we all know,ERP software with a lot of features offers worth to the whole supply chain, from material purchase through final product delivery to the end-customer. An effective ERP solution combines and sums up material flow, information flow, and financial flow. The linkage between ERP and supply chain benefits retail store owners since it enhances supply chain management efficiency, resulting in a high return on investment. Organizations must speed up, improve quality, and flexibility while also lowering costs to survive in today's dynamic economy. In such situations, organisations must compete to make up for their performance. Access to accurate and important information both inside and outside the company, as well as efficient use of that information, are critical to achieving this goal. Demonstrating that an ERP solution provides a complete picture of a company's operations.
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Data at the Heart of the Industry of the Future: New Information Issues from an Information and Communication Sciences Perspective
Chapter
  • Sep 2023
In this article, we propose to take a forward-looking look at the issue of data and information systems in industrial companies, in the context of the industry of the future. Indeed, if, as many claim, we are to take advantage of this industrial revolution to reaffirm the central role of human beings in industrial organizations, it is essential to involve the social and human sciences, and particularly the information and communication sciences, in current research on the subject. The aim of this paper is therefore to identify themes where the contribution of this discipline would be major. To this end, after tracing the major stages in the evolution of ERP (Enterprise Resources Planning) type information systems and positioning the major challenges of the industry of the future in this respect, we raise four main questions. The first concerns the need to develop a new enterprise information system model, taking into account global communication, IoT and CPS. The second concerns the coverage of this information system, and the need to take account of the company's ecosystem. The third concerns the need to integrate the informal aspect of the organization into this model. Finally, the fourth question relates to the need for a new decision model in a context of distributed intelligence and decision-making. Ultimately, these questions lead to the definition of a roadmap for the evolution of information and decision systems in industrial companies, which deeply involves information and communication sciences.
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