05A-Planning-S

05A-Planning-S - Enterprise System Planning and Selection...

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Enterprise System Planning and Selection Ronald S. Lau, Ph.D. HKUST ISOM
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Learning Objectives Describe the major stages of enterprise system implementation Develop a business case for implementation Determine the total cost of ownership and net present value Identify some important non-financial criteria for ERP selection and evaluation 2
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Presentation Outline Planning and selection decisions Developing a business case Software and vendor selection ROI for ERP implementation Financial and non-financial criteria 3
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Implementation Process Overview Enterprise Systems Implementation Planning Selection Implementation Deployment + Make a business case for implementation + Conduct a feasibility and risk study + Assess the readiness and preparedness + Establish the project governance structure + Screen potential software packages + Shortlist the vendors for on-site demonstrations + Select software vendor and system integrator + Determine the overall implementation strategy and approach + Configure or customize the system + Cope with issues on testing, training, and change management 4 + Determine the transition/deployment strategy and approach + Perform system and data conversion + Provide support and maintenance
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Major Planning Issues Relationship with an organization's _________________ Implementation project is consistent with and part of the strategic plan to support future growth and business initiatives Organizational _________________________________ Technical: Adequacy of IT infrastructure and expertise Functional: Experience, staffing, skill sets of functional areas Resources: Available funding and time Corporate culture: Leadership, communication, change, risk etc. Implementation project __________________________ Project team composition and structure Accountability, authorization, scope, stakeholders etc. defined 5 Enterprise Systems Implementation Planning Selection Implementation Deployment
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How to Develop a Business Case for Enterprise System Implementation? Return on technology investment should be questioned Invest in the new system just because our competitors do? Do we have to always stay current with the technology? Current business requirements are not the only issues Must try to position for future change Make the case that organization can do new things, not just old things faster Enterprise system should add new functionality in many dimensions Connect project tasks with business benefits Clear documentation for business imperatives Document benefits even if you cannot quantify them 6
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Why ERP Implementation: Examples (1) Materials management Lack of timely, accurate material shortage information
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This note was uploaded on 01/25/2011 for the course ISOM 364 taught by Professor Ronalds.lau during the Spring '10 term at HKUST.

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05A-Planning-S - Enterprise System Planning and Selection...

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