This book is dedicated primarily to the many students I have taught and learned from over the years, including the design and implementation of ERP systems in real-world organizations. Finally, I dedicate this book to the memory of my father, Fazle, who passed away in 2007. Luvai Motiwalla I would like to dedicate this book to my wife, Deb, and our two children, Trevor and Taylor.
Physical SI 46 Steps in Systems Integration 47 Benefits of System Integration 48 Limitations of System Integration 48 ERP and Systems Integration 49 .
PREFACE
The goal of this book is to help students become expert participants in the enterprise system implementation process and have the confidence to ask complex questions. In addition to students, this book will be useful for professionals, top management and other participants such as subject matter experts (SMEs), who are involved in an enterprise system implementation project. Professionals will find this book a good reference source for terminology and a knowledge base for introducing enterprise systems.
Top management will gain a perspective on strategies for implementing enterprise systems and resource requirements and provide an understanding of the need for organizational commitment in the enterprise system project.
WHAT’S NEW IN THIS EDITION
BOOK FEATURES
Each chapter begins with learning objectives and an introductory real-world case to guide students through the chapter's main concepts and ends with managerial implications and a concluding case study to demonstrate the application of these concepts. All chapters have such visual supplements as diagrams, figures or tables to reinforce the concepts and end of chapter review and discussion questions and exercises.
CHAPTER ORGANIZATION
Similarly, an undergraduate course might skip Chapters 11 and 12 and all final case studies, while a graduate course might skip Chapters 2 and 3.
FACULTY RESOURCES Instructor’s Resource Center
Test Bank Item File—an extensive set of multiple choice, true or false, and essay questions for each chapter of the text. Questions are ranked by difficulty and referenced by page numbers from the text. The test item file is available in Microsoft Word format and as the computerized Prentice-Hall TestGen software.
The software is PC/MAC compatible and comes pre-loaded with all questions on the test item file.
ACKNOWLEDGMENTS
ABOUT THE AUTHORS
Get an overview of the implementation process (e.g. the ERP life cycle, business process restructuring, project management and change management). The ERP software has hundreds of business processes built into the system's logic. The architecture of the ERP implementation affects the cost, maintenance and use of the system.
The change or modification of a system must be addressed in the context of the entire organization. ERP systems are proliferating worldwide. The globalization of commerce and the Internet brings the world closer, understanding how these systems work and the effects they will have on. The ERP was designed in three phases, the third phase of which was actually the "implementation". The implementation was done in two waves.
And we have the ability to move that information in the other direction as well, which we haven't had in the past.” A key benefit of this is that if a contractor stops paying their bills, the warehouse system will immediately alert shippers. 1.High initial installation costs. The initial implementation of integrated systems is high in terms of hardware and software costs and human costs due to business process redesign. 3. Long-term and intangible investment returns. The return on investment (ROI) from system integration is often not seen until several years after implementation, and many of these returns are intangible and therefore not recognized in the bottom line of the organization.
They chose to centralize data in one of two large data centers (ie their IT platform hubs). The company's system architecture (Figure 3-1) can be viewed from two different angles:. 1) the functional angle, which defines the ERP modules that support the various business functions of the organization, and (2) the system angle, which defines the ERP architecture through the physical components of hardware, software, and networks. ERP provides the same functionality to users (e.g. the silo systems of the past), but the data is integrated or can be shared across all the ERP modules.
According to Gregor Hohpe, business integration practice leader at Chicago-based ThoughtWorks, Inc. and co-author of the book Enterprise Integration Patterns7, the SOA architecture is a different approach to distributed services. One of the issues Jackson faced stemmed from an internal HR issue (i.e., the risk that the software vendor's actions or inactions would hinder implementation).
SDLC Process
The appropriateness of the plan partly depends on the project, the company and the reasons for the implementation. For a system to be successful, the team must develop a detailed change management strategy and plan for the release of the new system. One of the most important early decisions in the ERP lifecycle is software or vendor selection.
The development of the team is the responsibility of the project management office together with the leaders in each area. The development team will work with the ERP system to develop or modify the software to meet the goals of the system. Defining roles, which are often used as job descriptions on a project, will be the responsibility of the project management office.
Module team members are composed of the functional and technical resources of the project and campuses and report to the module leaders. It is the role of the project management office to address teamwork initially and throughout the project. List the key tasks in the scope and commitment phase of the ERP lifecycle.
List the main tasks in the analysis and design phase of the ERP life cycle. List the main tasks in the acquisition and development phase of the ERP life cycle. The implementation of the system at OilCO involved major changes in the company's business processes so that they were compatible with ERP processing methods.
APPENDIX A
DETAILED DESCRIPTIONS OF ERP ROLES AND RESPONSIBILITIES
The project manager also builds consensus on business process changes that affect the business and provides project status updates (as needed) to the owners. Participate in all hardware and software selections and contracts with vendors related to the implementation. Role Description The project manager manages the day-to-day aspects of the project, ensures that the project plan is followed, and keeps both team members and project management aware of the status of the project.
The project manager serves as the primary link between the project team and project management. Work with project manager to report progress and status against project plan to the team, company and owners. The module leaders provide leadership and overall direction for the implementation at the module level, ensuring the quality of deliverables and adherence to the project plan and milestones.
Responsibilities • Clearly communicate project objectives, scope, policies, procedures, status and issues to the module team. Ensure deliverables produced by the module team deliver quality, add value and contribute to project success. Good knowledge of trends in technology and ability to apply knowledge to business goals.
Responsibilities • Provide expertise and team leadership regarding data mapping specifications (eg tools, formats, defaults, padding). Work with the Development Manager to ensure that code, new tables, board changes, etc. are added to the system. Role Definition Members of the Change Management Team are responsible for completing tasks related to training development and delivery.
APPENDIX B
BONUS REAL-WORLD CASE
Purpose
This framework defines the leadership, organizational structure (ie, roles and responsibilities) and processes that align decision-making with strategies and direction. Leadership provides clear and consistent direction, organizational structure creates the infrastructure to support the implementation of decisions, and process alignment defines the activities that translate ideas into action.
Roles and Responsibilities
The implementation of the ERP system is risky, as is the installation of the IT infrastructure. Each of these areas requires full analysis and validation before the system can go live. The IT infrastructure team should be involved in discussions about how the system will be used and when. Documenting and communicating usage expectations will help with the installation of the IT infrastructure platform.
Decisions about hardware, software, governance, methodology and level of change must be based on the objectives set for purchasing the ERP system. TM is an investment in the success of the program and must be portrayed as such. In terms of operational or business results, or both, types of measures should include efficiency, effectiveness and customer satisfaction (ie, the customer category can include internal and external customers).
Measuring the degree of customization of a particular installation of an ERP system is difficult to assess. Welch's was able to leverage each of the offers for the benefit of the company. What this says is that there are many problems with a competitive deal and the market system still works for enterprise software.” The new reality, Greenbaum says, is that many software buyers can make deals that weren't possible before the large ERP market became saturated and the economy became so tight.
It will be said many times, "process is important", so involving end users will help with change management issues later in the project. The largest system cost occurs after implementation in system maintenance and upgrades. The vendor with the best ERP fit and track record should be the one to "win" the bid.
