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ERP Implementation

ByCA. Pankaj Deshpande

B.Com, FCA, D.I.S.A. (ICA)

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An activity covering all the steps required to be carried out to generate the desired result from the ERP System.

ERP Implementation

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Why does ERP Implementation Fails ?

ERP Implementation Traps

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How the users explained their requirements.

User Requirements

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How the project leader understood it.

Project Leader’s Understanding

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How the analyst designed it.

Designing by Analyst

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How the business consultant described it.

Business Consultant’s Views

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How the programmer wrote it.

Program Coding

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How the project was documented.

Project Documentation

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What operations installed.

Installation

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How the customer was billed.

Billing to Customer

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How it was supported.

Support

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What the customer really needed.

Actual Need

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Need Assessment Building In-house Implementation Team ERP System Evaluation and Selection Preparation for Change Data Preparation ERP Implementation Testing Training & Educating Go Live On Going Support

Steps in ERP Implementation

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Identify the core areas Set Priorities Standardize processes Remove hurdles

1. Need Assessment

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In House team of experts, With a leader, Having clear goal, And a dead line

2. Building In House Team

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Evaluate the available ERP systems with respect to business requirements.

3. Evaluation & Selection

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It is just like marriage.

Selecting & Implementing ERP

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Criteria for software selection ?

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Reliable As per our requirement User Friendly Versatile Fast Intelligent Beautiful Compatible Cost Effective

Criteria of Software Selection

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Handling emotions of users.

4. Preparing for Change

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All existing data may not, cannot, should not, need not be transferred to new system.

Prepare the data that shall be transferred to new system.

E.g. Old customer who are no more dealing with us now, Old stock items.

5. Data Preparation

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Its time to configure, install and activate the system.

There may some deviation from planning while implementing.

Core areas and set priorities must be kept in mind.

6. ERP Implementation

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By Implementers By In house implementation team By actual users

7. Testing

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As per need of each / group of users at each level.

8. Training & Educating

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Its time now to start actual working with the system.

9. Go Live

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Continuous support is needed for –◦ Troubleshooting◦ Upgrading ◦ Training

10. Support

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Flexible & Rigid

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Before Implementation During Implementation After Implementation

CA’s Role in ERP Systems

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Understanding Requirements Evaluating the software/vendor Resource Planning Risk Assessment

Before Implementation

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Ensuring Master Data Integrity. Review of internal control system. Security Assessment Assessment of Changes Verification of output with respect to input. Verification of audit trails Training

During Implementation

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System Security Audit Identifying areas for improvement Training System Performance Evaluation Verification of internal control Verification of data integrity

After Implementation