ERP Implementation
Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions
SUMMER 2005
JUNE 6-10 2005
ERP Implementation
Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions
SUMMER 2005
JUNE 6-10 2005
ERP Implementation Phases


Can be used for any ERP implementation
Based on Project Management Methodology





Project Initiation
Planning
Controlling
Execution
Closeout
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
ERP Implementation Phases

According to Ross:





Design
Implementation
Stabilization
Continuous Improvement
Transformation
IST 600 ERP Systems: Key Implementation Issues

Markus and Tanis:




Chartering
Project
Shakedown
Onward and Upward
U. Yeliz Eseryel
ERP Implementation
Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions
SUMMER 2005
JUNE 6-10 2005
SAP Implementation Timeline

Accelerated SAP (ASAP) Implementation Methodology
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
What is ASAP Methodology?
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Project Success With ASAP Meth.
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Phase-1 Project Preparation
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Phase- 2 Business Blueprint
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Phase-3 Realization
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Project Plan Outline for Realization
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Phase-4 Final Preparation
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Phase-5 Go Live & Support
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
ERP Implementation
Choices
ERP Implementation Methodologies
SAP Implementation Methodology (ASAP)
Strategic Implementation Decisions
SUMMER 2005
JUNE 6-10 2005
Strategic ERP Implementation
Choices

Timeline




Staff/Resources



Big Bang Implementation
Pro’s and Con’s?
Phased (Roll Out) Implementation
Mini Big Bang (Combination of big bang and roll-out)
Outsourcing
In-house
Pro’s and Con’s?
Customization Level
IST 600 ERP Systems: Key Implementation Issues
Pro’s and Con’s?
U. Yeliz Eseryel
Customization in ERP Environment

Technical Customization

Process Customization
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
ERP Technical Customization

Davenport:



Module Selection
Table Configuration
Code Modification

Brehm, et.al. :









IST 600 ERP Systems: Key Implementation Issues
Configuration
Bolt-on’s
Screen masks
 (eg: 3 screens into 1)
Extended Reporting
Workflow Programming
User Exits
ERP Programming
 (eg: ABAP/4)
Interface Development
Package Code Modification
U. Yeliz Eseryel
Module Selection




Implement one or more modules
Default configuration of the vendor
May be appropriate for small companies
Rarely sufficient for many companies
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Configuration



Configuration: Changing parameters in tables in
SAP R/3
SAP promises that configuration specifications
will transfer without problems to later versions of
their software
SAP calls configuration customization
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Configuration in SAP R/3: SPRO
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
The Implementation Guide (IMG)
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Defining Companies
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Code Modification (Customization)


Customization: Changing code in SAP R/3.
Today such changes are done in a programming
language developed by SAP called ABAP/4.




(In future it will also be possible in J2EE.)
May involve defining new database tables
It is possible to make changes to the code that
SAP will not support.
Future upgrades will need to be re-customized
(expensive).
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Process Customization


Process Customization: The degree to which
the business process is changed to fit the
system.
Business process:





Tasks
Resources
Outcome
Relationships among tasks
Relationships among resources and tasks
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Process Customization Categories

No change




Change in tasks and resources
No changes in relationships among task and configuration of
resources
Eg: Task automation
Incremental change





Improvements in tasks and resources
Improvements in relationships among tasks
Improvements in relationships among tasks and resources.
Nature of process and outcome measures unchanged
Eg: Total Quality Management (TQM)
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Process Customization Categories

Radical Change



Fundamental rethinking and radical redesign of
elements in a business process including measures
of performance
Eg: Business Process Reengineering
Eg: Move from functional view of organizations to
process view of orgs.
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
ERP Customization Choices
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Questions?
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Sources



Kenny Leung- SAP Summit 2005 Hong Kong
Luo, W., & Strong, D. M. (2004). A framework
for evaluating erp implementation choices. IEEE
Transactions on Engineering Management,
51(3), 322-333.
Brehm, Heinzl, and Markus, “Tailoring ERP
Systems: A Spectrum of Choices”, 2000
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Some Terminology


Basis Software. The R/3 Basis is similar to an operating
system that specifically has the capability of processing
any of the SAP R/3 transactions. It’s a middleware
between the operating system and the servers that
allow for smooth operations across different servers,
operating systems, and databases.
ABAP: Advanced Business Application Programming
(ABAP/4), is a special-purpose, fourth generation
language developed by SAP, is used to write programs
for the specialized requirements of creating custom
reports, screens, user-defined functions, and special
industry solutions for use with the SAP R/3 System.
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
What is SAP Netweaver?


A comprehensive integration and application platform,
SAP NetWeaver works with your existing IT
infrastructure to enable and manage change.
SAP NetWeaver embraces Internet standards such as




HTTP,
XML, and
Web services.
Ensuring openness and interoperability with Microsoft .NET
and Java 2 Platform Enterprise Edition (J2EE) environments
such as IBM WebSphere.
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel