you mean by value analysis?
analysis- each activity in the process is analyzed for the value it adds to the
product or service. The value added is an increase in a product’s or service’s
value, from the perspective of the customer.
meant by software updates?
vendors constantly resolves the issues that exist in the system and implements
the new best practices and incorporates the changes to the system as suggested
by the customers in their feedbacks.
03. What is competitive advantage?
features and functionalities would
give the organization
the power to
you mean by global access?
Access includes the features and updates designed to increase the flow of
information from and the customers and business partners that can increase the
ability to operate globally.
reduce the ERP maintenance cost?
5. Direct and
indirect maintenance costs
process of ERP maintance?
forms of post implementation activity?
enhancements Later enhancements ERP system switching Late switches and reverts
you mean by data migration?
migration is the process of transforming data from the old format to the new
role of ERP consultants.
consultants support the organization in identifying the best ERP package which
suites the business and he is responsible for the success for the ERP package
analysis is the process of analyzing the deviations and bridging the gap
between the existing system of the organization and business requirements and
the newly implemented ERP system.
01. How does a company ensure that its ERP
investment pays off in increased profitability?
challenge is not in managing technology, but in managing people. An ERP system
changes how people work, and for the system to be effective, the change may
have to be dramatic, going beyond the way employees interact with the software
to the way they perform their tasks. Furthermore, business processes that are
more effective require fewer people. Some employees will no longer be needed.
It is no small thing to ask people to participate in a process that may not
only change their day-to-day activities, but could
eliminate their current jobs.
the human behavior aspects of organizational change is called organizational
change management (OCM). Do not underestimate the importance of this aspect of
the implementation process. One of the keys to managing OCM is to realize that
most people do not mind change, they mind being changed.
ERP implementation is a project that is being forced on the employees, they
will resist it. If employees view it as a chance to make the company more
efficient and effective by improving business processes—and if these process
improvements will make the company more profitable and therefore provide more
job security—there is a greater likelihood that employees will support the
mentioned earlier, the best way to improve a business process is to have the people
most familiar with the process leverage their experience and creativity to
develop process-improvement ideas. When employees have contributed to a process
change, they have a sense of ownership and will be more likely to support the
side of the Solution Manager screen shows a hierarchical menu structure that
organizes each step in the implementation, and on the right side of the screen
are the detailed items, the descriptions, documents, white papers, tools, and
so on to support each step.
02.Explain the issues of ERP Implementation?
implementation is expensive (with costs ranging between $10 million and $500
million, depending on company size). The costs of an ERP implementation include
licensing fees—ERP software is quite expensive, and most ERP vendors charge
annual license fees based on the number of users.
fees : ERP implementations require the use of consultants with the skills to
configure the software to support the company’s business processes. Good
consultants have extensive experience in the way ERP systems function in
practice, and they can help companies make decisions that avoid excessive data
input, while capturing the information necessary to make managerial decisions.
team member time: ERP projects require key people within the company to guide
the implementation. These are team members who have detailed knowledge of the
company’s business. They work closely with the consultants to make sure the configuration
of the ERP software supports the company’s needs, which means these workers are
frequently taken away from their daily responsibilities.
training: Project team members need training in the ERP software so they can
work successfully with the consultants in the implementation. Those team
members also frequently work with training consultants to develop and deliver
company-specific training programs for all employees.
losses: No matter how smoothly an ERP implementation goes, companies normally
lose productivity during the first weeks and months after switching to a new
justify the costs associated with an ERP system, a company must identify a
significant financial benefit that will be generated by the use of the
software, but the only way a company can save money with an ERP system is by
using it to support more efficient and effective business processes. This means
that an implementation project should not just re-create the company’s current
processes and information systems, although that is a possibility since SAP
provides the source code with its ERP package.
could choose to alter the package through SAP’s internal programming language,
called Advanced Business Application Programming (ABAP)—which access to the SAP
ERP source code, it is possible for a company to spend a significant sum of
money on software code development to avoid changing a business process to the
best practice process designed into the ERP software.
companies have difficultly handling change and prefer to continue doing
business as they always haverather than adopting the best practices built into
the ERP system. As part of the implementation, a company must also manage the
transfer of data from its old computer system to the new ERP system. In
addition to managing master data such as materials data, customer data, vendor
data, and so on, a company must also transfer transaction data, which includes
sales orders and purchase orders, many of which are likely to be in various
stages of processing—a challenging task.
process of ERP Maintenance in detail?
down the impact on implementing ERP systems in Organization.
Reporting made easier
Improved accuracy and consistency
Reduces cycle time
Decreased operating costs
Supports daily activity
Strategic planning support.
5. What are
the factors affecting the post implementation process of ERP?
Post implementation training
Top management support or influence
Post implementation benchmarking
Maintenance of ERP
Introduction of additional features at the post
Success of activities at pre-implementation stage.