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    Case-Keda SAP Implementation-6 A

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    gajendra
    Keda embarked on an ERP implementation project to gain competitive advantages through integration, respond to government pressures, and address limitations in their legacy system. The major processes of implementing an off-the-shelf ERP included identifying needs, vendor selection, process redesign, implementation, testing/training, and rollout. Keda managers engaged in best practices like developing a comprehensive long-term plan, involving top management, delegating tasks to key users, and investing significantly in testing/training. They faced challenges from time pressures, data issues, and user resistance but overcame these through top management support, collaborative team efforts, and leveraging their high power distance and masculine culture. However, the strategies used may not be universally applicable.

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    Case-Keda SAP Implementation-6 A

    Uploaded by

    gajendra
    662 views16 pages
    Keda embarked on an ERP implementation project to gain competitive advantages through integration, respond to government pressures, and address limitations in their legacy system. The major processes of implementing an off-the-shelf ERP included identifying needs, vendor selection, process redesign, implementation, testing/training, and rollout. Keda managers engaged in best practices like developing a comprehensive long-term plan, involving top management, delegating tasks to key users, and investing significantly in testing/training. They faced challenges from time pressures, data issues, and user resistance but overcame these through top management support, collaborative team efforts, and leveraging their high power distance and masculine culture. However, the strategies used may not be universally applicable.

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    Keda case

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    Case-keda SAP implementation-6 a.ppt

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    Keda embarked on an ERP implementation project to gain competitive advantages through integration, respond to government pressures, and address limitations in their legacy system. The major processes of implementing an off-the-shelf ERP included identifying needs, vendor selection, process redesign, implementation, testing/training, and rollout. Keda managers engaged in best practices like developing a comprehensive long-term plan, involving top management, delegating tasks to key users, and investing significantly in testing/training. They faced challenges from time pressures, data issues, and user resistance but overcame these through top management support, collaborative team efforts, and leveraging their high power distance and masculine culture. However, the strategies used may not be universally applicable.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    662 views16 pages

    Case-Keda SAP Implementation-6 A

    Uploaded by

    gajendra
    Keda embarked on an ERP implementation project to gain competitive advantages through integration, respond to government pressures, and address limitations in their legacy system. The major processes of implementing an off-the-shelf ERP included identifying needs, vendor selection, process redesign, implementation, testing/training, and rollout. Keda managers engaged in best practices like developing a comprehensive long-term plan, involving top management, delegating tasks to key users, and investing significantly in testing/training. They faced challenges from time pressures, data issues, and user resistance but overcame these through top management support, collaborative team efforts, and leveraging their high power distance and masculine culture. However, the strategies used may not be universally applicable.

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    At a glance
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    The key takeaways from the case are that ERP implementations require strong leadership, change management, and addressing cultural factors to ensure success. Keda leveraged characteristics like high power distance and masculinity in their culture to overcome challenges during the project.

    Some of the major drivers for Keda to implement an ERP system were increasing competition, institutional pressures from the government, issues with their legacy system like inability to support multi-plant operations, and inefficiencies in areas like material management and resource utilization.

    The major processes involved in implementing the ERP system at Keda were identifying the need, vendor selection, process redesign, system implementation, testing and user training, and system rollout.

    Keda’s SAP Implementation

    Case
    Case Objective
    • To examine key drivers for ERP adoption

    • To explore complexities associated with ERP


    implementation (technological, organizational and
    cultural )and associated change management
    process.

    • To illustrate key success factors for ERP


    implementation and how they are manifested in
    practice.
    Case Questions
    1. ERP project are expensive and risky. Why did Keda embark on a
    ERP implementation project?

    2. What are the major process of implementing an off-the-shelf ERP


    system?

    3. Leadership plays a pivotal role in the success of ERP project. Which


    “leadership best practices” did the Keda managers engage in?

    4. What are the main challenges faced by Keda in each stage of its
    ERP project? What factors contributed to the project success in the
    face of these challenges?

    5. Are the particular strategies adopted by Keda project generally


    applicable to all ERP implementation?

    6. Culture plays an important role in any project implementation. How


    were Keda’s cultural characteristics leveraged in bring about a
    project success
    ERP project are expensive and risky. Why did
    Keda embark on a ERP implementation project?

    As the potential benefits that outweigh cost


    • Competition within the Industry (ERP initiatives are often
    undertaken to provide competitive advantage through integration)

    • Institutional pressure from China Government agencies.


    (Govt. ranks local enterprises in terms of “innovativeness”)
    • Material Management (Scattered demand of a large number of
    raw materials, made purchasing decision difficult)

    • Suboptimal utilization of resources and facilities. (machine


    hours are under utilized, 24.6 % efficiency and 90% for competitors)

    • Limitation of legacy system.( MRP-II did not support multi-plant


    operations and vendor support had been terminated)
    What are the major process of implementing an
    off-the-shelf ERP system?

    • Identify need for system

    • Vendor selection

    • Process redesign

    • System Implementation

    • System testing and user training

    • System rollout
    Which “leadership best practices” did the Keda
    managers engage in?

    • Identify need for system (Develop a comprehensive, integrated, long


    term plan. Elicit deep involvement from top management)

    • Vendor selection (Develop an RFP, create a short-list, meet with


    vendors and arrange site visit to past and existing clients. Involve
    significant top management)

    • Process redesign (Delegate business oriented task to key users)


    • System Implementation (Create a combination of incentive and
    disincentives)

    • System testing and user training (Invest significant time and


    resources)

    • System rollout (Notify senior management promptly, frequently and


    honestly to ensure managed expectations)
    Leadership plays a pivotal role in the success of
    ERP project. Which “leadership best practices” did
    the Keda managers engage in?

    Stage Identify need for system

    Issue Understanding the system requirements

    Best Practice Develop a comprehensive, integrated, long


    term plan. Elicit deep involvement from top
    management
    Result The plan provided stakeholders with an
    overall blueprint to guide expectations and
    activities. Top management involvement
    signaled the importance of the initiative.
    Which “leadership best practices” did the Keda
    managers engage in?

    Stage Vendor selection

    Issue Choosing the right vendor whose product


    and service will closely match business
    process and requirement.
    Best Practice Develop an RFP, create a short-list, meet
    with vendors and arrange site visit to past
    and existing clients. Involve significant top
    management
    Result Site visits provides a through understanding
    of the system. Every one was well informed
    about the business needs and system fit.
    Which “leadership best practices” did the Keda
    managers engage in?

    Stage Process redesign

    Issue Changing business process to match


    system functionality
    Best Practice Delegate business oriented task to key
    users

    Result Users became familiar with the system and


    figured out how to fit the system to business
    practices which reduce the implementation
    workload.
    Which “leadership best practices” did the Keda
    managers engage in?

    Stage System implementation

    Issue User’s resisting the collocation work


    scheme.
    Best Practice Create a combination of incentive and
    disincentives

    Result Users complied. Easier coordination,


    increased efficiency resulted
    Which “leadership best practices” did the Keda
    managers engage in?
    Stage System testing and user training

    Issue Time and resource needed to devote to


    system testing and training.
    Best Practice Invest significant time and resources.
    Leverage users who can help with testing
    while familiarizing themselves with system
    operation.
    Result The acceptance test was speedy, good user
    adoption followed
    Which “leadership best practices” did the Keda
    managers engage in?

    Stage System rollout

    Issue Business disruptions, production delays.

    Best Practice Notify senior management promptly,


    frequently and honestly to ensure managed
    expectations.
    Result Senior executives remained supportive in
    pushing system adoption. Users were
    tolerant when business disruption occurred.
    What are the main challenges faced by Keda in each
    stage of its ERP project? What factors contributed to
    the project success in the face of these challenges?
    • Time (MRP II ceased maintenance, Big-bang approach)
    • Data characteristics (poor quality of data, ensure data accuracy)
    • Users’ resistance (opposition negatively affected user adoption)
    • Production delay (immediately after rollout, chosen a low season for
    rollout)

    • Ensure top management support


    • ERP as a team effort
    • Assign role and responsibility
    • Rewards and punishment
    Are the particular strategies adopted by Keda project
    generally applicable to all ERP implementation?

    • No

    • Strategies work only in particular cultural settings

    • Creating panic and insecurity of staff - this strategy was


    successful in Keda’s context

    • Might backfired in western setting


    Culture plays an important role in any project implementation.
    How were Keda’s cultural characteristics leveraged in bring
    about a project success

    Cultural Characteristic Issue for management


    dimension
    Subordinates look for management
    Power Distance High for leadership and direction. Hence
    involvement of management achieve
    the psychological “buy-in” and
    improve user adoption
    Uncertainty Low Long term ERP implementation plan
    Avoidance with company goals in sight
    Masculinity High The reliance on financial incentives
    and strong leadership and forceful
    approach was successful in effecting
    changes
    Individualism Low To ensure diverse individual opinions
    Assembled the project team to
    involve members from diverse origin
    Case Questions
    1. ERP project are expensive and risky. Why did Keda embark on a
    ERP implementation project?

    2. What are the major process of implementing an off-the-shelf ERP


    system?

    3. Leadership plays a pivotal role in the success of ERP project. Which


    “leadership best practices” did the Keda managers engage in?

    4. What are the main challenges faced by Keda in each stage of its
    ERP project? What factors contributed to the project success in the
    face of these challenges?

    5. Are the particular strategies adopted by Keda project generally


    applicable to all ERP implementation?

    6. Culture plays an important role in any project implementation. How


    were Keda’s cultural characteristics leveraged in bring about a
    project success

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