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Topic 6 - EIS Implementation Life Cycle

This document discusses the implementation life cycle of enterprise information systems (EIS). It describes the five major phases of EIS implementation as identify, engage, develop, implement, and improve. It also discusses guidelines for EIS implementation such as understanding needs and culture, managing risks, and evaluating proposals. Implementation strategies like pilot, big-bang, and phased approaches are covered. Managing risks and evaluating costs, timelines, and criteria are key considerations in the EIS implementation life cycle.

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Thái Bình Phan
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122 views25 pages

Topic 6 - EIS Implementation Life Cycle

This document discusses the implementation life cycle of enterprise information systems (EIS). It describes the five major phases of EIS implementation as identify, engage, develop, implement, and improve. It also discusses guidelines for EIS implementation such as understanding needs and culture, managing risks, and evaluating proposals. Implementation strategies like pilot, big-bang, and phased approaches are covered. Managing risks and evaluating costs, timelines, and criteria are key considerations in the EIS implementation life cycle.

Uploaded by

Thái Bình Phan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Topic 6: EIS Implementation life

cycle
Content
• 1. Introduction
• 2. Guidelines for EIS implementation
• 3. Implementation Strategies
• 4. EIS proposal evaluation
• 5. Managing Risk on EIS project
1. Introduction
• Dealing with multi-faceted & cross-disciplinary
enterprise intergration issues.
• Sustain the activities of orgarnization.
• Require a set of process changes
• Long time (6-12 months)
• Expensive (millions dollars)
Introduction
• EIS implementation is referred
to as “ERP implementation life Indentify
cycle”
• 5 major phases:
▫ Indentify Improve Engage
▫ Engage
▫ Develop
▫ Implement
▫ Improve
Implement Develop

ERP implementation
life cycle
major phases
• Indentify: Define business goals and requirements
• Engage: Clarify the roles, responsiblilities, expectations,
risks for each party involved.
• Develop: Design, develop and test the application.
• Implement: ensure the smooth adoption of the
application.
• Improve: Improve the overall system
Projects cost
• Initial software costs • Business disruption
• Initial hardware costs • Business process re-definition
• Dual system requirements • Project management
• Annual support fees • Consulting fees
• Data migration • Training
• Software de-bugging and • Software custommizations
patch application • Software integration
• Software upgrades • Implementation team turnover
• Network architecture upgrades
• IT staff increase
2. Guidelines for EIS implementation
• Understand your corporate needs and culture
• Complete business process changes
• Provide strong leadership
• Choose a balanced team
• Select a good implementation methodology
• Train every one
• Commitment to adapt and change
3. Implementation strategies
• Three approaches of EIS implementation
▫ Pilot
▫ Big-bang
▫ Phased
Pilot approach
• Process:
▫ Starts with small-scale version/ module
▫ New module being implemented continuously
• Characteristics:
▫ Bring priority functions into operation early.
▫ Lowest-risk
▫ Long time
Big-bang approach
• Process:
▫ Requires simultaneous implementation of
multiple modules of an EIS packages at one time.
• Characteristics:
▫ Most risky.
▫ shortest time
▫ Combine with phased approach to form a “mini-
bangs” strategy.
Phased approach
• Process:
▫ Implement different modules of the EIS over time.
• Characteristics:
▫ Consists designing and developing effort.
▫ Low risk
Implementation issues
• Technologies: an EIS package facilitates a
virturally unrestricted distribution of applications
and databases, as well as extraordianry integration
of in-house and external software components.
• Avoiding Pitfalls: Senior management’s
commitment to modify management processes for
successful implementation.
• Executing EIS: the accomplishment of an EIS
solution depends on how rapid the benefits can be
reaped from it.
Implementation issues
• Defining a successful EIS implementation
• Organization vision/mission and success factors
• How does the EIS fit into the larger picture of
our vision and business?
• Predictable Payback Period
• Who is the project titleholder?
Understanding EIS
• Answer the questions about:
▫ Do I need an EIS?
▫ Where am I standing with respect to my business
rivals?
▫ Where do I want to be?
▫ In order to get what I want, what is the best
enabler?
Understanding EIS
• Operate long-term
• Inductive thinking
• Disperse borders
• Open and modular
• Integrated
• Most excellent business pratice
• EIS system’s future
Implementation methodologies
• EIS packages can be customized but only within
limits.
▫ Vanilla implementation approach: this
refers to minimal customization of EIS packages.
▫ Customization: the vender software is modified
to fit the practices of the user organization.
4. EIS proposal evaluation
• Expected installation time and cost?
• The most important criteria?
4. EIS proposal evaluation
Installation U.S (%) Sweden (%) Korea(%)
time
12 months or less 34 38 49
13 to 24 months 45 49 40
25 to 36 months 11 8 7
37 to 48 months 6 4 2
Over 48 months 2 1 1

Expected EIS project installation time requirements


4. EIS proposal evaluation
Installation cost proportion U.S (%) Sweden (%)
Software 30 24
Consulting 24 30
Hardware 18 19
Implementaion team 14 12
Training 11 14
Other 3 1

Expected EIS project installation cost proportions


4. EIS proposal evaluation

Expected ROI U.S (%) Sweden (%) Korea(%)


< 15% 30.5 54.4 59.6
16% to 25% 36.4 30.4 15.8
> 25% 29.2 15.2 24.6

Expected ROI from EIS project


4. EIS proposal evaluation
Information systems selection EIS supplier selection criteria (n
criteria (n = 2401) = 2623)
1. Fit with business 1. Product functionality
procedures 2. Product quality
2. Flexibility 3. Implementation speed
3. Cost 4. Interface with other
4. User friendliness systems
5. Scalability 5. Price
6. Support 6. Market leadership
7. Corporate image
8. International orientation
Expected ROI from EIS project
5. Managing risk on EIS projects
• Five steps to managing risk:
1. find potential failure points or risks.
2. Analyze the potential failure to determine the
damage they might do.
3. Assess the probability of the failure occuring.
4. Based on the first three factors, prioritize the
risks.
5. Mitigate the risks through whatever action is
necessary
5. Managing risk on EIS projects
• Precautions taken to control implementation
failures:
▫ Select full-time project manager
▫ Give emphasis to documentation
▫ Maintain internal communication
▫ Try to generate vendor support and teamwork
▫ Stress on reengineerring effort and adherence to
current practices
Question?

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