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Introduction

Around the globe companies are increasingly becoming more connected,

Both internally and with other companies
They want to be able to react instantaneously when customer places
A large order or when a shipment from a supplier is delayed.
Managers wants to know the impact of these events on every part of
the business and how the business is performing at any point in time
Enterprise systems provide the integration to make this possible

As business scale, small and outdated management systems cannot

handle the increasing amount of data to process, resulting in errors and
Reduced efficiency
Business Process integration
 Business Process Integration (BPI) is the process of integrating multiple
business processes within an organization to achieve company-wide goals.
 It is a way of improving efficiency within an organization by ensuring
that all parts are working together towards the same goal.
 BPI is the coordination among the different processes of an organization.
 It is a way to improve the efficiency, effectiveness, and security of
business process.
1 Large scale software package
 Able to track and control of the complex operations of a business
 Used as a central command hub to help automate business and make
reporting and decision making easier
2 Large complex computing system

 Handle large volumes of data and enable organizations to integrate

and coordinate their business processes.
 Single system central to organizations and ensure that information
can be shared across all functional levels and management
Cont’d…
When information is entered by one process, the information is made
Immediately available to other business process
Cont’d…
 Benefits
 Store business data in a usable format
 Scale available resources
 Secure customer data
 Real-Time access to information
 Reduce cost of doing business
Types
1 Supply Chain Management(SCM)

2 Customer Relationship Management(CRM)

3 Enterprise Resource Planning (ERP)

Supply chain management (SCM)
The functions within Supply Chain Management (SCM) include:
 developing production plans
 ordering raw materials from suppliers
 receiving the raw material into the facility
 manufacturing products
 maintaining facilities and
 shipping products to customers.
In our coffee shop example, Supply Chain Management functions involve making
the coffee (manufacturing/production) and buying raw materials (purchasing).
Production is planned so that, as much as possible, coffee is available when
needed, without excess that must be disposed of.
This planning requires sales forecasts from the Marketing and Sales functional
area. Sales forecasts are estimates of future product demand, which is the amount
of product customers will want to buy.
Cont’d…
A forecast’s accuracy will be improved if it is based on historical sales figures (for example, factors such as
cold weather or local downtown social events would impact the forecast for a given time period).
Thus, forecasts from Marketing and Sales play an important role in the production planning process.
Production plans are also used to develop requirements for raw materials (coffee beans, tea bags,
sweeteners, cream, and milk) and packaging (cups, stirrers, straws, plates, and napkins).
You must generate raw material and packaging orders from these requirements.
If the forecasts are accurate, you will not lose sales because of material shortages, nor will you have
excessive inventory that might spoil
Cont’d…
Supply Chain Management (SCM) also needs information from the various functional
areas
 Making the case for acquiring and implementing ES
Presenting a compelling argument to key organizational stakeholders for why investing in
such systems is necessary and beneficial.

1 Identify Pain Points 2 Quantify Benefits 3 Align with Strategic 4 ROI Analysis
Goals
Clearly articulate the current Quantify the potential benefits Demonstrate how the enterprise Conduct a thorough Return on
challenges and pain points of implementing an enterprise system aligns with the Investment (ROI) analysis to
within the organization that an system in terms of: organization's strategic goals show the financial viability of
enterprise system could  cost savings and objectives. acquiring and implementing
address. These could include  productivity gains Highlight how it can support the enterprise system. Estimate
 inefficient processes  improved decision-making  Growth  the initial investment costs
 lack of data visibility  enhanced customer  Scalability  ongoing maintenance
 manual tasks prone to satisfaction  Innovation expenses, and
errors  reduced risks, and  compliance, and  projected savings or
 difficulty in decision-  Increased competitiveness  other strategic imperatives. revenue increases over
making due to fragmented time.
information, etc. Use data and examples to
support these potential
benefits.
 Cont’d…
5 Benchmarking 6 Risk Assessment 7 Stakeholder Buy-In 8 Continuous Improvement

 Compare the organization's  Address potential risks and  Engage key stakeholders  Emphasize that acquiring
current state with industry challenges associated with across the organization, and implementing an
benchmarks and best implementing an enterprise including: executives, enterprise system is not just
practices. system, such as department heads, IT teams, a one-time project but a
 Show how competitors or implementation complexity, and end-users, in the strategic investment in the
industry leaders are change management decision-making process. organization's future.
leveraging enterprise systems resistance, data security  Highlight how the enterprise  Outline plans for ongoing
to gain a competitive edge concerns, and vendor system will benefit each support, training, and
and why it's essential for reliability. stakeholder group and continuous improvement to
your organization to stay  Develop mitigation strategies address their specific needs maximize the long-term
competitive. to minimize these risks. and concerns. value of the system.
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Analyzing Business Requirements for Selecting and Implementing ES

Analyzing business requirements for selecting and implementing Enterprise Systems (ES)
involves a thorough examination of an organization's needs, objectives, and processes to
ensure that the chosen system aligns with its strategic goals and can effectively support
its operations.
Analyzing Business Requirements for Selecting and Implementing ES

It involves a systematic approach to understanding the organization's needs and objectives:

 Gather Stakeholder Input: Engage with stakeholders across various departments and
levels of the organization to understand their needs, pain points, and expectations
regarding the enterprise system
This may involve conducting interviews, surveys, workshops, or focus groups.
 Document Current Processes: Document existing business processes and workflows to
identify inefficiencies, bottlenecks, and areas for improvement.
This will provide a baseline for evaluating how the enterprise system can streamline
operations and address specific requirements.
 Define Objectives and Goals: Clearly define the objectives and goals that the ES
should help achieve.
These could include improving efficiency, enhancing customer service,
increasing revenue, reducing costs, ensuring compliance, or supporting
growth initiatives.
Analyzing Business Requirements for Selecting and Implementing ES

It involves a systematic approach to understanding the organization's needs and objectives:

 Prioritize Requirements Prioritize business requirements based on their importance,
urgency, and impact on organizational goals.
Use techniques such as MoSCoW prioritization (Must have, Should have, Could have, Won't have)
to categorize requirements according to their criticality.

 Ensure Alignment with Strategy: Align business requirements with the organization's
strategic objectives and long-term vision.
Consider how the enterprise system can support key strategic initiatives and contribute
to the overall success of the organization.

 Consider Industry Best Practices: Research industry best practices and standards relevant
to the organization's sector. Identify common functionalities and features that enterprise
systems typically offer and assess their applicability to your organization's needs.
Analyzing Business Requirements for Selecting and Implementing ES

It involves a systematic approach to understanding the organization's needs and objectives:

 Evaluate Integration Requirements: Assess the integration requirements of the ES
with existing software applications, databases, and systems within the organization's
IT infrastructure.
Ensure compatibility and seamless data exchange between different systems.

 Assess Scalability and Flexibility: Evaluate the scalability and flexibility of the ES to
accommodate future growth, changes in business processes, and evolving market dynamics.
Consider factors such as customization capabilities, modular architecture, and support for
emerging technologies.
 Consider User Experience: Take into account the user experience (UX) of the ES, including
ease of use, intuitiveness, accessibility, and user interface design. Involve end-users in the
evaluation process to gather feedback and ensure the system meets their needs.
Analyzing Business Requirements for Selecting and Implementing ES

It involves a systematic approach to understanding the organization's needs and objectives:

 Define Evaluation Criteria: Define clear evaluation criteria and metrics for assessing
different enterprise system options. This may include factors such as functionality,
reliability, performance, security, vendor reputation, total cost of ownership (TCO), and
return on investment (ROI).

 Conduct Vendor Evaluation: Evaluate potential vendors and their enterprise system
offerings based on the defined requirements and evaluation criteria. Request proposals,
demonstrations, and references from vendors to assess their capabilities and suitability.

 Select the Best-fit Solution: Based on the evaluation results, select the enterprise system
that best aligns with the organization's requirements, objectives, and budget constraints.
Consider factors such as functionality, vendor support, implementation timeline, and overall
fit with the organization's culture and processes.
Selection of Enterprise System Software

An ES acquisition is considered a high-expenditure activity that consumes a significant

portion of a company’s capital budget.
Why?
The lack of in-depth assessment, evaluation, and detail can cause major financial damage to a
company, and a potentially detrimental shift in business processes.
That is why software selection should be influenced by operational experts in the business

If the purchase is made and turns out not to be a good fit, it can adversely affect a company’s
business in many different areas and on many different levels
 selecting an inappropriate ERP system is a major reason why most ES implementations fail
i.e. wrong ES selection can severely jeopardize a company’s operational performance and
its very existence
Therefore, making the right choice during ES software selection can carry a high level of risk
and uncertainty for a company
Selection of Enterprise System Software

There are many different ways and steps to selecting an ERP system.
Software Selection is a somewhat different process than developing an application.
Most companies follow a similar process with some minor deviations here and there.
However, not all organizations will follow a structured approach.
Considerations for the kind of approach the company chooses are
 size of the company
 urgency of time to select and implement
 kind of business or industry
 scale of the software, and
 available human and financial resources
 ES Selection Overview
Phases are not linear or circular in nature
(the phases overlap) - They are iterative

Planning Phase:-
What steps must be taken when developing a plan?
What elements should be considered?
During this phase a
 plan needs to be developed,
 an evaluation team should be formed, and
 feasibility analysis must be conducted
 Planning Phase(continued)
Management should consider and answer the following
questions before the finalization of selection

 What are our business strategies and plans for

the next three to five years ?
 How are we currently using technology ?
 How is technology being used by our competitors,
customers, and suppliers ?
 What new technologies are being used by other
businesses and industries ?
 What are the capabilities of our current (IS) dep’t
 What are the issues for using technology in the organization?
 What is the vision for how technology should be used by
the organization over the next three to five years ?
Request for Information (RFI) Phase

 The RFI/RFP phase involves identifying a comprehensive list of potential ERP system
vendors based on the selection and evaluation criteria.
 This process can be interactive, as the ERP acquisition team gathers information from internal
and external sources, such as internal sources like users, team members, consultants, and
contractors, and external sources like professional research groups and industry competition.

 Companies in similar industries who have successfully implemented an ERP system can
provide valuable validation of the vendor's capability and experience.
 ES Selection Overview
Phases are not linear or circular in nature
(the phases overlap) - They are iterative

Evaluation Phase
It involves assessing different vendor options using
a weighted value approach, including five main categories:
functionality, integration with other applications, ease of
implementation, vendor strength and reputation, and cost.

The evaluation process is done twice:

 first, to narrow down to four or six vendors, and
 then to make the final decision.
Factors to consider include package software leaders,
profitability, long-term investment, installed base, support
capabilities, software cost, and the current release of
modules and functions
 ES Selection Overview
Phases are not linear or circular in nature
(the phases overlap) - They are iterative

Selection Phase
The ERP Selection phase culminates with a “final choice”
or “recommendation” for an ERP vendor solution
Keep in mind there are unique company processes
that may appear to be similar but vary based on the
industry and process.
For example, company size matters – performance
and technology infrastructure can be different
as you increase the number of users or the volume of
transactions.
Selection Phase(continued)

 The ERP Selection phase involves site visits and reference calls to see a specific
ERP vendor solution in operation.
 The acquisition team re-evaluates potential vendors, scrutinizing the total cost of ownership,
customization requirements, hardware infrastructure modifications, and ERP software
maintenance.
 Negotiations with ERP vendors are then conducted, often involving discussions with a
company's legal department and senior management.
 The final decision is made, and a comprehensive report of the findings is provided.
 This process typically takes several iterations.