Module 4
Module 4
• Two primary methods are used for migrating data from the legacy systems to
the new ERP database—manual and electronic.
• In the electronic method, some type of database conversion process is used.
• The manual approach does not seek to use an electronic method, but instead
involves human intervention. The manual approach will use a non-technical
human resource to examine the data on the legacy system and decide how
to enter the information into the ERP system.
• Data can either be manually typed or electronically transferred. The former is
obviously slower being labor-intensive and more costly. Although the data
can be checked for errors prior to entry, there is no guarantee that the
manual input is error-free. Electronic transfer is in principle faster and
cleaner, particularly for large amounts of data. However, there are various
considerations.
• First is the assumption that, the data can be produced on the old system
in a format that is accessible.
• Second, having accessed the data, additional data may be required
before it can be accepted by the new system.
• Factors that determine whether to use one approach or other include
• Availability of Technical and human resources
• Quality of legacy data
• Nature of OS and platforms
• Database size, Time constraints, ,Budgets.
• In electronic method, some type of database conversion process is used.
• This process can range anywhere from true source code development to
complex copy utilities. We start with raw data in a legacy system such as
inventory item master file. Using data migration tools and programs , we
come up with a migration strategy to export data to the new ERP
• Manual Method
In the manual approach, the implementation team members and data entry
personnel do the data migration. Here also we start with the legacy system
and manually data is entered into the new ERP system
In many cases a manual editing and cleanup process must take place after
an electronic migration. Data migration whether electronic or manual
usually begin in the early to mid phases of the ERP implementation.
Project Management & Monitoring
• An ERP implementation Project is complex in nature, involves a lot of people,
requires the coordinated effort of a number of groups, involves a lot of money
and has a long completion period (typically 10-18 months) . Nine knowledge
areas on which project management is based are
• Project integration management: Setting up a full time team who can understand
what is expected from them. Preparedness is crucial but is often missing
• Scope management: 90% of ERP implementation end up over time and over
budget due to among other factors, changes in project scope. A lack of
understanding of the scope of the system may result in conflict between logic of
the system and the logic of the business
• Time Management: The length of implementation time is greatly affected by the
scope of the project, i.e. more activity regarding modules, sites and functions
means a longer process. Consultants to recommend a zero modification approach
that has now a days become a de factostandard
• Cost Management: Total cost of implementing ERP system includes cost of
licensing , training, implementation, maintenance , customization, and
hardware requirements, cost of migrating data, network infrastructure etc.
Like most software ERPs are priced on the functionality of the system and
number of users who will access it
• Quality management: means the system has been implemented in an
efficient way and the objectives are met
• Human Resource Management: to assemble the best possible team to
plan, execute and control the project. Top management must be visible in
their commitment to the project. Team morale is vital component for the
success of the project
• Communication management: The higher the levels of communication and
interaction in the implementation team , higher is performance of the
team
• Risk management: to succeed the organization should have a risk mitigation plan
• Procurement Management: When selecting the package, it is critical to get vendors to state the
extent to which their products will meet each requirement.
Some examples of selection criteria may be
• The package should have multi language and multi currency support
• The package should be international and should have installations in specified countries
• The package should have at least “X” number of installation and out of which at least “Y”
numbers
• should be in your business sector
• The cost of the package with all necessary modules should be less than “Z” Rupees
• The package should have the facility to do incremental module addition
• The vendor should provide implementation and post-implementation support
• The vendor should give a commitment on training the company employees on the package
• The package should have the capability of interfacing with other systems that the company is
• dealing with
• The package must be customizable and customization process should be easy
• Vendor’s policy and practices regarding updates, versions, etc should be acceptable
Success & Failure Factors of an ERP Implementation