Definition and Analysis of Critical Success Factors for ERP Implementation Projects

8/7/2019 Definition and Analysis of Critical Success Factors for ERP Implementation Projects

1/18

Definition and Analysis of Critical Success Factors for ERP Implementation Projects

Abstract:

ERP is one the latest technologies that many organizations have undertaken. Typically,

Enterprise Resource Planning (ERP) systems are software packages composed of several

modules, such as human resources, sales, finance and production, providing cross-

organizational integration of transaction-based data management throughout embedded

business processes support. These software packages can be customized up to a certain limit

to the specific needs of each organization. ERP was characterized as the most important

development in the corporate use of technology in the 1990s. Unfortunately, many ERP

projects have not been effective enough and hence have been unable to achieve all the results

envisaged. As the cost of an ERP implementation project is very high, it is critical for an

organization to make the project a success and start obtaining benefits out of it as fast as

possible. But what is it that makes an ERP implementation project successful?

To address this issue we propose the use of a Critical Success Factors (CSF) approach to

manage ERP implementation projects. After an extensive literature review on ERP research

and ERP implementation project studies, we have studied and have proposed results along the

following issues:

The identification and definition of a comprehensive list of CSF.

The relevance of CSF along the typical ERP implementation phases.

The definition of Key Performance Indicators (KPI) for CSF.

The analysis of CSF management in some organizational contexts.

A theoretical framework was developed in order to aid the process of answering the implied

research questions. In order to accomplish the research aims of this research, we have

proposed an interpretive research approach and a multimethod research framework that

combines various research methods, both quantitative and qualitative, with predominance of

qualitative ones. Several results have already been produced out of our research project, with

our chosen theoretical and research framework:

An annotated bibliography on ERP research.

A CSF unified model for ERP implementation projects.

A CSF relevance schema along the typical ERP implementation phases.

A new criticality indicator for Process Quality management (PQM) method.

A tentative set of KPI for some CSF and a systematic approach to develop the rest of

KPI.

An ERP implementation model.


2/18

A CSF management analysis in two organizational contexts: a small and midsized

enterprise and a public higher education institution.

With regard to the case studies conducted, the first was a pilot case study of an ERP

implementation in a Portuguese small and midsized enterprise. The second one was an in-

depth case study of an ERP implementation in a big Spanish public higher educationinstitution. The different organizational contexts provided valuable insights in CSF

management as well as implications from the emergence of patterns of communality between

both case studies. The research results evidence that:

Most of the problems that arise in ERP implementation projects are associated with

the activities identified as CSF in this research,

The main concerns are organizational rather than technological.

The management of CSF is influenced by the context and,

When managers have taken into account the CSF identified, some of project problems

have been avoided or their impact significantly reduced in ERP implementation

projects, and the organization is more likely to use more effectively the ERP system

after its implementation.

A CSF approach is also helpful to avoid problems on the long term since most of the

CSF identified are strategic.

It is hoped that future ERP research and ERP implementations can draw upon and learn from

this thesis.


3/18

Fig. 1. Research Diagram.

Some Results:

Strategic Tactical

Organizational

- Sustained management support

- Effective organizational change

management

- Good project scope management

- Adequate project team composition

- Comprehensive business process redesign

- Adequate project sponsor role

- Adequate project manager role- User involvement and participation

- Trust between partners

- Dedicated staff and consultants

- Strong communication inwards and

outwards

- Formalized project plan/schedule

- Adequate training program

- Preventive trouble shooting

- Appropriate usage of consultants

- Empowered decision-makers

Technological

- Adequate ERP implementation strategy

- Avoid ERP customization

- Adequate ERP version

- Adequate Infrastructure and interfaces

-Adequate legacy systems knowledge- Formalized testing plan- Adequate data migration process

Fig. 2. A Critical Success Factors Unified Model for ERP Implementations.


4/18

Fig. 3. Critical Success Factors Relevance Along SAP Implementation Phases(ICEIS 2001,AMCIS 2001).

Figure - Most relevant CSFs along ERP implementation phases.


5/18

Fig. 4 - ASAP Work Packages Criticality Analysis Along ASAP Phases (ICEIS 2002 conference paper).

Fig 5. Relationship between ERP project sponsor, project manager and ERP project success

(ECIS 2002).


6/18

Fig. 6 - An ERP training monitoring and evaluation framework (ECITE 2002).

Fig. 7 - BPR concerns in the ERP context (AMCIS 2002).


7/18

Fig. 8 - A framework to evaluate and monitor training in ERP projects.


8/18

2

I have seen multiple ERP implementations each with varying degree of

success. I have seen multiple occasions where customers arent sure of what to

expect while implementing an ERP system. In some other instance, the

customers Technology Select the right technology and ERP package for

yourself. This is critical as the entire program is dependent on the choice that

you make at this stage. Also the following are the other salient points that your

should consider

Does the ERP package has a fitment to your industry vertical?

How easy is it to install access and maintain the infrastructure for this

package

What is the level of customization that you foresee in the package to make it

suit your business process

The above questions will drill into whether the package is a fitment for you

and brings you value add by suggesting you a best practices.

Vendor Selection: Selecting a vendor with enough expertise is a key to

success. In many occasions client interview the key stakeholders from the

vendor to be sure of the depth of understanding of technology and business

domain. Recently, I have seen companies employing multiple vendors to avoid

vendor lock in.

People: You may have the best ERP package and the best solution, but until

and unless you have the right person to use it, it doesnt work for you. You

should involve key end users right from the scratch. The key users should be

from entire cross section of the end user. These end users are often expected

to drive their respective departments to use the solution and resolve small and

non issues without having to resort to vendor for support.

Infrastructure: Since your end users may be geographically separate youmust ensure that the system behaves as expected across locations and across


9/18

business functions. For this you must ensure that your server and network is

properly sized vis--vis the number of users and their expected data

bandwidth. Usually you would do a rigorous performance test to ensure the

system response when multiple users login to the system and do transactions.

Project Financials and Change Control: You would have set up a budget

for your ERP program. In majority of cases you would end up exceeding it

until and unless you have a stringent PMO (project management office) and

rigorous change control process. On many occasion, business users give

requirement without thoroughly spending time on it. The change in

requirement after realization of the feature leads to enhanced time and effort

from the vendor and hence increased cost. Another key rule is that more you

customize the solution, lesser best business practices you inherit from the

package. So customize only if you think it is worth it.

3

The implementation ofSAPsoftware, such as SAP R/3 is almost always a massive

operation that brings a lot of changes in the organization. The whole process can take

up to several years. Virtually every person in the organization is involved, whether

they are part of the SAP technical support organization (TSO) or the actual end-usersof the SAP software. The resulting changes that the implementation of SAP generates

are intended to reach high level goals, such as improved communication and

increased return on information (as people will work with the same information). It is

therefore very important that the implementation process is planned and executed

with the usage of a solid method. There are various SAP implementation methods. An

example of how one company,Robert Bosch GmbH, implemented SAP R/3 over 10

years is available. This study shows that designing IT architecture is very critical in

SAP implementation practices.

The data table below provides a summary of all the concepts addressed in the process-

data diagram.

Concept Definition

CHANGE

MANAGEMENT

***Activities involved in (1) defining and installing new

values, attitudes, norms, and behaviors within an

organization that support new ways of doing work andovercome resistance to change; (2) building consensus
http://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/SAP_R/3http://en.wikipedia.org/wiki/End-user_(computer_science)http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/Robert_Bosch_GmbHhttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/SAP_R/3http://en.wikipedia.org/wiki/End-user_(computer_science)http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Robert_Bosch_GmbH


10/18

among customers and stakeholders on specific changes

designed to better meet their needs; and (3) planning,

testing, and implementing all aspects of the transition from

one organizational structure or business process to another.

(www.gao.gov)

CHANGE

MANAGEMENT

DOCUMENTATION.

All documentation that is required and being deliveredwhilst performing change management, e.g. the functional

test cases and all the other documents a new end-userof

SAP requires and the various tools and approaches used to

manage change by the TSO. (Anderson, 2003)

COST OF OWNERSHIP

ANALYSIS

Determination of where and when the costs are inquired

within the context of the SAP solution stackand ongoing

operations. The analysisaddresses all internal and external

costs, both one-time as well as recurring (Anderson, 2003)

CUTOVERThe process of transitioning from one systemto a new one

(Anderson, 2004)

CUTOVER PLAN

All documentation related to planning, preparing and

executing cutover, describing how to lock down the system

from a technical change managementperspective, preparing

the TSO for its new role and rolling out the SAP graphical

user interface to all future end users. (Anderson, 2003)

DATA CENTER

A data centeris a facility used for housing a large amount

of electronic equipment, typically computers and

communications equipment. (www.wikipedia.org)

DATA CENTER

REQUIREMENT

A requirement for the SAP data center, i.e. a physical

requirement like power requirements, a rack requirement, a

network infrastructure requirement or a requirement to thenetwork server. (Anderson, 2003)

DISASTER RECOVERY

(DR) REQUIREMENT

Requirement that focuses on downtime that lasts many

hours to days or even weeks (Anderson, 2003)

FUNCTIONAL TEST

CASE

A set of conditions or variables under which a tester will

determine if a certain business process works

(www.wikipedia.org)

HIGH AVAILABILITY

(HA) REQUIREMENT

Requirements that describes the amount of time that the

system needs to be available to satisfy the needs of the

users. (Anderson, 2003)

INSTALLATIONDOCUMENTATION

All documentation related to the installation of an end-to-end SAP solution (Anderson, 2003)

OPERATIONS

MANUAL

The collection of current state system documentation, day-

to-day and other regularly scheduled operations tasks,

various installation and operations checklists and how-to

process documents. (Anderson, 2003)

SAP

SAP AG is the name of the biggest European software

company. The head office is in Walldorf, Germany. SAP

was founded in 1972 as Systemanalyse and

Programmentwicklung ("Systems Analysis and Product")

by five former IBM employees in Mannheim, Germany.

(www.wikipedia.org)

SAP A comprehensive project planthat contains all products that
http://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Financial_analysishttp://en.wikipedia.org/wiki/Financial_analysishttp://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Computerhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Downtimehttp://en.wikipedia.org/wiki/Installation_(computer_programs)http://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Project_planhttp://en.wikipedia.org/wiki/Project_planhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Financial_analysishttp://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Computerhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Downtimehttp://en.wikipedia.org/wiki/Installation_(computer_programs)http://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Project_plan


11/18

IMPLEMENTATION

PROJECT PLAN

are delivered whilst performing an SAP implementation

project (Anderson, 2003)

SOLUTION STACK

Set of software subsystems or components needed to

deliver a fully functional solution, e.g. a product or service.

(www.wikipedia.org)

SOLUTION STACKPARTNERS LIST

A list of all vendors that deliver the products that make upthe SAP solution stack(Anderson, 2003)

SOLUTION VISIONA vision of the future-state of the SAP solution (Anderson,

2003)

STRESS TEST PLAN

A test plan that is focused at determining the stability of a

given system or entity. It involves testing beyond normal

operational capacity, often to a breaking point, in order to

observe the results. (www.wikipedia.org)

TEST PLAN

A detail of how the test will proceed, who will do the

testing, what will be tested, in how much time the test will

take place, and to what quality level the test will beperformed. (IEEE 829)

TRAINING

The acquisition ofknowledge, skills, and attitudes as a

result of the teaching of vocational or practical skills and

knowledge that relates to specific useful skills

(www.wikipedia.org)

TRAINING PLAN

Consisting oftraining units, a training plan is the result of

hierarchical decompositions of a training goal, tailored

according to the learning preferences and prior knowledge

of the trainee. A plan is the means by which the trainee

satisfies the goal. (www.ece.eps.hw.ac.uk/)

TSO

Technical Support Organization. The people that are

committed to implementation and management of SAP.

(Anderson, 2003)

TSO CHARTA chart that depicts the structure of the TSO. (Anderson,

2003)

[edit] Activity table

The following table provides a summary of all of the activities that form the SAP

implementation process. These activities will be described with more detail and

elaborated with examples in the rest of this entry.

Activity Sub-Activity Description

Project

preparation

Craft solution

vision

Refine and communicate a SOLUTION VISION of

the future-state of the SAP solution, to sketch a

design that meets both business and financial

requirements. The focus should be on the companys

core business and how the SAP solution will better

enable that core business to be successful. Some of

the guidance and key requirements for how to put

together an ERP and SAP business case for ROI,business benefit, and success includes focusing on
http://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Test_planhttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=4http://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Test_planhttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=4


12/18

competitive pressures, value propositions, and how

the solution enables success.

Design and

initially staff the

SAP TSO

Design and staff the key positions of the SAP

Technical Support Organization (TSO), the

organization that is charged with addressing,

designing, implementing and supporting the SAPsolution.

Sizing and

blueprinting

Perform cost of

ownership

analysis

Perform a COST OF OWNERSHIP ANALYSIS to

determine how to get the best business solution for

the least money i.e. to determine where and when the

costs are incurred within the context of the SAP

solution stack.

Identify high

availability and

disaster recovery

requirements

Determine all HIGH AVAILABILITY and

DISASTER RECOVERY REQUIREMENTS, to plan

what to do with laterdowntime of the SAP system

Engage SAP

solution stack

vendors

Select the best SAP hardware and software

technology partners for all layers and components of

the SAP SOLUTION STACK, based on a side-by-

side sizing comparison

Staff TSO

Staff the bulk of the TSO, i.e. fill the positions that

directly support the near-term objectives of the

implementation, which are to develop and begin

installation/implementation of the SAP data center.

Execute training

Train the various members of the SAP TSO, like data

centerspecialists,high availability specialist and

network specialists and train the end-users to give allthe required SAP knowledge and skills

Setup SAP

DATA CENTER

Build a new SAP DATA CENTER facility or

transform the current data center into a foundation

capable of supporting the SAP SOLUTION STACK

Perform

installations

Install the (My)SAP components and technological

foundations like a web application serveror

enterprise portal.

Round out

support for SAP

Identify and staff the remaining TSO roles, e.g. roles

that relate to help desk work and other such support

providing work.SAP

functional

developmentAddressChange

Management

Develop a planned approach to the changes in the

organization. The objective is to maximize the

collective efforts of all people involved in the change

and minimize the riskof failure of implementing the

changes related to the SAP implementation.

Address SAP

systems and

operations

management

Create a foundation for the SAP systems management

and SAP computer operations, by creating a SAP

OPERATIONS MANUAL and by evaluating SAP

management applications.

Perform

functional,integration and

Test the SAP business processes, by executing

functional tests to ensure that business processeswork, integration tests to ensure that the
http://en.wikipedia.org/wiki/Cost_of_ownershiphttp://en.wikipedia.org/wiki/Cost_of_ownershiphttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/High_availabilityhttp://en.wikipedia.org/wiki/High_availabilityhttp://en.wikipedia.org/wiki/Disaster_recoveryhttp://en.wikipedia.org/wiki/Downtimehttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Installation_(computer_programs)http://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/High_availabilityhttp://en.wikipedia.org/wiki/High_availabilityhttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Server_(computing)http://en.wikipedia.org/wiki/Change_Managementhttp://en.wikipedia.org/wiki/Change_Managementhttp://en.wikipedia.org/wiki/Change_Managementhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Objective_(goal)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Cost_of_ownershiphttp://en.wikipedia.org/wiki/Cost_of_ownershiphttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/High_availabilityhttp://en.wikipedia.org/wiki/High_availabilityhttp://en.wikipedia.org/wiki/Disaster_recoveryhttp://en.wikipedia.org/wiki/Downtimehttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Installation_(computer_programs)http://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/High_availabilityhttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Server_(computing)http://en.wikipedia.org/wiki/Change_Managementhttp://en.wikipedia.org/wiki/Change_Managementhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Objective_(goal)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Management


13/18

regression tests

organizations business processes work together with

other business processes and regression tests to prove

that a specific set of data and processes yield

consistent and repeatable results.

Final

Preparation

Perform systemsand stress tests

Plan, script, execute and monitor SAP STRESS

TESTS, to see if the expectations of the end users,defined in service level agreements, will be met.

Prepare for

cutover

Plan, prepare and execute the CUTOVER, by

creating a CUTOVER PLAN that describes all

cutover tasks that have to be performed before the

actual go-live

Go Live Turn on the SAP system for the end-users

[edit] Implementation processes

[edit] Project preparation

The project preparation phase, depicted below, focuses at two main activities, i.e. to

make a setup for the TSO and to define a solution vision. These activities allow an

organization to put in on the right track towards implementation.

Design and initially staff the SAP TSO

The first major step of the project preparation phase is to design and initially staff an

SAP technical support organization (TSO), which is the organization that is chargedwith addressing, designing, implementing and supporting the SAP solution. This can

be programmers, project management, database administrators, test teams, etc. At this

point, the focus should be at staffing the key positions of the TSO, e.g. the high-level

project team and SAP professionals like the seniordatabase administratorand the

solution architect. Next to that, this is the time to make decisions about choosing for

internal staff members or external consultants.

The image at the right shows a typical TSO chart.

Craft solution vision

The second project preparation job is to define a so-called solution vision, i.e. a vision

of the future-state of the SAP solution, where it is important to address both business

and financial requirements (budgets). The main focus within the vision should be on

the companys core business and how the SAP solution will better enable that core

business to be successful. Next to that, the shortcomings of the current systems should

be described and short but clear requirements should be provided regarding

availability (uptime), security, manageability and scalability of the SAP system.

[edit] Sizing and blueprinting

The next phase is often referred to as the sizing and blueprinting phase and forms themain chunk of the implementationprocess. The phase is illustrated below.
http://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=5http://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=6http://en.wikipedia.org/wiki/Solutionhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Database_administratorhttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Core_businesshttp://en.wikipedia.org/wiki/Uptimehttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=7http://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=5http://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=6http://en.wikipedia.org/wiki/Solutionhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Database_administratorhttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Core_businesshttp://en.wikipedia.org/wiki/Uptimehttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=7http://en.wikipedia.org/wiki/Implementation


14/18


15/18

One of the most vital stages of the implementation process istraining. Very few

people within an organization are SAP experts or even have worked with SAP

software. It is therefore very important to train the end users but especially the SAP

TSO: the people who design and implement the solution. Many people within the

TSO need all kinds of training. Some examples of these positions:

SAP Network Specialists

SAP Database Administrators

SAP Security specialists

Documentation specialists

Et cetera

All of these people need to acquire the required SAP knowledge and skills or even

SAP certifications through training. Moreover, people need to learn to do business in

a totally new way. To define how much SAP training every person needs, a company

can make use of a skillset matrix. With this matrix, a manager can identify who

possesses what knowledge, to manage and plan training, by defining the height ofexpertise with a number between e.g. 1 and 4 for each skill for each employee.

Setup SAP data center

The next step is to set up the SAP data center. This means either building a new data

center facility or transforming the current data center into a foundation capable of

supporting the SAP solution stack, i.e. all of the technology layers and components

(SAP software products) in a productive SAP installation. The most important factor

when designing the data center isavailability. The high availability and disaster

recovery requirements which should have been defined earlier, give a good idea of the

required data center requirements to host the SAP software. Data center requirements

can be a:

Physical requirement like power requirements

Rack requirement

Network infrastructure requirement or

Requirement to the network server.

Perform installations

The following step is to install the required SAP software parts which are calledcomponents and technological foundations like a web application server orenterprise

portals, to a state ready for business process configuration. The most vital sub steps

are to prepare your OS, prepare the database server and then start installing SAP

software. Here it is very important to use installation guides, which are published for

each SAP component or technology solution by SAP AG. Examples of SAP

components are:

R/3 Enterprise Transaction Processing

mySAP BI Business Information Warehouse

mySAP CRM Customer Relationship Management

mySAP KW Knowledge Warehouse mySAP PLM Product Lifecycle Management
http://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Documentationhttp://en.wikipedia.org/wiki/Documentationhttp://en.wikipedia.org/wiki/Certificationhttp://en.wikipedia.org/wiki/Matrix_(mathematics)http://en.wikipedia.org/wiki/Matrix_(mathematics)http://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Availabilityhttp://en.wikipedia.org/wiki/Availabilityhttp://en.wikipedia.org/wiki/Installation_(computer_programs)http://en.wikipedia.org/wiki/Enterprise_portalshttp://en.wikipedia.org/wiki/Enterprise_portalshttp://en.wikipedia.org/wiki/Enterprise_portalshttp://en.wikipedia.org/wiki/Customer_Relationship_Managementhttp://en.wikipedia.org/wiki/Product_Lifecycle_Managementhttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Documentationhttp://en.wikipedia.org/wiki/Certificationhttp://en.wikipedia.org/wiki/Matrix_(mathematics)http://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Solution_stackhttp://en.wikipedia.org/wiki/Availabilityhttp://en.wikipedia.org/wiki/Installation_(computer_programs)http://en.wikipedia.org/wiki/Enterprise_portalshttp://en.wikipedia.org/wiki/Enterprise_portalshttp://en.wikipedia.org/wiki/Customer_Relationship_Managementhttp://en.wikipedia.org/wiki/Product_Lifecycle_Management


16/18

mySAP SCM Supply Chain Management

mySAP SEM Strategic Enterprise Management

mySAP SRM Supplier Relationship Management

mySAP HCM Human Capital Management

Round out support for SAP

Before moving into the functional development phase, the organization should

identify and staff the remaining TSO roles, e.g. roles that relate to helpdeskwork and

other such support providing work.

[edit] Functional development

The next phase is the functional development phase, where it is all about change

managementand testing. This phase is depicted below.

Address change management

The next challenge for an organization is all about change management / change

control, which means to develop a planned approach to the changes the organization

faces. The objective here is to maximize the collective efforts of all people involved

in the change and to minimize the risk of failure of implementing the changes related

to the SAP implementation.

The implementation of SAP software will most surely come with many changes and

an organization can expect many natural reactions, i.e. denial, to these changes. Tofight this, it is most important to create a solid project team dedicated to change

managementand to communicate the solution vision and goals of this team. This team

should be prepared to handle the many change issues that come from various sources

like:

End-user requests

Operations

Data center team

DBA group

Systems management

SAP systems and operations management

Next thing is to create a foundation for the SAP systems management and SAP

computer operations, by creating a SAP operations manual and by evaluating SAP

management applications. The manual is a collection of current state system

documentation, day-to-day and other regularly scheduled operations tasks, various

installation and operations checklists and how-to process documents.

Functional, integration and regression testing

Testing is very important before going live with any system. Before going live with aSAP system, it is vital to do many different kinds of testing, since there is often a
http://en.wikipedia.org/wiki/Supply_Chain_Managementhttp://en.wikipedia.org/wiki/Helpdeskhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=8http://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Software_testinghttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Project_teamhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Systems_managementhttp://en.wikipedia.org/wiki/Systems_managementhttp://en.wikipedia.org/wiki/Supply_Chain_Managementhttp://en.wikipedia.org/wiki/Helpdeskhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=8http://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Software_testinghttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Project_teamhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/Change_managementhttp://en.wikipedia.org/wiki/End-userhttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Data_centerhttp://en.wikipedia.org/wiki/Systems_management


17/18

large, complex infrastructure of hardware and software involved. Both requirements

as well as quality parameters are to be tested. Important types of testing are:

Functional testing: to test using functional use cases, i.e. a set of conditions or

variables under which a tester will determine if a certain business process

works Integration testing

Regression testing

All tests should be preceded by creating solid test plans.

[edit] Final preparation

agreements, will be met. This can be done with SAPs standard application

benchmarks, to benchmark the organizations configurations against configurations

that have been tested by SAPs hardware technology partners. Again, a test plan

should be created at first.

Prepare for cutover

The final phase before going live with SAP is often referred to as the cutover phase,

which is the process of transitioning from one system to a new one. The organization

needs to plan, prepare and execute the cutover, by creating a cutover plan that

describes all cutover tasks that have to be performed before the actual go-live.

Examples of cutover tasks are:

Review and update all systems-related operations procedures like backuppolicies and system monitoring

Assign ownership of SAPs functional processes to individuals

Let SAP AG do a GoingLive check, to get their blessing to go live with the

system

Lock down the system, i.e. do not make any more changes to the SAP system

[edit] Go live

All of the previously described phases all lead towards this final moment: the go-live.

Go-live means to turn on the SAP system for the end-users and to obtain feedback on

the solution and to monitor the solution. It is also the moment where product softwareadoption comes into play. More information on this topic:

Product Software Adoption: Big Bang Adoption

Product Software Adoption: Parallel Adoption

Product Software Adoption: Phased Adoption

[edit] Critical success factors

In order to successfully implement SAP in an organization, there are several things

that are of great importance:
http://en.wikipedia.org/wiki/Integration_testinghttp://en.wikipedia.org/wiki/Integration_testinghttp://en.wikipedia.org/wiki/Regression_testinghttp://en.wikipedia.org/wiki/Regression_testinghttp://en.wikipedia.org/wiki/Test_planhttp://en.wikipedia.org/wiki/Test_planhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=9http://en.wikipedia.org/wiki/Benchmark_(computing)http://en.wikipedia.org/wiki/Test_planhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Backuphttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=10http://en.wikipedia.org/wiki/Product_Software_Adoption:_Big_Bang_Adoptionhttp://en.wikipedia.org/wiki/Product_Software_Adoption:_Big_Bang_Adoptionhttp://en.wikipedia.org/wiki/Parallel_adoptionhttp://en.wikipedia.org/wiki/Parallel_adoptionhttp://en.wikipedia.org/wiki/Phased_adoptionhttp://en.wikipedia.org/wiki/Phased_adoptionhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=11http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Integration_testinghttp://en.wikipedia.org/wiki/Regression_testinghttp://en.wikipedia.org/wiki/Test_planhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=9http://en.wikipedia.org/wiki/Benchmark_(computing)http://en.wikipedia.org/wiki/Test_planhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Backuphttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=10http://en.wikipedia.org/wiki/Product_Software_Adoption:_Big_Bang_Adoptionhttp://en.wikipedia.org/wiki/Parallel_adoptionhttp://en.wikipedia.org/wiki/Phased_adoptionhttp://en.wikipedia.org/w/index.php?title=SAP_Implementation&action=edit&section=11http://en.wikipedia.org/wiki/Organization


18/18

1) Choose the correct SAP Consultants to have the correct blueprint. An SAP

Consultant is a professional who has the skills to speak to the managers of a company

and help them creating the blueprint. For this the SAP Consultant has the business

skills of the business area he/she is working with, and also masters this area on SAP.

For example, if this is SAP FI (accountancy) Consultant, this person is an expert on

accountancy and payments, gained through experience or by the correspondingstudies at the University. Also this person knows SAP FI because has gained by the

corresponding training, or the course on the SAP Partner Academy or similar.

Benefits: As this person knows about Accountancy he or she will understand the

needs of the business and will bring it into reality.

2) SAP R/3 implementation is not an IT project, in fact is an Organization Project

impacting all levels of a company. So it is very important to get the support from all

the people that are involved in implementing SAP, but more important the

participation and commitment of all levels, specially managers, of the company.

3) The Blueprint is the keystone used as the lighthouse who must guide the wholeproject. A blueprint should never be a merely mapping of IT systems. In fact a

blueprint is bringing the strategy of a company into execution through defining its

processes across all business areas. Many projects have failed because the focus was

on having people with SAP knowledge, but with no business skills and so defining

something that works...wrongly. Just remember, processes must change across time,

and a manual error automated could be repeated infinitely.

4) Always consider changing the way things have been done before implementing

SAP. "This has always been done like this and the Consultant should replicate it on

SAP" is the start of a big problem. SAP many times could save you time and money

as it allows your organization to automate many processes.

5) Test the SAP hardware and software rigorously by testing your business

processes, and to ensure that the end-users are ready to use SAP before going live,

because there are many known projects that failed because of a lack of support and

SAP knowledge.

6) Design and execute a Change Management Program by communicating as early

as needed all the information that end users should have to accept the new technology

and designing and executing a training plan in order to reassure a knowledge base

within the organization.

Definition and Analysis of Critical Success Factors for ERP Implementation Projects

Documents

Transcript of Definition and Analysis of Critical Success Factors for ERP Implementation Projects