Companies should separate reengineering modifications from ERP implementations
If a single word has dominated the world of business in the 1990's it is "reengineering" - a process that reforms business practices for optimum performance, customer service, and financial return. Teams are organized, studies are made, money is spent, and dreams are hatched, but for most companies, not that much changes. "Can-identify-the-problem" people far outnumber "can-solve-the-problem" people, so that problems are found but left unresolved, adding to workforce cynicism. In all this team problem-solving and supposed reforming, too many forget that changing business procedures is a complex activity. Some companies have implemented reengineering in a continually impoving environment, but most have abandoned reengineering as just another fad.
The theory behind reengineering is a good one - modifying procedures and behavior to the needs of the business. Most companies were implementing these type changes long before the term "reengineering" came into existence. Yet, a complete company overhaul is often beyond what companies are willing to tackle - the effort is too much and the impact too large. For this reason, companies should separate reengineering modifications from ERP implementations. Installing a broad-based ERP system is a complicated job involving a high level of risk, especially as it relates to cost and timing. Adding other factors that are complex in their own right, such as reengineering, can often doom a project.
IF the work processes to be used in an ERP system have not been established prior to trying to install one, "reengineering" should take place to establish the work processes to be used in such systems (i.e., Oraclle ,SAP R/3, etc.). It should take place "prior to and in preparation for" an ERP implementation - not in conjunction with, and should be in a state of continually updating as the dynamic enterprise must continually change to meet changing market demands.
Wednesday, May 21, 2008
Steps for Successful Implementation
Eight Steps for Success implementation
Whether the implementation involves a stand-alone software solution or is part of a larger project, one methodology that has proven successful includes eight distinct phases. Each phase has defined deliverables that must have executive sponsor and steering committee buy-in before the next phase can begin. These eight phases are;
1. Scoping.
This phase takes place immediately after the contractual agreement. The implementation team defines the scope and parameters of the project, establishes the metrics to measure progress, and sets up the communication and reporting process. Deliverables for this phase include a general outline of the implementation schedule and basic project milestones. An initial meeting engages all participants and builds enthusiasm, and concept education introduces the software's capabilities and expected benefits (the Kick-Off Meeting).
2. Analysis.
In this crucial phase, which typically takes about a month, the business environment and processes are examined and evaluated, and defined business and production goals are prioritized. Next, a definitive implementation timeline can be established. Deliverables for this phase include a formal vision statement of detailed objectives, and the implementation's Technical and Social Design.
The Technical Design. - details how the product and processes will be aligned to achieve the desired objectives.
The Social Design - considers the "people issues:" how workers perform their jobs, and how the implementation may change business practices, workflow, and reporting relationships.
3. Prototyping.
The goal of this phase is to build, test, assess, and refine the initial prototype. In most cases, the team identifies a portion of the plant or a product line on which to build this first iteration, which - depending on the business goals - may or may not include all of the application's functionality. When the prototype has been built, tested, and run, results are charted for performance and logic, and refinements are ongoing. The deliverable for this phase is a "project notebook" and prototype demonstrations for the executive sponsor, steering committee and key users. Additionally, the company's core team receives a greater degree of training in the software's architecture and technology, capabilities, maintenance, and usage.
4. Deployment.
Once the prototype has been refined and accepted, it's expanded and built to full production scale. This phase includes data gathering, process modeling, and adding the specified "bells and whistles" to the basic prototype. At this stage, supervisors and operators receive additional training regarding product performance and capabilities, and any business process changes that will affect them or their work groups.
5. Interface/Integration.
Occurring simultaneously with deployment, all necessary interfaces are designed and integration issues are resolved to ensure the software works in concert with other systems. Key deliverables include handing all files, specifications, upload/download and maintenance procedures over to the company's IS team, and ensuring that effective knowledge transfer took place.
6. Parallel Testing.
This phase involves complete simulation testing of the live system to validate its performance and the effectiveness of interfaces/integration. Its key deliverable is acceptance of test results.
7. Cutover.
Before cutover actually occurs, a strategy is devised to execute timely and effective rollout. The rollout itself may either be phased or performed all at once; the choice depends on which approach will disrupt business and production the least.
8. Continuous Improvement.
This is more of a philosophy than an actual phase. To ensure continuous improvement, a post-implementation audit should be performed after the system has been up and running for three to six months to test whether or not the anticipated ROI and business benefits are being realized. Comparing actual numbers with previously established benchmarks will reveal if the software tool does what it is intended to do - add value to the enterprise. This first audit should be performed by the implementation partner to give the business's IT team a "snapshot" of the company's post-implementation progress. After that, it is important to periodically review the system's performance to ensure continuous improvement for maximum ROI
Whether the implementation involves a stand-alone software solution or is part of a larger project, one methodology that has proven successful includes eight distinct phases. Each phase has defined deliverables that must have executive sponsor and steering committee buy-in before the next phase can begin. These eight phases are;
1. Scoping.
This phase takes place immediately after the contractual agreement. The implementation team defines the scope and parameters of the project, establishes the metrics to measure progress, and sets up the communication and reporting process. Deliverables for this phase include a general outline of the implementation schedule and basic project milestones. An initial meeting engages all participants and builds enthusiasm, and concept education introduces the software's capabilities and expected benefits (the Kick-Off Meeting).
2. Analysis.
In this crucial phase, which typically takes about a month, the business environment and processes are examined and evaluated, and defined business and production goals are prioritized. Next, a definitive implementation timeline can be established. Deliverables for this phase include a formal vision statement of detailed objectives, and the implementation's Technical and Social Design.
The Technical Design. - details how the product and processes will be aligned to achieve the desired objectives.
The Social Design - considers the "people issues:" how workers perform their jobs, and how the implementation may change business practices, workflow, and reporting relationships.
3. Prototyping.
The goal of this phase is to build, test, assess, and refine the initial prototype. In most cases, the team identifies a portion of the plant or a product line on which to build this first iteration, which - depending on the business goals - may or may not include all of the application's functionality. When the prototype has been built, tested, and run, results are charted for performance and logic, and refinements are ongoing. The deliverable for this phase is a "project notebook" and prototype demonstrations for the executive sponsor, steering committee and key users. Additionally, the company's core team receives a greater degree of training in the software's architecture and technology, capabilities, maintenance, and usage.
4. Deployment.
Once the prototype has been refined and accepted, it's expanded and built to full production scale. This phase includes data gathering, process modeling, and adding the specified "bells and whistles" to the basic prototype. At this stage, supervisors and operators receive additional training regarding product performance and capabilities, and any business process changes that will affect them or their work groups.
5. Interface/Integration.
Occurring simultaneously with deployment, all necessary interfaces are designed and integration issues are resolved to ensure the software works in concert with other systems. Key deliverables include handing all files, specifications, upload/download and maintenance procedures over to the company's IS team, and ensuring that effective knowledge transfer took place.
6. Parallel Testing.
This phase involves complete simulation testing of the live system to validate its performance and the effectiveness of interfaces/integration. Its key deliverable is acceptance of test results.
7. Cutover.
Before cutover actually occurs, a strategy is devised to execute timely and effective rollout. The rollout itself may either be phased or performed all at once; the choice depends on which approach will disrupt business and production the least.
8. Continuous Improvement.
This is more of a philosophy than an actual phase. To ensure continuous improvement, a post-implementation audit should be performed after the system has been up and running for three to six months to test whether or not the anticipated ROI and business benefits are being realized. Comparing actual numbers with previously established benchmarks will reveal if the software tool does what it is intended to do - add value to the enterprise. This first audit should be performed by the implementation partner to give the business's IT team a "snapshot" of the company's post-implementation progress. After that, it is important to periodically review the system's performance to ensure continuous improvement for maximum ROI
Oracle Anniversary
Oracle's 30th Anniversary
Three Decades of Innovation:
Three decades ago, Larry Ellison, while routinely scanning the IBM Journal of Research and Development, discovered a research paper that described a working prototype for a relational database management system (RDBMS). Today, Oracle is the gold standard for database technology and applications in enterprises throughout the world, from the largest multinational corporations to the corner coffee shop. In honor of the company's anniversary, Profit spoke with a range of executives at Oracle's top ranks to get a snapshot of the company's culture and plans.
Tuesday, May 20, 2008
Be aware of Release
To summarize what this Releases in E-Business Suite:
Oracle E-Business Suite Release 12 is the next major release after Release 11i
Release 12 has its own stream of updates, such as 12.1 and 12.x
Oracle Fusion is our next-generation enterprise applications suite, bringing together the best functionality and technology from of all Oracle applications.
Oracle E-Business Suite Release 12 is the next major release after Release 11i
Release 12 has its own stream of updates, such as 12.1 and 12.x
Oracle Fusion is our next-generation enterprise applications suite, bringing together the best functionality and technology from of all Oracle applications.
Oracle Apps Product Line
Oracle E-Business SuiteThe E-Business Suite's Global Single Database (GSD) computing model leverages Oracle's world-class database technology to provide unparalled embedded analytic access, with Daily Business Intelligence (DBI), to a comprehensive business view of your enterprise across all geographic regions.
PeopleSoft Enterprise Tools and TechnologyPeopleSoft Enterprise tools and technology transform the way organizations implement, use, and maintain enterprise software. We offer an automated, highly flexible development environment; integration and business modeling tools; world-class usability; and predictive, customer system-specific diagnostic and support tools.
JD Edwards EnterpriseOne Tools and TechnologyThe JD Edwards EnterpriseOne Tools offer you a complete technology solution for running EnterpriseOne applications. Built around the concepts of flexibility and adaptability, EnterpriseOne Tools enable your business to adjust to changing business conditions.
JD Edwards WorldBuilt for the IBM iSeries platform, Oracle's JD Edwards World offers small businesses a reliable, functionality-rich, web-enabled environment for world-class management of plants, inventories, equipment, finances, and people. The applications function as a synchronized, integrated whole and are tightly integrated and pre-bundled on a single database.
SiebelOracle's Siebel CRM Technology provides the server framework to support Siebel Applications. It covers development, deployment, diagnostic and integration. In addition, productivity tools such as Outlook/Sharepoint Integration and Mobile Solutions allow you to drive your business processes from Outlook and mobilize your CRM application.
PeopleSoft Enterprise Tools and TechnologyPeopleSoft Enterprise tools and technology transform the way organizations implement, use, and maintain enterprise software. We offer an automated, highly flexible development environment; integration and business modeling tools; world-class usability; and predictive, customer system-specific diagnostic and support tools.
JD Edwards EnterpriseOne Tools and TechnologyThe JD Edwards EnterpriseOne Tools offer you a complete technology solution for running EnterpriseOne applications. Built around the concepts of flexibility and adaptability, EnterpriseOne Tools enable your business to adjust to changing business conditions.
JD Edwards WorldBuilt for the IBM iSeries platform, Oracle's JD Edwards World offers small businesses a reliable, functionality-rich, web-enabled environment for world-class management of plants, inventories, equipment, finances, and people. The applications function as a synchronized, integrated whole and are tightly integrated and pre-bundled on a single database.
SiebelOracle's Siebel CRM Technology provides the server framework to support Siebel Applications. It covers development, deployment, diagnostic and integration. In addition, productivity tools such as Outlook/Sharepoint Integration and Mobile Solutions allow you to drive your business processes from Outlook and mobilize your CRM application.
Wats ERP?
ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes of an organization into one single system. Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems use a unified database to store data for various functions found throughout the organization.
The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization - large or small.
In order for a software system to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: Payroll & Accounting), most ERP systems cover several functions.
Today's ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system
The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization - large or small.
In order for a software system to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: Payroll & Accounting), most ERP systems cover several functions.
Today's ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system
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