Ch.5 Implementation Strategies
A virtual machine (VM) server technology can be described as providing a ________________________
"technique to run multiple and isolated virtual servers on a single physical device, thus optimizing hardware usage."
Owners
(Consisting of Senior Management)—Determine overall policy, budget, and scope of the project.
Why Vanilla Implementation?
1.Businesses with relatively straightforward business practices that are not unique 2.Businesses that are not skilled or experienced at building or changing systems 3.For a company using a purchased ERP system where the financial component is critical for reporting 4.All of a company's branches are running the same system in a single instance, and entering and retrieving data in a similar fashion 5.For a competitive advantage, it is important to know the ability of what and where things are around the world with the business.
Software
A set of operating instructions and logic called programs that control and direct the computer hardware to perform its functions.
Benefits of Chocolate Implementation
A single-system instance is easier to maintain and support. Assessing organizational change along with modifying the system to meet the needs of the business will help to minimize risk.
Third Party Products
Add-on software components either to make the system operational or to add missing functionality.
Hardware
An ERP system will require a powerful set of servers for development, testing, and production environments.
Strategic Partners
Assist in addressing integration and interface issues with third party products
Middleware
Assists with the development of reporting databases that use extract translate and load tools
Third Party Product Negatives
Available solutions could require compromises Possible integration issues Limited interface or no formal interface Dependency on component outside of the project's control
5. What are the pros and cons of implementing a system without customization?
Being able to implement a system without customization yields the most benefits and is the most cost effective solution. The pros of using a Vanilla (non customized) implementation strategy include lower costs, easier and less time consuming upgrades, and retaining full vendor support. The con of this strategy is that a company must choose from "out of the box" processes and functions and have little control over functionality.
Network PI
Businesses need a reliable and secure network in place.
Chocolate Implementation
Businesses that have highly skilled IT developers and a proven process for managing modifications can choose to change the system to match their processes
IT specialists
Database administrators, IT operations support, developers, change management, trainers, and others in IT
ERP Components - People
ERP implementation team includes various sub-teams from business or functional areas, change management, development, data migration, and system support
6. Why are there differences between a transactional and reporting database?
ERP systems require databases that can provide the quickest data entry and retrieval. A single relational database instance is simply too inefficient for long and short term data storage and retrieval. Therefore, two types of database instances were created: transactional and reporting. Transactional databases handle individual pieces of info for updating or inquiring, while reporting databases import data from transactional ones for long term storage and for producing specialized reports.
End-users
Employees, clients, vendors, and others who will ultimately use the system
Benefits of Virtualization
Enhanced hardware utilization allowing an organization to consolidate underutilized servers Makes provisioning and deploying more agile. Through consolidation, virtualization can lower total cost of operations TCO at the data center by the following: Deferred purchase of new servers Smaller data center footprint Lower maintenance costs Lower power, ventilation, cooling, rack, and cabling requirements Lower disaster recovery costs Reduced server deployment costs Enhances business continuity and availability
Database Requirements
For an ERP system to perform up to expectations, the update or transactional component and the reporting component must respond in a timely fashion. Large ERP system implementations require a robust relational database system (Oracle, DB2, Sybase, Microsoft SQL). Selecting a relational database Availability of software applications Availability of skilled, trained technical staff Overall functionality of the database itself Staffing and database Administration Options include the use of full time staff and consultants.
ERP - Governance?
Governance should outline and define committees and workgroups that are responsible for the different components of the implementation, their interaction and decision making. Areas/Categories Technical development Hardware and software installation Functional components Communications and reporting Change management Project management Project owners and sponsors Budget management Issue escalation process
3 ERP Components
Hardware Software People
ERP Components
Hardware Do we need new Servers? Clients? Peripherals? Software Is purchasing ERP software enough? Or do we need other software? Database? 3rd Party Applications? People What should be level of participation from users? What is the role of IT staff? Do we need other people like Subj Matter Experts?
The two more common models used for mission critical application are known as:
Hardware virtualization Paravirtualization
Servers
High-end multiprocessor systems, several gigabytes of main memory and several terabytes of secondary storage
Drawbacks of Chocolate implementation
If a system is modified, each modification will need to be analyzed in light of the upgrade to see if it needs to be incorporated in the upgrade or removed. An upgrade can sometimes turn into a re-implementation, which requires more resources and time.
4. What is an implementation methodology and why is it important in ERP implementations?
Implementation methodology involves identifying requirements from an ERP and modifying the implementation plan to maximize returns in the most efficient way. It is importance to choose the right methodology as it will affect the entire implementation process, ensuring deadlines are met, budgets remain on target, and functionality yields desired outputs.
Integration with ERP
Integration defined as the sharing of data and data elements directly with the ERP system without data redundancy.
Third Party Product Positives
Leverage existing third party products Benefits Not having to develop a software solution for common problems Best-in-breed or niche solution Reduces risk by reducing time spent on new development
__________ must decide on whether or not to customize prior to the start of the implementation process and it must be communicated to all on the project.
Management
ERP Vendors and Virtualization
Microsoft Oracle SAP
System Software
Operating system platform e.g., Microsoft Windows Server, Linux, and Sun Solaris
Clients
People accessing ERP systems (e.g., end-users, IT support staff, and developers)
Disaster Recovery and Business Continuity PI
Planning for a disaster and providing business continuity is a part of every ERP implementation.
Peripherals
Print servers, printers, back-up power supply equipment, and networking hardware
Application Software
Project management software, development software, remote access software, and automated software for monitoring system traffic, virus protection, etc.
The project manager
Puts together a harmonious team, works with top management in getting support and resources for the project, and champion the system and its benefits to the end-users
Drawbacks of Virtualization
Reliability - tendency to try to squeeze more performance out of a physical server by creating too many virtual machines leading to significant concerns when the server is operating at peak loads Security- If a hacker compromises the security of the hypervisor, he or she might get access to all virtual machines running on the host server
Database Management System (DBMS)
SAP/R3 works with IBM-DB2, Oracle, Microsoft SQL
Oracle
Same as Microsoft. Oracle VM uses para-virtualization architecture based on the Xen open-source technology that brings with it both Linux and Windows support
Hardware Key Resources
Servers Clients Peripherals
Servers Platform Issue (PI)
Servers that make up the infrastructure will need to grow as the system grows and expands with enough storage to ensure data is quickly retrievable.
Security PI
Several components must be installed and implemented to ensure that the ERP system is secure from unauthorized access.
SAP
Strategy does not dictate what software customers can use to virtualize applications. They provide customers with tools, code tweaks, and support needed to make sure their SAP virtualization projects go smoothly.
Software Key Components
System Software Database Management System (DBMS) Application Software
2. Why would a company choose to implement an ERP?
The choice for a company to implement an ERP is based upon its desired operational and functional capacity compared to its current limitations from existing systems. A company would choose to implement an ERP after a careful determination of business inputs, processes, and outputs they have identified the current system being inadequate to handle, thus requiring an ERP to improve business performance.
1. What are the components of an ERP system?
The three components are hardware, software, and people. Hardware consists of computer devices and peripherals that will be used by an ERP system. Software is usually the ERP applications, and other necessary applications to allow the ERP software to function, and is the tool necessary for building the system.
Microsoft
The two virtualization choices available are Microsoft Virtual Server and Microsoft Virtual PC. "Microsoft does not test or support its software running together with non-Microsoft virtualization software"
Support
Third party product support
3. What are third-party products and why are they needed?
Third-party products consist of software components that provide necessary functionality to the ERP to make the system operational. This could include things like extra modules to support current ERP software or new software components that work in conjunction with, but independently from, the ERP system to ensure operational needs are satisfied.
Two initial management decisions
Use of an implementation methodology Whether or not to modify the system
When a system implementation does not have a well-defined methodology what happens?
deadlines will likely be missed, budgets overspent, and the functionality may not meet the client's requirements.
An implemented ERP system can create opportunities for a business to _______________for the better.
grow and change
Transactional databases
handle individual pieces of info for updating or inquiring
Reporting databases
import data from transactional ones for long term storage and for producing specialized reports.
Vanilla Implementations
is when the company chooses not to modify or customize the system, but instead to change business practices to fit the system.
Decisions around the hardware, software, governance, methodology, and level of modifications need to be based on _________________.
the goals set out for the purchase of the ERP system.
One key decision to make before the implementation is?
whether or not to modify the system, change business processes, or use some combination of modification and business change.
Project Management Office
—Consists of the project executive, business and technical project manager(s), and the implementation partner. Manage the day-to-day aspects of the project.
Chairperson
—Oversee the activities of the steering committee, ensuring that the committee functions in accordance with the overall project oversight. This includes budget, resources, deliverables, risk, and expectations management.
Steering Committee
—Oversee the project's efforts and ensure appropriate leadership.
Project Executive
—Oversees project activities, provides broad project oversight, resolves policy level issues, and ensures that the project stays within scope.
Project Sub-Teams
—Provide direction and ERP application knowledge with respect to business process design, configuration, conversion, testing, training, reporting, and implementation. Example teams: Cross-functional component team Functional component teams Technical Infrastructure team Development team Change management team Conversion team Reporting team
Project Team Leads
—Provide leadership and overall direction for the implementation, ensuring the quality of deliverables and adherence to the project plan and milestones. The project team leads will inform the project managers of any and all issues that are identified by their respective project team.
Cross Functional Team
—The integration team will consist of the module or project team leads from the business modules and the development leads. This group will meet as needed to discuss and resolve cross-module issues.
Application Steward
—Works with the other business owners to develop an overall business direction of the system, developing consensus, and resolving functional issues raised to the steering committee.
