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Challenges
• How the duties between the sales force and the order entry
clerks should be reallocated?
• Battco’s decision:
– Maintain a sales force who spent time with its customers and
learned their business.
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Challenges in the implementation process
1. Convince the sales people to structure and report the
information they had received about their customer’s
changing requirements
2. Educating the order entry people
3. The finance manager felt that the information which she
was responsible for should not be available to people
who did not understand it or its security requirements.
She was also concerned that a portion of her job would
be out of her control
Steering Committee
Project Leader
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Nine Critical Success Factors
1. Understand your corporate culture in terms of readiness
and capability for change
2. Begin business process changes prior to implementation.
Make the hard decisions early and stick to them.
3. Communicate continuously whit all levels of new users in
business, not technical, terms. Set reasonable expectations.
Then communicate again.
4. Provide superior executive championship for the project.
5. Ensure the project manager is capable of negotiating
equally between the technical, business and change
management requirements.
6. Choose a balanced team
7. Select a good project methodology whit measurements
8. Train users and provide support for job changes. Don’t
forget the project team.
9. Expect problems to arise: Commit to the change.
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Begin process changes first
• When using the implementation of R/3 to identify the changes
in business process it is useful to engage in a brief business
redesign effort prior to engaging in implementation.
• Design the reengineered organization concurrently with the
design of the SAP R/3 system
• Some companies prefer to carry out a redesign project prior to
implementation
• Steelcase project manager Diane Schwarz said:
– ”We did the financial business process changes first, and they were
significant. Then we used what SAP had to help firm up the design.
Completing the conceptual level first was extremely helpful in our
process”
• It is far greater cost and difficulty of changing the way a
packaged system is configured after implementation than that
of making the most informed decisions early
Communicate
• Employees at all levels, who are affected by the new
system, needs to be informed by a rigorous
communications program
• People need to be told several times about a change
• Expectations must be managed:
– Both too high and too low expectations will slow their ability to
accept and fully use the system
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Provide superior championship
• The difference between informal support and active
leadership can be the difference between success and failure
• Chuck Norlander ,director of human resources for Monsanto,
says:
– ”you have to develop a steering team. You have to teach them
change management and the process of redesign and integration.
Once they have been through a project, they accept the need to learn
these topics”
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Choose a balanced team
• Provide the team whit clear role definitions
• Expect to shift to nontraditional roles
• At Battco the team included members of the IS, order
processing, manufacturing, sales, and finance department
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Train everyone
• A new system inevitably means new ways of operating
• Users must be informed as to the business needs for such
changes as well as ”which keys to press when”
• The project team also needs to be trained in
– The technology
– The business
– Basic communication skills
– Decision making
– Stages of team development
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Unique aspects of R/3 project management
1. R/3 is not a silver bullet.
2. R/3 does not support loose boundaries or gray areas.
3. Customize, don’t modify R/3.
4. Be sure your business fits within the limits of R/3’s
flexible tables.
5. When you’ve completed the R/3 training, you are only at
the beginning.
6. The project team must be both visionary and detail
focused.
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R/3 does not support loose boundaries
• To understand the structural and policy decisions that must
be made you need to spend time either:
– prior to the beginning the R/3 implementation process
– or in the first few phases
• Identify in detail the way you want your business to
operate
• Business process scenario are the most efficient way to test
your hypotheses prior to implementation
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Be sure you fit within R/3
• R/3 may not support the business structure or information
architecture you need
• Companies have decided against R/3 because:
– It does not track serial numbers on parts within its product
– It does not provide the flexibility of distribution of its product to
locations within locations
– It cannot run a true 24x7
– The structure did not fit theirs
• Many companies have studied the system in detail and
matched it against their business needs
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Visionary and detail focused
• Ideally, you should choose project team members who are
in management or supervisory positions.
– They must understand the details of business segment
– They must be able to take the longer and broader view that will
enable them to contribute to the definition of how the business
might be.
– They must experiment whit the system parameter to develop the
screens and table entries that will best meet the new business
requirements
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Implementation Approach Choices
• The first two choices any company must make upon
choosing R/3 are:
– Which modules to select
– Where to implement them
• Most corporations choose to implement either:
– A suite of modules (not the entire system) for a major business
segment
– All modules for a strategic business unit (SBU)
• Big Bang approach:
– Implementing all modules for the entire company
– Avoid this approach unless it is imperative for your company
– It is a risky strategy
• Small Bang or pilot approach:
– Choosing one of the smaller company and implement all the
appropriate modules at once
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Communication vehicles should cover the following points:
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