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"Reviewing ERP Systems".

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Introduction

"Reviewing ERP Systems". Subject: ERP Implementation Course Code: BCO5651 Lecturer: Paul Hawking Student Name: Pawan Sud (3629608) Executive Summary Prior to Y2K, Implementing ERP systems to integrating business processes was the foremost priority for the organizations. However, to get more 'Value' from the implementation companies need to move from 'Time to market' to 'Time to benefit'. This leads to continuous business improvement where the companies constantly need to review and improve their existing business practices and processes. This paper briefly explains why companies need to review their ERP implementation; it also gives a brief overview of different scenarios where the companies have to upgrade their ERP systems to meet changing business demands. It discusses various type of reviews from business, technical, personnel and processes point of view and the tools and accelerators that help in the review process. It also analyzes various risks involved in upgrading the existing ERP systems. Table of Contents 1.0 Introduction 3 2.0 Review Scenarios 3 2.1 Mergers & Acquitions 3 2.2 Upgrades 3 2.3 Global Rollouts 4 2.4 Spin Offs 4 3.0 Why Review 4 3.1 Revisit Original Business Case 4 3.2 Continuous Business Improvement 4 4.0 Review Elements - Methodologies, Tools & Accelerators 5 4.1 Technical Review 5 4.1.1 Users 5 4.1.2 Testing 6 4.2 Process Review 6 4.2.1 Benchmarks 6 4.2.2 Performance Key Indicators 6 4.2.3 Business Process Reengineering 6 4.2.4 Reverse Business Engineering 7 4.2.5 Workflows 8 4.3 Interface Review 8 4.4 Security Review 8 4.4.1 Network Security 9 4.4.2 Database Security 9 4.4.3 Application Security 9 4.5 Risk Review 9 5.0 Other Accelerators & Tools 9 6.0 Conclusion 11 7.0 References 12 8.0 Appendices 13 1.0 ...read more.

Middle

4.2 Processes review 4.2.1 Benchmarks Benchmarking is the continuous process of measuring and assessing various products and services available in the market. The main idea is to adopt best practices in business and work processes. It helps in identifying new opportunities for further improvements. 4.2.2 Key performance Indicators Key performance indicators are used throughout the review process. KPI is a measure for evaluating company's business strategy, performance or technology. "KPI's express abstract company objectives in financial or physical units, in order to compare against known industry benchmarks."(ValueSAP). In order to measure the success in achieving the objectives, appropriate KPI's are assigned to each performance objective and then comparisons are made to check whether actions taken for the review has been successful or not. Different tools such as Solution Composer also use KPI's (ValueSAP). 4.2.3 Business Process Reengineering (BPR) BPR comprises of the three phases. Analysis phase - The existing processes and the systems currently in use are analyzed and the processes that need to be reengineered are identified. Redesign phase - New ways to use existing information are searched, business processes are redesigned and the blueprint of the new business system is defined. Also the focus is on information sharing to reduce redundancy. Transformation phase - Strategies and action plan to incorporate new changes are created and executed. (ISACA, 2000) 4.2.4 Reverse Business Engineering (RBE) RBE uses a bottom up approach to analyze the functionality's used in the system from the business perspective and helps in comparing the results from different implementations and pinpoints the processes, which are not according to the business blueprint. ...read more.

Conclusion

5.4 Solution Composer The Solution Composer is used in the analysis phase to modify the existing solution maps or to create the new ones. It assigns business goals and objectives, products, key performance indicator definitions, user-defined properties and attached documents to the solution maps. "The purpose of this accelerator is to facilitate the review of the industry and cross-functional (technology, knowledge and support services) solution maps and determine the scope, resource requirements, and prioritisation of the assessment."(ValueSAP) 5.5 Value mapping technique Value Map is a review tool, which helps in establishing scope and definition of what to design and change in the implementation process. It is used to identify what to change and how to change. The key advantage of this tool is that it helps in the mapping of desired values for the selected change program. It helps in the mapping of the business objects required to achieve the objectives of the original business case and to find out whether they have been realised or not in the post ERP implementation review. The graphical representation of this technique helps in easy understanding and effective communication of the key ideas and values to the customers (ValueSAP). 6.0 Conclusion The objective of the ERP review is to evaluate current business processes and identify the areas to be improved for maximizing the efficiency of business processes. It helps in identifying and understanding the relationships and associated gaps within the company's business practices and existing systems. The companies need to properly analyze the business processes and identify the Key performance indicators that would help in evaluating the current company's strategy with industry standards. Though it is a very complicated process, with proper planning and systematic approach companies can review and enhance the benefits from the ERP implementation. ...read more.

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