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Enterprise Resource Planning: Implementation Procedures
and Critical Success Factors
MA561: Seminar in Accounting Information Systems
PIKUL PRAKHONGKIT 1412353010
RUNGNAPA RUNGTANANRAK
1412353003
PUTSACHA AKSORNSOROT
1332353001
Why ERP? Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module
implementation
procedures
success factors
software selection
ERP
Business process
reengineering
Project
management
Enterprise resource planning (ERP)
systems are highly complex
information systems. Many ERP
implementations have been classified
as failures because they did not
achieve predetermined corporate
goals.
Critical
Factors
ERP
Reduce
Costs
Shorten
times
Increasing
competition
Expanding
markets
Reliable
delivery
Supply
chain
Expand
Product
Why ERP? Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module Critical
Factors
1960 1970 1980 1990
• Manufacturing process
• Inventory
• Production
• Material planning
MRP system
• Sales
• Production
MRP system
• Financial statement
MRP II system to be
expanded to incorporate
all resource planning for
the entire enterprise.
Why ERP? Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module Critical
Factors
Sales and
Marketing
Order management
Pricing
Sales management
Sales planning
Operations
and Logistics
Inventory management
Materials management
Plant maintenance
Production planning
Project management
Purchasing
Quality management
Routing management
Shipping
Vender evaluation
Human Resources
Human-resource time accounting
Payroll
Personnel planning
Travel expense
Financials
Accounts Payable and Receivable
Asset Accounting
Cash management and forecasting
Cost-element and cost center accounting
Executive information system
Financial consolidation
Funds Management
General Ledger
Product-cost accounting
Profitability analysis
Profit-center accounting
Standard and period costing
Why ERP? Critical
Factors
Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module
Excellent
project
management
Critical factors for
successful ERP
implementation
ERP
Clear
understanding
of strategic goals
Commitment
by top
management
Organizational change management
A great
implementation
team Data
accuracy
Extensive education
and training
Focused
performance
measures
Multi-site
issues
Why ERP? Critical
Factors
Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module
13 SELECTION
PROCESS
5. Create the request for proposal (RFP)
1. Create the vision 2. Create a feature/function list
3. Create a software candidate list 4. Narrow the field to 4-6 serious candidates
6. Review the proposals
7. Select 2-3 finalists
8. Have the finalists demonstrate their packages
9. Select the winner
10. Justify the investment 11. Negotiate the contract
12.Run a pre-implementation pilot 13. Validate the justification
Why ERP? Critical
Factors
Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module
1 2 5
6
7 8 9 10 11
3 4 Train on the conference room pilot
Security and permissions
Implementation steps
Why ERP? Critical
Factors
Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module
77% 75% 73%
Reasons
Why implementation 3
Poor Planning Change Business Goals
during the project
Lack of Business
Management Support
Why ERP? Critical
Factors
Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module
10 The Reasons why ERP Implementation Failed
Strategic goals are
not clearly defined Top Management is not
committed to the system
Implementation project
management is poor
Organization is not
committed to change
Implementation
team
Training user are
unable to satisfactorily
Data accuracy
is not ensured
Performance
measures
Multi-site issue are
not properly resolved
Technical difficulties
“bugs”
Why ERP? Software
Selection
ERP
Steps
Case study
Huck Inter., Inc.
Abstract ERP
Evolution
Why failed? ERP Module
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