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1. FUTURE DIRECTIVES IN
ERP, ERP AND INTERNET,
CRITICAL SUCCESS AND
FAILURE FACTORS
By : Varun Luthra

2. Future Directives- in
ERP
New Market
New Channels
Faster Implementation Methodologies
Business Models and BAPIs
More Features: WEB ENABLING

3. New Market
 Supplementing direct sales with reseller
channels.
 Software offerings to appeal on the basis of
reduced functionality.
 Improving the implementation methodology
for faster development.
 Removing the entry price to make it financially
viable.
 Using the platforms such as MS Windows NT.

4. New Channels
 As all the vendors are being forced to market
their product in the world of small business,
they made their software products more
affordable by lowering the prices for each
module and by ramping up the total costs by
basing price on user licenses.
Ex am p le :
 Oracle offers the lower price software from
companies such as platinum software and
great plains software.

5. Faster Implementation Methodologies
 As to implement the whole business it has to go
through reengineering process. This may cause a
complete change in the business model working
previously and thus also find it difficult to
implement.
 Some times only 10-15% of the implementation
takes years to complete and by that time
implementation cost may increase.
 To make the implementation of packages more
convenient the ERP vendors are searching for
faster implementation methodologies e.g.
Accelerated SAP (ASAP) is a program introduced
by SAP.

6. Methodologies (cont…)
 Oracle also introduced a faster implementation
methodology called fast-forward.
 This program speed up implementation of Oracle
application suites and nail down the costs up front.
 As there is dearth of skilled consultants, ERP systems
implementation often become a difficult task.
 Require highly skilled consulting teams.
Ex am p le :
Oracle’s OracleOne or SAP’s Platinum Consulting
Services with highly skilled consulting teams provide
their services along with new channel partners and
implementation methodologies.

7. Business Models and BAPIs
 To review and simulate changes to a business model,
implementation team needs special type of business model tools.
 The product such as Intel Corp Inc’s live model provides the views
of R/3 process, data models and functions.
 Live model is OLE complaint; the R/3 model can be manipulated
and documented through OLE application such as Microsoft World.
 Business Application Programming Interfaces(BAPI) are sets of
methods that allow the external application to collaborate with R/3
business objects such as accounts, employees or customers.
 With the help of this collaborate method, BAPIs gives the third party
application vendors a lot of flexibility to build supporting applications
for R/3 system.
 Similarly, Baan offers Orgware, business modeling tool which
combine with business specific templates that help to automatically
configure the software to suit specific operational needs.

8. More Features
 ERP vendors are also focusing on providing improved
decision support applications. ERP vendors teamed
up with various software providers
Ex am p le :
JD Edwards teamed up with Information Builders Inc
to deliver a data mart i.e. Smart Mart Suit with data
base access, data transformation, reporting and
OLAP Tools.

9. WEB ENABLING
 To deliver the self-services and e-commerce capabilities, ERP
vendors are being forced to move from client/server to
browser/server architecture to web-enable their software.
 Vendors deliver java based application for web enabling
software.
Ex am p le :
Baan is working to deliver a java based web interface to all its
products and also focusing on the automation of supply chain
relationship via internet, on e-commerce via Microsoft merchant
server (Site Server) and on using Hyperion Software Corp.’s
Spider-Man technology for report and alert distribution across the
web.

10. ERP and Internet
Framework for integrating the Internet
and ERP systems
Research methodology

11. Framework for integrating the
Internet and ERP systems
Integration of information systems
 The role of information systems in organizations has shifted
from enabling transactions to supporting strategic and
competitive objectives with a customer focus approach.
Information systems are being set up to service customers by
providing offerings that will allow customers to perform basic
query functions.
Benefits include:
 replacing paper-based systems with shared resource
computer systems;
 capturing data once;
 storing a single copy of data in a manner which can be
accessed by all authorized users.

12. Internet use in organizations
 The Internet can be defined as the use of
electronic networks for communication
between information technology systems of
organizations or as a network of networks with
excellent throughput capabilities, for example
e-mail, file transfer, World-Wide Web (WWW).

13. Research methodology
 The nature of this research required a
qualitative approach where interviewing and
document sources were used to gather data.
 This research can also be described as
exploratory qualitative research because the
problem it investigates is not well understood.
 This is due to the newness of the area and a
lack of focused previous research on the
subject.

14. Further exploration using qualitative methods was
necessary:
 Sampling
The respondents were selected using a purposive
convenient sampling
 Data gathering methods
The primary data collection methods for this research
were semi-structured interviews and a documentary
search.
 Data analysis
It analysis consists of examining, categorizing,
tabulating, or otherwise recombining the evidence to
address the initial prepositions of a study'.

15. Critical success and failure
factors

16. Critical Factors
Focus on business processes and requirements first
 Too often, companies get tied up in the technical capabilities or
platforms that a particular software supports. None of this really
matters. What really matters is how you want your business
operations to run and what your key business requirements are.
Focus on achieving a healthy ERP ROI (Return on Investment),
including post-implementation performance measurement
 This requires doing more than just developing a high-level business
case to get approval from upper management or your board of
directors. It also entails establishing key performance measures,
setting baselines and targets for those measures, and tracking
performance after go-live.

17. Critical Factors (cont…)
Strong project management and resource commitment
 At the end of the day, your company owns the success or
failure of a large ERP project, so you should manage it
accordingly. This includes ensuring you have a strong project
manager and your "A-players" from the business to support
and participate in the project.
Commitment from company executives
 Any project without support from it's top-management will fail.
Support from a CIO or IT Director is fine, but it's not enough.
No matter how well-run a project is, problems arise (such as
conflicting business needs), so the CEO and your entire C-level
staff needs to be on board to drive some of these.

18. Critical Factors (cont…)
Take time to plan up front
 An ERP vendor's motive is to close a deal as soon as possible.
Yours should be to make sure it gets done right. Too often,
companies jump right in to a project without validating the software
vendor's understanding of business requirements or their project
plan. The more time you spend ensuring these things are done right
at the beginning of the project, the less time you'll spend fixing
problems later on.
Ensure adequate training and change management
ERP systems involve big change for people, and the system will not
do you any good if people do not understand how to use it
effectively. Therefore, spending time on money on training, change
management, job design, etc. is crucial to any ERP project.

19. Critical Factors (cont…)
Understanding why you're implementing ERP
(imp.)
 This is arguably the most important one. It's
easy to see that many big companies are
running SAP or Oracle and maybe you should
too, but it's harder to consider that maybe you
don't need an ERP system at all.
Perhaps process improvement, organizational
redesign, or targeted best-of-breed technology
will meet your business objectives at a lower
cost.

20. THANK YOU