For this exercise, I have selected

For this exercise, I have selected to use the SAP implementation roadmap that contains the following phases and sub-phase:

Project preparation
defining project scope
establishing the team and manager
vendor selection
identifying business process that will be affected
establishing the budget
risk management process
Implementation
business blueprint
realization and
final preparation
Go live and support.

The case study is based on an IT Equipment & Software Integrator based in Romania that started its activity as the main sales representative for a leading producer of scales and weighing scales to both retail and manufacturing. The company has offices in 5 major cities in Romania.

Project preparation

The company’s top management involved all the stakeholders as much as possible before the project commences to discuss that the company could not grow any further with the current system therefore the drive to change was present. The CEO led the project firmly but was open for dialogue and conflict resolution.

The company planned and managed the implementation of four modules – Sales and distribution, Materials Management, Financial and Controlling and Profitability Analysis. The whole operations cycle was changed and modeled according to the new system. The team consisted of department managers responsible for each software module with their good knowledge of their domains so that limitations of the old system can be identified quickly. The established team had a strong incentive to contribute to the success of the project.

As the top management knew that they wanted an industry-recognized solution with a good track record they have decided to choose SAP. They have relied on a local partner with a good experience in SAP projects – one consultant for each modules as well as an experienced team leader with good IT and finance knowledge.

The opposition mainly came from changes in roles and organisational structure, many job description changed therefore staff had to adapt to doing things differently or have been given a new task to do. The need to change was very clear throughout the organisation therefore it was understood by all. By having an open communication and listening to feedback from employee has encouraged ownership of the new system. The company had more moderate approach to risk as this was identified from the beginning of the project with the help of stakeholders.

The project cost was 2.5% of the average yearly turnover. Customisation was avoided as the company decided to redo their business process in line with SAP workflow. The project started in 2008 with an estimated launch date in early 2010. The go-live was delayed mainly due to changes in the implementation therefore it was pushed back to mid-2010

Implementation

During the implementation stage all expected impacts of the project was communicated to all stakeholders so that they are all up to date with what is happening.

The team adhered to the original plan thus minimising any additional cost

End-users were involved during implementation to give them some ownership and adoption to the new system.

The rollout strategy was planned and tested before the ERP transition. A fallback plan was also devised in case the new system did not work properly.

Go-live and support

The company achieved most of its proposed goals and the turnover doubled after the implementation. Numerous process gained speed. Inventory settlement was down one day from seven days. Invoice were automated. The company is more robust and adaptable organisation.

The only unrealised benefits for the company was the difficulty of integrating SAP’s customer relationship management (CRM) with the new system. The company has budgeted resources to address the issue.