Erp case study pdf

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Preeti Dhillon. Sudeep Ojha. Today, LG continues to benefit with the automated ERP solution, and continues to enhance it further as needed.

Fuze Energy Drinks, going through a rapid growth path, found its existing systems obsolete to meet the growing business needs. Primary challenges were:. Fuze was looking for a cost-effective, easy-to-maintain solution, without getting into the hassles of computer maintenance. Their ERP vendor Pyramid Consulting offered the Sage Accpac ERP solution, which was completely web-hosted and was a proven system for the manufacturing industry, with specific modules matching their needs.

It offered automation for inventory management, production lines and real-time financial reporting with no on-site maintenance, allowing Fuze to concentrate on its core business, instead of adding overhead for computer system maintenance. In addition, the contract Fuze signed with Pyramid stipulated vendor engagement and availability for any ad hoc training, as needed. ERP systems are usually big-ticket projects with high costs and varying timeframes. Case studies of successful ERP implementations allow for the careful selection of vendors, systems and solutions; a clear understanding of existing gaps and objectives to be met; and sufficient and continuous engagement from the client with the vendor, as requirements keep changing dynamically over the implementation phase.

Simply leaving implementation to the vendor may not be the best idea. Working with the vendor in a partnering role produces the best results. Implementing a new ERP system is a costly and time-consuming process. To ensure that money and resources don't go to waste, manufacturers should take the time to build a solid manufacturing ERP implementation plan.

In this guide to manufacturing ERP case studies and examples, you'll discover how to build an implementation project strategy and assemble a project team, be introduced to ERP implementation best practices and mistakes to avoid, and find answers to some frequently-asked manufacturing ERP implementation questions. Previous studies on implementation strategies adopted in ERP implementation specific to telecommunications have been conducted, for example, by Berchet and Habchi According to Beheshti , the implementation stage is usually a very critical step during the introduction of ERP systems.

Unfortunately, current ERP implementation statistics do not look promising with an estimated 70 per cent of all ERP implementations likely to fail Sivunen, Overall, it is important for organisations implementing ERP systems to recognise that the introduction of ERP will most likely result in key organisational changes which, if not managed carefully, can actually result in conflict within the organisation especially in relation to the question of how to integrate the ERP system, the legacy system, and the business processes of the organisation.

The case study The success or failure of a research exercise has been demonstrated to be directly related to the research methodology adopted Easterby-Smith et al.

This particular study focused on how an organisation behaved during a major exercise of systems interactions. For this reason, it became imperative that this study was conducted using a research approach that emphasised both subjective and contextual interpretation of events van Strien, For this reason, we adopted a single case study approach as the primary mode of research.

It is imperative to highlight that the use of single source-case studies is well represented in research Eisenhardt, In this particular case, based on earlier work by Yin , the use of Omantel as a single case study is valid as it can be argued that within the Omani context, due to the size of its operations, it is representative of the telecommunication industry.

Our main reason for choosing this approach was because our investigation was primarily directed at studying current phenomena in a real world context Yin, This approach has been used even though it is not generally popular in project management. In particular, we mention the work of Jaafari , who suggests that creative-reflective models are most appropriate when studying complex projects. Of particular relevance is the fact that this approach is heavily reliant on the competencies of project management professionals.

Omantel is the sole licensed operator in the Sultanate of Oman for fixed line telephony. The company has a mobile subsidiary Omanmobile which offers mobile services and operates as a duopoly with Nawras which is owned by Qatar Telecommunication Company. The government of Oman is the major shareholder of the parent company Omantel.

Strategic drivers Omantel commissioned the ERP project for two major reasons. In the first place, the company sought to ensure that it was strategically placed and ready for the anticipated 81 liberalisation of the Omani telecommunications industry. To achieve this, it has sought to upgrade its capabilities in terms of network technologies that will support best practice controllable work flows Al Wohaibi, The second driver was a need by the organisation to position itself to be able to meet national development requirements as identified by the United Nations ESCWA, The project was planned to be completed in exactly 12 months after initiation.

However, the implementation process overran by about six months, with completion of all ERP package transfers from the test environment completed in June This caused major communication problems between Omantel staff and the technical team from Oracle for example in explaining systems architecture of existing legacy systems. There was also limited in-house expertise within Omantel on Oracle products.

Findings from the case study The findings obtained from the case study are discussed and analysed in this section, and combined into themes. These findings not determined directly from this case study are mapped against earlier discussed critical success factors that impact on ERP systems implementations Finney and Corbett, ; Nah et al.

For this reason, the company was committed to full consultation and transparency with not only its customers, but also with its competitors predominantly Nawras , and the regulator Telecommunications Regulatory Authority TRA of Oman. Success of the project was based on bilateral discussions that would hopefully lead to consent. Consultation covered four specific areas of the implementation Table I. Each consultation process was managed independently as part of a specific working group.

By sharing such information, Omantel anticipated that stakeholder needs were to be fully understood and reflected in the implementation plan. Thorugh this consultation process, the company was able to address the various concerns raised by stakeholders which included creating a greater focus on collaborative testing.

In effect, the consultation programme represented an approach for Omantel to create a more detailed understanding with its suppliers, customers, its mobile subsidiary Omanmobile , competitors predominantly Nawras , and the regulator TRA of Oman of the project. Three major issues emerged from the consultation process, clarity on: 1 operational impact of the timing of the implementation, especially in relation to specific customers; 2 a specific request for implementation freeze periods from customers due to a specific event e.

This was regarded as feasible as it was not expected that the implementation plan would remain unchanged and fixed throughout the duration of the project. Omantel sought to reach solutions acceptable to all parties through its change control process. Selection of Oracle was conducted through Board Details External industry focus Focus on external operations of Omantel and how the ERP implementation will impact on corporate, government and other high-value customers Product management working group Focus on product management and expected new product introduction resultant from the ERP implementation Conformance testing Focus workshops on test execution plans, especially on Table I.

One major in Omantel parameter which was considered was how such an initiative could impact on existing integration with legacy systems especially some stand-alone systems used for billing mobile customers. Previous research by Ponis et al. These are two key parameters discussed by Ponis et al. Overall, again on this point, we note that the role of reputation Keil and Tiwana, and trust Benders et al.

The Omantel staff expressed concerns that the Oracle consultants seemed to have no time, or were unwilling, to share knowledge with the Omantel technical project staff.

This perception was especially prevalent during the first stages of project implementation. Overall, the scope of work of the project involved:. A phased implementation approach was adopted, with key milestones Table II and distinct objectives being identified for each project phase Table III.

Monitoring and control of the overall project plan was through a formal change control process which sought to:. Track and manage requests for changes to sequencing and timing of any aspect of the plan through stakeholder consultation. Modify the plan over the course of project duration initially 12 months.

The plan was updated and published monthly under change control and made available to all stakeholders. If possible, reduce this very large gap obviously check that it does not as a result split tables up too much. IMDS Milestone Definition ,1 Definition of project dashboard Success criteria are defined to facilitate implementation performance to be assessed Baseline procedural establishment Focuses on the establishment of baseline processes for various aspects of the project 84 including communications and back-out.

These procedures will also need to be tested successfully Customer premises equipment compatibility Assist stakeholders in designing test plans for customer premises equipment in order to establish compatibility with new implemented platforms Stakeholder awareness Commencement of programme of general awareness of migration to all stakeholders Migration cases and schedule issued Undertaking to verify that where necessary all migration cases especially in relation to legacy platforms have been issued, reviewed and agreed by all stakeholders Test cases and schedule issued Undertaking to verify that all test cases have been issued, reviewed and agreed by all stakeholders Network and product compatibility testing Undertaking to verify completion of compatibility complete testing of all products on the network Post-implementation review All lessons from completed phases of the project successfully collated Table II.

The implementation was managed by utilising a strong matrix project structure. Omantel assigned project management responsibility to its in-house project management office, leaving Omantel team leaders in each domain with full responsibility while overall management responsibility resided with the Omantel project manager. Support was provided by Oracle which provided an independent integration team in order to facilitate development, support and knowledge transfer.

However, in reality this approach did not work as what appeared to be a parallel implementation team emerged. To resolve the developing conflict, the project team was reorganised into one team. Overall, responsibility was assigned to an Omantel project manager, while technical leadership and consultancy was provided by Oracle.

Other subtle efforts were made to support integration. For example, to break down the possibility of poor project level focus Kuprenas, , improve communication Zomorrodian, and facilitate a greater sense of a shared project agenda Lamproulis, , the project team was moved from individual offices into a single open plan office.

If not adequately addressed, new systems introduction can be met by resistance from stakeholders Brown et al. Often this resistance can manifest in different forms such as system non-use Maguire and Ojiako, , or withdrawal Allen and Wilson, One of the approaches adopted by Omantel to overcome stakeholder resistance was to choose a robust approach to stakeholder anaylsis.

Table IV provides details on the stakeholders, dividing them into key groups. Details on a desired response in each case are also provided. ERP Work stream Details implementation Customer The customer experience work stream focused on identification, contact and in Omantel experience management of each line of business impacted by user acceptance testing.

In general this work stream was responsible for putting together a test strategy plan, developing test scenarios and managing the interface with other lines of business impacted by the implementation 85 Technology The technology work stream was responsible for ensuring that required technology was in place to support ERP implementation.

Key activities in this work stream include setting up of required user acceptance test environments, development of required design and test documents, and resourcing of testing and technical support to the project team and customers, when required Systems It was expected that in most cases, the implementation will impact on a majority of development existing customer interfacing systems. A full compatibility audit of all systems was conducted prior to systems development Networks The network and systems readiness work stream was responsible for ensuring that all and existing and legacy networks and systems were migrated as required.

This team was systems also responsible for ensuring that new designs and necessary changes required for the successful implementation were successfully completed. One crucial aspect of this migration and was to utilise robust and detailed advance notifications covering service disruptions assurance and data freezes.