In one of my technical discussions for a position in Peoplesoft Implementation side, I was asked this question:
what are ERP methodologies, and how many are there?
What is methodology? Methodology refers to a systematic approach to conducting a business process reengineering project. ERP methodology builds on the theory that an enterprise can maximize its returns by maximizing the utilization of its fixed supply of resources. Information technology with its increasing computer power and the ability to correlate pieces of information has proven to be the best tool to do so.
The following are some examples of methodologies from different consulting firms.
[ The Total Solution ]
Ernst & Young LLP have developed a systematic way of approaching systems reengineering called
The Total Solution. The Total Solution approach has five components:
1. The Value Proposition: Building the business case for an SAP solution
The key before any process can begin is to make sure it makes sound business sense. The following questions should be answered before the process is started:
Is the technology investment justified?
Does it match the company's objectives?
Does management understand what change means, and does that change have full support?
What is the framework for making decisions?
What milestones will measure the project's progress?
Is value being delivered throughout the process?
2. Reality Check: Assessing an organization's readiness for change
Since many people oppose change, it's something that needs to be anticipated. Status quo is easy. Change is not. Therefore, the following questions need to be asked:
Is the organization ready for change?
Are there any 'hidden agendas?' If so, how will they be managed?
Is everybody on board with the nature, scope, and pace of the change?
What are management's expectations?
How those questions are answered will adjust the implementation approach. And knowing the answers upfront helps to avoid a possibility that the change does not match the client's reality.
3. Aligned Approach: Setting expectations. Delivering short-term and long-term value.
Short-term as well as long-term benefits are key to any project's success. Even if change is discomforting for some, it is easier to accept if progress is visible. In this approach, the following tasks are performed:
- Evaluate alternatives to a comprehensive reengineering project
- Craft a "best-fit" approach that allows the implementation to proceed in well-defined
modules.
- Communicate expected results to management. Keep communicating throughout the project
so no surprises surface at the end. This approach helps keep the entire project on time,
on budget and on management's agenda for success.
4. Success Dimension: The right blend of people, skills, methods, and management.
The key to any project's success is having the right mix of people, skills, methods and management.
E&Y team includes people with skills in process management, change management, knowledge management, and industry skills. Teamwork is very important to determine the project's success.
5. Delivering Value: Measuring results and celebrating success.
A project that does not show measurable results throughout the process is going to flounder. People will lose enthusiasm and the expectations of a new way of doing business becomes just another broken promise.
E&Y always makes sure that every project pays continuous "value dividends" all along the way and helps to minimize the risk of change.
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