Case Analysis Worksheet

PRN: 035

This form can be used to organize your thoughts about a case. As you perform your analysis remain open to the fact that your interpretation of the facts may change and therefore you should constantly revisit your answers. Define the Problem:Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis. The given case emphasizes on decisive actions taken in the course of implementing ERP in a large organization as well as on the drivers for ERP and the ideal process to select an ERP vendor. Focus of Analysis: 1. Understanding the proper reasons for implementing ERP 2. Selection of appropriate timing for implementation of such a large project 3. Factors to be considered for selection of an ERP vendor 4. Proper mix of ERP implementation team 5. Selection of appropriate approach(big-bang, phased, etc) considering the organization and its expectations from the project 6. Setting of proper processes after consulting the critical resources of each function. 7. Other alternatives to execute the project List any outside concepts that can be applied: Write down any principles, frameworks or theories that can be applied to this case.

1. Big-Bang approach of ERP implementation: Implementation happens in a single instance. All users move to the new system on a given date. 2. AHP(Analytical Hierarchy Process) for Vendor Selection could be used 3. Initial Dip phenomenon: A downside of big bang implementations is Ken Eason's "Initial Dip Phenomenon." Eason, author of "Information Technology and Organizational Change" and one of the original authorities on implementation strategies, describes an "initial dip phenomenon" which happens shortly after an implementation. This catch-up period happens because users are struggling with the new system and organizational performance temporarily declines as a result.

Copyright 2011 Harvard Business School Publishing This document is for use only with the Harvard Business Publishing Case Analysis Coach.

Case Analysis Worksheet

PRN: 035

Fig: Initial Dip Phenomenon List relevant qualitative data: evidence related to or based on the quality or character of something. Following three exhibits given in the case constitute the qualitative data of the case 1. Exhibit 1: Kedas Computerization Plan 2. Exhibit 2: Kedas ERP Vendor Selection Criteria 3. Exhibit 3: Kedas ERP Project Team Structure Also Produced first 3200 pound pressing machine World leader in building materials machinery Top 500 national machinery manufacturers in China Top 10 building materials machinery enterprises in China Listed in Shanghai Exchange Set up National enterprise postdoctoral workstation

List relevant quantitative data: evidence related to or based on the amount or number of something. 1. 2. 3. 4. Initial Capital: CNY 90000 Generated revenue of 1425 million CNY in 2009 20 software vendors contacted both, local and global 5 year computerization plan.
Copyright 2011 Harvard Business School Publishing This document is for use only with the Harvard Business Publishing Case Analysis Coach.

Case Analysis Worksheet

PRN: 035

5. SAP had 35 years of experience and 40,000 client implementations. 6. Kedas had 30,000 products and had around 90,000 levels to specify in system. 7. One year after ERP they were producing around 30 presses per month. Describe the results of your analysis: What evidence have you accumulated that supports one interpretation over another.

1. Identifying the correct reasons and scope of the entire implementation gives a clear idea about the requirements and expected outcomes of the project. 2. Culture of the workforce and the organization plays a pivotal role in implementation. 3. In case of Big-Bang approach, execute the implementation at a time when there is minimum load/activity in terms of business, transactions and operations. 4. It is best to have a cross-functional team consisting of the most knowledgeable of the technical, functional and administrative resources. 5. Organizations should go for Big-Bang approach if: - Time is less - Immediate benefits are required - Expert resources are available for setting of processes as per business requirement and best practices. 6. Consider all possible failures and have mitigating strategies ready for the same. 7. Active and visible involvement of top management is a must for the project. 8. While replacing employees, culture of the workforce needs to be considered. For example, it is OK to straight away fire an employee for not falling in line. The same might give rise to numerous problems in India.

Describe alternative actions: List and prioritize possible recommendations or actions that come out of your analysis. 1. Phased Out approach: - Positives: Less Risk, Better adaptability of workforce to change - Negatives: Time Consuming, Possible exit of critical resources before completion of implementation , Higher Cost 2. Parallel adoption - Both the legacy and new ERP system run at the same time. Users learn the new system while working on the old. - Positive: Better adaptation to change, better understanding of the reasons of ERP implementation - Negative: Time Consuming, Possible exit of critical resources before completion of
Copyright 2011 Harvard Business School Publishing This document is for use only with the Harvard Business Publishing Case Analysis Coach.

Case Analysis Worksheet

PRN: 035

implementation, Higher Cost

3. Training and counseling employees instead of directly firing them. 4. Make the employees knowledgeable enough to become process owners. Describe your preferred action plan: Write a clear statement of what you would recommend including short, medium and long-term steps to be carried out. Short term: 1. Continuous testing and monitoring of the ERP for compliance with the required business process and standards of performance. 2. Critical checking of business (especially finance) reports for errors like currency conversions, amounts, etc. 3. Training of end-users. Medium term: 1. Monitor performance at financial year-ends. It should be as desired. 2. Analyze processes and prepare flow diagrams for further improvements or customizations. Long term: 1. Training to newly joined employees. 2. Development of selective end users to become functional consultants so as to diversify into the consulting business. 3. Development of new modules within the ERP for handling various technological and process innovations in future. 4. Documentation and standardization of processes so as to help in future implementation or upgrade projects.

Copyright 2011 Harvard Business School Publishing This document is for use only with the Harvard Business Publishing Case Analysis Coach.