ERP
Unit-2
Prepared By: Avnika Jain
Core Process Analysis
• The purpose of the core process analysis is to define the
business requirements of the new application system
aligned to the future business model as conceived by the
client.
• The principle activities during the business requirement
definition are as follows:
Examine and document current processes and practices to
understand the main business factors that currently benefit the
business.
Gather business transaction and data volumes from the future
business model to help assess the system’s ability to support
current and future business volume.
Carefully document audit and control requirements to satisfy
financial and quality policies.
Prepared By: Avnika Jain
• The ERP AS-IS Process Analysis constitutes
following broad level activities:
– Business Requirement Definition & Data Collection
about Existing Processes
– Key Process Owners Training – Champions
Orientation to ERP
– Business Requirement mapping – Study to Fit
Requirements to ERP
– Gap Analysis – Finding Functionalities that cannot
solution from Out of Box ERP Functionality
– Gap Resolution – Finding Custom Ways or
Workarounds to solution Gaps
Prepared By: Avnika Jain
Prepared By: Avnika Jain
Business Requirement Definition
• The preparatory stage provides an understanding of the
scope of upcoming tasks and answers the question of what
specifically needs optimization through ERP.
• During this phase, system requirements are identified and
categorized into several groups: Functional – system
capabilities., Technical – product specifications and
architecture, Cost-related – including not only the
company’s ERP budget but also the cost of the base
software package, staff training, and modifications.
• Start the internal organizational analysis by interviewing the
highest-ranking financial official possible, since the holder
of that position will be likely to have most knowledge of the
financial and operating structure of the organization.
Prepared By: Avnika Jain
• The success of ERP system deployment and its
format depend on stakeholder engagement. To
ensure this:
– identify stakeholders who directly or indirectly
influence the system's implementation;
– gather stakeholder expectations and requirements for
ERP deployment;
– consider all perspectives on problem-solving through
individual and group communication;
– present the system, demonstrating its benefits and
discussing critical points.
Prepared By: Avnika Jain
Prerequisites for Business
Requirement Definition
• Dedicated resources for conducting analysis
• A committed project sponsor who maintains a
consistent and high level of team commitment
• Active involvement and support of management
• Active involvement and support of knowledgeable
business area specialists
• Full access to information about relevant business
areas, their processes, data generation, and use
• Current business process documents for reference
purpose
• Current business reports for reference purpose
Prepared By: Avnika Jain
Detail Activities of Business
Requirement Definition
I. Identify Current Financial and Operating Structure:
• Information about current and proposed organizational structures
is one of the deciding factors in the selection of the application
package.
• Start the internal organizational analysis by interviewing the
highest-ranking financial official possible.
• Interview organization management to obtain a clear
understanding of current and proposed entity structure
• Develop a chart showing the current organization structure
• Develop a business organization overview and listing
• Define and chart the financial operating environment
• Define the financial and management reporting environment
Prepared By: Avnika Jain
II. Conducting Current Business Baseline:
In this task the project team examines current processes
and practices to identify how the existing business
system meets current business requirements.
III. Gathering Business Volumes and Metrics:
• The business volumes and metrics document the data
volumes and processing frequency of the transactions on
the new production system.
• To begin this task, examine all major business processes
that transact moderate to high volumes of data (for
example, customer orders, purchase orders, purchase
requisitions, manufacturing orders, manufacturing
receipts.
• The number of possible configurations can lead to
performance problems, even for smaller
implementations. Prepared By: Avnika Jain
IV. Gather Business Requirement Scenarios: In this task we
define detailed business requirements and create atleast
one BRS(Business Requirements Scenario) for each
business process.
V Determine Audit and Control Requirements: This task
identify the high level and policies that affect business
security, control and procedure. Such transactions, if
executed, should be detectable and their recurrence
prevented.
Prepared By: Avnika Jain
VI Identify Business Availability Requirements: This task is
designed to facilitate a discussion between the operational
and information system departments of the business in order
to arrive at a consensus on what is an acceptable percentage
system uptime and the contingency measures to implement
during a system outage. It also summarize situations the
company must guard against the approach to manage delay,
failure or unexpected results.
VII Identify Reporting and Information Access Requirements:
In this task we develop the reporting requirements. Reports
are output of business processes that are used as tool in
support of business process operations. The master report
tracking list is used as the primary repository for all
information collected about a report requirement. It should
contain system and report name, business purpose,
frequency, priority, User name.
Prepared By: Avnika Jain
Core Process Analysis: Key Process
Owners Training
• The main objective of the key process owners
training is to familiarize them with the
standard functionality, basic looks and feel,
and the navigation methods of ERP
applications.
Prepared By: Avnika Jain
1) Conduct Key Process Owners
Training Needs Analysis
• During this task, gather information about the
knowledge, skills, and aptitudes of all key
process owners. Record current knowledge,
skills, and aptitudes; compare them to the
new competencies; and identify the gaps
between the present and the ideal.
• These gaps mark the parameters of the
needed learning.
Prepared By: Avnika Jain
2) Prepare a Training Plan
• Create a learning objective and training strategy.
• Tailor learning content for each role.
• Select learning approach and delivery method.
• Describe the approach for creating needed
learning materials.
• Determine resource requirements, such as
facilities, equipment, materials, and supplies,
including learning environment.
• Describe the plan for learning logistics and
administration.
Prepared By: Avnika Jain
3) Develop Training Material
• In this task, you tailor learning ware and other
skills-change materials to meet the learning objectives
developed in the user learning plan.
• Focus on developing materials that are user friendly,
attractive, and meet good communication standards.
• Prepare training material for each module of ERP
applications being implemented.
• Develop the measurement materials like hands-on
test cases or exercises, which can measure the extent
of training.
Prepared By: Avnika Jain
4) Prepare Training Environment
• Setup a dedicated user learning environment
with necessary hardware and sample data.
• Set up applications.
• Set up support infrastructure.
• Align training scenarios with client-specific
business processes
Prepared By: Avnika Jain
Core Process Analysis: Business Requirement Mapping
and Gap Analysis/Resolution
Mapping Environment: Set up a dedicated environment or use
training/demo setups. Configure based on requirements and replicate
across sites.
Mapping & Gaps: Align features with business needs, prioritize critical
processes, and finalize within scope. Involve managers in mapping and
focus on prototyping.
Data Mapping: Map legacy data to the target application, document
missing data, and identify integration points.
Reporting Fit: Use existing reporting systems, reduce custom reports, and
train users on processes.
Gap Resolutions: Use workarounds or modifications for gaps, design for
future needs, and prioritize quickly.
Custom Reports: Prioritize custom reports, gather feedback, and manage
priorities continuously.
Confirm Solutions: Submit requirements for approval, revise if needed, and
proceed once the model and gap resolutions are approved.
Prepared By: Avnika Jain
Customizations
• Customization means writing new codes (scripts, programs, class files)
within the software to meet specific business requirements.
• ERP systems are customized to add or change functionalities and
business modules based on specific requirements. These
functionalities will be added to the standard version of an ERP.
• ERP customization can require immense time and cost depending on
the scope of the changes and the business size.
• Example: Addition of new fields or tables for performing calculations,
Addition of form layouts, menus, product lines, and dashboard
widgets.
• Enterprise resource planning (ERP) application provides the users, the
flexibility to customize the standard application functionality to suit
the specific business needs. Customization may also include the
development of additional reports tailored to the organization's
requirements.
Prepared By: Avnika Jain
• During ERP implementation, it is commonly observed that
customers request significant customization. Before
proceeding, it is the application consultant's responsibility
to ensure the following:
• For Process-Level Customizations
– Confirm that the required functionality is not already available
in the standard application.
– Evaluate whether the customer can adapt to the standard
functionality, especially if it aligns with better industry
practices.
– Verify whether the requested customization is planned as a
future release in the ERP application.
• For Report-Related Requirements
– Identify the fields needed for the reports.
– Determine if customization is necessary to accommodate the
additional data requirements.
Prepared By: Avnika Jain
Prerequisite
• Before initiating customization in an ERP application, the following
prerequisites must be fulfilled:
1. Mapping of TO-BE Process: The TO-BE business process must be
mapped with the standard functionalities of the ERP application
to ensure alignment.
2. Gap Identification: All functional gaps across ERP application
modules to be implemented must be clearly identified.
3. Customization Decision: The need for customization to resolve
identified gaps must be formally decided and approved during
the steering committee meeting for Gap resolution.
4. Customization Team Setup: The team responsible for
customization analysis and development must be identified and
assigned specific roles and responsibilities.
Prepared By: Avnika Jain
Process Flow Diagram
Prepared By: Avnika Jain
Gap Analysis
• In this phase, a detailed study of the client’s AS IS process is
required, keeping the core ERP application functionality in
the background.
• A gap analysis is the process of reviewing your current state
and determining what you need to do to move into
your future state.
• What are the Gaps you may need to address?
– Functions Missing: Important features and functions you need
that weren’t in your original requirements.
– Areas of Redundancy: Employees are required to enter the same
data into the same fields multiple times.
– Lack of Flexibility: If your organization undergoes a significant
shift.
Prepared By: Avnika Jain
• We need to categorize the processes in each
functional module to
Processes which are not there
Processes Supported by
in ERP Application
Standard ERP Functionality
For the ones not supported by ERP, we need
to identify the alternate solution available
in ERP and discuss with client’s functional
owner of the process
Client accepts ERP functionality as Client cannot adapt to
its TO BE process—no ERP-suggested
customization process—customization
required.
Prepared By: Avnika Jain
Key Discussion Points with the Client
• Cost of Customization: Customization entails additional
support costs as ERP does not provide built-in support for
customizations.
• Impact on Updates: Applying patches or updates to the ERP
environment may result in the loss of customizations, requiring
rework and additional effort.
• Standard Process Flow: ERP discourages customizing the
process flow for standard transaction-related functionalities
due to the complex integration across modules.
Once we decide that a customization is required, a
feasibility study is done and the effort is estimated.
With the outcome, we move over to the analysis
phase.
Prepared By: Avnika Jain
Analyze Dependency
• In the analysis phase of the customization we
identify the areas in core application which we
need to consider.
Prepare list of objects to be customized
Prepare process flow diagram for customization
Prepare analysis document
Prepare list of redundant standard functionality
Prepared By: Avnika Jain
• The major tasks of this phase are:
Determine detailed functional process flow diagram
for the customization.
Identify and classify the objects that need
customization
(reports/forms/procedures/workflow/alert)
Identify data flow link between customized object
and standard applications objects.
Identify if there is any standard applications
functionality that becomes redundant for the
customization
Prepared By: Avnika Jain
Design
• In this phase, we define the technology architecture
of the customization.
• At the end of this phase, the deliverable is the design
document.
• The following approach can be followed during the
design phase:
– For the object/functionality to be customized, check for
closest match standard applications object/functionality
which will be obsolete. This can be obtained from the
analysis document
– Take the standard applications object as a baseline for
customization
– Define the custom application which will own the
customization
Prepared By: Avnika Jain
Development
• This phase is instrumental in building the
customization referring to the design document.
1. Build custom components as per design
document
2. Prepare unit test plan and unit test case
3. Unit testing of custom component
4. Fix all the bugs identified at the time of unit
testing
5. Update detailed design document
Prepared By: Avnika Jain
Prepared By: Avnika Jain
