TM 1 ENTERPRISE SYSTEM
Kelas: LH11
Case 1 : Roll Royce's ERP implementation
Nama Kelompok 2:
- Kevin Alexander 1801374412
- Imelda Ellisa 1801440225
- Adinda Fitria Utami 1801433743
- Muhammad Syaogi Alaydroes 1801383133
- Wita Narensa Anggraeni 1801410771
- Ruben Abram 1801377793
- Dony Maulana Iskandar 1801438006
- Berlino Rahmat Chendramata 1801427274
1a. What do
you think of RR’s ERP implementation project?
Roll Royce’s
ERP implementation project was well planned and covered the cultural, business
as well as technical issue. The all rounded plan allowed Roll Royce to reduce
the implementation risk to a minimum level and increase the chance of success.
For the
project team aspect, Roll Royce’s project team included major stakeholder to
collect the concern and knowledge from different aspect. Moreover, this can
also reduce the resistance and increase the buy-in of the project. The team member
was listed as below:
a. Specialists from EDS: handle 90% of Roll
Royce’s IT function
b. SAP consultants: contribute SAP
technical knowledge and SAP implementation knowhow
c. Internal staff: contribute knowledge
of cross-functional business relationship
d. Subject matter experts: contribute
experience of the old legacy systems
For the project
implementation project, Roll Royce tackled the predictable problem by covering
the below aspects:
1. Cultural category: This category
acted as the role of change management. Project team explained the benefit of
implementing SAP to the company to reduce to resistance. Moreover, a clear
structure of training system allowed project team deliver SAP knowledge to each
level of users.
2. Business category: This category
handled the business process reengineering. Business team not only identified
the different between existing business processes and the SAP standard process,
but also illustrated the step by step changing approach to the Roll Royce’s
employee to support the existing business processes and the new business
processes.
3. Technical category: This category
handled the data integration issue. Without conduct a data cleansing process,
the data from old legacy system cannot extract, transform and load to the
SAP/R3 system.
1b. Did they
select the right implementation strategy?
Yes, Roll Royce
correctly applied a step by step implementation approach instead of a big-band
approach. Roll Royce SAP project included three phases and they were
implemented in sequence to reduce the risk and cost of failure.
According to
Stanley (1998), applied a step-by-step approach can allow Roll Royce to
validate the test data and the data from old legacy system before loading to
SAP R/3 system. Moreover, it can reduce the down time of the legacy system. The
most important benefit is allowing the new system to phase in step by step
without hurting the old legacy system and daily business process.
2. Discuss
the critical success factors of RR’s implementation strategy and the role of
SMEs in the Project.
Critical
success factors are the major elements that need to fulfill to successfully
implement the project. Organizational resistance to change is one of the
critical successful factors. It measures about the acceptance level of the Roll
Royce’s employee toward the SAP R/3 implementation project. Existing Roll Royce’s
employee with sound technical knowledge and higher willingness to learn and
change can reduce the resistance to this critical success factor. In contrast,
if the employee predicts the SAP will change the existing business process
dramatically without generating any significant benefit or affecting employee’s
position, a high level of resistance can be generated. In addition, RR internal
staff will generate a high level of resistance if the new SAP system cannot
fulfill the current business processes.
“Go Live” is
another critical success factor. No matter how detail the project plan, the
practical implementation plan (Go Live) is the critical step to turn paper work
to real work. RR’s two waves implementation approach provide a higher
opportunity of success.
The role of
SME was to provide knowledge of the current business processes of different
functions and different business units. SME ensured SAP project team can fully
understand and apply correct modifications to the existing business processes.
Moreover, SME supported the change management by providing training towards
different operational business units to reduce the resistance and uncertain of
the project.
3. What
advice can you give to RR’s technical team on their approach of migrating
legacy system with the SAP software?
Roll Royce
reduced the implementation cost by modifying the current business processes to
fit in the SAP best practice. However, Roll Royce is one of the giants in
engineering industry which contains different business needs and different
business competitive advantages with competitors. The highly standardized business
process may help the Roll Royce to reduce running cost and increase the
production efficient. However, the research and development department of Roll Royce
requires a higher freedom to generate high quality idea. Thus, Roll Royce is
recommended to review the R&D system of SAP before migrating existing
legacy system. The SAP R/3 should provide enough data and freedom for R&D
department to generate insight without affecting the integration of the whole
organization.
