1. ERP investment
Henri Teittinen

2. General on IT investments
Purpose to improve productivity
Benefits often hard to identify, in terms of money. Additional revenues, cost reductions.
IT investment is an investment among others. Competetion on money.
How to prepare IT investment calculations?
Operational investment
Strategic investment

3. Idea, preparing the idea
Planning
Decision, informal
Project team makes list of requirements for the new ERP
Project team explors the market on potential ERP vendors and solutions.
Projetc team (in this phase):
Development manager Steven
IT manager Heikki
Logistic Juha
CEO and CFO (in board)
- Business Process Re-engineering
ERP idea again to the management discussions. :
Regognizing the troubles of current ERP system:
Current ERP does not meet the business requirements.
Current system coming to the end of its lifecycle.
The owner is selling the company, no new investments.
2010:
- New owner
2010:
Preparing the IT-strategy
Current ERP: impracticable to modify, icl. Costs.
Current ERP in the end of its lifecycle.
No technical helpdesk and support for current ERP version.
Current version customized for the company
February 2011
Message to the borad of members that something has to be done with the current ERP
Acceptation to top management to start to prepare the investment proposal
March 2011

4. Decision, investment
Implementation begins
Implementation, Roll-out
Implementation, control
People in charge of implementation meet once a week.
Discussions on troubles and challenges on implementations.
Comprehensive understanding and integration of ERP and business operations.
Laboratory (detailed testing) with one finalist.
Company pays for testing environment
May 2011
- Contracty with ERP vendor.
August 2001
Implementation phase begins.
Project manager reqruited (inhouse)
Preparing the detailed scheduling and project implementation budget
May 2012
Big Bang
ERP solution (all modules) will be implemented at once, 1.5.
Back-up planning ischeduled in minute details.

6. ERP investment process
Current state of the business:
where we are at the moment, how we are operarting at the moment
Plans for the future:
where we want to go, how we want to operate in the future
Requirements for the ERP system:
functionalities, business processes, roles, technology
ERP market in Finland
Analysing and selection of the softwares for the final decision.
Investment proposal for the board of directors and agreement with the software vendor
Implementation

7. Requirements and processes
Requirements for new IT system
Improvement of old IT system
Troubles of the old system
Vision of the organization
Business Process Re-engineering
AS-IS (at the moment)
TO-BE (target)

8. Selection of ERP vendor
1. phase: Screening of 5-15 potential softwares and vendors.
2. phase: Final with 1-5 vendors.
Evaluation:
General understanding on: new IT system, company (market and context), challenges of the company
Solutions and services available
Expertise, experience, history, references of the vendor
Implementation plan
Project organization, management and plan
Prices, pricing models, additional prices
Contracts
Help desk, services
Integrations to other solutions
User interface, users’ attitudes

9. ERP Software vendors in Finland
eKansio,
SAP Business One,
SAP ERP,
Rossum,
Manageri II,
Aava,
Wisetime,
Lean,
C9000,
Jeeves,
MHG ERP,
Epicor,
Sauma,
Marble,
Abilita,
Pocum,
Valueframe,
Visma,
Aladobix,
Ajomestari,
Severa,
Oscar,
Dynamics,
Manu Online,
Lemonsoft,
Oracle,
IFS,
IBS,
Pupesoft,
Efima,
VTT:n tutkimus:

10. Delays in implementation
Very common!
If needed:
Sub-targets and scheduling
Additional personnel resources
Re-organizing tasks of the people involved in ERP implementations
Additional training
External implementation consultants

11. Assurance of quality
Experience on ERP implementations (in organization, external consultants)
Piloting and testing
Project control: mid-term and sub-project evaluations
Documentation

12. Implementation group Group should include expertise of:
Processes
Business
Financial
Technical
Legal
Purchasing
User
Project manager