Target ERP Implementation, Research Proposal Example

Preface/Abstract

The purpose of this document is to establish the project definition and define the deliverables, tasks, work to be performed and the approach regarding tools and methodology to accomplish the project.  The project organization will be mapped out through a hierarchical chart as well as a responsibility matrix to ensure everyone from the project champions to the customer know their roles and responsibilities throughout the project.  As will any project the triple constraint dilemma regarding time, resources and cost will be analyzed (Dobson, 2004).  The ultimate result of this document is to provide the project scope, requirements related to success of the project and baseline the acceptance criteria needed to verify a successful project.  Within this document you will find the following:

• Overview of the Project
• Business Problem Statement
• Company Name
• Brief Description of the Proposed Solution
• Benefits of the Solution
• Key Stakeholders and Audience

Overview of the Project

Enterprise resource planning (ERP) is an approach to alleviate unnecessary business processes by reducing the amount of source and legacy systems into a wing-to-wing operating model which allows multi-directional data and information flow that is not available within the current configurations.  The span of impact is enterprise wide encompassing finance/accounting, logistics, sales, service, customer relationship management, supplier management, and human resources.

Enterprise resource planning (ERP) is an approach to alleviate unnecessary business processes by reducing the amount of source and legacy systems into a wing-to-wing operating model which allows multi-directional data and information flow that is not available within the current configurations (Monk & Wagner, 2009).  The span of impact is enterprise wide encompassing finance/accounting, manufacturing, sales, service, customer relationship management, supplier management, and human resources.

The process of implementing ERP will fall into multiple phases and require input, effort and dedication from each function acting as a single unit to be successful.  Initially experts in each section will be required to document and discuss current processes, create To-Be processes and illuminate potential areas of risk.  As the process moves forward, design, test and implementation will take place within each module provided ultimately leading to a roll out of functionality in staged and progressive iterations (Cooper, Grey, Raymond,& Walker, 2005).  The objective is to have as little impact to the business as possible and create an inclusive community within the business and project.

Currently three suppliers offering the Enterprise Resource Planning modules are competing through an electronic auction based upon the company’s requirements and baseline specifications for business function.  These companies are Cloud Computing Systems, Acquisition Computing Skills and Cradle to Grave Solutions.  Each offer benefits on their ability to perform ERP functions and how they will meet their requirements and future needs.

The company is a global multi-national corporation which sales and distributes not only consumer related goods but also financial services through their credit line operations.  Through acquisition, internal company growth, technological advancements and lack of communication between operating units the current business system configuration is not optimal.  The goals of the company are to provide top notch products and services to the customer with the highest quality and the quickest time to market in the industry.  Currently the company has many disparate systems in which communication is lacking between them.  The operational objective metrics based upon the strategic intent of the company are:

• Time to Market
  • Inventory Turnover
  • Product Lifecycle Management
  • Project Lifecycle for internal customers
  • Six Sigma Principles
• Quality
  • Financial Services Quality
  • Product Quality
  • Six Sigma Principles
• Line of Sight to Shareholder Wealth
  • Operating Profit/Cash Flow
  • Portfolio Management/Optimization
  • Product Management
  • Supply Chain Optimization

Problem Statement

Target currently has multiple legacy systems that are lacking the ability to communicate critical business information, maintain sustainable operation or provide key data to make informed business decisions while the cost to support and maintain each system, hardware and application is increasing as the products extend beyond their estimated lifecycle.

Company

Target is the business that will be examined as a principle example of the need for an inclusive Enterprise Resource Planning implementation.

Description of Proposed Solution

A solution in the form of collaborative effort by the business and information technology teams found that an Enterprise Resource Planning program could provide what the company needed.  In this project it is vital to understand that while the replacement of legacy information technology systems will occur there are changes to the business processes that will drive the technology used for implementation (Magal& Word, 2011).  The information technology processes and systems will change but how the business is conducted from procurement of goods from a supplier, through manufacturing and production to ultimately providing a finished product will change as well.

In order to understand the scope and how the project will be implemented there needs to be a base of what is going to be a large scale implementation project (Prencipe, Davies, & Hobday, 2007).  ERP is an approach to remove unnecessary and wasteful business processes as well as sun-setting applications that are aging and become an hindrance on the business.  The ERP system provides a continual package of applications and business processes built and purposed to complimentary and integrated.  The span of this project encompasses multiple operating functions including accounting/finance, sourcing, manufacturing, scheduling, information technology and quality.  Implementation of a project involving the ERP foundation involves IT system adaptations, removals and replacements as well as those necessary business process changes.  The project life-cycle starts in the initiation phase where the scope is determined and sets the project on its progression towards completion (PMI, 2008).  During the initiation phase the project stakeholders establish how the project will be measured and what success looks like (Project Management Institute, 2008).  The scope being defined helps provide a baseline of how the project manager will execute the project and provide guidance throughout the project lifecycle.  The potential for failure is ever present in any project but when the scope is poorly defined the exponential growth for the potential for failure increases.  The largest potential for failure for the ERP project is not involving the right people at the right time and not including key business partners into the decision process.  The scope of this project starts out at a high level as the implementation of a set of tools to replace the procurement to payment systems in the North American Region in a solidified wing-to-wing system and process model.  For those areas that are going to experience high rates of change they must be brought in through the project’s lifecycle to build and maintain interest and buy-in.  The implementation of this project at first seems to only define the needs of one section of the business.  The rest of the business is still selling and distributing goods but will rely upon the legacy systems until the transition to the new and improved ERP system.  The first iteration also owns the responsibility for building the figurative foundation to the house.  The foundation will be the basis for future iterative roll-outs eventually involving every facility in the business.

Benefits of Solution

As in most projects the more credible the project regarding return on investment, solving compliance issues, reducing effort or benefiting the company in other tangible and intangible ways the better off the project will be regarding stakeholder buy-in and support.  The best projects regarding support and push from leadership are those projects that identify specific problems with measurable results.  Monetary values are always an easy way to describe to leadership the value of a project.  Monetary value comes from cost savings, freeing up budget constraints, reducing headcount or completing a process more efficiently and enjoying the cost avoidance of a prior labor intensive process.  With the implementation of an enterprise resource planning system benefits come in many different forms.  There are the cost savings of a more efficient process in which each system has the ability to communicate with one another but there are also areas for improvement and cost savings because building a new foundation utilizing the DFSS (Designed for Six Sigma) process allows future process improvements and monetary savings.  The benefits of ERP include real-time data transfer from one source of data.  This is due to the fact that the sourcing systems used to procure parts for the manufacturing teams are collocated in the same environment and survive in an environment where updates and changes are felt throughout the process.  The ERP program works by eliminating legacy and antiquated systems that are disparate from the collaborative efforts the ERP program strives for (Magal, & Word, 2011).

ERP measurements can be hard to measure because ERP as a whole is a systematic approach to project/process implementation.  The power behind ERP can be symbolized like that of the human brain.  The brain is powerful and we know that but we cannot quite measure how powerful or efficient it is.  We understand that the brain controls our movement, thoughts, memory, breathing, cell reproduction, heart beat and sensory functions.  ERP is like that of the human brain.  It is the central function that interprets different departments or functions across the business functions.  It manages data while deciphering inputs and outputs into manageable and understandable methods.

Audience

The audience includes the key stakeholders within the organization.  This includes leadership positions in sourcing, logistics, information technology and sales.  The sponsors of the project must include the CIO and the Vice President of Business Operations.  This is imperative due to the massive amount of change in both the realm of information technology as well as the change in business operations throughout the organization.  The key members to approve the project include the project sponsors.

References

Cooper, D. F., Grey, S., Raymond, G., & Walker, P. (2005). Project risk management guidelines, managing risk in large projects and complex procurements. John Wiley & Sons.

Dobson, M. (2004). The triple constraints in project management. Vienna, VA: ManagementConcepts.

Magal, S. R., & Word, J. (2011). Integrated business processes with erp systems. RRD/Jefferson City: Wiley.

Monk, E., & Wagner, B. (2009). Concepts in enterprise resource planning. (3 ed.). Boston, MA: Course Technology Cengage Learning.

Prencipe, A., Davies, A., & Hobday, M. (2007). The business of systems integration. Oxford University Press, USA.

Project Management Institute, P. M. (2008). A guide to the project management body of knowledge. (4th ed.). Newtown Square: Project Management Inst.