Case 1-2 Real World Case:
rolls royces erp implementation
G R O U P M EM B ER S :A K A N K SH A
S IN G H (A 1004914066)
S O M YA
V ATS (A 1004914071)
R IS H A B H
G U P TA (A 1004914065)
A N U PA M
C A S E S TU D Y
Case Study
Case study questions
1. W hat do you think of RRs ERP
im plem entation project ? D id they select
the right im plem entation strategy?
2. D iscuss the criticalsuccess factor of RR;s
im plem entation strategy and the role of
SM Es (Subject M atters Experts) in the
project?
3. W hat advice can you give to RRs technical
team on their approach to m igrating
legacy system w ith the SAP softw are?
1(a)W hat do you think ofRRs
ERP im plem entation project ?
RRs ERP implementation project was well planned and covered
the cultural, business as well as technical issue. The all rounded
plan allowed RR to reduce the implementation risk to a minimum
level and increase the chance of success.
For the project team aspect, RRs 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:
1. Specialists from EDS: handle 90% of RRs IT function
2. SAP consultants: contribute SAP technical knowledge and SAP
implementation knowhow
3. Internal staff: contribute knowledge of cross-functional business
relationship
4. Subject matter experts: contribute experience of the old legacy
systems
Cont...
For the project implementation project, RR 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 RRs 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.
1(b)D id they select the right
im plem entation strategy?
Yes, RR correctly applied a step by step implementation
approach instead of a big-band approach. RR 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 RR 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(a)D iscuss the critical
success factors of R R s
im plem entation strategy
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 RRs employee toward the SAP R/3
implementation project. Existing RRs 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 employees
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. RRs two waves implementation
approach provide a higher opportunity of success.
2 (b)The role ofSM Es (Subject
M atters Experts) in the
pr
ojrole
ect?
The
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. W hat advice can you give to
R R s technical team on their
approach of m igrating legacy
system w ith the SA P softw are?
RR reduced the implementation cost by
modifying the current business processes
to fit in the SAP best practice. However,
RR 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 RR to reduce running cost and
increase the production efficient.
CO N TD ...
However, the research and
development department of RR
requires a higher freedom to
generate high quality idea. Thus, RR
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.
