SAP implementation is a huge undertaking for any company, big or small. The one thing that every company wants to see during and after this implementation is benefits to their business. The biggest result they are looking for is a tangible or measurable benefit as these are easily identifiable and make the task of proving the reason for the hefty investment in SAP much easier. The question becomes how does a company go about seizing the benefits of SAP? There are several keys to seizing this benefit and those include discovering the hard dollar benefits, avoiding common pitfalls in a SAP implantation, and finding the intangible benefits.
Hard dollar benefits are those areas in which SAP helps the company save money in some manner. This may be from running more efficiently or more effectively, which often times allows a company to run more cheaply. These benefits can often be seen in operations throughout the company. They shine through in inventory management, asset management, purchasing, and many other places within the business. “Hard benefit descriptions always begin with an action verb, have a noun in the middle that can be dollarized, and end with a data point. (Doane, pg. 104)” Hard benefits do not come simply by implementing SAP. They come based on the design implemented, and this design is in place to bring back an expected result and benefit. This expectation comes from having the understanding of what SAP has the ability to deliver to a particular business. This knowledge is what is used to discover what benefits SAP can offer on each individual basis.
These benefits are best discovered and maximized if used in conjunction with KPIs. A KPI is a key performance indicator and they allow a company to measure and manage ...
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...only been entered once. This is very different from the legacy system many systems are coming from. It has been found that over 70% of organizations who have implemented SAP say that they have increased data quality and visibility (Doane, pg. 110) In order for SAP to work correctly, it is paramount that data be correct because so many employees rely on this information, so it is a benefit that many businesses will benefit from as a result. SAP also helps with the transparency and responsibility in a company. Responsibilities are clearly defined and it allows them to see just how their actions within the company affect others downstream. SAP removes the silo effect often experienced by many companies. Because people know what affects they have on others, it improves their quality of work and as a result improves the quality across the business (Eresource, page 1).
...ts stakeholders and stabilized the internal culture. If compensation for the organization’s executives were tied to designated performance indicators for ARC (Lytle, 2013), the organization may actually operate more efficiently and effectively.
Being presented with the problems in the implementation of the SAP ERP system, it is evident that Novartis Pharmaceuticals requires a comprehensive action plan that resolves key issues and the underlying problem. Refer to Exhibit A for a graphical representation of the action plan.
SAP mission is to help every customer become a best-run business by delivering technology innovations that they believe address today’s and tomorrow’s challenges without disrupting their customers’ business operations. Organizations around the world are entering a new era of business model innovation, made possible by the convergence of cloud, mobile, social, and big-data technologies.
According to Gartner, SAP SCM accounts for about 19 % of the global market share (“SAP Software Review”, 2014). SAP has very good lineup of Supply Chain Management software features and robust functionality (“SAP Supply Chain Management", 2014, 2014). SAP SCM is already integrated and used by many global companies around the world. An interesting feature of SAP SCM is its upgradability .Recent survey says that 67% of the users have upgraded after the extended maintenance agreement was up and 95% of SAP users are planning to upgrade from their previous versions (Wailgum, 2012). SAP SCM comes up with a set of powerful tools which exceed the business process automation, thereby helping the global organizations in making strategic management decisions by reporting future needs (“SAP Software Review”, 2014). With SAP multiple forecast modeling techniques are available and it also selects the best fit model. This accurate forecasting is achieved by incorporating factors such as trends in product lifecycle, bill of materials, causal forecasting in addition to demand history. Th...
The balance scorecard approach is one of the top four international management consultant practices. This practice has a failure rate of 70%. Despite the high level of failure it is still a heavily promoted method. One of the main reasons this method fails is the lack of buy in from management and then not supported. Another reason is to many KPI’s that are hard to measure. Many companies will get stuck in the implementation phase and not be able to get out of it and end up abandoning this method. In the end most companies find it to complex. (Outcomes, 2012)
Choosing a KPI as the desired organizational improvement for a capstone project is not a good idea. KPIs are used to measure how well an organization is performing; subsequently, they do not address strategic goals and objectives of an organization. KPIs present an overall picture of long ranged improvements based on a multi-cycle action project; consequently, they do not provide a plan of improvement that can be utilized immediately to solve a problem that can address the performance level of the organization.
Scope: it helps the organization to become more efficient by motivating, training, rewarding and promoting employees. It serves a strategic purpose in linking employee functions with the organization`s vision, mission, goals and strategic plan.
Rosario, J.G. (2000), ¡°On the leading edge: critical success factors in ERP implementation projects¡±, BusinessWorld, Philippines.
Performance related pay is a financial reward given to employees whose work is considered to have reached a required standard or is above average. “PRP criteria can relate to the individual employee, to work groups or to the organization as a whole” (Armstrong, 2002). It is fair to provide people with financial rewards as a means of paying them according to their contribution (Armstrong 1993:86). The primary purpose of performance related pay in any organization is to recruit, retain and motivate the workforce. It also helps in focusing employees’ minds on particular goals (Protsik, 1966); communicate to employees an organization’s core values, and change the culture of that organization (Kessler and Purcell, 1991).
The notion of the Balanced Scorecard was described as "a framework for multi- dimensional performance evaluation and performance management." This framew...
The Balanced Scorecard has emerged in recent years as a performance measurement system in various organizations. This paper will discuss the origin and concept of the balanced scorecard and how it was first implemented. We will then review the criticisms on the balanced scorecard methodology as well as analyse the strengths and weaknesses of this performance measurement tool.
The ERP system allows a strategic flow of information between all areas within an enterprise in a consistently productive manner.
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
“From early on the ambition of ERP-systems has been used to integrate all transaction systems within the one system which combines all information and practices across full organisation, and gives proper information for decision-making in real-time” (Bjorn-Andersen & Johansson 2007)
By monitoring employees our company can keeps track of an employee’s performance and evaluate that their outputs are in line with the company’s objectives and goals. Performance is measured within our business through questionnaires, on the job observations, assessments, and peer evaluations. The process used in measuring and improving employee’s performance is 360-degree feedback. This is measured by collecting information and ratings from supervisors, peers, and customers. Rewards and performance appraisals are used to incentivize. Providing timely recognition reinforces employees learning and acknowledges accomplishments. The outcomes of high performance of an individual should contribute to higher performance for the organization as a whole (Noe, R.A,2011, p.497). In order to have high performance organization employees must know the company 's goals and what they must do to achieve