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    Keda's SAP Implementation - Group 11

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    Pallab Paul
    The document discusses Keda's successful ERP implementation project in China. It describes several leadership best practices engaged in by Keda managers, including involving all decision makers, assessing vendor options thoroughly, establishing clear roles, and providing support during implementation. It also outlines main challenges faced at each project stage, such as vendor selection and user resistance, and factors like careful planning that contributed to overcoming these challenges. Finally, it notes that Keda's cultural characteristics, such as adopting consultant recommendations and leveraging user knowledge, were leveraged to bring about project success.

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    Keda's SAP Implementation - Group 11

    Uploaded by

    Pallab Paul
    438 views8 pages
    The document discusses Keda's successful ERP implementation project in China. It describes several leadership best practices engaged in by Keda managers, including involving all decision makers, assessing vendor options thoroughly, establishing clear roles, and providing support during implementation. It also outlines main challenges faced at each project stage, such as vendor selection and user resistance, and factors like careful planning that contributed to overcoming these challenges. Finally, it notes that Keda's cultural characteristics, such as adopting consultant recommendations and leveraging user knowledge, were leveraged to bring about project success.

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    The document discusses Keda's successful ERP implementation project in China. It describes several leadership best practices engaged in by Keda managers, including involving all decision makers, assessing vendor options thoroughly, establishing clear roles, and providing support during implementation. It also outlines main challenges faced at each project stage, such as vendor selection and user resistance, and factors like careful planning that contributed to overcoming these challenges. Finally, it notes that Keda's cultural characteristics, such as adopting consultant recommendations and leveraging user knowledge, were leveraged to bring about project success.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    438 views8 pages

    Keda's SAP Implementation - Group 11

    Uploaded by

    Pallab Paul
    The document discusses Keda's successful ERP implementation project in China. It describes several leadership best practices engaged in by Keda managers, including involving all decision makers, assessing vendor options thoroughly, establishing clear roles, and providing support during implementation. It also outlines main challenges faced at each project stage, such as vendor selection and user resistance, and factors like careful planning that contributed to overcoming these challenges. Finally, it notes that Keda's cultural characteristics, such as adopting consultant recommendations and leveraging user knowledge, were leveraged to bring about project success.

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    You are on page 1of 8

    Himanshu Shekhar (G15024)

    Navneet Kumar Shukla (G15033)


    Niladri Shekhar Dandapat(G15034)
    Pallab Paul (G15036)
    Umesh Chaudhury (G15057)

    Table of Contents
    1 Leadership plays a pivotal role in the success of ERP project. Which
    leadership best practices did the Keda managers engage in?..............3
    2 What are the main challenges faced by Keda in each stage of its ERP
    project? What factors contributed to the project success in the face of
    these challenges?................................................................................. 4
    3 Culture plays an important role in any project implementation. How
    were Kedas cultural characteristics leveraged in bring about a project
    success................................................................................................ 6

    1 Leadership plays a pivotal role in the success of ERP


    project. Which leadership best practices did the
    Keda managers engage in?

    The leadership ensured that needed information for every decision maker
    at every step for decision making was provided.
    While working out the plan, Keda focused on how much investment was
    needed and in what kind of systems, objectives, hindrances that the
    company faced, why computerization was needed and what problems
    were being targeted to solve.
    A decision was made not to build the customized ERP system in-house but
    to purchase the technology from a third-party provider as it was not
    Kedas core activity and thus would have been expensive and timeconsuming.
    Vendor assessment was done comprehensively by visiting existing client
    of vendors which in turn made middle and top management more aware
    about computerization and ERP and helped in avoiding the mistakes made
    by others.
    Key roles like key users, consultants and IT officers were identified in the
    beginning of implementation itself.
    Vital representatives such as departmental managers and essential
    operational staff were involved who possessed a comprehensive
    understanding of the operations and need of the departments. Thus
    everyone was involved which made sure all had clarity on their roles and
    responsibilities and nobody would protest the implementation of the new
    system later on.
    It was made sure that the project team worked as an integrated team.
    Support and involvement from senior management during
    implementation phase was provided which offered a reward system for
    longer working hours.
    All challenges and difficulties faced during implementation were reported
    promptly.
    Key users transferred their knowledge and skills to other users.
    Operating manuals were prepared.
    System testing and training were conducted in parallel.
    Timing was carefully chosen (mostly during lean season) to avoid risk and
    manage business disruptions.
    During deployment, big-bang implementation was preferred over phased
    implementation.

    1 What are the main challenges faced by Keda in each


    stage of its ERP project? What factors contributed to
    the project success in the face of these challenges?
    Following are the challenges that surfaced in each stage of the ERP
    implementation project and the corresponding success factors to mitigate the
    challenges:
    1. Selection of ERP as the future solution: After Beijing Riamb ceased
    maintenance support for the MRP II solution in 2004, and Keda outgrew the
    capabilities of the MRP II system in its expansion. Keda needed a
    replacement fast, especially with the rapidly growing production demand.
    Although there were multiple IT projects in the planning phase but Keda
    decided that the ERP system implementation would be the primary
    importance for them to integrate the various departments and improve the
    productivity. Once the ERP system is implemented then on top of it other IT
    system such as CRM, Supply Chain Management System, and Business
    Intelligence etc. could be easily built in future.
    2. In-house development / Outsource: Next challenge for Keda was to
    decide if they would go for in house development of the system or outsource
    the implementation to other software vendor. Keda correctly decided to
    outsource the implementation to vendor since the software development
    was not the core competency of Keda and it would be too costly for them to
    build a IT team for in hose development
    3. Vendor Selection: Vendor selection was a major challenge for Keda since
    majority of the ERP implementation failed in China. The global vendor might
    be more experienced but a local vendor might be more suitable in local
    cultural context. Keda evaluated 20 vendors including domestic and global
    players. They also visited the existing clients of the vendors for whom they
    already did the ERP implementation. Keda understood the practical
    implementation challenges from the companies in which ERP was
    implemented and then took a informed decision during initial short listing of
    the vendors. They also prepared a questionnaire for the vendors and asked
    for RFP from the shortlisted vendors. Keda also involved the senior
    managers during the vendor selection process to make them accountable
    for such a large project. They collaboratively selected SAP as the ERP
    solution who had the most flexible and matured product with most
    experience in the ERP implementation globally.
    4. Team Setup: During the formation of the team Zhu properly mixed the IT
    and Key business people from each department. The Key business people
    were the pivot point of the projects success considering the complex

    workflow Keda had. It would have been impossible for IT only to implement
    the workflow. Zhu faced strong opposition from division head to pull key
    people out from the department and put into the ERP project but with the
    support from the senior management Zhu could able to achieve this. Zhu
    also assigned an owner for each module of the ERP system from the
    corresponding department of Keda and blocked their time till 5 PM for ERP
    project. Although he faced opposition from the department managers but
    with the help of senior management Zhu could able to overcome this by
    introducing performance bonus and penalties.
    5. Modification of Existing Workflows: There were lot of workflows which
    could not be implemented as is in the SAP system. Either out of the box
    customization needed to be done in the SAP system or the workflows
    needed to be tweaked to fit into the SAP standardized framework. Keda took
    the right decision to tweak the existing workflow with the help of key
    business people rather than modify the SAP standard framework.
    6. Data characteristics: Keda kept a large quantity of raw materials and
    parts but each had a small stock. This presented a unique challenge in
    selecting the right ERP software for Keda. The sheer amount of data was a
    big issue in implementation, together with the poor quality of existing data
    translated to extra workload in retaking stock and renumbering stock code
    so as to ensure data accuracy in the new system.
    7. Training cum testing approach: Keda conducted the training program for
    its users on the new system and by doing this they achieved the business
    user testing in parallel to the training exercise. This reduced the time for
    separate testing phase.
    8. Deployment Phased or Big Bang: Phased implantation was lesser risky
    but time consuming. Big bang approach was risky but time effective. Keda
    went for Big bang approach since they had very short time span and they
    could not afford duplicate data processing effort in case of phased
    implementation.
    9. Users resistance: This is perhaps one of the most cited challenges in any
    system implementation project. With the drastic changes in many facets of
    the business undergoing ERP adoption, it is to be expected that at least
    some users will resist this change. This resistance presented itself in Kedas
    case at various points of the implementation process. For instance, the
    collocation scheme during the implementation was vehemently opposed to.
    After rollout, some felt that work became more tedious, and a redistribution
    of power brought by ERP made some middle management unhappy, too. But
    Keda could overcome the user resistance by removing the people who were
    extreme against the new system and brought new people to can mobilize
    the workforce to align to the organization strategy.

    10.
    Production delay: Production delays were also reported immediately
    after rollout. Disruptions to business were to be expected since ERP systems
    are enterprise-wide effort that involved fundamental changes in the
    business operation. To circumvent this problem, rollout time was carefully
    chosen to occur in a low season for the company so as to minimize
    disruptions to business.

    2 Culture plays an important role in any project


    implementation. How were Kedas cultural
    characteristics leveraged in bring about a project
    success
    Kedas success in its ERP implementation project was a remarkable one,
    especially in China. This case serves to elucidate the ERP concept and the
    management of ERP projects. The factors that make the difference between
    success and failure in ERP implementations are demonstrated in much of what
    Keda did, though some of those factors are more cultural specific than others.
    For example, by adopting consultants recommendations in all cases of
    disagreements, much time was saved from fruitless arguments. The choice of a
    well-established packaged solution, the collocation work scheme, and
    leveraging key users knowledge in devising system specifications and system
    testing probably helped, too. The governmental influence for implementing
    innovation to achieve excellence was one of the primary driver for ERP
    implementation.
    Strategies sometimes only work in particular cultural settings. For example,
    embarrassment was deemed an important punishment, so important that it
    could be career ending, which gave rise to the canteen work as a punishment;
    this was probably more unique to enterprise management in China. But this
    helped Keda in freeing up the department managers to focus more on the ERP
    project rather than their own departmental routine work. Also, the forceful
    response of replacing everyone who did not comply in the ERP deployment
    shows the cultural practice of China that employees need to be aligned with
    the organization strategy. In failing to comply with what senior management
    decides the employees were at risk in losing their jobs. This reduced the
    opposition of the ERP implementation and adoption a big way to achieve the
    success.

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