Benefits management consists of five primary stages which are identifying and structuring benefits, planning benefits realization, executing benefits plan, reviewing and evaluating benefits and identifying potential future benefits.
2.1. Identification and Structuring Benefits
The first stage is for identification and structuring of benefits and conducted in the planning phase of system implementation. This first stage is important for identifying the reasons of implementing the system and owner of the benefits. The stage involves parties who are affected by the system. Management has to be convinced of the business benefits in order to move to the next step.
Step:
Identify Problem Company trying to solve
Define the intermediate and final outcomes required to realise the benefits
Identify any potential risks associated with the achievement of the benefits
Define the scope and objectives of the program
2.2. Plan Benefit Realization
Planning benefits realization is the second stage in the phase. The stage is required to deliver each benefit that was identified. Analysing stakeholders is one way to do this stage which helps identify the benefits of the system to them. Benefits Dependency Network is a clear result from this stage.
Step:
Identify a business owner for each benefit
Identify and confirm timeframes and milestones for achievement of each benefit
Define benefit realisation activities to be executed by the business
Define risk mitigation strategies
Create Benefit Dependency Network
2.3. Executing the Benefits Plan
Final evaluation is needed to compare benefit results from the plan which purpose is to maximize the benefits realization and improve benefits delivery for future business investments. It is crucial to realize the benefits for future possibility to re-execute the business plan.
The first step that should be done in this stage is to monitor the progress of the implementation and compare the results with benefits realization plan during the project. After the first step is done it will move on to identify further benefits and the benefits which are no longer relevant to the company. The final step is to revise the business plan for maximum future result.
2.4. Review and Evaluate Result
Formal review has to be done after the system is implemented to make a distinct comparison from planned benefits with the actual benefits. The purpose of this review is to maximize benefits realization and improve benefits delivery of future business. If in this stage there are no benefits realized, revision of the business plan is needed.
In the KBBCo case study it is important for the company to always check the benefits from the implementation of ERP. By evaluating the implementation system, the company will find the benefits it has created and is important for future revising of the business plan. Benefit realisation helps the company to re-execute a certain implementation of business plan.
2.5. Potential for Further Benefits
There is always a potential for further benefits in the last stage. It is important to be able to identify all benefits listed from the implementation because it is impossible to identify everything in the advanced system. However, repetition of stages may occur such as the stage where they need to identify and re-structure the benefits.
In KBBCo's case, after two intensive months of ERP implementation, the company will evaluate the system and recheck for further benefit realization from the system. If the company is able to achieve further benefits then they will re-identify them and re-do the benefits management process to allow them achieve the benefits intended.
3. Installation and Data Conversion
In the case study KBBCo, the company purchased additional desktops, notebooks, servers and upgrading of the internal network. This is done so that the company can maximize the operation of the ERP system which will be implemented. KBBCo should install needed software and hardware before implementing ERP.
3.1. Hardware Installation
In this step KBBCo will install all the hardware they bought. Security and ergonomic factors should be considered in the Hardware Installation. KBBCo may need to change the power outlets, air conditioning, lighting and other ergonomic factors. Ergonomic factors are very important to provide comfort to the staff who works in corporate environments. Better work environment can increase the staff productivity. In this case, KBBCo increase the number of computers and their servers, air conditioning is very crucial. When there is a lot of work from the hardware in a room, it will increase the level of heat in the room itself. Staff Productivity and hardware temperatures will be affected. Security concerns must also be considered. KBBCo may need to install video surveillance and lock their hardware devices but it is quite important to note that the server has to be in a different toom because the security of the server is very important for the company.
3.2. Software Installation
3.2.1. Planning software installation
Before starting the installation process we need to do advance planning. There are 4 things to do in this step. First is to do a full system backup including programing, operating systems and data. Second, determining the time for each installation, in this step KBBCo should determine the time for installing Microsoft office manually for each PC and the time to install each module for the ERP system. The right time to do the installation is on Friday evening, because no one is using the system and developers have 2 days to fix problems when something occurred. Thirdly, read the installation instructions as developers need to take the time to read installation instructions for the installation process not to be disrupted. Fourth, KBBCo also need to double check data back up if required.
3.2.2. Manually Installing Microsoft Office
KBBCo has to buy Microsoft Office software for every desktop and notebook purchases. Microsoft office installation process will be done manually. This software will be installed one by one to every desktop and notebook. To each installation of an operating system, it is better for company to check the printers and other peripherals to see if all goes well.
3.2.3. ERP Installation
The installation process that will be done to KBBCo is a module by module. KBBCo has 8 modules in its operational systems, ERP will be installed into a module once. Reboot the system and check peripherals must also be performed after installation of each module. In addition to other, peripheral programs should also be in check, if all goes the same as usual it is recommended to do free running for 2 weeks before moving on to the next module. This needs to be done to ensure the module is running smoothly. If the problem occurs when developers to install a module will make delay the installation process time and disrupt the project plan.
3.3. Data Conversion
In the conversion of data there are 4 steps that must be done by KBBCo, which are:
3.3.1. Plan the data conversion
This step will determine the conversion KBBCo strategies, Parallel conversion is very suitable. Parallel conversion run the new system while the old system is still operating, that way we can compare results from both systems. Parallel conversion has a high cost, but this strategy is very low risk. Based on the statement given by KBBCo they stated that cost is not a problem so we will implement this strategy. This step determines the needs to hire new staffs or whether the company doesn't need any more.
3.3.2. Test Data Conversion Using a Sample
This step will test the data conversion KBBCo using sample data and it is not recommended to directly perform data conversion with the original data, because it can result in damage or loss of original data. Although this process is using the sample data but the database structure used is a full database structure from KBBCo. Once the conversion data process is complete, KBBCo must determine whether the conversion has been running accurately.
3.3.3. Initial data conversion
In this step the majority of the data transfer will be done. Transfer the majority of the data will be done per module.
3.3.4. Final data conversion
Transfer any exceptions and check whether data has transferred accurately or not.
New ERP System Is Fit For Use
To reach the maximum potential of productivity KBBco will have to be efficient and adaptable in business processes. This will be done to grab opportunities for improving and building a competitive advantage in tense economic background. The ERP software can be a powerful tool for the company as it connects business process, people, and enabling access to connect information across departments.
Selecting the ERP system that fits in the business is crucial for KBBCo. Although the ERP technology provides the following traits not every system in the market is available for covering the needs of business. The following attributes are important to cover when selecting the system fit for the business:
The new ERP system should be easy to use
Familiar interface and intuitive tools has to be provided by the system to help KBBCo users. This phase is to help reduce cost and ensuring high level of productivity within the organisation.
Meets the needs of your organisation activities
The ERP system needs to offer comprehensive functions to connect data in all departments. This function includes financial analysis and operations support that is especially designed for each individual using the system.
Integrated seamlessly with current system
Working well with current IT system helps reduce customization costs by the company. The ERP system should be able to be efficient in data sharing between business applications.
Able to adapt to the unique needs of the business
The ERP system needs to be designed specifically to meet the company's specific process. If it ddoes, there will be no need to modify the company's working process to match the software further. The long term process of the ERP has to be flexible as the company changes.
Staff Training
In KBBCO's case, staff training is important because there's a new ERP system being introduced. Staffs need to familiarize themselves with the new system and training is an effective way to ensure the productivity for each users.
There are three main phases for implementing a new system. These three phases are unfreeze phase, change phase, and refreeze phase and they all require different training methods. In KBBCo, those phases could be used to choose the correct training method for implementing the ERP system.
Unfreeze Phase
During this phase, notifications and demonstration regarding the new ERP system is recommended before the start of the training. This can be useful in introducing the new system to possible future users by discussing system's benefits.
Change Phase
In the change phase, trainers will instruct strategies to help future users and employees to operate the new ERP system. Open classrooms for training will be provided and there will be instructions for all users.
Refreeze Phase
The last phase called the refreeze phase includes interactive seminars to close the training session. It is well recommended by Lacklustr Solutions as well as providing online help or contact details for future difficulties using the new ERP system. KBBCo can contact developers of ERP system for upgrades which is easier for the company to minimize the risk of any issues.
There are three level of analysis related to end user training (week 8 lecture slides). The three analyses are organisational analysis, task analysis, and individual analysis.
There are three basic level of analysis used for end user training which are:
Organisational analysis
In this analysis, all staffs need to know all core values of KBBCo and managers have to understand all management requirements from the systems.
Task analysis
In this analysis, staffs need a clear job description for their roles in their occupations.
Individual analysis
The last analysis is used for project trainers to understand end user's capabilities and weaknesses. In KBBCo, the staffs are familiar with its IT facilities but initial project based contracts is ending and new contracts are needed for ongoing support. They also have a single IT staff which is needed to be concerned of.
Seminars and coaching strategy works best for this case because seminars can deliver many materials like KBBCo's modules which requires some levels. However, there are weaknesses in the seminar strategy because it has a theoretical approach rather than practical approach. Alhtough the coaching method is considered expensive, KBBCo doesn't take it as an issue and it is really effective. The strategy can be implemented in classroom training facilities which are available through Lacklustre Solutions. The manager will be in the advanced level so they can guide all additional staffs through the process of data entry by themselves.
IT Management and Security
Security policies are important to ensure the safety of their system therefore KBBCo needs to create and apply security policies. There are many types of security policies that can cover all the areas of the system such as:
Network Security
Network is important to maintain security because it directly affects the system. There are many possibilities of risks that can harm the system such as virus, hackers, and unauthorized access. KBBCo needs to implement network security policies to ensure safety of the system. A network security policy varies:
Anti-virus software installed and updated continuously to ensure the safety from viruses.
Using the firewall system to prevent any unauthorized hackers for gaining access to the system.
Avoiding freeware or shareware to prevent any risks of other viruses or spyware.
Physical Security
Asides from network security policies, physical security is important for KBBCo to maintain in order to protect the hardware and software of the system. Usually, the physical security links with asset management for maintaining the asset of KBBCo. There are many policy recommendations such as:
Security guards for monitoring valuable assets
CCTV cameras installed for analysis if something goes wrong
Electronic access to certain rooms to ensure identification of users.
Alarms and intrusion detection systems for criminals
Data Security and Confidentiality
Confidentiality is crucial to maintain within the system to ensure the safety from corruption and unauthorized use. Data Security policy will ensure privacy and helps protect personal data in the system. There are various ways which KBBCo can use for confidentiality policy within the new ERP system:
Backup-ing data within a specific routine in case of data loss
Encryption for private data files to prevent theft
Information Accuracy and Integrity
This certain policy is to ensure the integrity of other staff when replacing another. The accurate dates and time is to created for consistency within the system and is used to organise files. The importance of information accuracy and integrity is for the three different versions within a single operating system. Below are some suggestions:
Proper documentation of software and hardware
Proper markings to all data with proper date and timestamps
Ergonomics Design
7.1. Hardware Design
The staffs of KBBCo are recommended to use ergonomic keyboard and mouse. Comfort for personal use is crucial for the company therefore it uses LCD screens which can be adjusted according to a person's height to provide the maximum comfort. This action lessens the risk of Repetitive motion Injury to the staffs which is common if this action is not used for the staffs. Standard laser mouse are used for higher reliability because of its smooth movements asides from that trackballs and touchpads aren't used because of its disability to function for specific purposes.
7.2. Workplace Design
Standards are used by KBBCo to ensure safety of staffs inside the company and have used several issues such as:
7.2.1. Lighting
Lighting is crucial for the staff's well-being in the office for long hours and it can affect the staff's productivity. Lightings are maintained in certain standards to reduce the risk of negative effects from long hour monitor glares. Comfort is important for the staff in KBBCo in order to work efficiently and effectively.
Solution:
Enough light in the room to ensure the staff's eye conditions but not too bright for the staff's comfort.
Low ambient lighting and high task ambient lighting to make sure of productivity amongst staffs.
2. Air Quality
The air quality in the office is important aspects for the company to consider. The implementation of ERP is effected by good or bad air circulation as it affects staffs directly.
Solution:
Controlling the heat inside office and humidity for staff comfort by decent air conditioning. This can prevent the risk of ERP servers from overheating.
Making sure that the server room is set into certain standards to ensure the safety of the server.
7.2.3. Colours and Textures
Colours and textures are main components to comfort in the office therefore KBBCo has to choose the right components. Colours and textures are helpful to lift the mood of staff working within the company and should be considered by KBBCo.
Solution:
Bright colours are always useful for the staffs' mood and affect them positively in the working hours.
Sound
Sound can distract staff from working productively within the office hours. When the issue of sound is ignored by the company the effects are risky for staff's productivity.
Solution:
Sound absorbing materials are useful to minimize the effects of sound pollution in the office
Noisy equipments should be in a certain area
Workstation
Workstations should be designed especially for the staffs' comfort within the office.
Solution:
Manuals should be in reach of every staffs and located in the nearest possible way to the work stations as it is important for when staffs forgot the system operation.
Privacy for staffs is crucial and can be arranged by certain placements of tables and by covering up certain areas to ensure a personal space.
8. Post-Implementation Review
The post-implementation review is carried out at the end of the implementation system and is needed for determining the success of a project. Evaluation is needed after a major implementation. There are many purposes for post-implementation evaluation such as:
Determining the success of a project
Documenting implementation experiences
Document request that is needed to fix the problems that are recognized during post-implementation evaluation
Identify improvements for the system
Learn from previous experience and provide direction for future projects
In KBBCo, Post-implementation will cover the following areas:
System functions
In this section, there will be an evaluation to compare the system on how the system functions actually work with the planned functions that are supposed to work in the system.
Within the system function section evaluation to compare the system's work with the planned functions in the system will be done.
Actual and planned system costs
This review will discuss the planned costs by KBBCo and its budgets then compare it to the actual cost that the company has covered.
Actual and intended benefits
The review will discuss the importance of how the benefits have covered the company's needs. Actual benefits will be reviewed and compared with projected benefits. The additional benefits found will be documented to help KBBCo's improvements.
Problems and bugs reported
In this phase the problems and bugs found throughout the project can be used as improvements to reduce any risk of future errors. The documenting of problems and bugs allows KBBCo to identify their weaknesses and improve.
Implementation process and experiences
This phase is used to cover all implementation processes, whether it went smoothly or something went wrong. This can be used as a guideline to future project.
Documenting the post implementation review is conducted by project manager and should produce a post-implementation evaluation report. The report has to be authorized by the project managers and system users to endure credibility. The report will be distributed to all meeting staffs including sponsors and methodology groups. The report will result in outcome of the project whether failure or success.
