ERP Implementation Business Case PDF

🚌 w5 Explain the importance of having a business case for the ERP implementation A business case is a “structured proposal for business change that is justified in terms of expected costs and benefits”. Obtain funding Enable prioritization between different investments Identify how mix of IT and b...

🚌 w5 Explain the importance of having a business case for the ERP implementation A business case is a “structured proposal for business change that is justified in terms of expected costs and benefits”. Obtain funding Enable prioritization between different investments Identify how mix of IT and business related changes will support expected values Secure commitment from business leaders Create a base for evaluation and follow up once the investment is completed Understand how feasibility assessment supports the business case for ERP implementation w5 1 Feasibility study is the initial justification needed to determine if project is do-able A satisfactory feasibility study is required for project authorization It identifies possible solutions and risks Not a full-blown study but gathers broad data for management to decide whether or not to proceed with a project Explain the objectives of feasibility assessment 1. Technical Assessment: Evaluate different options for how well they can be built, how they perform, their reliability, capacity, and ease of maintenance. 2. Economic Assessment: Check if the benefits outweigh the costs using methods like cost-benefit analysis, breakeven analysis, net present value, internal rate of return, or payback period. 3. Legal Evaluation: Examine if the project can meet various regulatory and ethical requirements, such as environmental impact assessments and permits. 4. Operational Suitability: Assess if the project aligns with the organization's culture, structure, systems, policies, and is accepted by stakeholders in terms of environmental compatibility. 5. Schedule Review: Determine if the alternatives can be completed within the required timeframe or any mandatory deadlines. w5 2 Able to apply economic, technical and organizational feasibility assessment techniques to assess feasibility of an ERP implementation Technical Feasibility Assessment Assess the extent to which the system can be successfully designed and installed Key Question: Can we build/implement it? Operational/Organizational Feasibility Measure of how well a system solves problem and be accepted by users into ongoing operations Key Question: Does system align with organizational objectives? If we build it, will they use it? w5 3 Economic Feasibility Assessment Key Questions: Is the anticipated value of benefits greater than costs? Is the adequate cash flow to fund it? w5 4