Page 151 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 8: ERP Implementation Lifecycle

(v) Threat of forward integration notes
(vi) Cost relative to total purchases in industry

(e) Degree of rivalry:
(i) Exit barriers
(ii) Industry growth
(iii) Industry concentration ratio
(iv) Fixed costs/value added

(v) Product differentiation
(vi) Buyer’s incentives
The as is study can reveal:
(a) Identity of competitors

(b) Competitors’ strengths and weakness
(c) Intensity of competition
(d) Favorability of environment
(e) Influencing power of both the buyers and the suppliers in the company
An SWOT analysis of the individual companies can be done based on this model it will
check where the company stands in the present scenario of competition this competitive
pressure is a major factor in deciding the implementation of ERP on the company.

5. Strategic need Analysis: Strategic need analysis develops the vision and strategy of the
company for the next few years. It analyses the company’s growth, their business concept
and company strategy, strategic planning and operating budgets. The strategic need for
ERP to be analyzed.
6. Feasibility Analysis: Feasibility analysis guides the company in determining whether
to proceed with an ERP project. It also identifies the important risks associated with the
project the project that must be addressed if the project is approved.
(a) Technical: Assess whether the project can be developed and checks:
(i) Familiarity with application

(ii) Familiarity with technology
(iii) Project size
(iv) Compatibility-what must the new system integrate with?
(v) Related to determining methodology to be used
(b) Organizational: Assess whether project will be adopted and the political feasibility
involved with it:
(i) Top management support
(ii) Sponsor must have enough clout preferably a senior person
(iii) User involvement and support

(iv) Strategic alignment
(v) Political scenario
(vi) Other stakeholders

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