Page 148 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes Business Case Analysis

Most of the companies tend to take the high risk decision of carrying on with the implementation
of ERP because of the following reason.
1. It is the in thing although it may not at all be suitable for them. In some cases it has even
led companies to bankruptcy. Yet people seem to be blindly choosing the implementation
of ERP.
2. It is supposed to cut costs and time and streamline the process of their organization.
3. Mindset to change to invest heavily in terms of money, energy and time. Generally it is
seen that interest and enthusiasm remains only in the initial phases. Over a period of time
the interest starts declining due to lack of commitment.
Pre implementation stage or development of business case analysis which basically looks into
studying the existing and future impact involved in terms of the following:
1. Process
2. Practices being followed
3. Mindset of people (their involvement, cooperation)

4. Availability of resources (money, time and energy)
5. Sustainability
6. Adaptability of the system
7. Feasibility

Business case analysis basically focuses on all the related issues involved and the various
methodologies that are followed in carrying out this phase successfully, so that one can take
the decision with regard to the implementation of ERP with strong evidences, which can be
quantified and measured during each phase of the life cycle of ERP.
The following points are studied in business case analysis:
1. Need to adopt global best business practices
2. Need to adopt global best practices

3. Need to adopt global IT infrastructure
4. Competitive environment analysis
5. Strategic need analysis
6. Feasibility analysis

1. Need to adopt global best business practices: Best practice is the process of finding and
using ideas and strategies from other companies and industries to improve performance in
any given area business has used best practice benchmarking over the decades and realised
billions in saving and revenues in all areas of business operations and sales best practices
are studied in two ways:

(a) As is best practice this addresses or includes the present practices followed by the
specific company which is planning to implement the changes required to keep itself
in the league of other top companies in the industry. This is done in all functional
areas like HR, operations, Finance, Maintenance etc.
(b) To be best practice. They are generally the best practices which exist in the industry
and have been refined over a period of time companies should aim at adopting their

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