Delivery of SAP ERP Solution in Westpac - Case Study Example

Westpac

Overview

This report analyses the SAP ERP implementation that was done to Westpac banking corporation. The paper addresses the business process on how the implementation was enhanced effectively by the Capgeminis dispersed release framework model. It outlines system requirement and how establishment of channels of distribution, documentation, project methods, SAP configuration, and remote configuration worked both off-shore and at Westpac. It elaborates more on software and vendor selection and its phases that involves the project setup, As-Is analysis, the business procedure design, system assessment, and the system assortment. It lastly addresses the efficiency of ERPs to business and the efficiency that the SAP ERP technology impacted to Westpac.

Introduction

The case study is on a distribution delivery of SAP ERP solution in Westpac. It is a banking corporation and serves as a financial service provider in Sydney, Australia. It has been ranked among the big four banks in Australia with 13.2 million customers. It is also classified as the second largest in bank in New Zealand. They embarked on a fourteen-month SAP implementation project. Westpac considered the introduction of SAP ERP due to the various operational and financial processes that were very manual and the fulfilment necessities were after solid integrations. The company required a better proposal that could improve its association between the increasing numbers of commerce units to be prepared for foreseen better future.

Statement of the Problem

The purpose of the study was to prepare a report for a client with details on how to use the SAP ERP processes to make the informed decision for investment in information systems and take their business to a higher level in Westpac.

Business Process

Data for these studies were obtained and collected through questionnaires and journal articles from the national library.

The ERP implementation was leveraged by the Capgeminis dispersed release framework model. The model was comprised of an offshore and onshore project group that had widespread errands for both configuration and development activities. Hilliard v Westpac Banking Corporation (2009) it provided a clear impression of approaches taken for integration of the offshore with a focus on the processes that supported the SAP implementation and configuration processes.

Business Requirements

The innovative aspect of the implementation of the scheme was by the use of the accelerated solution surrounding. This is a work region that was planned to enhance creativity in collectiveness with a methodology that encourages collaborative environments for generation of better results for Westpac. The project team required a five foundation practical areas amendment in finance, distribution, sales, HR, and procurement. Kermani v Westpac Banking Corporation (2012) state that it all requires cross-functional support team for the SAP system validation, data warehouse, data management, training, and change management. In addition to that, it was on the interfaces, legacy applications, and SAP-basis administration. The business required the coordination to be done between the offshore and onsite team at Westpac. The team came up with three ASE sessions to accelerate the blue print processing and enhance the facilitation of cross-functional contribution and the buy-in to the introduced procedure models.

Venkatraman and Fahd (2016) outline that the first assembly was required to focus on the executive alignment to involve all major executives in decision making from the functioning areas caused by the development capacity. Westpac required validated venture goals, scopes, aims, and measurements for success. They needed a developed mitigation criterion for the project scope across the entire organization and a trade communication sketch henceforth. On the second gathering, Westpac required a process plan for the ASE alert on definitions of the core scope business processes and key decision making for data issues wanted by the SAP team for blueprint development. The last session required by the business was the blueprint confirmation ASE that was to bring individuals across Westpac together for confirmation of the blue print once it was complete and ready to develop the realization phase of the SAP project.

Systems Requirement

Establishment of channels of distribution

The connectivity comprised of both material connections for communication and distribution of information between the SAP connection team and Westpac team members. This indicates that it required the offshore team to be brought on site during the drawing segment to allow the overall team to appreciate all business necessities gathered during the blueprint design process (Vasiliou v Westpac Banking Corporation, 2007).

Documentation

The system required documentation to familiarize the processes to the distribution project team. In addition to that, documentation was required for referencing and review throughout the project lifestyle. This was to be within the clear scope of activities definitions that were performed by the onsite and offshore teams. All the systems organization structure was required to be documented especially on the integration between the onsite and offsite scope. All deliverables required agreed and formed formal definitions for acceptance.

The project methods

.Kermani v Westpac Banking Corporation (2012) opine that the project system methods required for the offshore and onsite teams were to use the Capgemini deliverSAp method alongside processes from the SAP dispersed deliverance framework. The Deliver-SAP was used to provide guidance to all phases of the SAP scheme and the SAP-DDF for giving guidelines and specific processes for projects on the distribution team.

SAP Configuration

Performing the ERP configurations has advantages on the SAP implementation; however, it has its limitations too. The system required a remote configuration challenge. This meant that the consultants needed to define the solutions by collaborating with the industry users on a usual basis. The system required a firm consideration of the Westpac necessities, the alternative process approaches, business practices, and the SAP configuration capabilities and options.

Remote configuration approach

The realization and blueprint were required as a functional design that was a joint performance of the onsite and off-shore team (Hilliard v Westpac Banking Corporation, 2009) The system needed the separation of work to be unwavering based on evaluation criteria that were described during the project groundwork segment. The last configuration phase required to be performed by competent SAP analysts, whether offshore or onsite.

Software and Vendor selection

Phases of SAP system selection

The SAP system selection process was implemented with the help of a structured approach that represented the projects of the organization. The phases included the project setup, As-Is analysis, the business procedure design, system assessment, and the system assortment.

Project setup

They implemented project planning as the most important aspect of the project set-up for Westpac. The first scenario follow-up system for the project was developed to predict when new systems were made available (Venkatraman & Fahd, 2016) In the project set up, Westpac verified the purpose and the aptitude to devote into the large SAP ERP system project. The elevated visibility of the SAP project helped in staffing the right assignment squad.

As-Is analysis

The SAP implementation project led to long-term business execution. The As-Is process had to be assessed with consideration of appropriateness and identification of weaknesses. The analysis brought forward the business process to be re-designed and allowed for quantification to improve.

Business process design

There was a sturdy interdependence between the business process and the SAP system implementation. (Vasiliou v Westpac Banking Corporation, 2007). The implementation provided a possibility to advance the business process competence. The major process of business process re-designing was not overdue to the actual SAP execution project.

System evaluation

It involved identification, the examination, and appraisal of the viable SAP software systems done in the system assortment stage. It had prearranged phases that ensured many viable systems were identified. A pre-selection had to be determined since they could not analyze every system in detail (Venkatraman & Fahd, 2016). The remaining systems had to be assessed considering the detail requirement’s list and as the contract was negotiated with the software vendor.

System selection

The system selection covered the selection of an implementation partner and the selection of the SAP software system. The main selection criteria were based on sustainability, suitability, and the cost. Due to the long permanent result of the SAP ERP system assortment, the TCO calculation was necessary.

Business Efficiency

The ERPs provide and allow firms to have comprehensive channels of communication with its functional units. They help in providing a detailed information picture that integrates departments, functions, and hierarchical levels into an action-response and a composite chain of events (Dery, Hall, & Wailes, 2006). By this, entering of new orders helps in immediate deductions on available materials from the inventories, revises the work schedules, orders for needed materials from the suppliers, and makes preparations for new market projections.

The technologies provide a comprehensive database on which all the business transactions are recorded, entered, monitored, and reported. This reduces the data entry and monitoring process by facilitation of the use tacit knowledge and enhances the co-ordination of customer driven strategies, for instance, mass customization.

The technologies enhance the increase of structural connectivity across activities and units. The transaction limitations are made visible and the effects of the choice selection made in a single unit become noticeable throughout the firm. The use of comprehensive performance is made feasible by the structural connectivity as per the balanced scoreboard (Hall, 2005). The technologies offer potentials for efficient and flexible supply chain management, scam-less functional integration, and value creating opportunities. They can be categorized by prices, for instance, implementation expense and license fees. According to success on the implementation of such technologies, companies are capable of being at the competitive advantage side in the global market. Several types of ERPs have led to substantial intangible and tangible developments in various departments of an organization.

Efficiency of the technology

With SAP ERP implementation, Westpac enhanced the organization’s operation through improving, controlling, and streamlining the business processes of importance. This included customer offers, procurement, equipment maintenance, customer complaints, and marketing campaigns. The technologies led to time-saving and cost reductions in through the SAP ERP. Westpac achieved in managing the services that related to personnel and its costs by the use of resource management systems with the right modules. By effective utilization of the resource management time-sheet, the company is able to manage the cost of services involved, for instance, R and D, and technology departments that are involved (Jaeger, Rudra, Aitken, Chang, & Helgheim, 2011).

The use of the implemented SAP ERP helped in the reduction of much paper work and minimizing personnel’s occupation times with quality management challenges and provision of insight to the company. Westpac received quantitative data on the abilities to control promotion and sales activities of the results of each promotion activities and increase the sales department efficiency. With effectiveness in the SAP technology, Westpac generally reduced inventories through better efficiencies and visibilities. It saved cost through the reduction of duplicated efforts and increase efficiency in operations in the process of transactions. The SAP implementation led to higher utilization of employees and a reduction in non-value-added activities. In addition to that, the process increased the decision-making process real-time and accurate data in Westpac.

Conclusion

In conclusion, a good ERP should be focused on the integration of all departments, processes, and functions for the organization within a single computer information system. Each department in a well-organized institution has its own computer informational system that is capable and optimized to specific characteristics. Disseminated project scopes are fetching an ordinary characteristic among the SAP ERP projects. Westpac effectively leveraged the off-shore configuration by a set of simple guiding principles successfully. The implementation developed the submission of the recently distinct Capgemini’s approach to the distribution of the SAP projects known as the SAP DDF. The technology offers a framework that helps in developing SAP accomplishment on projects through a disseminated delivery model, moreover, illustrations on how the onsite and off-shore models can pool resources. The SAP DDF used an incorporated governing loom, project methodology, and common tools and successfully executed and managed projects the distributed Westpac environment. Considering the Deliver-SAP scope, the framework delineates responsibilities and activities on the height of stages, phases, and deliverables and has a provision of lay down of procedures, templates, and model deliverables across the whole SAP realization cycle at Westpac.