Implementation Of SAP Business One For IPics – Benefits And Disadvantages
- December 21, 2023/ Uncategorized
Introduction to the project
This project is based on the implementation of SAP Business One for iPics, an Australian photography business organization based in Melbourne, Australia. The company initially started with the on-site selling of stock photos but with time, they gradually entered the e-commerce market as well. Since 2013, the company started their online shop along with the retail store where they sold landscape and portrait images in addition to the regular stock photos. However, recently, with increasing demands of the ecommerce market and lack of sufficient upgrades of the existing system, iPics has stated facing some issues in maintaining business continuity and management. In order to solve the issues faced by iPics, implementation of SAP Business One has been recommended that will integrate their entire business process along with the development of an online server from where, both the online and offline shops can be managed and inventory can updated as per the sales of the photos.
The main objective of the project involves development and implementation of SAP Business One for iPics. Accordingly, the scope of the project is defined as follows.
- Identification and analysis of the existing issues and problems of the business system of iPics is within the scope of this project.
- Upgradation of the existing technical setup at the organization is within the scope of the project.
- Development of a central database is within the scope of the project.
- Linking the database with the inventory is within the scope of the project.
- Implementation of SAP Business One for the organization is within the scope of the project.
- Testing of the entire system is within the scope of the project.
The main business need for this project is to integrate both the online and offline retail business of the company in order to establish centralized control over the business. In addition, SAP Business One provides the organization with a digital platform that can be used to manage all types of business operations and data that would replace the need for manual management. While manual management of business operations is erroneous and slow, automated systems in the digital platform will perform the same tasks much faster and without any errors.
The current system has no centralized control and hence, the online and offline businesses are handled separately. As a result, certain problems arise that include unavailability of certain items for the customers even though they are advertised in the website as the inventory has not been updated correctly after an offline. The issues ultimately result in lack of business continuity that in turn may cause financial losses for the organization. Hence, this project is required for the integration of the entire system into one common system with centralized control.
Some benefits of the SAP Business One implementation as compared to the current status are shown in the following table.
|
Benefits |
Process for Assessing Benefit Realisation |
Current Status |
|
One-Stop Solution: Provides options of all business operations including sales, finance, auditing, predications and others in one place |
Able to manage all the business operations through one single portal with all features displayed in the dashboard |
Currently, all the different operations are managed separately. |
|
Improved Efficiency: Improves efficiency of all business operations and removes all the errors. |
Not needing any manual handling and processing of data |
Currently, the business operations are handled manually. |
|
Enhanced Scalability: SAP Business One is known for its scalability and adaptability with any business processes as per the needs. |
No need to synchronize the SAP everytime a new change is needed |
No such softwares are aligned to business currently. |
|
Informed Decisions: SAP Business One also creates an information portal in which every information regarding the business of the company is available for viewing by clients. |
Lesser queries from clients regarding some information of the company’s business |
Currently, the customers have to send a query to the company in order to learn certain information. |
|
Customer Satisfaction: Due to fast processing of operations like response time, turnaround time, prompt service and others, customer satisfaction is enhanced. |
Check with customers whether they are happy with the new system |
The processing time is very slow due to manual handling of operations. |
|
Reduced Costs: No unnecessary costs are involved, implementation cost is high but in return, the processing and operational costs are very low. |
Reduced expenditure margin |
The company has to bear many unnecessary costs for usage and maintenance of the current system. |
|
Enhanced Control over Business: In addition to the existing business operations, SAP Business One also provides the organization with real time updates, reminders and alerts. |
Great control over business operations. |
No such system is currently available. |
The disadvantages of SAP Business One are as follows.
Complexity – One main disadvantage of the SAP Business One is that it is too complex in nature and as a result, small and medium sized business organizations do not understand certain aspects during implementation. As a result, they fail to manage the system and cannot gain full benefits of SAP Business One.
Main objectives of the project
Lack of Payroll – Another disadvantage of SAP Business One is that it does not provide any payroll system to the users. The user has to buy a payroll system from a third party and integrate it with SAP Business One.
Lack of Flexibility – SAP Business One does not provide flexibility of use i.e. the organizations have to implement all its features even they do not require them.
The project will be rolled out using a step wise approach and only after ensuring the feasibility of the project is terms of resources, funds and time. As per the most accurate estimations, the proposed schedule for the project is as follows.
|
Task Name |
Duration |
Start |
Finish |
|
Implementation of SAP Business One for iPics |
218 days |
Mon 05-03-18 |
Wed 02-01-19 |
|
Initial Discussions |
37 days |
Mon 05-03-18 |
Tue 24-04-18 |
|
Analysis of Current System |
15 days |
Mon 05-03-18 |
Fri 23-03-18 |
|
Identification of Issues |
10 days |
Mon 26-03-18 |
Fri 06-04-18 |
|
Discussion between Management Team Members |
1 day |
Mon 09-04-18 |
Mon 09-04-18 |
|
Suggestion of a Number of Solutions |
1 day |
Tue 10-04-18 |
Tue 10-04-18 |
|
Consult with a Reliable Consultancy Company |
5 days |
Wed 11-04-18 |
Tue 17-04-18 |
|
Discussion with the Consultancy |
1 day |
Wed 18-04-18 |
Wed 18-04-18 |
|
Discussion regarding Implementation Costs |
1 day |
Thu 19-04-18 |
Thu 19-04-18 |
|
Discussion Regarding Implementation Time |
1 day |
Fri 20-04-18 |
Fri 20-04-18 |
|
Discussion Regarding Project Feasibility |
1 day |
Mon 23-04-18 |
Mon 23-04-18 |
|
Analysis of Possible Requirements |
1 day |
Tue 24-04-18 |
Tue 24-04-18 |
|
Selection of SAP Business One as the Solution |
0 days |
Tue 24-04-18 |
Tue 24-04-18 |
|
Project Authorization |
8 days |
Wed 25-04-18 |
Fri 04-05-18 |
|
Second Meeting between the Management Team Members |
1 day |
Wed 25-04-18 |
Wed 25-04-18 |
|
Preparation of Draft Project Plan |
2 days |
Thu 26-04-18 |
Fri 27-04-18 |
|
Rough Estimation of Funds |
1 day |
Mon 30-04-18 |
Mon 30-04-18 |
|
Rough Estimation of Time |
1 day |
Tue 01-05-18 |
Tue 01-05-18 |
|
Analysis of the Plan by Board Members |
2 days |
Wed 02-05-18 |
Thu 03-05-18 |
|
Approval of Plan by All Board Members |
1 day |
Fri 04-05-18 |
Fri 04-05-18 |
|
Authorization of Project |
0 days |
Fri 04-05-18 |
Fri 04-05-18 |
|
Project Planning |
24 days |
Mon 07-05-18 |
Thu 07-06-18 |
|
Analysis of Project Requirements |
2 days |
Mon 07-05-18 |
Tue 08-05-18 |
|
Accurate Estimation of Budget |
1 day |
Wed 09-05-18 |
Wed 09-05-18 |
|
Accurate Estimation of Resources |
1 day |
Thu 10-05-18 |
Thu 10-05-18 |
|
Accurate Estimation of Time |
1 day |
Fri 11-05-18 |
Fri 11-05-18 |
|
Determination of Scope |
2 days |
Mon 14-05-18 |
Tue 15-05-18 |
|
Specifying Project Objectives |
1 day |
Wed 16-05-18 |
Wed 16-05-18 |
|
Analysis of Risks |
5 days |
Thu 17-05-18 |
Wed 23-05-18 |
|
Development of Risk Mitigation Strategies |
2 days |
Thu 24-05-18 |
Fri 25-05-18 |
|
Preparation of Final Project Plan |
5 days |
Mon 28-05-18 |
Fri 01-06-18 |
|
Submission of Final Plan to Management |
1 day |
Mon 04-06-18 |
Mon 04-06-18 |
|
Approval of the Final Plan |
3 days |
Tue 05-06-18 |
Thu 07-06-18 |
|
Go Ahead for Project |
0 days |
Thu 07-06-18 |
Thu 07-06-18 |
|
Project Initiation |
27 days |
Fri 08-06-18 |
Mon 16-07-18 |
|
Analysis of the Final Project Plan |
2 days |
Fri 08-06-18 |
Mon 11-06-18 |
|
Analysis of the Budget |
2 days |
Tue 12-06-18 |
Wed 13-06-18 |
|
Contact with Sponsor |
4 days |
Thu 14-06-18 |
Tue 19-06-18 |
|
Contract Signing with Sponsor |
2 days |
Wed 20-06-18 |
Thu 21-06-18 |
|
Providing Funds by the Sponsor |
5 days |
Fri 22-06-18 |
Thu 28-06-18 |
|
Selection of Project Stakeholders |
1 day |
Fri 29-06-18 |
Fri 29-06-18 |
|
Hiring a Developer |
2 days |
Mon 02-07-18 |
Tue 03-07-18 |
|
Hiring a System Tester |
2 days |
Wed 04-07-18 |
Thu 05-07-18 |
|
Formation of Project Team |
2 days |
Fri 06-07-18 |
Mon 09-07-18 |
|
Meeting with the Teams |
1 day |
Tue 10-07-18 |
Tue 10-07-18 |
|
Ensure the Developers have understood Project Requirements |
1 day |
Wed 11-07-18 |
Wed 11-07-18 |
|
Preparation of List of Resource Requirements |
1 day |
Thu 12-07-18 |
Thu 12-07-18 |
|
Provide the List to the Procurement Manager |
1 day |
Fri 13-07-18 |
Fri 13-07-18 |
|
Provide Funds to the Procurement Manager |
1 day |
Mon 16-07-18 |
Mon 16-07-18 |
|
Procurement of Necessary Resources |
0 days |
Mon 16-07-18 |
Mon 16-07-18 |
|
Project Execution |
91 days |
Tue 17-07-18 |
Tue 20-11-18 |
|
Analysis of Current System |
5 days |
Tue 17-07-18 |
Mon 23-07-18 |
|
Analysis for Technical Upgrade Requirements |
2 days |
Tue 24-07-18 |
Wed 25-07-18 |
|
Installation of New Hardware |
2 days |
Thu 26-07-18 |
Fri 27-07-18 |
|
Testing of New Hardware |
2 days |
Mon 30-07-18 |
Tue 31-07-18 |
|
Ensure Sufficient System Requirement for SAP Business One |
2 days |
Wed 01-08-18 |
Thu 02-08-18 |
|
Subscription to Software Development Platform |
1 day |
Fri 03-08-18 |
Fri 03-08-18 |
|
Development of SAP Business One |
20 days |
Mon 06-08-18 |
Fri 31-08-18 |
|
Installation of All the Features |
5 days |
Mon 03-09-18 |
Fri 07-09-18 |
|
Testing of the Features |
5 days |
Mon 10-09-18 |
Fri 14-09-18 |
|
Testing of the GUI |
2 days |
Mon 17-09-18 |
Tue 18-09-18 |
|
Connecting the SAP with the Business Portal |
5 days |
Wed 19-09-18 |
Tue 25-09-18 |
|
Development of Central Server |
10 days |
Wed 26-09-18 |
Tue 09-10-18 |
|
Apply System Firewalls |
5 days |
Wed 10-10-18 |
Tue 16-10-18 |
|
Testing the Entire System |
10 days |
Wed 17-10-18 |
Tue 30-10-18 |
|
Align the SAP with the Business Requirements |
5 days |
Wed 31-10-18 |
Tue 06-11-18 |
|
Final Testing |
10 days |
Wed 07-11-18 |
Tue 20-11-18 |
|
Project Handover |
0 days |
Tue 20-11-18 |
Tue 20-11-18 |
|
Training |
20 days |
Wed 21-11-18 |
Tue 18-12-18 |
|
Train the Employees Regarding Use of the New System |
15 days |
Wed 21-11-18 |
Tue 11-12-18 |
|
Train the System Admin Regarding System Handling and Maintenance |
5 days |
Wed 12-12-18 |
Tue 18-12-18 |
|
Complete the Project |
0 days |
Tue 18-12-18 |
Tue 18-12-18 |
|
Project Closure |
11 days |
Wed 19-12-18 |
Wed 02-01-19 |
|
Post Project Review and Appraisal |
5 days |
Wed 19-12-18 |
Tue 25-12-18 |
|
Preparation of Project Report Document |
5 days |
Wed 26-12-18 |
Tue 01-01-19 |
|
Stakeholder Signoff |
1 day |
Wed 02-01-19 |
Wed 02-01-19 |
|
Project Officially Closed |
0 days |
Wed 02-01-19 |
Wed 02-01-19 |
The above table shows the main activities and milestones of the project that need to be followed during the course of the project. The project is expected to take around 218 days for completion and the Gantt chart of the proposed schedule is shown in the following diagram.
Human resources are the most important requirements of the project as they are responsible for managing and executing the project. The roles and responsibilities of the human resources are shown in the following table.
|
Stakeholder (Human Resource) |
Role/Responsibility |
|
Project Manager |
Manage, supervise, change and control of the entire project |
|
Sponsor |
Provide funds for project |
|
Finance Manager |
Manage funds for project |
|
Project Supervisor |
Supervise and document the project |
|
Procurement Manager |
Procure necessary resources |
|
Developer |
Develop and Implement SAP Business One |
|
System Admin |
Maintain and manage the system |
|
Trainer |
Training the employees regarding use of SAP Business One |
In order to estimate the budget, first the resource usage for the stakeholders of the project are analysed and shown as follows.
|
Resource Name |
Type |
Std. Rate |
|
Project Manager |
Work |
$200.00/hr |
|
Sponsor |
Work |
$0.00/hr |
|
Finance Manager |
Work |
$150.00/hr |
|
Project Supervisor |
Work |
$150.00/hr |
|
Procurement Manager |
Work |
$100.00/hr |
|
Developer |
Work |
$125.00/hr |
|
System Tester |
Work |
$75.00/hr |
|
Trainer |
Work |
$75.00/hr |
|
System Admin |
Work |
$100.00/hr |
From the analysis of schedule and the resource usage, the estimated budget is $400,200. Furthermore, the estimate budget for the material resources is shown in the following table.
|
Resource |
Proposed Budget |
|
Hardware |
$50,000 |
|
Development Software |
$100,000 |
|
Software Platform |
$20,000 |
|
SAP Business One |
$150,000 |
|
System Firewalls |
$20,000 |
|
Training Costs |
$10,000 |
|
Additional Costs |
$50,000 |
|
TOTAL |
$400,000 |
Hence, the total estimated budget for the project is $(400,200+400,000) = $800,200.
Some of the expensive aspects of the resources like SAP Business One and Development Software have very high budget because of their market values and the requirements for upgradation of the current system in order to support the newly developed SAP Business One system.
Like all other projects, this particular project also has its own risks that must be mitigated during the course of execution. In order to identify the risks and mitigation strategies, a risk register is used. A risk register is a table that contains a list of risks, their effects on the project and their mitigation strategies. The risk register for this project is shown in the following table.
|
Risk |
Chance of Occurrence |
Effect on Organization |
Mitigation Strategy |
|
High Cost of Implementation |
High |
Very High |
Get a suitable sponsor to fund for the project |
|
Complexity of System |
High |
Medium |
Schedule a training program after project |
|
Limited Technical Support |
Medium |
Medium |
Upgrade technical support as required |
|
Cyber Attacks |
Very High |
Extreme |
Use system firewalls and anti-virus softwares |
|
Lack of Alignment with Business |
Medium |
High |
Conduct system testing before implementation |
|
Not Meeting User Requirements |
High |
Medium |
Ensure to collect user requirements from users only and not from other external sources |
|
Lack of Centralized Control |
Low |
Very High |
Form a steering committee before establishing the control |
|
Issues from Vendor’s End |
Low |
High |
Ensure purchase from reliable vendors |
A communication matrix is a table that highlights the communication requirements and methods between all the stakeholders during the course of the project. A communication matrix for this project has been prepared as follows.
|
Stakeholder |
Communication Reason/Activity |
Communication Mode |
Frequency of Communication |
|
Project Manager |
Update on daily progress of project |
Project log document |
Daily |
|
Sponsor |
Update on project progress |
Project progress document and finance report |
Weekly |
|
Finance Manager |
Fund requests |
Expenditure list document |
As required |
|
Project Supervisor |
Any changes or requirements during the project |
Verbal |
Daily as per requirement |
|
Procurement Manager |
Resource requirements |
List of requirements |
Before project/as required |
|
Developer |
System requirements |
Detailed document of requirements |
During project planning |
|
System Admin |
System features |
Verbal with face to face tutorial |
Post development |
|
Trainer |
Training requirements |
Verbal / Document |
Before training session of the employees |
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