Core Process Analysis:

Objective:
The core process analysis aims to identify and outline the business needs for the new application
system. This system is designed to match the client's envisioned future business model, ensuring
alignment with their strategic goals.

The key activities involved in defining business requirements are as follows:

1. Examine and Document Current Processes and Practices:

Understand and record the existing business operations and methodologies to identify the
critical factors that contribute to current business success.

2. Gather Business Transaction and Data Volumes:

Collect data from the anticipated future business model to evaluate whether the system can
effectively handle both current and projected business volumes.

3. Document Audit and Control Requirements:

Clearly outline the requirements for audits and controls to ensure compliance with financial
and quality standards.

4. Identify Business-Operating Requirements:

Define the operational needs of the business that the technical architecture must
accommodate.

5. Analyze and Identify Reporting Requirements:

Determine the specific reporting needs of the business to support decision-making and
operational efficiency.
Business Requirement Mapping and Gap Analysis is an iterative approach aimed at aligning business
processes with system functionality. The main objectives include:

1. Prepare Business Process Designs

Map current and desired business processes with the standard functionalities available within the
system.

2. Identify Gaps in the Application

Detect areas where the system’s standard functionality does not fully meet the business

requirements.

3. Propose Feasible Bridges to Gaps

Suggest practical solutions, such as customization, process changes, or additional tools, to address
identified gaps.

4. Freeze the Future Business Process Model

Finalize and document the optimized business process model that incorporates both standard
functionalities and resolved gaps.
Prerequisites

Business Requirement Definition

1. Dedicated Resources
2. Committed Project Sponsor
3. Management Involvement
4. Business Area Specialists
5. Access to Business Information
6. Current Process Documents.
7. Current Business Reports

Business Requirement Mapping

1. Current Business Baseline Document

2. Team Consistency
3. Consistent Approach
4. Clear Visualization
5. System and Software Availability
6. Hardware Availability
Detail Activities

Business Requirement Definition

Identify Current Financial and Operating Structure

o Interview organization management to obtain a clear understanding of current

and proposed entity structure
o Develop a chart showing the current organization structure
o Develop a business organization overview and listing
o Define and chart the financial operating environment
o Define the financial and management reporting environment

Conducting Current Business Baseline

Business Volumes and Metrics

Gather Business Requirement Scenarios

Rule: Link requirements to specific processes.

Goal: Ensure clear understanding of the design.

A business requirement specification (BRS) is a formal statement of the detailed business

requirements for a business process, the source of these requirements, how these
requirements will be satisfied (either by the application, manual process steps, workarounds,
or by other applications), and what prototyping steps must be taken to prove the designs

2. Audit and Control Requirements

o Purpose: Identify controls to reduce risks.
o Goal: Ensure secure, transparent system.

3. Business Availability Requirements

o What It Means: Ensure systems are accessible for critical tasks.
o Goal: Meet availability expectations.
4. Reporting and Information Access Requirements
o Purpose: List critical report needs.
o Goal: Focus on essential reports for efficiency.

o
Core Process Analysis: Key Process Owners Training

• Training Goal: Familiarize key process owners with ERP functionalities, interfaces,
and navigation to facilitate mapping, gap analysis, and resolutions.
• Training Needs Analysis: Assess process owners' current competencies versus
desired skills to define learning requirements, guiding the development of the training
plan.
• Training Plan:
1. Review Recommendations: Select insights from the needs analysis.
2. Define Objectives: Set clear goals and strategies.
3. Tailor Content: Customize for each role.
4. Choose Approach: Identify effective methods.
5. Develop Materials: Create relevant, high-quality content.
6. Resource Planning: Organize facilities, equipment, and supplies.
7. Logistics: Manage scheduling and participant coordination.
• Developing Training Materials:
1. Tailor to learning objectives.
2. Ensure user-friendly, attractive, and easy-to-understand design.
3. Create role-specific content.
4. Develop assessment tools to evaluate learning.
5. Prepare administrative materials for training management.
• Training Environment Setup:
1. Set up a dedicated learning environment with necessary hardware and sample
data.
2. Install ERP applications and ensure infrastructure support.
3. Align training scenarios with client-specific business processes.
• Conducting Training:
1. Objective: Equip process owners with skills to meet performance objectives.
2. Effective Communication: Tailor messages to reinforce training purpose and
value.
3. Training Focus: Emphasize ERP features for mapping and gap analysis.
4. Project Context: Link training to business benefits and motivate role
adoption.
5. Execution: Prepare, conduct, monitor, and evaluate the training.
6. Interactive Approach: Engage participants positively, focusing on role
changes and expectations.
Core Process Analysis: Business Requirement Mapping and Gap Analysis

• Mapping Environment: Set up a dedicated environment or use training/demo setups.

Configure based on requirements and replicate across sites.
• Mapping & Gaps: Align features with business needs, prioritize critical processes,
and finalize within scope. Involve managers in mapping and focus on prototyping.
• Data Mapping: Map legacy data to the target application, document missing data,
and identify integration points.
• Reporting Fit: Use existing reporting systems, reduce custom reports, and train users
on processes.
• Gap Resolutions: Use workarounds or modifications for gaps, design for future
needs, and prioritize quickly.
• Custom Reports: Prioritize custom reports, gather feedback, and manage priorities
continuously.
• Confirm Solutions: Submit requirements for approval, revise if needed, and proceed
once the model and gap resolutions are approved.
 Customization
Objective

Enterprise Resource Planning (ERP) applications offer users the flexibility to customize standard
functionalities to meet specific business needs that are not supported by the default application
product. Customization may also include the development of additional reports tailored to the
organization's requirements.

During ERP implementation, it is commonly observed that customers request significant

customization. Before proceeding, it is the application consultant's responsibility to ensure the
following:

For Process-Level Customizations

1. Confirm that the required functionality is not already available in the standard application.

2. Evaluate whether the customer can adapt to the standard functionality, especially if it aligns
with better industry practices.

3. Verify whether the requested customization is planned as a future release in the ERP
application.

For Report-Related Requirements

1. Identify the fields needed for the reports.

2. Determine if customization is necessary to accommodate the additional data requirements.

By addressing these considerations, the customization process ensures alignment with business
goals, while maintaining the integrity and efficiency of the ERP system.
Process Flow Diagram: Implementation of Customization

Implementation Schedule—Customization

Prerequisites

Before initiating customization in an ERP application, the following prerequisites must be

fulfilled:

1. Mapping of TO-BE Process: The TO-BE business process must be mapped with the
standard functionalities of the ERP application to ensure alignment.
2. Gap Identification: All functional gaps across ERP application modules to be
implemented must be clearly identified.
3. Customization Decision: The need for customization to resolve identified gaps must
be formally decided and approved during the steering committee meeting.
4. Customization Team Setup: The team responsible for customization analysis and
development must be identified and assigned specific roles and responsibilities.

These prerequisites ensure a structured approach to customization and streamline the

implementation process.
Detail Activities
1. Gap Analysis

Process Analysis for Customization

In this phase, a comprehensive study of the client’s AS-IS process is conducted, with the
core ERP application functionality as the baseline. The processes in each functional module
are categorized as follows:

1. Processes Supported by Standard ERP Functionality

2. Processes Not Supported by ERP Application

For processes not supported by the ERP system, alternative solutions available within the
ERP application are identified and discussed with the client's functional process owner.

Outcomes of Discussion

• Acceptance of ERP Functionality: The client agrees to adapt to the ERP's suggested
functionality as their TO-BE process—no customization is required.
• Rejection of ERP Functionality: The client cannot adapt to the suggested process,
necessitating customization.

Key Discussion Points with the Client

• Cost of Customization: Customization entails additional support costs as ERP does

not provide built-in support for customizations.
• Impact on Updates: Applying patches or updates to the ERP environment may result
in the loss of customizations, requiring rework and additional effort.
• Standard Process Flow: ERP discourages customizing the process flow for standard
transaction-related functionalities due to the complex integration across modules.

Next Steps

When customization is deemed necessary:

1. A feasibility study is conducted to determine the technical and functional viability.

2. Effort estimation is performed to gauge the resources and time required.
3. Based on the outcome, the process moves to the analysis phase.

For further details, refer to the "Gap Resolutions and Create Future Process Model" section of
the Core Process Analysis document.

Table 5.2 outlines the process for managing customization requirements.

Analyze

Dependency

We arrive at this phase with the outcome of the feasibility study and effort estimate. This is
the analysis phase of the customization, where we identify the areas in the core application
that need to be addressed (see Table 5.3). The major tasks of this phase are:

• Determine a detailed functional process flow diagram for the customization.

• Identify and classify the objects that need customization
(reports/forms/procedures/workflow/alert).
• Identify the data flow link between customized objects and standard application
objects.
• Identify if there is any standard application functionality that becomes redundant due
to the customization.

Design

In this phase, the technology architecture of the customization is defined (see Table 5.4). At
the end of this phase, the deliverable is the design document.

The following approach can be followed during the design phase:

• For the object/functionality to be customized, check for the closest matching standard
application's object/functionality that will become obsolete. This information can be
obtained from the analysis document.
• Use the standard application object as a baseline for customization.
• Define the custom application that will own the customization.