The good, bad and not so good of implementing ERP solutions

Tony Young and Alan Whitton 13 April 2011

The good, bad and not so good of implementing ERP solutions


Introduction

Tony Young • ERP Solution Architect • Business Consultant • Chartered Accountant

Alan Whitton • ERP Specialist • Business Consultant • Chartered Accountant


Importance of an ERP

Improves the coordination

across all business processes

Enhances decision making

Helps to drive operational efficiency Supports the business to

become more agile and responsive


Implementing an ERP is not just installing a software application

It is much more complex than other IT projects

ERP implementations require a significant commitment of capital and resources

ERP implementations will change the way businesses operate, and this change needs to be managed

Implementing an ERP


“If we don't succeed, we run the risk of failure”

Dan Quayle (Former U.S. Vice President)


Running over budget

Extending over the expected timeframe

Not delivering expected features or scope

Not achieving the promised ROI

Requiring an inordinate effort to run the new system

Stopping the business i.e. preventing orders to be fulfilled or production to be completed

What is failure?


Critical success factors

Company vision

Top management sponsorship and

support

Business processes

Project management

Implementation partner


Own your process

Identify the process ‘Super-users’ early on

Super-users take responsibility for functional area, will be heavily involved throughout the project

Ensure ‘Super-users’ can be adequately resourced to the project e.g. backfilling their BAU role

Understand the workings of the system ‘under the hood’

Don’t ride-along, challenge the design, discuss alternate options with the consultants

Good things to do


Prioritise features Understand priorities early Focus on core and critical processes Consider quick wins Consider when something is required Be aware reports from the old system can be replaced by

real-time online inquiries Allow a contingency budget to cover extra features along

the way

Good things to do


Manage the implementation

Have a clear vision and, defined outcome and expectations for the project

Ensure appropriate resources are available

Ensure timely decisions and actions are carried out

Communication across all levels of stakeholders

Have documented Issues and Change Request processes

Good things to do


Partner with your partner

Choice of partner as important as choice of product

Don’t shortcut the implementation methodology and approach

While we are separate teams, we are all focussed on the same goal

Maximise onsite consulting time

Good things to do


Inconsistent data from old system

“We don’t know, what we don’t know”

Lots of system testing

Users who are resistant to change

Managing the unavoidables

Start early

Full test data conversion

Have a contingency

Active involvement in analysis

Start planning early

Resource adequately

Keep them informed

Make them own it


The good…. characteristics of our best projects

Strong client project

manager

Strong fulltime super user

Followed the process


The not so good projects

Strong client project

manager

Strong fulltime super user

Followed the process

BAU drains resources

Lack of testing

Tried to do too much with

features and history

Questions

Thank You

The good, bad and not so good of implementing ERP solutions

Documents

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