Apama, Terracotta, webMethods Upgrade: Avoiding Common Pitfalls
ERP Implementation: Avoiding Common Pitfalls
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Transcript of ERP Implementation: Avoiding Common Pitfalls
ERP: Avoiding PitfallsGeneral ERP Implementation Observations
Kirill Popadyuk
“When anyone asks me how I can describe my experience of nearly 40 years at sea, I merely say – uneventful.
Of course, there have been winter gales and storms and the like, but in all my experience, I have never been in an accident of any sort worth speaking about...
I never saw a wreck and have never been wrecked.”
From a paper presented by E J Smith, 1907
On 14 April 1912, HMS Titanic sank with the loss of 1500 lives. One of which was its captain…
…E J Smith
Statistics Is Far From Encouraging
worse than planned as planned
source: Panorama Consulting Group 2008 ERP Report
time
money
benefit realisation 79%
59%
93%
Top 7 ERP Failure Factors
source: ERP Asia
Failure to train users sufficiently
Attitude to implementation as an “IT” project
Inability to secure cross-functional commitment
Lack of disciplined project management
Unclean data
Risk management being patchy
Excessive customisation
source: ERP Asia
Deadlines missed
Ambiguous requirements
No visible executive commitment
General absence of milestones
Employee turnover
Reporting is poor
Early Warning Signals
Imp
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olo
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project governance
change managementp
roje
ct
man
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risk management
change managementp
roje
ct
man
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risk management
project governance
Imp
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The Ship Will Not Sail Until…
Board takes clear ownership of the project
Board provides dedicated resources
Board determines the quality criteria and tolerances
Board commits for contingency planning and audit
Board provides dedicated resources
Board determines the quality criteria and tolerances
Board commits for contingency planning and audit
Board takes clear ownership of the project
The Ship Will Not Sail Until…
So What This Mighty Board Is?
manages provision of
resources from multiple suppliers
governs the entire project to
ensure delivery of benefits
can well be IT or consultants
shall not be IT, as conflict of
interests is possible
delegated by the users to
represent their interests
project board roles
senior supplier executive
can be sales, marketing,
finance, etc.
senior user
Board takes clear ownership of the project
Board determines the quality criteria and tolerances
Board commits for contingency planning and audit
The Ship Will Not Sail Until…
Board provides dedicated resources
Stable Crew Throughout The Project
team member profile
in-depth knowledge of functional area
ability to see beyond functional area
excellent communication skills
does not have to be a process owner
a team player
Board provides dedicated resources
Board takes clear ownership of the project
Board commits for contingency planning and audit
The Ship Will Not Sail Until…
Board determines the quality criteria and tolerances
Perfect Clarity On Where We’re Going
automating key processes
implementing a benchmark ERP
implementing an ERP to turn it into
a star later
we’ll see, we have time
Board determines the quality criteria and tolerances
Board provides dedicated resources
Board takes clear ownership of the project
The Ship Will Not Sail Until…
Board commits for contingency planning and audit
Contingency Planning
Cortez was sent to colonise Mexico in 1518. On April 22, 1519, he landed with a large armed contingent near the site of Veracruz. There he disassembled his ships – thus ensuring that his team would stay and fulfil their objectives.
contingency options
start late and then... run
implement partially
change the scope
delay go-live
Prevention Is Better Than Cure But…
project governance
change management
risk management
pro
ject
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Taking The Ship To The Destination
the “what” – getting the system up and running
the “how” – project manager’s toolkit
the “how” – project manager’s toolkit
Taking The Ship To The Destination
the “what” – getting the system up and running
From The General To The Particular
time
% c
ompl
etio
n
start-up &familiarise
risk
analysis
Enough Detail To Freeze Scope
time
% c
ompl
etio
n
start-up &familiarise
design &prototype
draft
transition
strategy
signed-offrequirements
(incl. reports &interfaces) plusfully integrated
prototype
The System Is Ready For Go-Live
time
% c
ompl
etio
n
start-up &familiarise
design &prototype
final
data
transition
plan
fully configuredsolution that
passedtesting by
project teamdevelop
Go-Live And First Period Closure
time
% c
ompl
etio
n
start-up &familiarise
design &prototype
develop
data convertedUAT passedusers trained
power users placedfirst period closed
implement
support
plan
Handover To Support
time
% c
ompl
etio
n
start-up &familiarise
design &prototype
develop
implement
close
support
contract
the “what” – getting the system up and running
Taking The Ship To The Destination
the “how” – project manager’s toolkit
Project Manager Thinks Work Packages
work packages
finance sales purchasing andinventory
payroll data conversion transition
Functional Work Packages Are Similar
a functionalarea
work package content
capturing/validating requirements
defining user roles (SoD)
creating test case scenarios
customising training materials
identifying interfaces
controlling
prototyping
and
development
Data: Volume Brings Complexity
data conversion
work package content
enriching masterdata
cleansing masterdata
developing masterdata strategy
transferring opening balances
transferring transaction data
liaising with
technical
consultants
re data
specs
In The Suit Of a Transition Manager
transition
work package content
overseeing user integration test
overseeing user acceptance test
overseeing handover to support
coordinating ramp-up plans by area
maintaining go/no go checklist
prioritising
remaining
issues with
technical
consultants
project governance
pro
ject
m
anag
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risk management
change management
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Making The System Stick
knowledge transfer strategy
communication and involvement strategy
communication and involvement strategy
Making The System Stick
knowledge transfer strategy
pumping knowledge in
Particularly Important For Dynamic Business
managing training
overseeing user manuals
creating power user institute
placing project team back
knowledge transfer strategy
Making The System Stick
communication and involvement strategy
Mapping All Stakeholders Affectedh
igh
im
pact
low
im
pact
high influencelow influence
project governance
change managementp
roje
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man
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risk management
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Risk Identification From The Beginning
description impact probability mitigation responsible
insufficient internal resources
3 3 senior executive ownership
project Board
absence of agreement on the project plan
3 3 proper planning project manager
disintegrated design of finance & business functionality
2 3 exhaustive list of deliverables agreed with
business
project manager
worsening of control environment
2 2 formal system audit before go-
live
project Board
sample risk log
Raising Issues ASAP By Anyone
sample issue log
description mitigation status responsible
absence of a single master plan
? open ?
segregation of duties: masterdata and P2P and O2C
? open ?
systems to support other legal entities in other countries
? open ?
Monitoring Project Risk Profileh
igh
im
pact
low
im
pact
high probabilitylow probability
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