Tony Young and Alan Whitton 13 April 2011
The good, bad and not so good of implementing ERP solutions
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
The good, bad and not so good of implementing ERP solutions
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
The good, bad and not so good of implementing ERP solutions
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
The good, bad and not so good of implementing ERP solutions
“If we don't succeed, we run the risk of failure”
Dan Quayle (Former U.S. Vice President)
The good, bad and not so good of implementing ERP solutions
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?
The good, bad and not so good of implementing ERP solutions
Critical success factors
Company vision
Top management sponsorship and
support
Business processes
Project management
Implementation partner
The good, bad and not so good of implementing ERP solutions
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
The good, bad and not so good of implementing ERP solutions
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
The good, bad and not so good of implementing ERP solutions
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
The good, bad and not so good of implementing ERP solutions
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
The good, bad and not so good of implementing ERP solutions
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, bad and not so good of implementing ERP solutions
The good…. characteristics of our best projects
Strong client project
manager
Strong fulltime super user
Followed the process
The good, bad and not so good of implementing ERP solutions
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