matti rossi prof erp 03102012
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Large enterprise system implementation challenges
Matti Rossi – Inaugural lecture 3.10.2012
Aalto University School of Business
Excerpts from Bio
• Editor in chief of Communications of the Association for Information Systems
• One year visits to Georgia State Univ., RSM Erasmus and Claremont Graduate College
• Minority owner and former board member of MetaCase Consulting (www.metacase.com) a spin off of the thesis project
Introduction
Enterprise system (ES): • Integrates and standardizes the core business processes
and information resources of the whole organization• Provides a single system that allows information to be shared
across all functional and management levels• Provides unified data definitions and semantics across an
organization• Provides standardized processes and user interfaces across
the organization
Major disasters and challenged projects
• Finnish national railways ticketing system (2011)• Finnish national electronic patient record system and
database (2002 – )• Ajoneuvorekisteri (2000 – 2011)• …
• Taurus: London Stock Exchange System, developed for 10 years, at the cost of 700 mil £, and never deployed (1983 – 1993)
• Nearly all major public sector IT initiatives in last 10 years have been seriously delayed and/or have exceeded their budgets
Typical problems
• Delayse.g. New Taurus project manager after 5 years of
development: “are we any closer to the end?”Project was scrapped in the end
• Cost overrunse.g. Taurus initial estimate 11mil. £, final costs somewhere
between 400 – 800 mil. £• Performance underruns
e.g. Finnish national railways ticketing system problems
• Delivering in time and on budget, but wrong systeme.g. Finnish e-health records
Why this matters?
• Systems developed, but not delivered, can cause tens or hundreds of millions of € worth of losses
• E.g. Taurus• Poorly functioning systems can cause delays, poor morale or
even absenteeism or early retirements• E.g. Healthcare systems
• There are cases where an ES implementation gone bad has bankrupted companies
• E.g. FoxMeyer logistics*
*Scott, Judy E., & Vessey, Iris. (2002). Managing risks in enterprise systems implementations. Commun. ACM, 45(4), 74-81.
Can something be done for this?
• Generally technology is not an issue• Large scale change processes are always difficult• Change and project management are critical for such
projects• Project and system scope and fit with the organization have
to be matched in early phases of the project• Projects should be made more manageable by:
• Dividing them into manageable pieces• Sequencing the implementation
• Being better buyers• Demanding more from the sellers
Suggested solution seeking:ENACT – ERP Development Networks in Action
4 year Academy of Finland project
See enact.lut.fi for more info
Research consortium
Systems development methods and practicesAalto University, Department of Information and Service Economy
Prof. Matti RossiPost Doc Researchers Hilkka Merisalo-Rantanen and Riitta Hekkala
Doctoral candidateErkka Niemi
Software engineering related requirements, quality factors, metrics and feedback mechanisms
Lappeenranta University of Technology, Software Engineering LaboratoryProf. Kari Smolander
Knowledge management and knowledge transfer, human communication and interactions
Tampere University of Technology, Department of Business Information Management and Logistic
Prof. Samuli Pekkola
Research objectives
Empirical identification of actors in selected ERP development projects
Observation of communication and knowledge exchange between the identified actors: e.g. ERP core developers, ERP consultants, local ERP administrators and users, facilitates,
Building an empirically grounded theoretical model to support ERP development in the network
Identification of important quality factors in ERP projects and development of metrics based on these factorsActive deployment of new development methods and practices
including but not limited to ERP core developers, ERP consultants, and local ERP administrators
Research approach
Action Design Research (ADR) to build new tools, methods, and practices
Sein, Maung, Henfridsson, Ola, Purao, Sandeep, Rossi, Matti, & Lindgren, Rikard. (2011). Action Design Research. MIS Quarterly, 35(2)
Expected results 2012-2016
Theoretical:
• Identification of ERP development network actors and practices• Model of communication and interaction practices in ERP development
networks• Model of information flows, including quality metrics
• Integrated and scientifically evaluated tools and methods for ERP development• Improved and validated ERP development processes
• Understanding of the alignment of development methods in complex ERP development networks
Practical:
• Improved competence of ERP implementers through project result dissemination
• Avoidance of wasted effort!
How can this help?
Identification of ES development network actors and practices• Clearly identified roles and responsibilities
• Less finger pointing afterwards• Improved accountability
Improved competence of ES implementers • Fever disasters
• A slightly better chance of success• In some cases systems that actually make life easier
• E.g. Finnish tax systemsAvoidance of wasted effort
• Lot of tax payer or company money saved• Hugely improved quality of life for all stakeholders
burdened with ES/ERP implementation projects
Thank youfor your attention!
Contact information
• Matti RossiE-mail matti.rossi@aalto.fiGSM 050-3835503
Visiting address:Aalto University School of BusinessChydenia buildingRuneberginkatu 22-24
Further reading
• Nandhakumar, J., M. Rossi, et al. (2005). "The Dynamics of Contextual Forces of ERP Implementation." Journal of Strategic Information Systems 14(2): 221-242.
• Mattila, M., Nandhakumar, J., Hallikainen, P., and Rossi, M. (2010) “Reorganizing Projects through Enterprise System, Emerging Role of Enterprise System During Radical Organizational Change”, Proceedings of HICSS-43, IEEE Computer Society, Koloa, HI, 2010 (Best research paper award)
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