ERP Implementation: Avoiding Common Pitfalls

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Post on 24-May-2015

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Transparent tried and tested project management methodology to implement an ERP system based on my PRINCE2 and my own experience.

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  • 1. ERP: Avoiding Pitfalls
    General ERP Implementation Observations
    Kirill Popadyuk

2. 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
3. On 14 April 1912, HMS Titanic sank with the loss of 1500 lives. One of which was its captain
E J Smith
4. Statistics Is Far From Encouraging
79%
benefit realisation
59%
money
93%
time
worse than planned
as planned
source: Panorama Consulting Group 2008 ERP Report
5. Top 7 ERP Failure Factors
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
6. Early Warning Signals
Deadlines missed
Ambiguous requirements
No visible executive commitment
General absence of milestones
Employee turnover
Reporting is poor
source: ERP Asia
7. project governance
project management
Implementation Methodology
risk management
change management
8. project governance
project management
Implementation Methodology
risk management
change management
9. 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
10. 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
11. So What This Mighty Board Is?
project board roles
manages provision of resources from multiple suppliers
governs the entire project to ensure delivery of benefits
delegated by the users to represent their interests
senior supplier
executive
senior user
can well be IT or consultants
shall not be IT, as conflict of interests is possible
can be sales, marketing, finance, etc.
12. 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
13. 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
14. 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
15. Perfect Clarity On Where Were Going
implementing an ERP to turn it into a star later
automating key processes
well see, we have time
implementing a benchmark ERP
16. 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
17. 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.
18. Prevention Is Better Than Cure But
contingency options
start late and then... run
implement partially
change the scope
delay go-live
19. project governance
project management
Implementation Methodology
risk management
change management
20. Taking The Ship To The Destination

the what getting the system up and running

the how project managers toolkit
21. Taking The Ship To The Destination

the what getting the system up and running

the how project managers toolkit
22. From The General To The Particular
%completion
original
requirements
and gap analysis
risk analysis
start-up &
familiarise
time
23. Enough Detail To Freeze Scope
%completion
signed-off
requirements
(incl. reports &
interfaces) plus
fully integrated
prototype
draft transition strategy
design &
prototype
start-up &
familiarise
time
24. The System Is Ready For Go-Live
%completion
fully configured
solution that
passed
testing by
project team
final
data transition
plan
develop
design &
prototype
start-up &
familiarise
time
25. Go-Live And First Period Closure
%completion
data converted
UAT passed
users trained
power users placed
first period closed
implement
develop
support plan
design &
prototype
start-up &
familiarise
time
26. Handover To Support
%completion
close
implement
support contract
develop
design &
prototype
start-up &
familiarise
time
27. Taking The Ship To The Destination

the what getting the system up and running

the how project managers toolkit
28. Project Manager Thinks Work Packages
work packages
finance
sales
purchasing and
inventory

payroll
data conversion
transition
29. Functional Work Packages Are Similar
work package content
capturing/validating requirements
a functional
area
defining user roles (SoD)
creating test case scenarios
controlling
prototyping and development
customising training materials
identifying interfaces
30. Data: Volume Brings Complexity
work package content
enriching masterdata
data conversion
cleansing masterdata
developing masterdata strategy
liaising with technical consultants re data specs
transferring opening balances
transferring transaction data
31. In The Suit Of a Transition Manager
work package content

overseeing user integration test
transition
overseeing user acceptance test
overseeing handover to support
prioritising remaining issues with technical consultants
coordinating ramp-up plans by area
maintaining go/no go checklist
32. project governance
project management
Implementation Methodology
risk management
change management
33. Making The System Stick

knowledge transfer strategy

communication and involvement strategy
34. Making The System Stick

knowledge transfer strategy

communication and involvement strategy
35. Particularly Important For Dynamic Business
pumping knowledge in
managing training
overseeing user manuals
creating power user institute
placing project team back
36. Making The System Stick

knowledge transfer strategy

communication and involvement strategy
37. Mapping All Stakeholders Affected
high impact
low impact
high influence
low influence
38. project governance
project management
Implementation Methodology
risk management
change management
39. Risk Identification From The Beginning
sample risk log
40. Raising Issues ASAP By Anyone
sample issue log
41. Monitoring Project Risk Profile
2
high impact
1
4
low impact
high probability
low probability