Major Pitfalls of ERP Implementation in Big Companies

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This presentation lists the major pitfalls of ERP implementation in big companies from the perspective of Project Management and from the perspective of implementation methodology

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  • 1. Major Pitfalls of ERP ImplementationMohammed Khaiata Tuesday 17th December 2013

2. Mohammed-Khaiata MohammedKhaiata m.khaiata@gmail.com @Khaiata 3. According to Panorama Consulting Solutions; 2013 172 respondents 21% reported revenues over $1bn 4. Agenda Ground Rules Project Execution Pitfalls After Go-Live Pitfalls Open Discussion 5. Ground Rules 6. One size does NOT fit all 7. Ground Rules 1. One size does not fit all; Every implementation is unique has to be aligned with Enterprise Architecture Best Practice is not a bible 8. Ground Rules 1. One size does not fit all; Best ERP systems are NOT always best fit for all companies 9. Ground Rules 2. ERP means integrated processes Ridiculous piece of data for one department might play vital role in other Inputs and outputs of every process must be clear It is NOT an IT project Influencers might pull the control to their benefit 10. Ground Rules 3. ERP means pre-packaged software You can NOT shoot the moon Much customization then validate the solution 11. Ground Rules 4. Management Commitment ERP way or the high way They dont want headache 12. Ground Rules 5. Right Stakeholders Right representation of functional areas Right balance of power Different stakeholders at different stages of the project Right level of governance 13. Project Execution Pitfalls 14. Project Execution Pitfalls From Project Management PM perspective From perspective of implementation phases 15. Project Execution Pitfalls From PM perspective; Scope: Not having clear and written Request For Proposal RFP Statement of Work SOW Not having defined modules and interfaces Not having clear High Level Solution Not having clear phases and milestones 16. Project Execution Pitfalls From PM perspective; Budget: Depending on Contract Type; T&M, Lump Sum, Beware of internal resource cost Beware of Schedule overrun Not having defined resource plan Not having defined RICEW components 17. Project Execution Pitfalls From PM perspective; Schedule: Not having the right skillset Not having dedicated time from stakeholders and users Not having on-time decisions Not having enough planned time for data conversion Not having well-defined customizations 18. Project Execution Pitfalls From perspective of implementation phases: 19. Project Execution Pitfalls From perspective of implementation phases: 20. Project Execution Pitfalls From perspective of implementation phases: Oracle Application Implementation Methodology AIM 21. Project Execution Pitfalls From perspective of implementation phases: 22. Project Execution Pitfalls From perspective of implementation phases: 23. Project Execution Pitfalls Requirements: Not having signed detailed requirements ERP means pre-packaged Software watch limits Not following the main stream while documenting major exceptions Consider approving new custom components vs. reengineering business process Not Gathering reporting requirements as early as this stage 24. Project Execution Pitfalls Design: Not paying attention to business competitive advantage Not Standardizing business processes Not having signed To-Be processes Not having signed Authority Matrix and Roles and Responsibilities (Segregation of Duties) Not validating reporting requirements Not sharing Data Templates as early as this stage 25. Project Execution Pitfalls Configuration: Avoiding detailed documentation Not following defined checklists Not having dedicated instance Not Using real-life data 26. Project Execution Pitfalls Testing: Not having unit testing Not having dedicated functional testing Not having full-cycle cross-functional testing Not having comprehensive and exhaustive testing Not performing stress and performance testing Not having signed User-Acceptance testing 27. Project Execution Pitfalls Training: Not having written tailored user manuals Not identifying key users Not ensuring hands-on training to key users Missing influential users 28. Project Execution Pitfalls Data Migration: Master Data Not starting as early as transitioning from Design to Configuration Not getting final and cleansed data Neglecting cross-checking master data across sources (legacy systems, excels, etc.) Not quantifying the right volume of data 29. Project Execution Pitfalls Data Migration: Transactional Data Tolerating standardized templates across all sources of data Not giving sufficient time for data collection Ignoring proper cleansing through controlled sheets Not Reconciling with master data Not Reconciling across business functions Not quantifying the right volume of data 30. After Go-Live Pitfalls 31. After Go-Live Pitfalls Running Parallel systems: Double Effort Attachment to legacy systems Ongoing comparisons If ever parallel systems will be there, then defined timeline must be there 32. After Go-Live Pitfalls Shutting down legacy system Not keeping it as read-only Shutting it down in the middle of reporting period or business cycle Ignoring influential users 33. After Go-Live Pitfalls Putting the new system in action Hidden Excel Sheets Neglecting control points for key processes Ignoring critical reports 34. Open Discussion

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