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ERP Implementation: Avoiding Common Pitfalls

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

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 We’re Going
    implementing an ERP to turn it into a star later
    automating key processes
    we’ll 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 manager’s toolkit
  • 21. Taking The Ship To The Destination

    the “what” – getting the system up and running

    the “how” – project manager’s 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 manager’s 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

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