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ERP Implementation: Avoiding Common Pitfalls
 

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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    ERP Implementation: Avoiding Common Pitfalls ERP Implementation: Avoiding Common Pitfalls Presentation Transcript

    • ERP: Avoiding Pitfalls
      General ERP Implementation Observations
      Kirill Popadyuk
    • “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
    • On 14 April 1912, HMS Titanic sank with the loss of 1500 lives. One of which was its captain…
      …E J Smith
    • Statistics Is Far From Encouraging
      79%
      benefit realisation
      59%
      money
      93%
      time
      worse than planned
      as planned
      source: Panorama Consulting Group 2008 ERP Report
    • 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
    • Early Warning Signals
      Deadlines missed
      Ambiguous requirements
      No visible executive commitment
      General absence of milestones
      Employee turnover
      Reporting is poor
      source: ERP Asia
    • project governance
      project management
      Implementation Methodology
      risk management
      change management
    • project governance
      project management
      Implementation Methodology
      risk management
      change management
    • 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
    • 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
    • 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.
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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.
    • Prevention Is Better Than Cure But…
      contingency options
      start late and then... run
      implement partially
      change the scope
      delay go-live
    • project governance
      project management
      Implementation Methodology
      risk management
      change management
    • Taking The Ship To The Destination

      the “what” – getting the system up and running

      the “how” – project manager’s toolkit
    • Taking The Ship To The Destination

      the “what” – getting the system up and running

      the “how” – project manager’s toolkit
    • From The General To The Particular
      % completion
      original
      requirements
      and gap analysis
      risk analysis
      start-up &
      familiarise
      time
    • 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
    • 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
    • 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
    • Handover To Support
      % completion
      close
      implement
      support contract
      develop
      design &
      prototype
      start-up &
      familiarise
      time
    • Taking The Ship To The Destination

      the “what” – getting the system up and running

      the “how” – project manager’s toolkit
    • Project Manager Thinks Work Packages
      work packages
      finance
      sales
      purchasing and
      inventory

      payroll
      data conversion
      transition
    • 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
    • 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
    • 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
    • project governance
      project management
      Implementation Methodology
      risk management
      change management
    • Making The System Stick

      knowledge transfer strategy

      communication and involvement strategy
    • Making The System Stick

      knowledge transfer strategy

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

      knowledge transfer strategy

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