Success and Failure of ERP

2,073 views
1,803 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,073
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
115
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Success and Failure of ERP

  1. 1. The Success and Failure of ERP
  2. 2. <ul><li>What is ERP? </li></ul><ul><ul><ul><li>ERP (Enterprise Resources Planning software is a series of modular software applications that represent the functions that are present in your business. These applications share a centralized database where information is stored. </li></ul></ul></ul><ul><li>What does successful ERP provide? </li></ul><ul><ul><li>Client Satisfaction </li></ul></ul><ul><ul><ul><li>Overall Solution Fit </li></ul></ul></ul><ul><ul><ul><li>Training that results in knowledgeable users </li></ul></ul></ul><ul><ul><ul><li>The client wants to experience the benefits of the solution </li></ul></ul></ul><ul><ul><ul><li>Emergent and contractual issues are adequately resolved </li></ul></ul></ul><ul><ul><li>Return on Investment </li></ul></ul><ul><ul><ul><li>Workflow analysis and job combinations </li></ul></ul></ul><ul><ul><ul><li>Improved manufacturing efficiency / reduced cycle time </li></ul></ul></ul><ul><ul><ul><li>Reductions in inventory / waste </li></ul></ul></ul><ul><ul><ul><li>Improved delivery </li></ul></ul></ul>
  3. 3. <ul><li>Why does ERP fail? </li></ul><ul><ul><li>Varying severity of failures </li></ul></ul><ul><ul><ul><li>Non-business critical failures </li></ul></ul></ul><ul><ul><ul><li>Business critical failures </li></ul></ul></ul><ul><ul><li>The Vendor </li></ul></ul><ul><ul><ul><li>Poor or non-existent analysis prior to quoting </li></ul></ul></ul><ul><ul><ul><li>Improperly configured software </li></ul></ul></ul><ul><ul><ul><li>Insufficient or poor training </li></ul></ul></ul><ul><ul><ul><li>Insufficient knowledge of applicable business core competencies </li></ul></ul></ul><ul><ul><ul><li>Lack of industry specific knowledge </li></ul></ul></ul><ul><ul><ul><li>Doesn’t understand his product </li></ul></ul></ul><ul><ul><ul><li>Insufficient resources </li></ul></ul></ul><ul><ul><li>Be Wary Of: </li></ul></ul><ul><ul><ul><li>Large project teams </li></ul></ul></ul><ul><ul><ul><li>Incoming data inaccuracy (GIGO) </li></ul></ul></ul><ul><ul><ul><li>Taking too big a bite all at once </li></ul></ul></ul>
  4. 4. <ul><li>The Client </li></ul><ul><ul><li>Top Management Commitment </li></ul></ul><ul><ul><ul><li>Inadequate staff participation levels </li></ul></ul></ul><ul><ul><ul><li>Fail to push the internal support processes </li></ul></ul></ul><ul><ul><ul><li>Can result in startup delays </li></ul></ul></ul><ul><ul><li>Project Management </li></ul></ul><ul><ul><ul><li>Make sure the intent is well understood </li></ul></ul></ul><ul><ul><ul><li>Unwillingness to repair broken processes </li></ul></ul></ul><ul><ul><ul><li>Lack of published plans and timelines </li></ul></ul></ul><ul><ul><ul><li>Unveiling </li></ul></ul></ul><ul><ul><ul><li>Lack of an internal change management process </li></ul></ul></ul><ul><ul><ul><li>Failure to formally document business processes </li></ul></ul></ul><ul><ul><li>Post Project Management </li></ul></ul><ul><ul><ul><li>Difficulty in gaining compliance to procedures </li></ul></ul></ul>
  5. 5. <ul><li>The Key Elements of Successful ERP </li></ul><ul><ul><li>Proper Analysis </li></ul></ul><ul><ul><ul><li>Identify and document the strengths and weaknesses of the business </li></ul></ul></ul><ul><ul><ul><li>Process benchmarking </li></ul></ul></ul><ul><ul><ul><li>Now we know what we need to do </li></ul></ul></ul><ul><ul><li>Attention to the Business Process </li></ul></ul><ul><ul><ul><li>Document the issues </li></ul></ul></ul><ul><ul><ul><li>Map the processes </li></ul></ul></ul><ul><ul><ul><li>Plan for the exceptions </li></ul></ul></ul><ul><ul><ul><li>Document the designed processes for training/compliance </li></ul></ul></ul><ul><ul><li>A Strong, Visible Project Team </li></ul></ul><ul><ul><ul><li>Sufficient empowerment </li></ul></ul></ul><ul><ul><ul><li>Must not work in a vacuum </li></ul></ul></ul><ul><ul><ul><li>Publish plans, timelines and celebrate victories </li></ul></ul></ul>
  6. 6. <ul><li>Top Things to Consider </li></ul><ul><ul><li>It all starts at the top </li></ul></ul><ul><ul><li>Carefully choose a vendor </li></ul></ul><ul><ul><li>Get a proper needs analysis </li></ul></ul><ul><ul><li>Map the process to fill the needs </li></ul></ul><ul><ul><li>Document the process to facilitate compliance </li></ul></ul><ul><ul><li>Data accuracy is the key </li></ul></ul><ul><ul><li>Things will change </li></ul></ul><ul><ul><li>Don’t skimp on the budget, but insist on a fixed price contract </li></ul></ul><ul><ul><li>The key is communication </li></ul></ul>Good software is merely one component of successful ERP

×