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ERP Key Success Factors Series 2
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ERP Key Success Factors Series 2

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ERP Key Success Factors Series 2 presentation includes the following: …

ERP Key Success Factors Series 2 presentation includes the following:
6) Effective Project Management
7) High Communication Standards
8) Scope Creep Management
9) Data & Approvals on Time
10) Education & Training

Published in: Technology, Business

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  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Transcript

    • 1. ERP KEY SUCCESS FACTORS:
      SERIES 2 (FACTOR 6 – 10)
      VELCOM ERP IT SOURCING PVT LTD
      An Independent ERP Consulting & Talent Sourcing Company
      1
    • 2. ERP KEY SUCCESS FACTORS: SERIES 2
      • Effective Project Management
      • 3. High Communication Standards
      • 4. Scope Creep Management
      • 5. Data & Approvals on Time
      • 6. Education & Training
      2
    • 7. EFFECTIVE ERP PROJECT MANAGEMENT
      • Most ERP implementations take more time than expected & few reasons are:
      • 8. Unrealistic expectations on project timelines
      • 9. Not accounting all the project implementation activities during the planning phase
      • 10. ERP vendors fail to manage client expectations on project scope & duration
      • 11. Try to develop an estimate before a proper plan is in place
      • 12. Project plan misses the non-vendor related items - process & workflow definition, data migration & customization effort to meet unique business requirements.
      • 13. Effective ERP project management can resolve the following issues among others:
      • 14. Enable the required level of transparency / visibility to all on the project progress
      • 15. Manage expectations across the organization especially with the project stakeholders
      • 16. Manage the time, effort & cost of all involved while meeting the project objectives
      • 17. Escalate the critical risks early with relevant mitigations to stakeholders
      • 18. Establish clear project structures to be maintained through stakeholders support
      • 19. Expectation management is of defining, managing & integrating the below processes:
      • 20. Overall implementation schedule, effort & cost
      • 21. Communicate key milestones / deliverable & their target dates to all the stakeholders
      • 22. Process to keep track of the project schedule & measures to gauge the performance
      3
    • 23. EFFECTIVE ERP PROJECT MANAGEMENT
      • ERP Implementation project plan should cover the following critical steps:
      • 24. Define key business objectives
      • 25. Frame project schedule specific to the implementation project & cover all the project implementation details
      • 26. Aggregate all the business transformation activities & corresponding resources required covering all the project phases
      • 27. Track the dependencies between the project & business areas involved in the plan
      • 28. Gather input for resource forecasting & collaboration, track milestone achievement status and align it with the organization’s environment & constraints
      • 29. An effective ERP program management should take care of mitigating the risks involved in the following phases of the project:
      • 30. Planning; Business process re-engineering (AS-IS, GAP FIT & TO-BE)
      • 31. Implementation of Standard functionality / modules of ERP; Training
      • 32. Planned Customization to take care of the critical requirements (business & technical), which are identified through the Gap-fit analysis
      • 33. Key Integration requirements for legacy systems; Resource requirements to execute the change management process
      • 34. Understanding the scale of data conversions & related data cleansing
      • 35. Coordination of business resources for testing & validation of functionality
      4
    • 36. HIGH COMMUNICATION STANDARDS
      • Communication plan is to ensure that everyone knows the new ERP system & their roles
      • 37. Few examples of stakeholders communication for the ERP project are
      • 38. Internal (employees)
      • 39. Frequent project status reporting
      • 40. Role Clarity for all the project team members
      • 41. When to impart their current process & business requirements to the vendor & their impact
      • 42. Executive stakeholder (top management)
      • 43. Major risks identification & their mitigation plan
      • 44. Key Decision to be made
      • 45. External stakeholder (customer, vendor etc.,)
      • 46. Precautions taken to ensure customer deliveries aren't delayed
      • 47. Requirements / data they need to provide for the project
      • 48. Changes to the ways orders will be processed
      5
    • 49. HIGH COMMUNICATION STANDARDS
      • Project manager during ERP project must communicate frequently to all the following:
      • 50. Project Objectives, Milestones & Deliverable – Plan vs Actual
      • 51. Project Risks / Constraints & Mitigation Plan
      • 52. Time, Effort & Cost – Budget vs Actual
      • 53. Impact of new ERP system across all the functions of the organization
      • 54. Communication management system, include the following:
      • 55. Objectives identification - Identify the information needs of all the stakeholders
      • 56. Plan development - Communication targets, required information & time intervals
      • 57. Plan execution
      • 58. Project team members should know what their tasks are and how & when to accomplish them
      • 59. Good Communication help lessen the curiosity & uncertainty of an ERP Project Implementation
      6
    • 60. SCOPE CREEP MANAGEMENT
      • Scope creep discomforts, as business requirements continue to change
      • 61. Critical to prioritize the business requirements / goals & implement ERP accordingly
      • 62. Processes defined to avoid the scope creep - Planning, Definition, Authentication, Control
      • 63. Reasons for scope creep to occur include:
      • 64. In-complete project scope definition
      • 65. Not having the right project team to determine the actual business requirements
      • 66. No expectation management set between the customer & vendor
      • 67. Lack of change request system
      • 68. Bad communication among project stakeholders
      • 69. Less project control by the project manager
      • 70. Customer used for "freebies" and doesn’t value the project scope / effort / timeline
      • 71. Project Stakeholders having conflicting interest on the project
      7
    • 72. SCOPE CREEP MANAGEMENT
      • Ways to manage the scope creep include:
      • 73. Cordial relationship & manage expectation among the stakeholders
      • 74. Good initial scoping & planning
      • 75. Get the right project team from the start to determine the actual business requirements (present & future)
      • 76. Firm agreement with the project management structure & change request system
      • 77. Proper requirement documentation with customer acceptance including prioritization
      • 78. Scope control through proper change control system & not accepting changes without executive acceptance are crucial
      • 79. Every attempt to make seemingly "small" scope changes, should be avoided except business critical ones
      • 80. Even the best projects would have at least 5-10% scope creep, so to buffer accordingly
      • 81. Project manager should have the necessary skills to work with all, to successfully manage the scope creep at the desired levels.
      8
    • 82. DATA ON TIME
      • Data collection effort & time for the ERP project is mostly under-estimated
      • 83. Enough time need to be allocated to recognize, explain, authorize & replicate all the required information
      • 84. An ERP system implementation gives the opportunity to correct the legacy data i.e. Revision & updation of the data
      • 85. Master - customers, suppliers, general ledger, inventory, technology etc.,
      • 86. Transaction - quote, order, invoice, receipt, voucher etc.,
      • 87. Significant effort for data preparation, entry, migration & validation would be required to collate information from various sources of dispersed data
      • 88. Information related constraints include
      • 89. Finding the right data to load into the system
      • 90. Converting disparate data structures into a single, consistent format before the system usage.
      • 91. Documentation of current & future (required) business processes & data flows is key to design the ERP system
      • 92. This would ensure that the automated ERP system would bring in the complete business process & the desired operational management controls.
      9
    • 93. DECISIONS & APPROVALS ON TIME
      • Organization need to take various decisions / approvals during the ERP Project Implementation
      • 94. Key decisions / approvals to be taken on the following during the ERP project implementation:
      • 95. Project Plan
      • 96. Team structure & Resource allocation
      • 97. Project goals / deliverable & Scope
      • 98. Key requirements (process & data flow) – business & technical
      • 99. Business Process Re-engineering
      • 100. Gaps & Issues
      • 101. Change Management Plan
      • 102. Total Cost of Ownership
      • 103. Data (master & transaction) Conversion & Migration
      • 104. Training – Core team / Business user / IT user
      • 105. Documentation
      • 106. Organization team along with the vendor team has to take the decisions on the above on time to ensure that the ERP Project is implemented successfully to realize the complete ROI.
      10
    • 107. ERP EDUCATION & TRAINING
      • One of the most under-estimated items while ERP project budgeting
      • 108. Organizations would realize better ROI, only when the users understand how to properly use ERP
      • 109. The more the exposure & hands-on training, the more users be confident on their abilities to take ownership & contribute to the ERP project success.
      • 110. Normally 5% of the project effort is dedicated for the ERP Project. ERP Project would deliver great results, if the ERP training effort is increased to 10% of the overall ERP Project effort.
      • 111. Training should be timed properly - neither very early nor very late
      • 112. The team should enter the real transaction data & execute real life scenarios in the new ERP to confirm the required data accuracy & result.
      • 113. Training Calendar
      • 114. Set recurring training budget; Plan refresher training program
      • 115. Periodic review of training requirements
      • 116. Set & execute the action plan, to fix the users skills level gaps, for the proper usage of the ERP system
      11
    • 117. ERP EDUCATION & TRAINING - PHASE
      ERP Training Plan for the Team members
      • Prepare training plan for all user levels - Core member, business user, maintenance team
      • 118. Assess the skills-gap user-level wise & plan for upgrade (if any) before the ERP training
      • 119. Draft the Training Documentation
      Train the users at all levels
      • ERP Core team member training - “Train the Trainer” Model
      • 120. Basic training on the ERP system & process at the project start, to create proper ERP Blueprint
      • 121. Education & training on Business process, Modules, transaction workflow, MIS
      • 122. Training on the conference room pilot
      • 123. Training to manage the end user training & support
      • 124. ERP End business user training
      • 125. Basic training on the ERP system & process for understanding of the ERP usage & benefits
      • 126. Role based education & training on Business process, Modules, transaction workflow, MIS
      • 127. ERP Maintenance team training
      • 128. To manage the ERP master setup & administration, user rights, data/server backup & restore
      • 129. Problem resolution (adding hardware capacity, process & procedure changes, user acceptance, retraining, additional training)
      • 130. Training to manage SLAs with the ERP Implementation Support Vendor
      12
    • 131. THANK YOU!
      13