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Erp (Re) Implementation


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Are you implementing or about to re-implement an ERP system

Published in: Business, Technology

Erp (Re) Implementation

  1. 1. ERP (Re)-Implementation (Post) Implementation Review Anand Subramaniam
  2. 2. “It is our responsibilities, not ourselves, that we should take seriously.” - Peter Ustinov 2
  3. 3. Highlights  Current Challenges  Post Implementation Review (PIR)  Considering (Re)-Implementing  Drivers  Risk Management Strategies  Project Management - Maturity 3
  4. 4. Current Challenges
  5. 5. Departmental Conflicts.. • Reduce inventory • Large production runs Finance • Continuous production runs • Make to order • High inventory Value • Long production runs • Flexible production • Lesser number of products • Extensive distribution • High raw material inventory system Marketing Production 5
  6. 6. Risk Exposure due to.. 6
  7. 7. Undertaken (taking) a Review 7
  8. 8. Found that…  Lack of cross collaboration  Failed to involve stakeholders  Tried to do too much, too fast  Insufficient training and testing  Failed to manage the change process  Processed not improved and worse off  Underestimated the complexity of the system  Inaccurate or overoptimistic demand forecasts  Believed everything the software vendors said  Lack of proper knowledge, tools, and guidelines  Inaccurate production, inventory, and other business data 8
  9. 9. Currently your system lacks … Full Adherence to Integration Demand Best driven practices Bottom Line Improved Improvement Process Enable Quick Empower Real Time Decisions Users Enterprise 9
  10. 10. Post Implementation Review (PIR)
  11. 11. PIR Objective  To document and communicate how well the project has performed against its original business case, project plan, costs, time-scale, tolerances etc  To gain a common understanding of what went right and wrong, so that the good things are done again and the wrong things are avoided  To be used as an opportunity to learn from and to improve delivery of future projects 11
  12. 12. Your Business Case.. Discovery • Qualification of Improvement Opportunity Continuous Improvement Evolution • Assess baseline value for • Develop business strategy ongoing business performance • Identify business solution • Measure business performance • Align industry solution with key against industry best practices process indicators (KPI’s) • Justify continuous business • Estimate total cost of ownership change and performance tuning • Use integrated content to • Realise continuous develop business case improvement Implementation • Incorporate business case as part of implementation methodology • Ensure KPI’s are measured throughout implementation • Use business case for scope / change control • Use integrated content to monitor project risk performance 12
  13. 13. Questionnaire - Project Performance  Have all suggestions for process improvement been documented?  Was all approvals, variances and sign offs, in accordance to RASCI chart?  Was the project delivered on time, budget and as per the contractual terms?  Did solution meet the requirements, as set out in the approved business case?  Is there evidence that all errors, defects etc were investigated in a timely manner?  Has an analysis of the system development process and methodology been performed?  Did the deliverables meet the quality standards, as set out in quality management plan?  Were the nominated stakeholders trained as per the training plan / training needs analysis? 13
  14. 14. Questionnaire – Performance (Contd.)  Did the project achieve the desired outcomes and benefits, as set out in the benefit realisation Plan?  Did the solution address all functions and benefits, as set out in the scope definition document?  Do the users view the system roll out, as a success or what is laid out in the acceptance criteria plan?  Did the handover to Production Support managed, as per the operating level agreements (OLA)?  Have the final system development and roll out costs been compared to the project plans and initial estimates?  Has the corporate estimating model been updated to reflect the actual productivity rates achieved?  Has the stakeholder satisfaction / dissatisfaction been performed and the final results documented and reviewed? 14
  15. 15. PIR - Others  Project Management  Did each member in the team fulfill their duties, as per the team charter / definition?  How was the team dynamics managed, was it as per the reporting protocols?  Did the team receive appropriate input from the Business?  Methodology  Was a methodology followed and improvements to it made?  Were the methods and tools used, the most appropriate for the project?  Other Feedback  What could have been improved upon? 15
  16. 16. Eg. PIR Worksheet 16
  17. 17. Considering (Re)-Implement
  18. 18. Critical Success Factors 18
  19. 19. Note …  Master data is the key  System uses best business  Tool for achieving enterprise processes wide data discipline  Common language across enterprise  Enable online transparency of  Impact of wrong data across transactions organisation  Need to know basis  Define data ownership  Comprehensive view of the enterprise  Data entry at source  Removes redundancy  Reduce back office work  Reduces reconciliation activity  Improves business process  Exercise strict control on efficiency enterprise functions  Data may not be available or  Authorisation have to be keyed in  Authentication 19
  20. 20. Rough Estimate – Time & Cost Review Hardware Process 10% Software 35% 15% Change Training Management 25% 15% 20
  21. 21. Drivers
  22. 22. Internal Drivers  Internal pressures  Provide additional enterprise-wide functionality  Integration beyond the enterprise • With all customers and suppliers • Real-time • Plug and play  Alleviate pain  Reporting  Visibility of processes and data  Business cycle times hampered by technology cycle times  Want less integration pain for best-of-breed functionality 22
  23. 23. External Drivers  General industry drivers  E-commerce (B~B, B~C, C~C)  Customer demand for self-service • Access/visibility into your data, processes, and supply chain  Agility/flexibility  Marketplace drivers  ERP Vendor Consolidation and diversification  Risk & Governance 23
  24. 24. Risk Management Strategies
  25. 25. Eg. Risk Tolerance 25
  26. 26. Risk Strategies First Second Third Fourth Fifth Culture Increased Culture becomes Consistency of Unaware Early awareness Awareness Known and Past and Future and bias Uniform Actions Technology Isolated projects; More "joined up" Vision drives Vision becomes None initiated from the thinking, but still vision bottom up silo-oriented. decisions Competitive Edge Alignment of Weak, early Understanding Understanding Understanding of bus. and IT Unknown concept awareness and focus at silo level and focus across lines of business wider scope; collaboration Stakeholder First signs of Stakeholder Well Understood, Optimal alignment No alignment Stakeholder Analysis, Trade Drives Decisions Stakeholder centricity; silos Off analysis Benefits Early Attempts Governance model Governance None Becomes a To resolve Defines and in Strong Governance model concern Governance issues Place Culture No process Team-based; Process integration Shared processes End-to-end Process fragmented; At department across process Integrity orientation minimal insight level the company optimisation Weak, Fragmented; Strong Strong functionality Superior functionality; IT plan limited functionality functionality with company- integrated beyond Very fragmented; and focus within silos level integration the company Data None, poor Focus on silo Ongoing, Iterative Competitive strategy quality Operational focus quality Process to maintain Differentiator Quality 26
  27. 27. Project Management Maturity
  28. 28. Your Org. Maturity in Managing Projects.. Best This model is meant to give a very quick ‘snap-shot’ of an Practice organisation’s maturity in regards to its ability to effectively manage projects. The model relies on a fairly subjective  Improvement programs assessment of a number of indicators which point to the overall Competent formal maturity of the organisation.  Good measurement enables optimisation  Methodology & standards  High risk projects Aware well established & successfully managed supported  Respect & support of  Stakeholders understand & projects Seat of  Projects formally initiated accept accountabilities the pants  Discrete measures support Success rate better than  Plans endorsed  Varying standards with few good management 75%  Projects just ‘happen’ disciplines  End-to-end projects set up  Poor project initiation  Methodologies introduced & managed as such  Inadequate buy-in  Stakeholders managed  Risks clearly defined &  Poor communication  Projects become business- controlled  Inter-dependencies not driven  Project Management managed accepted as profession  Insufficient planning Success rate less than 60%  Unknown benefits Success rate less than 75%  Poor standards (if any) Success rate less than 40% 28
  29. 29. “Example is not the main thing in influencing others. It is the only thing.” - Albert Schweitzer 29
  30. 30. Good Luck 30