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Why Implementation Approach Matters for ERP Project Success
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Why Implementation Approach Matters for ERP Project Success
1.
's ISSUES & INSIGHTS What
Contributes More to the Success of an ERP Project: The Right Software or The Right Implementation Approach? By Tim Hourigan, Microsoft Dynamics and IT Practice Lead, Armanino McKenna While almost all ERP buyers spend a great deal of time analyzing the functional dif- ferences between competing products, they seem to spend very little time scrutinizing how each product will be implemented. Of- ten buyers just assume that all vendor im- plementation approaches are the same and simply compare total estimates to make their solution selection. This is a big mistake and a common reason why so many ERP projects is made up of people-driven tasks that are manager and key stakeholder’s tempera- under deliver on their intended ROI. entirely independent of the particular ERP ment, familiarity with ERP solutions, skill product selected. These tasks include proj- set, aptitude and expectations differ, along For the success of your ERP project, here are ect management, requirements analysis, so- with the organization’s collective willing- three reasons why you should spend more lution design, data migration, user training, ness and capacity to change. Considering time carefully analyzing competing ERP user acceptance testing, go-live deployment all these factors, it highlights the need for vendor implementation approaches: planning, and general Q&A support through- well-defined and understood expectations on out the project. the implementation approach upfront. It also 1. ERP Projects are Change Management warrants spending the time needed to review Projects - Not Technology Installs That said, you should know that for sales each vendor’s implementation approach and At their core, ERP projects are fundamen- reasons vendors purposely make very dif- assumptions to ensure their “standard” ap- tally people-driven change management ferent assumptions in their proposals about proach really does meet your needs. projects intended to improve business ca- how much support they will provide for each pabilities. Business capabilities comprised task. If the provider is silent on a task or has a Summary of people, process and technology solution lower estimate than others, rest assured they As they say in both sports and business, ex- elements. Just throwing your users the keys are assuming you will do it or do more of it ecution is what really drives whether you to a new technology product will not sponta- as needed. That can all be fine, but just know achieve your objectives. Consequently, fo- neously result in the business improvement what you are signing up for. So, while all cusing on how your new ERP will be imple- desired. Doing so will just result in one more vendor implementation approaches should mented is as important as what ERP product under utilized system. A more comprehen- be the same and the actual work effort will you choose. Not all vendor implementation sive implementation approach that includes end up near the same, you should know they proposals are the same. Make sure you know stakeholder engagement and knowledge are never bid the same. what you are getting and not getting. Be- transfer will enable high user adoption and come an informed buyer to assess the fit of proficiency, feature utilization and post go- 3. There is No Such Thing as a Standard both product and implementation approach live self-sufficient solution operation. ERP Project in order to select the right ERP solution for Regardless of claims to the contrary, there is your organization. 2. People-Driven Implementation Tasks no such thing as a static, repeatable, “stan- are The Highest Cost Driver dard” ERP project. While there are similari- This article was first published in MSDy- Arguably, the required tasks and work effort ties and best practices that can be applied, namicsWorld.com on October 12, 2010 of implementing any ERP solution success- every project differs on both a business and fully are nearly the same for any leading a human level. On the business level, every For questions or com- product when deployed by a competent ven- company’s specific needs, stage of growth, ments regarding this ar- dor. Indeed, the required work is unavoid- pace of change and circumstances differ ticle, contact Tim Hourig- able; there are no real short-cuts without in- even within the same industry segment (just an at 925.790.2837 or by creasing project delivery risk. It is also true as their business strategies differ). On a hu- email at Tim.Hourigan@ that the vast majority of this work (50-66%) man level, every project sponsor, project amllp.com. © 2010 Armanino McKenna LLP. All Rights Reserved.
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