The document summarizes lessons learned from three commercial industry vendors' experiences implementing ERP systems. It outlines key considerations regarding systems, people, and processes. For systems, it recommends minimizing customization and focusing on integration. For people, it emphasizes having sufficient functional resources and a highly integrated project team. For processes, it stresses the importance of communication, change management, and testing. The overall lessons center on people, process, planning, and change management factors that contributed to successful vs. challenging ERP implementations.

1. Lessons Learned by Commercial Industry
Version 1.0 • November 2003
Enterprise Integration Toolkit
www.eitoolkit.com

2. Document Information
About this Document
Abstract This reference is a consolidation of lessons learned from 3 different vendors
in the commercial industry. They share what worked and what to watch out
for based on their ERP implementation experience. Again, most lessons
learned applied to most COTS implementations.
File Name lessons_learned_comm_industry.ppt
Document Name Lessons Learned by Commercial Industry
Version 1.0
Date Last September 2004
Validated
Document Change History
Version Reason for Change Date
1.0 Created for the EI Toolkit after meeting with Industry reps November 2003
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This document was created to be used as a reference, sample or template. Contents of the EI Toolkit should not be
repurposed for publication in copyrighted material. This policy applies to all contents unless otherwise specified in a
particular document.
Lessons Learned by 2
Commercial Industry

3. Lessons Learned
by Commercial Industry
Company #1
Lessons Learned by 3
Commercial Industry

4. Lessons Learned
Summary
People
Systems • Sufficient functional resources
• Minimize customization • Clear roles and responsibilities
• Systems integration, • Highly integrated, co-located team;
security, timing IT/BP, leadership, program controls,
• Long-term strategy production support
Process
• Broad, frequent and multi-faceted communication
• Cultural change management process
• Strong change control
• Cyclical data conversion testing process
• Early planning and adequate resources provided for training
• Metrics, master scheduling, structured reviews
Lessons Learned by 4
Commercial Industry

5. Lessons Learned
• Systems
– Strive to minimize customization of COTS products and common processes
– Focus on systems integration: architectural decisions; security requirements;
timing of integrations; critical interfaces
– Implement programs following a long-term strategy (keeping an eye towards
future implementations)
• People
– Ensure sufficient participation of functional resources – business drives the
effort, not IT
– Define and communicate clear roles and responsibilities of team members
– Build a strong, co-located team that integrates all affected disciplines: IT and
Business Partner; Management; Program Control groups; Production
Support
Lessons Learned by 5
Commercial Industry

6. Lessons Learned
• Process
– Communication to all affected parties; early and often; through multiple
channels
– Use a formal cultural change management process that builds sponsorship
and buy-in, assesses the organization’s readiness for change, incorporates
feedback, and builds strong awareness of the change
– Ensure that proper change control occurs (Change Board, documentation,
etc.)
– Perform cyclical conversion testing – begin early (Data Conversion
Validation process)
– Begin planning early in the project for training and ensure adequate
resources are provided
– Implement formal master scheduling and review progress frequently using
various structured metrics and both internal and external reviews
Lessons Learned by 6
Commercial Industry

7. Lessons Learned by
Commercial Industry
Company # 2
Lessons Learned by 7
Commercial Industry

8. Lessons Learned
• OWN the Project, DO NOT Put an Integrator in Charge!
• Insist that top management visibly support the project - at kickoff, status
meetings, etc.
• Get Management Performance Objectives tied to savings and deliverables
from the start.
• Assign “ownership” of deliverables to business leaders.
• A full time project team is required.
• Do not include part-time resources in the plan.
• The effort is 80% process and 20% systems.
• Effective change management is imperative.
• A solid communication plan is extremely important.
• Time box “as is” : 5-8 weeks max.
• Time box “to be” : 5-8 weeks max.
Lessons Learned by 8
Commercial Industry

9. Lessons Learned
• Locate project team together in open space.
• Have a solid project plan down to the people/task level so everyone
understands accountabilities.
• Manage to critical path delivery dates.
• Ensure that the plan is INTEGRATED. Have someone on the team
accountable for integration.
• Expect to lose some good people, retention is an issue.
• Whatever you expect interface and conversion tasks to be, they will
take longer.
• Address backup and recovery issues early on. HW requirements
must include more than just a production environment.
• Begin data clean up, conversions and interfaces DAY 1
• Avoid interfaces wherever possible.
Lessons Learned by 9
Commercial Industry

10. Lessons Learned
• Choose people resources carefully. It is OK to reject resources
(Internal and 3rd party).
• Re-allocate 30% of the Consulting $ and Manage to 70%.
• Establish S-T-R-E-T-C-H dates.
• Make/Drive timely decisions.
• Always challenge consultants to do better than the timelines. Set
high expectations for the entire project team.
• Create and maintain a sense of urgency.
• Challenge consultant approaches - sometimes they propose only
what they have tried before.
• Manage expectations externally (timing, cost, functionality)
• Outline control checkpoints for processes.
• Centrally control data management.
Lessons Learned by 10
Commercial Industry

11. Lessons Learned
• Hold the line on SCOPE and just “do it”.
• Zero base reporting requirements and push back.
• Don’t underestimate “data cleansing” efforts.
• If you don’t multi-task, you will miss your dates. Try to make everything
you create re-usable for another task.
• Begin INTEGRATION testing before you are ready.
• Expect to work long days and some weekends.
• Provide ample user training. Do not sacrifice training/testing.
• Batch input can be very time consuming.
• Disk/Storage requirements will be 2-3x your estimate.
• Do not change the SAP code.
Lessons Learned by 11
Commercial Industry

12. Lessons Learned
• Understand what “Day in the Life” testing is and start it as soon as
possible.
• Develop a 24 hour schedule for processing understanding peak loads
and times of the day. Establish target transaction loads for the stress
testing.
• Have all department owners sign off on functionality.
• Have new disciplines for posting and reporting of information in a timely
fashion instituted early.
• Have stock availability, inventory control, in-transit times, procurement
lead times etc. validated and re-validated.
• Don’t take the savings before their time
• Implementations are UGLY!
• Procedures, Procedures and Procedures...
Lessons Learned by 12
Commercial Industry

13. Lessons Learned
by Commercial Industry
Company #3
Lessons Learned by 13
Commercial Industry

14. Lessons Learned
Strategic
• Pull in the customers early and establish a vision
• Drive executive process ownership
• Select your implementation team carefully
• Single Instance vs. Multiple Instances
• Big Bang or Phased Implementation
• Don’t forget product & engineering data
Tactical
• Drive progress through metrics, Measure everything – clarifies the “fog of war”
• Clean data rules! Be relentless – this will determine your success
• Accept only the best people for power users and organization managers
• You can’t test enough
• Don’t be blind-sided by security: Extremely complex during development, Fixing it is
exponentially more difficult after go-live
• Site readiness – the devil is in the details
Lessons Learned by 14
Commercial Industry