The document discusses project management and stakeholders in ERP implementation projects. It defines key terms like project, project management, and stakeholders. It identifies important internal and external stakeholders for ERP projects, like the board of management, business unit heads, IT heads, consultants, and software partners. It describes the roles and expectations of these stakeholders. It also discusses the importance of a project team and identifies the different levels in a project management team from executive to managerial to associate levels.

1. Presented by: Group No. 6 Amrita school of business Project Management, Team & Stakeholders in ERP Project

2. What is a project? Project – “a temporary endeavor undertaken to create a unique product, service, or result.” PMBOK® Guide A project requires an organized set of work efforts. Projects require a level of detail that is progressively elaborated upon as more information is discovered. Projects are subject to limitations of time and resources such as money and people. Projects have a defined beginning and ending.

3. Introduction Project management – “The application of knowledge, skills, tools and techniques to project activities to meet project requirements.” PMBOK® Guide Why project management is so important in ERP implementation? ERP project generally is a big and complex Requires huge resource such as time, human resource, budget etc. High Risk Factor: The Robbins-Giola Survey (2001) ”51% of surveyed companies viewed their implementation as unsuccessful.”

4. Stakeholders A project has a unique combination of stakeholders stakeholders – “persons or organizations … that are actively involved in the project, or whose interests may be positively or negatively affected by …the project.” PMBOK® Guide

5. Important stake holders Internal Board of Management Managing Heads of Business units IS head ERP Project Team External Consultants Software Implementation Partners

6. Board of Management Initiate the implementation phase Expectations Improved management control Less autonomy More integration Cost efficiency

7. Managing Heads Maintain and strengthen the position of the business unit Protect BU for initiatives with threaten interest of business unit Expectations To solve problems To improve their position To increase efficiency

8. IS Head Important role of internal IS department to regain the position of ‘centre of IS expertise’ Expectations A technical system, centrally managed Implement one integrated system in ‘vanilla’ mode

9. Consultants Involved Situation Analysis Need/ Requirement analysis Expectations Estimating the requirement appropriately realizing the predetermined objectives

10. Software Implementation Partner Involved in all the phases Project beginning Implementation Support & Maintenance Training Implementation within time/money constraints Performance - Highly dependent on internal support from firm

11. Changing roles during the project

12. Project management team

13. 7 keys for success of ERP Scope is realistic and managed Work and schedule are predictable Team is high-performing Stakeholders are committed Business benefits are realized Risks are mitigated Delivery organization benefits are realized

14. Project Team – 9 Knowledge Areas

16. Decision-makers

17. Data processing resources

19. Project Management team Project management team can be categorized into three Project team Associate level Managerial level Executive level

20. Executive level Executive level Chief projects officer Sponsor Steering team

22. Overall priority setting

23. Project selection and prioritization

24. Sponsor selection

25. General guidance

27. Executive level Chief projects officer Responsible for all the people working in projects Role varies with company size and complexity Has to ensure that the company’s steering team functions in the best way Assigns and manages roles of each individual serving on a project

28. Managerial level Functional manager Decision making power in the organization is divided between project managers and functional managers Assigned for each department Has a large role in deciding how the project work in their functional area gets done

29. Managerial level Project manager Focal point of the project Leads the planning, execution, and closing of the project Responsible for the project schedule Serve as the prime communication channel within and outside the company Responsible for delivering the project results

30. Managerial level Facilitator Comes into play when the situation is complex Facilitate the meeting Can be an outside consultant

31. Associate level Core team member Small group of people who are on the project from start to finish Assist the project manager in decision making Supervise the work of subject matter experts

32. Associate level Subject matter experts Helps in decision making Acts as an extra helper when there is a need for specific expertise. Brought in as and when required Term of service may vary .

33. Expectations falls short

34. 5 Levers of change in organization

35. ERP Implementation Life Cycle Solution Enquiry ERP Approach & Package selection Implementation Plan Sand Box ERP Infrastructure, Deployment & Integration Operations Extending the Enterprise

36. Stage 1-Solution Inquiry Are we ready for ERP? How will an ERP help our business? Have we considered other solution areas beyond ERP? Who will lead our implementation effort?

38. Stage 2- ERP Approach and Package Selection Do we have the in house resources, skills and experience to implement ERP? Do the features and functions meet our needs? Is the ERP package compatible with our business? Should we buy an integrated package from a single vendor or best-of-breed solutions from several vendors?

39. Stage 3-Implementation Plan How do we get started with the implementation? The Big Bang Modular Implementation Process Oriented Implementation

40. Implementation Time

41. Stage 4- Sand Box What steps do we take to ensure that the implementation is on track? Create a separate dedicated work environment specifically for the project team Constantly evaluate risks, constraints & assumptions Develop training plan for all users

42. Stage 5- ERP Infrastructure Deployment and Integration How do we ensure that the project team and the end users are in sync? How do we ensure that our people are accepting change? How do we integrate the ERP with our other legacy systems? Is our IT infrastructure ready for ERP?

43. Stage 6- Operations How will we recover from a major outage? Execute a onsite maintenance SLA with partners Implement a Disaster Recovery Plan Review Business Impact & Associated Risk Off site backups Provide disaster recovery training to key personnel

44. Stage 7- Extending the Enterprise Consider expanding ERP to other solution areas Supply Chain Management Customer Relationship Management E-commerce Solutions

45. Stage 7- Extending the Enterprise

46. Risk Management Managing risk on an ERP project is crucial to its success There are thousands, maybe even millions of potential failure points on an ERP There are generally 5 steps to managing risk: Find potential failure points or risks Analyze the potential failure points to determine the damage they might do Assess the probability of the failure occurring Based on the first three factors, prioritize the risks Mitigate the risks through whatever action is necessary

47. THANK YOU…