This document discusses key considerations for selecting and implementing a new enterprise resource planning (ERP) system. It emphasizes that an ERP implementation should be approached as a business change program rather than just an IT project due to the wide-ranging impacts. The document outlines understanding business needs and objectives, evaluating potential ERP solutions, assessing readiness for change, and mitigating risks. It stresses the importance of having a dedicated ERP program leader to guide the organization through the significant changes involved.
The Lesson Learned from Implementation of ERP in Project-Based HoldingsMASOUD ZAKERMOSHFEGH
Represented at the 10th International Project Management Conference.
During the presentation we will discus about the following outlines:
- Enterprise Influences on ERP
- Pre Implementation Processes
- During Implementation Processes
- Post Implementation Processes
The Lesson Learned from Implementation of ERP in Project-Based HoldingsMASOUD ZAKERMOSHFEGH
Represented at the 10th International Project Management Conference.
During the presentation we will discus about the following outlines:
- Enterprise Influences on ERP
- Pre Implementation Processes
- During Implementation Processes
- Post Implementation Processes
Business Process Reengineering PowerPoint Presentation SlidesSlideTeam
Business Transition is a simple process, our business process reengineering PowerPoint presentation slides are graphical representation of this complete process. This change management process PPT template comprises of slides like types of change management, forces for change, gap analysis, vision statement, organizational change readiness, change management agents, roles of leadership in CM, role of team members, role of key stakeholders, Lewin’s three-stage change model, ADKAR model, bridge transition model, Szpekman’s communication framework, Roger’s technology adoption curve, risk and barriers, risk assessment etc. The organization can use this PPT graphics to pitch business transformation process with content ready templates such as risk matrix, resistance assessment survey, resistance to change, resistance management plan, implementation strategies, change transition plan, change transition curve, communication plan, CM training and timeline, sustaining momentum, change management cost, evaluation, results, performance dashboard. Download this change control process PowerPoint template to motivate your team to focus on adaptability. Boldly face challenges that emerge with our Business Process Reengineering PowerPoint Presentation Slides. They enable you to get into the fray.
ERP Readiness Audit Importance for ERP Project Successvelcomerp
ERP Readiness Audit is the process used to find out the readiness level of the organization to execute the ERP project initiative and identify specific areas to focus on in its preparation process. It is the ideal first step for organization to take in its ERP project initiative. This would help organization to clearly understand its current readiness level and have an action plan to be fully ready to implement the ERP project successfully.
While ITIL represents a lot of paperwork to perform IT Services Management, there are some tools, and in particular Open Source tools that may be extremely useul in the establishment of an ITIL compliant IT service management program.
GI Net 10 - Ensuring Sustainability in Organizational TransformationHora Tjitra
Materials presented during the 10th GI Net: "Ensuring Sustainability in Organizational Transformation" on May 07, 2013, by Prof. Dr. Hora Tjitra, Director of Tjitra & associates (www.tjitra.com) & Associate Professor for Applied Psychology at Zhejiang University
More information:https://flevy.com/browse/flevypro/key-performance-indicators-kpis-best-practices-4010
There are clear and measurable differences that exist between organizations that use Key Performance Indicators (KPIs) to monitor and assess performance and those that use KPIs to guide and drive performance improvements. Data-driven and customer-oriented leaders use KPIs to transform their organization, while those more concerned with hitting their numbers remain focused on efficiencies. Who is better positioned to adapt, evolve, and compete?
More sophisticated managers explicitly use KPIs to promote cross-functional—not just vertical—alignment. For them, KPIs are the means and methods for rigorously defining and measuring the fundamentals that matter. To be effective, KPIs must be able to clearly communicate how it tracks Value Creation and delivers value for our stakeholders—customers, employees, and investors.
This framework provides practical and actionable next steps for organizations to obtain greater value and returns from their KPI investments. It discusses 4 best practices around KPIs:
1. Focus on Customer Experience (CX)
2. Identify Top Enterprise and Top Functional KPIs
3. Foster Enterprise-wide Discussion of KPIs
4. Treat KPIs as a Special Class of Data
The 4 KPI best practices are every organization's guide to using KPIs to guide and drive performance improvements.
This deck also includes slide templates for you to use in your own business presentations.
Obeya Rooms or Business Performance RoomsAdam Payne
Your information and actions must be prioritised and communicated through the organisation to ensure pace, direction (towards objectives), and complete involvement.
The world has changed dramatically since LEAN and Six Sigma were popularized in the early 1990′s. Globalization, product proliferation, information technology, intense competition, and an activist regulatory environment have contributed to a rapid rise in complexity. As a result, many companies are finding that LEAN and Six Sigma aren’t delivering the results they expected. In this presentation, delivered by Chris Seifert at APICS 2013, we discuss a new approach that a select few companies are utilizing to achieve Operational Excellence in the face of complexity.
Program Management Office Lean Software Development and Six SigmaGlen Alleman
Successfully combining a PMO, Agile, and Lean / 6 starts with understanding what benefit each paradigm brings to the table. Architecting a solution for the enterprise requires assembling a “Systems” with processes, people, and principles – all sharing the goal of business improvement.
Fundamentals of Business Process Management: A Quick Introduction to Value-Dr...Marlon Dumas
Marlon Dumas of University of Tartu gives an introduction and quick tour of the business process management lifecycle. Seminar given at the Estonian BPM Roundtable, 10 October 2013.
According to a number of studies; up to 80% of businesses deem their ERP initiatives as failing to meet objectives... What must business management consider prior to taking the leap. How do mitigate the risk of being one of that 80%. If you represent a business an have questions please use the contact form on the changespecialist.org site and I will respond.
Preparation is the key to success! What are the most important aspects in getting ready for an ERP implementation? Read these step by step guidelines to ensure a successful ERP implementation
https://www.forceintellect.com/2020/10/20/getting-ready-erp-implementation/
Business Process Reengineering PowerPoint Presentation SlidesSlideTeam
Business Transition is a simple process, our business process reengineering PowerPoint presentation slides are graphical representation of this complete process. This change management process PPT template comprises of slides like types of change management, forces for change, gap analysis, vision statement, organizational change readiness, change management agents, roles of leadership in CM, role of team members, role of key stakeholders, Lewin’s three-stage change model, ADKAR model, bridge transition model, Szpekman’s communication framework, Roger’s technology adoption curve, risk and barriers, risk assessment etc. The organization can use this PPT graphics to pitch business transformation process with content ready templates such as risk matrix, resistance assessment survey, resistance to change, resistance management plan, implementation strategies, change transition plan, change transition curve, communication plan, CM training and timeline, sustaining momentum, change management cost, evaluation, results, performance dashboard. Download this change control process PowerPoint template to motivate your team to focus on adaptability. Boldly face challenges that emerge with our Business Process Reengineering PowerPoint Presentation Slides. They enable you to get into the fray.
ERP Readiness Audit Importance for ERP Project Successvelcomerp
ERP Readiness Audit is the process used to find out the readiness level of the organization to execute the ERP project initiative and identify specific areas to focus on in its preparation process. It is the ideal first step for organization to take in its ERP project initiative. This would help organization to clearly understand its current readiness level and have an action plan to be fully ready to implement the ERP project successfully.
While ITIL represents a lot of paperwork to perform IT Services Management, there are some tools, and in particular Open Source tools that may be extremely useul in the establishment of an ITIL compliant IT service management program.
GI Net 10 - Ensuring Sustainability in Organizational TransformationHora Tjitra
Materials presented during the 10th GI Net: "Ensuring Sustainability in Organizational Transformation" on May 07, 2013, by Prof. Dr. Hora Tjitra, Director of Tjitra & associates (www.tjitra.com) & Associate Professor for Applied Psychology at Zhejiang University
More information:https://flevy.com/browse/flevypro/key-performance-indicators-kpis-best-practices-4010
There are clear and measurable differences that exist between organizations that use Key Performance Indicators (KPIs) to monitor and assess performance and those that use KPIs to guide and drive performance improvements. Data-driven and customer-oriented leaders use KPIs to transform their organization, while those more concerned with hitting their numbers remain focused on efficiencies. Who is better positioned to adapt, evolve, and compete?
More sophisticated managers explicitly use KPIs to promote cross-functional—not just vertical—alignment. For them, KPIs are the means and methods for rigorously defining and measuring the fundamentals that matter. To be effective, KPIs must be able to clearly communicate how it tracks Value Creation and delivers value for our stakeholders—customers, employees, and investors.
This framework provides practical and actionable next steps for organizations to obtain greater value and returns from their KPI investments. It discusses 4 best practices around KPIs:
1. Focus on Customer Experience (CX)
2. Identify Top Enterprise and Top Functional KPIs
3. Foster Enterprise-wide Discussion of KPIs
4. Treat KPIs as a Special Class of Data
The 4 KPI best practices are every organization's guide to using KPIs to guide and drive performance improvements.
This deck also includes slide templates for you to use in your own business presentations.
Obeya Rooms or Business Performance RoomsAdam Payne
Your information and actions must be prioritised and communicated through the organisation to ensure pace, direction (towards objectives), and complete involvement.
The world has changed dramatically since LEAN and Six Sigma were popularized in the early 1990′s. Globalization, product proliferation, information technology, intense competition, and an activist regulatory environment have contributed to a rapid rise in complexity. As a result, many companies are finding that LEAN and Six Sigma aren’t delivering the results they expected. In this presentation, delivered by Chris Seifert at APICS 2013, we discuss a new approach that a select few companies are utilizing to achieve Operational Excellence in the face of complexity.
Program Management Office Lean Software Development and Six SigmaGlen Alleman
Successfully combining a PMO, Agile, and Lean / 6 starts with understanding what benefit each paradigm brings to the table. Architecting a solution for the enterprise requires assembling a “Systems” with processes, people, and principles – all sharing the goal of business improvement.
Fundamentals of Business Process Management: A Quick Introduction to Value-Dr...Marlon Dumas
Marlon Dumas of University of Tartu gives an introduction and quick tour of the business process management lifecycle. Seminar given at the Estonian BPM Roundtable, 10 October 2013.
According to a number of studies; up to 80% of businesses deem their ERP initiatives as failing to meet objectives... What must business management consider prior to taking the leap. How do mitigate the risk of being one of that 80%. If you represent a business an have questions please use the contact form on the changespecialist.org site and I will respond.
Preparation is the key to success! What are the most important aspects in getting ready for an ERP implementation? Read these step by step guidelines to ensure a successful ERP implementation
https://www.forceintellect.com/2020/10/20/getting-ready-erp-implementation/
ERP Key Success Factors Series 1 includes the first 5 factors namely:
1) Top Management Commitment
2) Clear Goal Setting & Budget Planning
3) Good Project Team - Client & Vendor
4) Change Management
5) Business Process Re-Engineering
With these key best practices, you can create strong ERP governance that will help you use your platform effectively, with an increased focus on the strategic objectives of your business.
With these key best practices, you can create strong ERP governance that will help you use your platform effectively, with an increased focus on the strategic objectives of your business.
Learn more - http://gt-us.co/1NJKpfZ
A new ERP system will change your organization. Looking at it through a narrow IT prism may be it's demise. ERP is about people and processes and it is essencial to take them into account when planning a project
Steps recommended ascertaining the success of ERP implementation6e Technologies
The implementation of the ERP in an organization is a massive step towards achieving the organizational objectives with a systematic and careful approach. It is a major change that ensures better success rate by involving various components of business and integrating them with the help of software.
Removing the barriers to business transformation with ArchiMateCorso
Typical Entry Points for Enterprise Architecture
What is ArchiMate?
How ArchiMate helps business transformation
Current tools used to manage business transformation
Technology project executions rank high on CFOs’ most worrisome risks and enterprise resource planning system (ERP) projects are among them. Surveys regularly show that a significant number of strategic ERP projects fail to deliver expected outcomes, are delayed, and exceed budgets by a long shot. While most companies avoid catastrophic ERP failures, only a few wring out the most value. For top management, failing to deliver a strategic priority is rarely an option. Given a mature ERP solutions market place and mostly competent ERP installers, why do organizations frequently stumble?
Failed ERP lessons - Webinar Take aways by Bista SolutionsBista Solutions
Lessons Learned From Failed ERP Implementations. Learn how to avoid ERP implementation Failures. And Know what are the keys to successful ERP Implementation.
This presentation is about how different functions in an organization interact with each other using Enterprise Resource planning (ERP) tool. What are the advantages and disadvantages of ERP tools.
Lessons Learned from Failed ERP Implementation - Webinar Presentationsbandarkar
No matter what type of business you're in, implementing an ERP solution is a critical project that must be taken seriously. In this webinar our ERP Implementation Officer will share his experience towards ERP Implementation and he shall also cover the following agenda.
1. Top reasons of unsuccessful ERP Implementations
2. Results of failed ERP Implementations
3. 5 lessons learned from Failed ERP Implementations
4. Best Methodology to follow for successful ERP Implementations
Watch Video : https://www.youtube.com/watch?v=tyBBmJcjZsM
Lessons Learned from Failed ERP Implementationsbandarkar
No matter what type of business you're in, implementing an ERP solution is a critical project that must be taken seriously. In this webinar presentation our ERP Implementation Officer will share his experience towards ERP Implementation and he shall also cover the following agenda.
1. Top reasons of unsuccessful ERP Implementations
2. Results of failed ERP Implementations
3. 5 lessons learned from Failed ERP Implementations
4. Best Methodology to follow for successful ERP Implementations
2. Planning &
Execution
PURPOSE
It is rare for any manager to be involved in more than one or two implementations of
a new ERP even over the course of a long career. The implementation of a new ERP,
particularly if done in conjunction as part of a multi-company/SBU integration as is
often the case, may be one of the most challenging change initiatives during the
career of many.
This presentation is intended to provide a very high level conceptual framework for
discussions as the business considers implementing a new ERP.
3. Planning &
Execution
ERP?
HOW, WHAT, WHICH?
Speaking with companies about ERP for over 25 years, I have often heard:
“We disrupted the business, we spent millions of dollars, we painfully finished
the implementation, but we did not end up with what we expected.”
The common element to each of these has been the approach. The range,
impact, and risks of implementing a new ERP require a very different approach
than even the largest operational initiative.
4. Planning &
ExecutionUnderstand “WHY” at the Organizational Level
There are a number of valid reasons to implement a new ERP, but it is
important to understand what is driving this decision.
1. Is the decision necessary to address internal business needs or business
model changes?
2. Are competitive pressures demanding increased agility?
3. Are there too many disconnected business systems today?
4. A vendor says you need this and “we have all the bells and whistles”?
5. The IT manager says: “existing systems are old or no longer supported –
this will put us where we need to be”?
6. The staff is saying: “the current system is old and hard to keep using”?
Each of these and others may influence decisions that define the company’s
strategic roadmap, the business plan, and the program scope.
5. Planning &
ExecutionWhat is Important… How? Which?
There are many ERP alternatives available.
It is critical to start by answering one question: Will the new ERP
application be limited to only few simple functions, or will we use it as a
catalyst to change the business?
1. Major change initiatives including most leading ERPs should be approached
as Business Change Programs to control the inevitable risks and define a
well understood expectations framework.
2. An inadequate pre-study with follow-up validations will invariably lead to
increased effort to mitigate later risks, limit higher costs, and execute
needed late-stage changes.
3. Only simple ERP implementations, those with very limited functionality, or
in-place ERP upgrades should be approached as a Technology Project led by
an existing manager.
6. Planning &
Execution
What Is Important for ERP Decisions?
A short list of possible considerations might include:
○ Increase flexible responses to a changing and competitive marketplace
○ New regulatory demands
○ Increase management control and visibility
○ New customer expectations
○ A changing staffing/skills landscape
○ Need for enhanced business analytics/business intelligence/both
○ Demands of trading partners
○ Sales force challenges
○ Online Marketplace/Customer Enablement
○ Globalization
○ Time to market pressures
○ Ease of Adoption
7. Planning &
ExecutionWhat A Major ERP Implementation Means
1. A new ERP often significantly changes the way that business is
conducted?
2. The impact of a new ERP may affect a business for 10 years or longer?
3. There will be human impacts that must be considered:
○ To our presence in the market
○ To our customers
○ To our trading partners
○ To our staff
○ To our products
○ To our financial relationships
4. Getting ready is as important as the execution.
8. Planning &
ExecutionCritical Understandings for Success in a
Major ERP Implementation
The key tasks of executing a major ERP implementation are very much the
same for either a middle market firm or the very large multi-national.
Enterprise Resource Planning is not about the technology…. The technology
simply enables the desired business capabilities and outcomes.
Successfully implementing a new ERP is about managing Fundamental
Changes that will effect:
1. Executive decision making
2. Business processes (running the business)
3. Financial and regulatory constraints
4. Every person who either produces and uses company information
5. External relationships and fulfillment with customers, trading partners,
financial partners, suppliers, investors, regulators, …
9. Planning &
Execution
Make Selections Based on Business Objectives
– Not Technology
Does the ERP vendor really understand my business model and sector(s)?
1. Financials including valuations, fixed assets, AR models, tax, etc.
2. Product Management life-cycle
3. Supply Chain
4. Production/Delivery Modes
5. Servicing and Customer Support Models
6. Globalizations
7. Multi-company, multiple sectors, inter-company
8. Sales modes (Channels, verticals, direct, online, etc.)
Note: Each ERP platform typically has modules that are highly configurable… These same questions
should be asked when selecting an implementation partner for the chosen platform.
10. Planning &
ExecutionWhat Is The Magnitude of the Acceptable
Change?
1. What might our organization look like afterward?
2. What should our operating environment/business model look like
when this new ERP is in place?
3. As we consider alternative ERP solutions, can the new process, the new
business execution, and the new technology skills demanded be
developed… Or if they must be recruited, how easily can they be
found?
4. How will/should the constraints inherent within questions 1, 2, and 3
above influence the consideration of potential ERP platforms ?
Answering these questions is an important preliminary step.
11. Planning &
ExecutionKey Areas to Mitigate ERP Risks?
ERP – Key Areas
(after the ERP selection)
Business objectives management
- Understand and agree on the transformation definition based on a
diagnosis
- Identify the business value and set business end-state objectives,
- Develop vision, scope, business case which are used throughout the
project and realized after program closure
Solution management
- Investigate alternatives to decide upon the best-fit final solution
- Develop processes that are in line with business objectives
- Provide the technologies necessary to reach the business objectives
- Accept a solution that matches the new or modified to-be processes
- Perform verification and validation
Business change management
- Drive the organizational transformation needed, through communication,
training, and roll-out
- Transform business targets into matching business results by active
involvement of all stakeholders
- Ensure that technical solutions, processes and organization changes
conform to complete business solution
Project control
- Integrating the three areas above
- Balance quality, time, cost and content
- Control change, risk, budget, resources, and all deliverables
- Maintenance of stakeholder involvement
Business objectives management
Solution management
Business change management
Project control
12. Planning &
ExecutionCommon Good Practice Flow for ERP
Concept Study
Decide which solutions to investigate further. This marks the end of Pre-Study activities
and starts the program. This activity begins the elimination of considered alternatives
Solutioning Development
Test solution finalists and choose one solution and approve the way the business will work
in combination with the enabling technical concept
Final Development
Freeze the overall solution. Develop business and technology components required by the
solution.
User Launch
Conduct all business and technology functional tests. Approve that the solution is ready
for user validation tests
Change Initiation Approve the business value and business case - formally start the pre-study
Release
Conduct final user acceptance. Approve that the solution is ready for “prime-time” and the
organization is ready to receive it
End
Approve that the solution and deployment are achieved according to the Agreement, hand
over the responsibility to a maintenance group, and close the program
Visioning Approve the project vision and the diagnosis of as-is vs. to-be. Produce a preliminary scope.
Follow-Up Next Steps
Validate that the business objectives have been achieved and, if needed, decide action
plans and further change management activities
13. Planning &
Execution
A Possible Approach To The Pre-Study
Current status in each
functional area
1. Function 1
2. Function 2
3. Function 3
4. Function 4
5. Function 5
6. Function 6
7. Function 7
8. Function 8
9. Function 9
10. Function 10
High
Low
Low Usability High
1
2
3
4
4 3 2 1
Functionfulfillment
10
5
6
8
1
2
4
3
1
2
4
3
Will fulfil or exceed requirements to efficiently execute activity
Will only fulfil basic requirements to efficiently execute activity
Will fulfil requirements, but takes more resources than current solution
Will not fulfil requirements to efficiently execute activity
7
Evaluate a future state for each
functional area with alternatives
Where Are We Today? Where Do We Want To Be?
14. Planning &
ExecutionKey Decision: A Fully Dedicated ERP Leader
In any but the smallest ERP implementation; considerations for the ERP Program
Leader should include:
1. Proven background leading enterprise-level, mission-critical changes.
2. In-depth conceptual knowledge of each operating area of the business to be
effected by the new ERP value stream.
3. Significant experience in human capital, best-fit methodologies, value chain
analysis, process modeling, best practices, and financials is very helpful.
4. Significant matrix management experience and relationship skills.
5. Strong oral, written, presentation, and relationship skills. Able to communicate
effectively with the executive suite, process owners, the financial team, or plant.
6. There will be resistance to change of this magnitude and difficult decisions will
be required. This role is ideally positioned as either a direct or dotted line report
to a very strategic senior executive or to the President. (1) (2)
(1) Very significant additional risk may be introduced if the role is positioned within existing operations or IT.
(2) Strongly recommend engaging an interim manager rather than a resource viewed as a contractor or vendor.
15. Planning &
Execution
KEY ISSUE:
Understand the Typical Time Commitment
Note: This time commitment will represent a continuing risk throughout the implementation.
ERP Implementation
Resource
Expected Time
Commitment
Who/Role/Function
ERP Program Manager 100%
Formal authority to direct, define, coordinate, and make decisions related the ERP program's
day-to-day activities and issues. Establishes objectives, develops requirements, plans
schedules and manages budgets and costs. Leads analysis of business activities, program
reporting, change controls, goals, and communications throughout the organization.
Facilitates ERP acceptance at all stages and from all levels of the enterprise.
Steering Committee 2%
Executive Management Team: Define and drive organization support of the ERP
implementation. Addresses identified road blocks. Approve all changes to project scope and
major budget impacts. Accept/reject readiness for key phase changes.
Core Team
Up to 20%
Heaviest at Milestones
Senior Business Process Owners: Functional decision makers responsible for driving all
inputs and availability as needed of subject matter experts within their respective areas. Act
as the business' primary advocate for the business requirements within the areas of their
respective responsibilities. Responsible/Approve/Accept key decisions and change requests
within functional area(s). Heaviest at Milestones. (allow minimum 2 hours per week)
IT Team 5% to 90%
Execution of the technology sub-project (application development, infrastructure, support
implementation partners/vendors). IT managers heavy involvement during planning, staff
involvement heaviest beginning after initial decisions have been made. Up to 90%
involvement beginning before acceptance testing.
Program Sponsor 5% Represents the interests of the Executive Team to the Program on a continuing basis and
drives executive team involvement/decisions as required
Is the Organization Prepared and Able to Support the Time Demands?
16. Planning &
ExecutionDo We Understand Risks To Be Managed?
Deloitte estimates that up 75% of new ERPs fail to meet expectations.
In one study: Only 68% of executives and 61% of employees are at least
somewhat satisfied with their implemented ERP solution.
What would we do if this ERP implementation:
Took longer than expected?
Effort exceeded planned staff allowances?
Implementation exceeded planned budget?
Experience an increase in total costs as a percentage of total revenues?
Unforeseen changes increase implementation costs?
Experience organizational resistance and high learning curves?
Experience major operational disruptions at go-live?