The good, bad and not so good of implementing ERP solutions

The good, bad and not so good
of implementing ERP solutions
Tony Young and Alan Whitton
13 April 2011

The good, bad and not so good of implementing ERP solutions

Introduction

Tony Young
• ERP Solution Architect
• Business Consultant
• Chartered Accountant

Alan Whitton
• ERP Specialist
• Business Consultant
• Chartered Accountant


Importance of an ERP

Improves the
coordination
across all business Enhances decision
processes making

Helps to drive
operational
efficiency Supports the business to
become more agile and
responsive


Implementing an ERP
 Implementing an ERP is not just installing a software
application
 It is much more complex than other IT projects
 ERP implementations require a significant commitment of
capital and resources
 ERP implementations will change the way businesses operate,
and this change needs to be managed


“If we don't succeed, we run the risk of
failure”

Dan Quayle (Former U.S. Vice President)


What is failure?
 Running over budget
 Extending over the expected timeframe
 Not delivering expected features or scope
 Not achieving the promised ROI
 Requiring an inordinate effort to run the new system
 Stopping the business i.e. preventing orders to be
fulfilled or production to be completed


Critical success factors
Top management
sponsorship and
support
Company vision

Business processes

Project management
Implementation partner


Good things to do
 Own your process

 Identify the process ‘Super-users’ early on
 Super-users take responsibility for functional area, will be heavily
involved throughout the project
 Ensure ‘Super-users’ can be adequately resourced to the project
 e.g. backfilling their BAU role
 Understand the workings of the system ‘under the hood’
 Don’t ride-along, challenge the design, discuss alternate options
with the consultants


Good things to do
 Prioritise features

 Understand priorities early
 Focus on core and critical processes
 Consider quick wins
 Consider when something is required
 Be aware reports from the old system can be replaced by
real-time online inquiries
 Allow a contingency budget to cover extra features along
the way


Good things to do
 Manage the implementation

 Have a clear vision and, defined outcome and expectations
for the project
 Ensure appropriate resources are available
 Ensure timely decisions and actions are carried out
 Communication across all levels of stakeholders
 Have documented Issues and Change Request processes


Good things to do
 Partner with your partner

 Choice of partner as important as choice of product
 Don’t shortcut the implementation methodology and
approach
 While we are separate teams, we are all focussed on the
same goal
 Maximise onsite consulting time


Managing the unavoidables

 Inconsistent data from old  Start early
system  Full test data conversion

 “We don’t know, what we don’t  Have a contingency
know”  Active involvement in analysis

 Lots of system testing  Start planning early
 Resource adequately

 Users who are resistant to
 Keep them informed
change
 Make them own it


The good…. characteristics of our best projects
Strong client
project
manager

Strong fulltime
super user

Followed the
process


The not so good projects
Strong client
project BAU drains
manager resources

Strong fulltime Lack of testing
super user

Tried to do too
Followed the much with
process features and
history

The good, bad and not so good of implementing ERP solutions

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