Disclaimer:
The articles in this blog post are those that I found interesting and
relevant to the topic of ERP and technology in general. I have no
commercial association with any of the entities mentioned in this
article. I may be following a few of these entities on LinkedIn and even
some of these entities may be on my LinkedIn or Social Media network.
These articles are selected purely based on their relevance to the
objective of this blog, to promote ERP. Finally, the summary is mine.
While I stay close to the points in the articles, I also elaborate a few
of them based on my understanding.
The Short URL for this post is https://goo.gl/QWHrhr
The steps in ERP Implementation are:
5. ERP Implementation: ERP Project Management
6. ERP Implementation: Requirements Gathering
7. ERP Implementation: Solution Design
8. ERP Implementation: Solution Testing
9. ERP Implementation: End user training
10. ERP Implementation: RICE
11. ERP Implementation: Integration
12. ERP Implementation: Data Conversion
6. ERP Implementation: Requirements Gathering
7. ERP Implementation: Solution Design
8. ERP Implementation: Solution Testing
9. ERP Implementation: End user training
10. ERP Implementation: RICE
11. ERP Implementation: Integration
12. ERP Implementation: Data Conversion
13. Post Implementation Support and Stabilization
This week's theme is ERP Project Management
We start off by looking at ERP implementation strategy. Author discusses the pros and cons of three strategies, self-directed, collaborative and turn key. Then we look at an article that gives 15 guidelines for a project sponsor. These include involve the auditor, involve a third party consultant, hype up your implementation etc. This is followed by an article on building your implementation team. A successful team must consist of five different personality traits, cheerleader, peacemaker, sergeant-at-arms, the good humour man and contrarian. The fourth article in this series gives a seven step methodology for ERP implementation planning. Some of the steps include team building, budgeting, data conversion etc. An ERP implementation is fraught with many risks. So the fifth article dives into an academic research paper on identifying a new framework on ERP risk management, that attaches costs to the risks helping to prioritize the risks.
I wanted to include change management, so I have added one article on ERP change management that you can read in the additional reading.
As usual, request you to go through these articles and give your views.
We start off by looking at ERP implementation strategy. Author discusses the pros and cons of three strategies, self-directed, collaborative and turn key. Then we look at an article that gives 15 guidelines for a project sponsor. These include involve the auditor, involve a third party consultant, hype up your implementation etc. This is followed by an article on building your implementation team. A successful team must consist of five different personality traits, cheerleader, peacemaker, sergeant-at-arms, the good humour man and contrarian. The fourth article in this series gives a seven step methodology for ERP implementation planning. Some of the steps include team building, budgeting, data conversion etc. An ERP implementation is fraught with many risks. So the fifth article dives into an academic research paper on identifying a new framework on ERP risk management, that attaches costs to the risks helping to prioritize the risks.
I wanted to include change management, so I have added one article on ERP change management that you can read in the additional reading.
As usual, request you to go through these articles and give your views.
https://www.erpfocus.com/erp-implementation-strategy.html
It is important to identify success criteria before the start of the ERP project. Most customers assume that 'a successful go live' is the success criteria. That is not correct. A well executed ERP implementation will deliver improved business processes and increased customer satisfaction almost from day one.
Three common implementation approaches are self-directed, collaborative and turn key. Each of them has advantages and disadvantages. While lower costs may be a pro in a self-directed ERP project, the drawbacks could be sub-optimal implementation, inadequate user training and complex data conversion. The advantages of collaborative approach are a combination of company's SMEs who know the business and implementation partner's team that know the application makes for an excellent knowledge sharing, end user trainings are more effective and better project management and data conversion activities. The disadvantages include increase in cost (TCO will be much lower if the project is effectively implemented). The advantage of turnkey implementation is a quicker implementation lead time. Also, the wider knowledge of the implementer can lead to better user training and user adoption. Drawbacks could be increased costs, potential missed opportunities in process re-engineering and over dependence on the implementation partner
https://erp-consultancy.blogspot.com/2007/05/letter-to-cfo.html
This article is from my blog. It gives 15 suggestions to the project sponsor including involving an auditor, involving a third party consultant for review and audit and ensuring scalability in various ERP activities like configuration and data conversion. Stress is on the importance of documentation and of keeping it simple. The article also encourages the sponsor to hype it up while maintaining constant communication with the user community in the organization.
Check it out and let me know what you think.
https://www.panorama-consulting.com/who-should-be-on-your-digital-transformation-project-team/
An ideal project team should have resources with technical knowledge, communication skills and operational knowledge. The internal resources will include executive steering committee and the subject matter experts. There are five different personality traits that should be a part of a project team. They are:
The Cheerleader: Encourages other team members to participate and recognize their contributions
The Peacemaker: Helps the team members reach a consensus when a compromise is necessary. They focus on the success of the organization as a whole.
The Sergent-at-arms: Ensures project team meets deadlines while adhering to the organization's core values. This role develops project controls and governance structure
The Good humour man: Helps relieve tension and anxiety by bringing in cheer and humour to the project
The Contrarian: Critical thinker / innovator who is not afraid to share his views. This role can challenge the team members to think in terms of people and process rather than just a technical perspective. Contrarian can also ensure that the project team preserves the organization's competitive advantage during business process management.
A small article. Made me think on my personality in the project. I play all the roles at different points in the project.
(https://www.erpfocus.com/erp-implementation-plan.html)
The seven steps are:
1. Assemble your team, including Project Manager, Business Analyst, Developer and Tester. In this step you will also identify the key stakeholders and their area of interest.
2. Create a change management plan: This is required to ensure that your ERP costs are not escalated due to unexpected expense item. There are two aspects to this. First is to plan thoroughly. Ensure to factor in Budgeting, Project Management, Data Conversion, User Training, Testing, Integrations, Go live activities and evaluating the success of project. Second aspect is clear communication. What is not mentioned in this article is a clear change control process.
3. Budgeting: Ensure to factor in costs for hardware upgrades, overtime pay, consultancy fees and costs of data backups and storage.
4. Data conversion: Ensure to plan for data cleansing, data mapping, templates and tools, data transfer and testing and verification
5. User training: This could be In-person or E-learning. Ensure role based training, user feedback and clear communication channels. A good idea will be to 'gamefy' your training
6. Plan for go live: Ensure to have a test plan both before and after go live. Also ensure user availability, system performance and data backup
7. Post go live evaluation: The four parameters to be evaluated are ROI, Error reduction, Increase in productivity and Increase in user satisfaction.
This article also has various attached templates that you can download, modify and use.
(https://research.aston.ac.uk/portal/files/10671585/Risk_management_in_enterprise_resource_planning_implementation.pdf )
One of the critical aspects in ERP project management is the risk management. This downloadable research report looks at the sources of risk in an ERP implementation and briefly reviews the existing risk assessment frameworks. It ends up with an advanced risk assessment framework and gives an example of an ERP implementation which used this advanced framework.
One of the main causes of ERP implementation failure is the misperception of risks and inadequate risk management. Different studies have identified various sources of risk including ineffective strategic planning and communication and insufficient project team skills. Others include inadequate attention to change management and BPR. Other studies have identified inappropriate consulting service experience, unsuitable ERP selection, lack of top management commitment, ineffective project management and bad managerial conduct.
The opposite of risks are the key success factors. Studies have identified careful change management, network relationships and cultural readiness are some of the identified CSFs. Other studies have identified Project team structure, implementation strategy, database conversion strategy, transition technique, risk management strategy and change management strategy.
Risk management strategy consists of two approaches, reducing risky circumstances and risk handling. One of the risk handling methodology include steps like context analysis, risk identification, risk analysis, risk evaluation, risk treatment, monitoring and review and communicating.
At a high level risk management process consists of five steps: Identify and classify risk, analyze risk, determine approach to identified risk, track risk and mitigate risk. This goes in a feedback loop and continue till program completion.
In the framework identified by the researchers, the ERP implementation risks were categorized into five key areas, Technical, Schedule, Operational, Business and Organizational. Technical risk relate to selected technology and performance, operational risks relate to scope creep, business risks occur due to factors outside the business like statutory changes. Finally organizational risks relate to the ability to allocate internal resources and infrastructure.
In addition, risks were also given one of the four levels external engagement, program management, work stream and work package level. External engagement risk require customer actions to mitigate. These risks could have contractual implications. Program management risks could impact multiple workstreams and could impact the milestone completion. Workstream risks impact multiple work packages within a workstream. Work package risks like package quality can be addressed by the package manager and need not be escalated.
Risks were assessed on a scale of two parameters, impact and likelihood, both measured in a scale of 1-5. Risk Factor is measured as Impact * Probability. ...
The rest of the article is standard risk management process. Do read on.
Additional Reading
1. The four most critical steps during an ERP Implementation (https://www.erpfocus.com/erp-implementation-critical-steps.html)
2. The right ERP Consultants will improve your ERP Project (https://www.panorama-consulting.com/the-right-erp-consultants-will-improve-your-erp-project/)
3. 10 Risk assessment factors for ERP implementation projects (https://it.toolbox.com/blogs/glennjohnson/10-risk-assessment-factors-for-erp-system-integration-projects-012415)
4. Change management in ERP: A chicken and egg problem (https://erp-consultancy.blogspot.com/2019/02/organizational-change-management-and.html)
4. Change management in ERP: A chicken and egg problem (https://erp-consultancy.blogspot.com/2019/02/organizational-change-management-and.html)
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