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Module 4

The document outlines the post-implementation activities of an ERP system, emphasizing the importance of ongoing support, user training, and addressing employee resistance. It details the roles of various participants in the implementation process, the significance of contracts with vendors and consultants, and the necessity of comprehensive training for users. Additionally, it highlights the evaluation of success through methods like cost-benefit analysis and balanced scorecards, and stresses the need for effective communication and management of expectations during the transition.
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© © All Rights Reserved
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0% found this document useful (0 votes)
4 views

Module 4

The document outlines the post-implementation activities of an ERP system, emphasizing the importance of ongoing support, user training, and addressing employee resistance. It details the roles of various participants in the implementation process, the significance of contracts with vendors and consultants, and the necessity of comprehensive training for users. Additionally, it highlights the evaluation of success through methods like cost-benefit analysis and balanced scorecards, and stresses the need for effective communication and management of expectations during the transition.
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Module IV

ERP Post Implementation


• Post Implementation Activities
• An ERP project represents much more than simply a project. Your up-
front investment is large, but the life expectancy of the application should
lie somewhere between 10 and 20 years. By retaining a sub set of your
installation team, its members can enhance the ERP application , handle
bottlenecks, tweak and improve the system, look for continual
productivity gains-and learn.
• This sub set should be made up of both business and technical personnel.
After the system goes live stabilization period lasts from three to nine
months. When problems arise there should be a problem response
mechanism which deals with them and which every one is aware of.
• The user help desk is a call center facility provided by the vendor, which
allows the client to log problems that he can not resolve. The availability
of user help desk, the speed of response, the average, minimum and
maximum down times should be clearly specified in the contract with the
vendors
• In –house help desk needs to be set up to answer the queries of
the user. Activities of the in-house help desk include detecting and
responding to system bugs and answering user questions about
• Making changes in system parameters as organization changes.
• Ensuring that consistent production versions of the software are
available.
• Managing different ERP input and output capabilities.
• Maintaining and updating the documentation and Training
materials.
• Maintaining and upgrading the software.
Participants in original ERP Project team are the
members in In –house help desk.
• Post go -live activities are following
• Data Conversion from legacy system to ERP system
• Bottleneck resolution: Bottlenecks usually occurs first , their location is
likely to be different for different firms.
• Second, the cross functional nature of ERP process design is likely to
generate bottlenecks, particularly where different departments have
different resources.
• Third, for those settings, where data gathering has been transferred
from accounting to where the data is actually generated, there may be
bottlenecks because of change in data input.
• Fourth, linkages to legacy systems and processes may drag down
system performance.
• To detect bottlenecks two approaches are-an internal ERP data analysis
and an organizational analysis.
• Internal ERP analysis is based on an examination of ERP data; exception
reports and transaction data can be analyzed for emerging and repeating
problems.
• Going into the organization and talking with those who use the system can
turn up issues before they become major problems?
• Documentation and training are required prior to going live
• Audit and review for comparison between plans and reality, at least on three
dimensions viz. system design and implementation, planned and actual use,
expected versus actual system capabilities
• Implementation compromises are deviations from a planned
implementation- generally to save time or money
• Interfaces, Upgrades and Extensions: upgrades are required for additional
features.
• Interfaces maybe pursued after the implementation of ERP.
• Extensions include new features and Functions in software e.g. Supply chain
• Evaluating Success: after stabilization period,e.g. cost benefit analysis or balance
score card approach.
• Timing is critical issue for evaluation of success
• Balance scorecard for evaluating performance in organizations .It communicates a
firm’s multiple objectives from multiple perspectives, including financial,
customer , learning and growth and internal business processes. A balanced score
card for ERP systems could employ each of the four Business rationales –
Technology, Business Process , strategic and competitive
• Post implementation review, after two months of go-live, provides an opportunity
to learn from the implementation and consider how the implementation has
progressed.
Does the software do as expected.
What are the outstanding and emergent issues.
Has the Project been a success.
What budget is required to deal with the remaining issues.
People involved in the ERP implementation:
• Every implementation project needs a sponsor say CEO or MD. The
executive committee or steering committee formulates long term goals,
objectives and strategies regarding the implementation of the ERP
system in the company.
• The EC is headed by CEO or MD and includes the CIO, CTO, CFO and
other senior level managers and departmental heads.
• The Project manager is the person responsible for translating the vision
and goals in reality.
• The Implementation team or the work team consists of selected
employees from the company in addition to vendor representatives and
consultants.
• Functional managers oversee the day to day operations of their
respective functional areas, they should have strong conceptual skills in
understanding the overall ERP project and how it relates to the business.
• Functional participants have a limited role in the implementation of
the project, they answer questions , and review the training programs
and business process flows that are proposed in the new software.
• Consultants can act as project manager, team leader, team member,
service representative and end user.. Consultant’s success depends on
computer literacy, conceptual skills, software knowledge, industry
knowledge, maturity, problem solving capability,, communication
skills and organizational skills They provide three general categories of
services- management, application and technical.
• Package vendor are responsible for fixing any problems in the
software that the implementation team encounters and as trainer to
end users/ key users.
• End Users are the general mass of people who will use the new ERP
system. Documentation and training programs are often prepared
specifically for this group of people
EMPLOYEE& EMPLOYEE RESISTANCE
Reasons for employee resistance:
• 1. Fear of being redundant: There is some truth in this fear. But what
most people fail to hear and gossipmongers forget to tell is that the
people who are doing manual jobs before computerization were able
to get better jobs with higher salaries once they learned the new
system and how to use the computers
• 2. Fear of Failure: that is fear of not understanding or being able to
work within an automated environment. The companies should
arrange through training program that will insure the employees have
the knowledge and a confidence level for adapting and using new
systems to the maximum benefit of the company
• 3. Fear of the future: The company may inform employees that ERP
implementation is being done so the firm can compete and grow the
business. It may be implemented to survive , thrive and become
• Dealing with employee resistance:
• 1.Training and education
• 2.Creating ERP champions: One of the most efficient ways to transition to new
technology is to find well-respected potential user of the technology. This should
be a person who knows business well, embraces change, and respected in the
organization. Train the user on the process and the technology, have this user
evaluate the technology, and encourage this user to champion the merits of the
technology to co-workers and management. The champion becomes the expert
user ,facilitator and trainer of the tool. He or she will also be the key in helping
other employees understand and learn value of ERP and how it affects their jobs.
So all the members of the implementation team and the pilot project team are
potential champions
• 3. Pilot Projects: based on the experiences of the pilot project implementation,
the implementation plan and the implementation guide will be revised and
modified . The pilot project will warn the implementation team what could go
wrong , how the potential pitfalls could be avoided, and so on. Also a successful
pilot project is a morale booster for the implementation team and a good
marketing tool
• 4.Involve Employees in ERP Process: Involving more employees more
than just senior management in decision and implementation process
will go to make people feel more ownership
• 5. Address issues of fear, uncertainty and self esteem: First thought
in everybody’s mind whenERP implementation is discussed is “what is
in it for me?”. The more they know about why theorganization is
selecting ERP, how it will benefit the company, and what it means to
them and their job.
• 6. Manage Expectations: managing expectations of problems to be
expected during the initial and final phases is the biggest challenge.
The project manager and the implementation team should monitor
the mood and attitude of employees , their expectations and
concerns and take corrective actions
Contracts with Vendors, Consultants and Employees
• Contracts are very important in an ERP implementation project-
before, during and after implementation. The company should sign
a contract with the package vendor, the hardware and peripheral
vendors, the networking people, the consultants, the employees
who are being trained in ERP package implementation (not the end
users) or the employees who are part of the implementation team.
• Contract with the package Vendor: The company’s legal
department should go through the contract and if they find the
terms and conditions agreeable, then sign the contract. As the
creator of the package ,it is their intellectual property . The contract
with the vendor should address – in addition to the source code
and modification following points
• Value of the contract and conditions of payment, List of
deliverables(software, documents etc.), mode of delivery and
installation help, copy right and ownership issues, software license,
third party software compatibility, integration or interfacing and
integration support, Operating system, Hardware liability, conditions
and concessions for acquiring complementary modules in the future
or for increasing the number of end users.
• Cost of implementation training, cost of end user training, annual
maintenance fee, warranty and guarantee terms, Terms and
conditions for receipt of new versions and upgrades, details of
technical support – on-site, telephone etc., terms and conditions for
customization, the profile of the vendors team who will be assisting
the company in implementation, other specific responsibility
assigned to the vendor, cancellation of the license
• Contract with the consultant: following should be included in the
contract
• Profile of the consultant’s team with resume of each member
• Consulting fee and payment condition
• The time schedule and the implementation budget
• The projected improvements in quantifiable terms and time required for
showing the results
• Implementation methodology
• Terms and conditions of knowledge transfer and employee training
• List of deliverables (reports, manual, knowledge bases, etc)
• Other specific activities the consultant’s are supposed to do
• Reporting mechanism to the company management
• Project monitoring and status reporting systems
• Contract with the employees: The employees who are on
the implementation team are trained on the ERP package at
the company expenses. Once they have acquired
knowledge , completed the training and participated in the
implementation their market value will jump exponentially.
So it is natural that they will get better and more lucrative
job offers. But if these employees leave the company without
any warning or without making any alternative
arrangements,, then company’s performance will suffer. The
main clause of the contract with the employee should be
that they should not leave the company without enough
notice and he can not leave the company in the middle of
the implementation project
Training and Data Migration
• Training is perhaps the most misjudged activity of the
implementation life cycle. A major complaint is that not
enough training is done.
• One of the most common mistakes of all ERP implementation
is underestimating the time and cost of training end-users.
• A good training program should define learning objectives,
determine the content, plan, deliver, assess and review.
• Those at the receiving end of the training are initially the
project team members and the system administrators and
then later the developers, QA team, testers, etc. and the
project leaders and managers.
• Each group of learners will have different requirements. Thus, the nature of
the training is likely to be different for each different stream of learners.
• The cause of the failure of many ERP systems is attributed to the training
and education of the broad user community of managers and employees .
• When these users are not properly trained, it will result in the wrong and
improper usage of the system.
• We have seen that many ERP implementations fail and many more fail to
deliver the promised results.
• Most implementation experts have pointed out that the main culprit of
failed ERP implementations is the end-user training.
• Experts say that the technical training of the core team of people who are
installing the software is done properly and there is no problem in that
aspect.
• It is the education of the broad user community of managers and
employees who are supposed to actually run the business
If not done properly it would result in the wrong and improper usage of the
system.
• The training typically occurs at the end of the implementation cycle, when
activities are often running late and being compressed. So training, too, gets
squeezed in as a last- minute activity.
• It is important to start the training program so that it will be nearly over by the
time the system goes live and then continue for a few more sessions to clear
the issues faced during the actual interaction with the ERP system.
TRAINING PHASES
• The training strategy should include two phases of training—one before
implementation and the other during and after implementation.
• The implementation of the project commences with the training of the
project team so that they are able to carry out their tasks.
• During the implementation and after the implementation the end-users are
trained on ERP basics, process changes and how to use the ERP system.
Pre-implementation Training
• Implementation of the first phase of the training strategy is the training
activity ,that relates to the training of the project team and the system
administrators.
• The focus of the training for the project team will be upon understanding
the functionality of the software.
• Training on best practices, process mapping, training skills and documentation
may be provided by the vendor, but this will vary from vendor to vendor.
• The training of the system administrators will focus upon technical aspects of
system installation, maintenance, report writing and any other identified
issues.
Content
• The first true exposure to the software comes when it becomes necessary to
make the functionality do what is required of it.
• There are various levels of knowledge and skills required by the project team
in order for them to develop business processes that utilize the software.
• Each member requires knowledge about how to navigate around the system
and the detail of the functionality of concern.
• The vendor's consultants should be the experts on how the software
functions.
It must be expected that these consultants will sit with team members,
going though the screens and fields for the processes of interest.
• This training mode tends to be hands-on. This is an ideal opportunity for the
team members to learn.
• In time, each person should build-up a good understanding about specific parts
of the application. Their aim is to be able to experiment with different ways of
using the software and to transfer this knowledge to others.
• These key users are responsible for ensuring that they learn as much as they
can about the functionality.
Planning
• Despite the informal nature of some of this training, it can all be planned. Dates
can be established and people and locations organized. The emphasis of this
phase is upon organizing and planning the training.
• External trainers carry out this delivery. The training is likely to comprise a
mixture of formal workshops in a group environment and informal individual
sessions. Most of the training will take place at the client's site in the project
team room and will be delivered by the vendor.
• More than one person should develop the necessary skills in each area as this
reduces dependency upon that one person and prevents delays arising because
of that person's other commitments.
• When completed, this training plan will become part of the project
implementation plan and be monitored accordingly.
User Training (During and After
• The Implementation)
end-users and managers are trained during implementation and after the
implementation.
• The aim is to disseminate throughout the organization the project team's
knowledge and skills relating to the application and the new processes.
• The expected outcome is the trainees being able to use the system.
Content
• For this phase, a program can be developed which covers all the areas required. It
can be organized into different themes to reflect different topics and audiences.
• A general overview will appeal to everyone, the specialist areas will only be
relevant to a limited number of people.
• Some areas that will be relevant to everyone are ERP basics, business process,
changed business procedures, automation of tasks by ERP, and fundamentals of
computer usage like passwords, encryption, security, etc.
• Two audiences can be distinguished—end-users and managers.
• While the former will be interested in how to use the system, the managers
will be more interested in how to get information from the system.
• The users can be further differentiated into casual users, normal users and
reflective users.
• The interest of casual users is limited to being able to perform certain tasks
when required of them.
• Normal users are regular users of a specific suite of functions. Their main
interest is using the system to do their job.
• Reflective users will want a deeper understanding of how the system works
so that they can solve problems and make improvements. Thus, it may be
appropriate to distinguish two levels of training: that essential to carry out
tasks and a more detailed session on the finer points of the system.
• The timing of the training should be such that there is not a long gap between
receiving training and using the application.
• A refresher course may need to be considered as a contingency. The cost of the
training should be monitored against budget.
Planning
• At the detailed level of each individual session, its preparation will be strengthened
by its plan.
• The training plan should include the training objectives, trainer, trainer
qualifications, audience, level and computer literacy of the audience, time, location,
facilities required, content and content structure, method, resources/ materials and
cost.
Training, Assessment and Review
• The training is complemented by an assessment to ensure that it has been successful
and the knowledge assimilation is satisfactory.
• During the training, the trainer will be confronted by a mixture of attitudes and
expectations.
Thus, the trainers need to be aware that they may not be well received and be
able to respond accordingly.
This highlights the importance of the trainers being trained in the training
process.
• After each session has been completed, it should be reviewed in order to reflect
upon the problems and assess what worked and what could have been done
better.
• The issues raised may be concerned with the material being presented and
highlight the need for its revision.
• Sometimes, it may highlight issues with people and the need to establish a
strategy for handling them.
• Each situation will be different, but each will contribute to an accumulating
wealth of experience, which when continuously fed into subsequent training
sessions, should make these sessions more successful learning experiences for
the trainees.
TRAINING STRATEGY
• A training strategy can be developed defining the training policy and
outlining the training program.
• The strategy will provide an overview of the training objectives,
identifying the people involved, the different streams and the content
of each stream, organized into courses and sessions.
• A plan will provide an overview of where, when and how the training
will be delivered. Learners knowledge and skills are assessed.
Effectiveness of training is assessed. Finally, the projected cost will be
calculated.
• These costs can then be used to set a budget. The resultant strategy
provides a framework within which to go about the training activity.
• If the company accepts the strategy, it can be implemented. If the
strategy is not accepted then it needs to be reviewed. The right
balance needs to be struck between getting the training right and the
• The training strategy has two objectives—the transfer of knowledge from
the vendor's personnel and external consultants to the organization's key
personnel and the dissemination of this knowledge throughout the
organization
• The members of the project team need to develop such knowledge and
skills that will enable them to establish how to best use the functionality
for the operation and maintenance phase.
• Since the members of the project team will become the trainers of other
employees, they need to develop the skill to be able to formulate and
deliver a training course.
• The users need to have the skill for using the functionality relevant to their
roles. They should understand the basic concepts of ERP and also how to
perform the day-to-day activities in the ERP system.
Others who require training include managers, who should have at least
an appreciation of what the system does. Ideally, the project manager should
have a good understanding of all aspects of the system so that he can be
effective in dealing with any issues raised.
A select number of people will require more specific technical training so that
they can design databases, write scripts, manage users, generate reports and
query the database for specific ad hoc requirements.
The system administrators need to be able to setup the system and then
maintain it. They will require knowledge about how to handle system security
and deal with technical problems. They will need to develop a level of
understanding of the functionality so that, at some stage after implementation
when the project team is disbanded, they are able to manage the system
smoothly
• The formal approach to the training tends to involve the following stages
• Define learning objectives-what will learner be able to do as a result of the
training?
• Determine the content-what skills and knowledge are to be developed?
• Plan-when and how will the training be delivered? What resources, materials,
facilities are required? How the content will be structured
• Deliver the experience of the learner
• Assess learner-has the learner met the objectives?
• Review the effectiveness of the training session-what went wrong? what can
be done better?
• The training budget can be 10% or more of the total cost of the project.
Users are trained how to use an ERP system is a mix of technology,
processes and domain area content in order to provide a context for the
system.
• It is always better to train on the concepts first and then show the end
• Other formats used include training over the internet , computer based training ,
and self study.
• One approach that is consistently used involves designating a member (or group
of members) of the organization as “super user or champions” ,who can then be
responsible for training others. The variety of training formats available is
amazing – on site training, web based virtual classrooms, computer –based
training , knowledge warehouses, video courses, self study books, context
sensitive help screens etc.
• Pre implementation training is organized for the project team and the system
administrators. The focus of the project team will be on understanding the
functionality of the software. Training on such subjects as best practices, process
mapping, training skills and documentation may be provided by the vendor.
• The end users and managers are trained during implementation and after
implementation. Some areas that will be relevant to every one are ERP basics,
business processes, changed business procedures, automation of tasks by ERP,
and fundamentals of computer usage like passwords, encryption, security etc.
Data Migration
• Data migration is the process of translating data from one format
to another. Data migration is necessary when an organization
decides to use a new computing system or database management
system that is incompatible with the current system.
• When implementing a new ERP system you need to start data
migration from the existing legacy business systems as soon as
possible.
• A real configuration of an ERP system can only happen when there
is real data in the system. Data loading and data conversion is not
a-project that can be done after everything else is ready.
• Extracting and cleansing the data from the existing system can be
the single largest task in the project.
• In early days, data had to be manually entered. This was a time-
consuming, expensive and error-prone process.
• But today's data migration tools are designed to make this
process as easy and simple as possible. The wizards in data
migration tools make tasks like loading the data from the existing
system, reviewing it for quality, accuracy and completeness and
then importing the data directly into ERP database very easy.
• Good data migration tools provide complete data understanding
prior to conversion and migration. This ensures that the
integrated data has the highest possible level of integrity and
reliability.
• This reduces project risks and lets the organization create and
complete consistent and accurate information from raw, chaotic
source data.
DATA MIGRATION PROCESS

• Data migration encompasses all the necessary steps to cleanse, correct


and move data into the new system.
• Technological changes, change in providers, software updates or data
warehousing/ data mining projects make such delicate and critical
operations necessary.
A good data migration solution allows one to:
• Reduce risk
• Lower operational expenses
• Improve data quality
From a user perspective, the data migration solutions should make sure
that a strategy is put in place to achieve maximum flexibility and quality. This
entails taking a number of measures and actions, including:
• Iteration—Data is iteratively identified and cleansed. The aim should
be to give the users one or more 'iterative' opportunities to identify
corrupt data and then rectify it either using the existing application
functionality, or automatically cleanse the data within the data mi­
gration functionality. The different iterations of the data cleansing
process would take place several weeks before the live data migration
run
• Weeding—Data weeding within the data migration mechanism allows
for better identifying candidates and non-candidates to migration
• Inspection—Users should be able to inspect data that has been
archived, which is particu­larly important where users no longer have
access to their source application and data follow­ing migration
• A generic data migration mechanism can be used across the majority
of application mi­grations exists.
MIGRATION METHODS

• Two primary methods are used for migrating data from the legacy systems to
the new ERP database—manual and electronic.
• In the electronic method, some type of database conversion process is used.
• The manual approach does not seek to use an electronic method, but instead
involves human intervention. The manual approach will use a non-technical
human resource to examine the data on the legacy system and decide how
to enter the information into the ERP system.
• Data can either be manually typed or electronically transferred. The former is
obviously slower being labor-intensive and more costly. Although the data
can be checked for errors prior to entry, there is no guarantee that the
manual input is error-free. Electronic transfer is in principle faster and
cleaner, particularly for large amounts of data. However, there are various
considerations.
• First is the assumption that, the data can be produced on the old system
in a format that is accessible.
• Second, having accessed the data, additional data may be required
before it can be accepted by the new system.
• Factors that determine whether to use one approach or other include
• Availability of Technical and human resources
• Quality of legacy data
• Nature of OS and platforms
• Database size, Time constraints, ,Budgets.
• In electronic method, some type of database conversion process is used.
• This process can range anywhere from true source code development to
complex copy utilities. We start with raw data in a legacy system such as
inventory item master file. Using data migration tools and programs , we
come up with a migration strategy to export data to the new ERP
• Manual Method
In the manual approach, the implementation team members and data entry
personnel do the data migration. Here also we start with the legacy system
and manually data is entered into the new ERP system
In many cases a manual editing and cleanup process must take place after
an electronic migration. Data migration whether electronic or manual
usually begin in the early to mid phases of the ERP implementation.
Project Management & Monitoring
• An ERP implementation Project is complex in nature, involves a lot of people,
requires the coordinated effort of a number of groups, involves a lot of money
and has a long completion period (typically 10-18 months) . Nine knowledge
areas on which project management is based are
• Project integration management: Setting up a full time team who can understand
what is expected from them. Preparedness is crucial but is often missing
• Scope management: 90% of ERP implementation end up over time and over
budget due to among other factors, changes in project scope. A lack of
understanding of the scope of the system may result in conflict between logic of
the system and the logic of the business
• Time Management: The length of implementation time is greatly affected by the
scope of the project, i.e. more activity regarding modules, sites and functions
means a longer process. Consultants to recommend a zero modification approach
that has now a days become a de factostandard
• Cost Management: Total cost of implementing ERP system includes cost of
licensing , training, implementation, maintenance , customization, and
hardware requirements, cost of migrating data, network infrastructure etc.
Like most software ERPs are priced on the functionality of the system and
number of users who will access it
• Quality management: means the system has been implemented in an
efficient way and the objectives are met
• Human Resource Management: to assemble the best possible team to
plan, execute and control the project. Top management must be visible in
their commitment to the project. Team morale is vital component for the
success of the project
• Communication management: The higher the levels of communication and
interaction in the implementation team , higher is performance of the
team
• Risk management: to succeed the organization should have a risk mitigation plan
• Procurement Management: When selecting the package, it is critical to get vendors to state the
extent to which their products will meet each requirement.
Some examples of selection criteria may be
• The package should have multi language and multi currency support
• The package should be international and should have installations in specified countries
• The package should have at least “X” number of installation and out of which at least “Y”
numbers
• should be in your business sector
• The cost of the package with all necessary modules should be less than “Z” Rupees
• The package should have the facility to do incremental module addition
• The vendor should provide implementation and post-implementation support
• The vendor should give a commitment on training the company employees on the package
• The package should have the capability of interfacing with other systems that the company is
• dealing with
• The package must be customizable and customization process should be easy
• Vendor’s policy and practices regarding updates, versions, etc should be acceptable
Success & Failure Factors of an ERP Implementation

• Implementation of an ERP system is a major investment and


commitment for any organizations.
• The size and complexity of ERP projects are the major factors
that impact the cost of ERP implementations.
• Different companies may implement the same ERP software in
totally different approaches and the same company may
integrate different ERP software applications by following the
same procedures.
• However, there are factors common to the success or failure of
ERP implementation regardless of the ERP systems they
implement and the methodologies they use.
SUCCESS FACTORS
• Project Planning
• Align the organization on the true destination
• Architectural Design
• Transition project roles to a way of life
• Data Requirements
• Apply planning and program management practices throughout the program life
cycle
• Achieve balanced people, process and technology changes across all areas
• ERP must be driven by a business case
• Active executive direction
• Make Focus on capabilities and benefits, not just going.
• ERP-related decisions quickly.
• Put the very best people on the implementation Team
• Phased approach
• Data conversion
• Organization commitments
• Create a partnership between your software vendor (and implementation
partners) and your stakeholders
• Sell, sell, and continue to sell the ERP to your stakeholders
• Build and leverage process expertise
• Adequately resource your project (especially in the functional areas)
• Define metrics and manage them
• Communicate and manage expectations at go-live
• Extend capabilities beyond the ERP foundation
• Ensure the project has sufficient budget
• Encourage functional ownership of the Project
• Develop dependency-driven project schedules that can be tracked and
managed to provide early warnings and help avoid crisis.
• Implement pre-project readiness assessment and overall project planning
• Implement aggressive project management processes—
• Create a project organization structure to provide planning and quick
response for decision-making and issues management
• Make the best use of the external consultants and experts
• Teach the organization to use new capabilities
• Implementation review.
• Assign clear ownership of benefits
FAILURE FACTORS
1. ERP implementation is, at its core, a people project
2. Employee resistance
3. Lack of top management commitment.
4. Inadequate training and education
5. Inadequate requirements definition
6. Inadequate resources
7. A poor fit between the software and users procedures
8. Unrealistic expectations of the benefits and the ROI
9. Poor ERP package selection
10. Extensive customization
11. Change management
12. Failure of accommodating evolution of business processes
13. User acceptance
14. Going live is not the end of the ERP journey
15. Companies should anticipate a temporary dip in performance after going live

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