Avoiding failure when implementing an enterprise system Factors to consider when planning an enterprise system implementation project

Experiences of putting the enterprise into an enterprise system 2010 F

1 . 18.4 $6.2 6.9% Root of problems MONTHS MILLION or Experiences of putting the enterprise into an enterprise system Root of problems 1 . Technically challenging Complex software that takes a large amount of time, money and expertise to implement 18.4 MONTHS $6.2 MILLION 6.9% OF TOTAL REVENUE or Panorama Consulting Group 2010 ERP Report

2 . Root of problems Business implications Experiences of putting the enterprise into an enterprise system Root of problems 2 . Business implications Companies fail to resolve the technological aims and constraints of the enterprise system with the business needs of the enterprise itself

Key to avoiding failure Experiences of putting the enterprise into an enterprise system Key to avoiding failure Comprehensive planning

This presentation Three sections: Conclusion: Marc Experiences of putting the enterprise into an enterprise system This presentation Three sections: Pre-implementation: Sihle During the implementation : Khaya Post-implementation: Tshepang Conclusion: Marc

Experiences of putting the enterprise into an enterprise system Pre-implementation

Project team formation and organisational commitment Experiences of putting the enterprise into an enterprise system Project team formation and organisational commitment Project team must consist of organisation’s best people Knowledge of business strategy needed Project must be seen as an enterprise-wide venture Must be led by a senior executive

Business case definition Experiences of putting the enterprise into an enterprise system Business case definition Company must be able to answer the following questions: What are our business requirements? Do we need an enterprise system? How do we define success of the project? What are the costs?

Third-party integrator selection Experiences of putting the enterprise into an enterprise system Third-party integrator selection Experienced partner is needed Must have experience in the industry Experienced staff

Software package selection Experiences of putting the enterprise into an enterprise system Software package selection Misalignment between business and chosen software often encountered Company can either: Customise the software, or Modify the organisation’s practices Ideal scenario is choosing software with smallest gap and highest degree of fit

Experiences of putting the enterprise into an enterprise system Vendor selection Software network should offer good long-term benefits as the organisation, network and package grow Vendor promises must be noted

Impact on the organisation Experiences of putting the enterprise into an enterprise system Impact on the organisation Needs to be understood and planned right from beginning of project Implementation of system can be used to: Force change and introduce consistency in company Break down hierarchy and allow more innovation Introduce uniformity across regions Issues relating to replacement of multiple legacy systems

During implementation Experiences of putting the enterprise into an enterprise system During implementation

Project management Objectives, deliverables and milestones Experiences of putting the enterprise into an enterprise system Project management Objectives, deliverables and milestones Deadlines, goals, scope and schedule Assessment of progress Cutting features and pushing schedule Control of the project Involvement of Top management Mid-level management

Software configuration Experiences of putting the enterprise into an enterprise system Multi-site issues Complex organisational structure “Big-bang” vs phased approach Business strategy Architecture Software configuration Practical execution

Change management and training Experiences of putting the enterprise into an enterprise system Change management and training Control of resistance to change Phased approach could be better Good communication Phased training Cost of training

Data management Data mapping and conversion Experiences of putting the enterprise into an enterprise system Data management Data mapping and conversion

Testing Comprehensive testing Experiences of putting the enterprise into an enterprise system Testing Comprehensive testing

Experiences of putting the enterprise into an enterprise system Post-implementation

Post-implementation audit Experiences of putting the enterprise into an enterprise system Post-implementation audit Scope, planning and process Fit for purpose? Alignment Metrics for success Identify areas for improvement Lessons learnt and future strategies

Support Decide on structure Key experts Execute Responsive Experiences of putting the enterprise into an enterprise system Support Decide on structure Key experts Execute Responsive

Refinement and enhancement Experiences of putting the enterprise into an enterprise system Refinement and enhancement Manage change for requests carefully Prioritise Strive for alignment Be methodological

Experiences of putting the enterprise into an enterprise system Conclusion

Implementing an enterprise system is a careful exercise in Experiences of putting the enterprise into an enterprise system Implementing an enterprise system is a careful exercise in strategic thinking, precision planning, and negotiations with departments and divisions Bingi, P., Sharma, M. K., & Godla, J. K. Critical issues affecting an ERP implementation 1999

Pre During Post Project team formation Organisational commitment Experiences of putting the enterprise into an enterprise system During Pre Project team formation Organisational commitment Third-party integrator selection Software package selection Vendor selection Impact on the organisation Business case definition Project management Multi-site issues Change management Training Testing Data management Post Audit Support Refinement and enhancement