A Case Study into the Problematic ERP Implementation of the CSU System Doug Mason Phara Noun Brian Soon

Introduction Timeline Issues Management Failures Cost Overruns Conclusion

CSU is the largest university system in the country. Fundamental flaws in implementation of ERP. Not a comprehensive analysis of the topic but rather a general analysis with widest possible implications.

The Basics of ERP ERP and the CSU system Silos A-Plenty Expected Returns

Voluntary Acceptance “Collaborative” vs. “Common” Implementation Phases “Self-selected” campuses Penalizing Early Adopters

Planning for Upgrades Stress and Frustration Roll-out prolonged thru Feb 2008

. The University lacked of attentions on CSU business process in early process planning before procurements of software products. The University did not buy in the each campus to implement on share database

. The university did not share project risk with vendor and consultant for the contract. The university did not select best consultants and vendors stating clearly the best value for the project

. Top management support. Strategic Planning. Assign a project team. Examine current business process and information flow. Set up objectives and business plan

. Training Program. Change Culture. Project ownership

1998 Projected Cost $332-$400 Million 1999 Projected Cost $440 million 2002 Projected Cost $662 million Additional $63 million Implementation cost $177 maintenance and operations cost

2002 Projected Cost $662 million Previous Estimates did not include: Additional Implementation Cost Integration Cost In-Kind Cost Upgrade Cost Additional Maintenance & Operating Cost

Reasons for Over Budgeted ERP Implementation. Failure to plan thoroughly Investigate and plan for all relevant cost Underestimated the magnitude and complexity of project. Failed to regularly monitor budget vs. actual cost.

Other Problematic ERP Projects The University of Wisconsin Asyst Technologies Common Mistakes Poor Planning Failure to understand all relevant cost and complexity of project Underestimated the importance of cost planning

Successful ERP Projects British Petroleum (BP) Understood the complexity of Project Strong Disciplined and centralized management Team Centralized Decision making Regularly monitored Budget Cost vs. Actual Cost

ERP Implementation is a very complex project Planning the most crucial element of ERP Implementation Proper Planning increases probability of Smooth, Cost Efficient, and Timely ERP Rollout

Key to Successful ERP Implementation Project. Indentifying a need Understanding the complexity of project. Top down management support. Enforcing employee buy-in. Instituting proper consultants and employee training. Centralizing management and decision making Regularly Monitor Progress and Cost