1. Info-Tech Research Group1 Info-Tech Research Group, Inc. Is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2012 Info-Tech Research Group Inc. Build an ERP Selection & Implementation Strategy The real cost of ERP failure is your career. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2012 Info-Tech Research Group

2. Info-Tech Research Group2 Introduction IT Project Leaders. ERP is a business project, not an IT project. But IT is crucial for coordination. Executive Sponsors. The Executive Sponsor is the project lynchpin. They must anticipate challenges. Business Managers. Business Managers are crucial for overcoming challenges. Adopt a process. The solution set introduces Info-Tech’s standard methodology for ERP selection and implementation. Identify key challenges. Managing change for end users, managing the transition from implementation to operation, documenting business processes, diligence in selecting the implementation team, and engaging team sponsors. Overcome challenges. Conquer each key challenge, including common symptoms of problems and an introduction to the categories of cost introduced by each challenge. This Research Is Designed For:This Research Will Help You: Failed ERP implementations cost careers. IT leaders must create an ERP selection and implementation plan that minimizes the risk of failure. Using a standard process is important. But leaders must also recognize key challenges as early as possible.

3. Info-Tech Research Group3 Info-Tech’s Point of View: The cost of a failed ERP implementation is your career Do more than follow the standard process. Manage, don’t own. Focus on pain. Prepare for the worst. Every ERP project is different since every enterprise is different. But they all experience the same key challenges and limitations. IT leaders must anticipate these problems during the very early stages of the project. ERP is a business project, not an IT project. A wise CIO said, “I don’ t own ERP; I’m just the zookeeper.” ERP project success demands that the business be fully engaged with all aspects of vendor selection and implementation. The ERP Project Sponsor is the most important team member. Deal with the things that hold the project back. ERP projects put focus on the glorious potential of the future. But project leaders must address the problems that keep projects back: identify the symptoms of the problems and calculate the costs.

4. Info-Tech Research Group4 There are many good books on ERP implementation, but they present a complicated implementation methodology There are resources available for almost every aspect of ERP and the most popular offerings from SAP and Oracle. The books are good. But they’re big and take effort and time to read. IT leaders must understand the key issues in ERP selection and implementation as early in the project as possible. For a complete list of books on ERP refer to the WorldCat union catalog.books on ERP

5. Info-Tech Research Group5 Info-Tech also offers a detailed ERP project planning methodology Info-Tech recommends that enterprises pursuing an ERP project execute the following steps: 1.Establish project trigger. 2.Form the project team. 3.Perform high level scoping. 4.Ensure that a packaged application/tool can meet preliminary requirements. 5.Assess organizational readiness. 6.Determine approximate cost of project. 7.Develop a business plan for the project 8.Prepare preliminary requirements. 9.Create Solution Specification. 10.Identify potential vendors. 11.Prepare RFP. 12.Shortlist vendors. 13.Conduct demonstrations. 14.Perform due diligence on vendors and system integrators. 15.Select vendor. 16.Negotiate. 17.Prepare deployment plan. 18.Implement. 19.Test. 20.Train. 21.Post-implementation documentation and support Info-Tech’s ERP Project Completion Checklist provides guidance on each step and links to relevant resources, tools, and templates.ERP Project Completion Checklist But this is complicated. What do we really need to do?

6. Info-Tech Research Group6 ERP success is like hockey: master many skills, but focus on a few to get the win A hockey player must constantly work on many different disciplines: skating, stick handling, shooting, checking, face-offs, taking penalty shots, etc. Focus on Key Disciplines Overcome ERP Challenges In any given game, the player must focus on those key disciplines demanded by the coach’s strategy. Ultimately, it’s about getting the win. Like hockey players, IT leaders must complete a variety of different ERP implementation tasks. But they must address key challenges for ERP success.

7. Info-Tech Research Group7 ERP implementation experience reveals the five most important practices for ERP selection & implementation Info-Tech asked 35 experienced IT leaders to rank best practices for ERP success on two criteria: impact on implementation cost and impact on overall project management grief. IT managers feel that all best practices are important for ERP success. But five factors emerged as the key concerns. Impact on ERP Project Grief Impact on ERP Project Cost

8. Info-Tech Research Group8 There are five inter-related best practices, but each enterprise is different depending on industry, size, and experience 3 1 24 5 Anticipating and managing change for end-users Preparing end-users is the most important factor for ERP implementation success. Start the process early. Managing the transition from implementation to operation Many enterprises struggle with shifting from the project-driven implementation cycle to a normal process of operations. Documenting business processes Effectively understanding and communicating what the business does is important for both ERP selection and implementation. Diligence in selecting the implementation team There are many parties in an ERP project. The implementation team is the most important. Engaging team sponsors Getting the buy-in of sponsors in different business units is important during both selection and implementation.

9. Info-Tech Research Group9 All enterprises, regardless of size or industry, must prepare end-users for change Preparing for end-user change is crucial for all regardless of the number of IT resources. Industry IT Department Preparing end users for change is important for all industries. I had one guy who got so upset about it, he said, to hell with it, I’m gonna retire. - Director of IT, Education Company Size The smallest enterprises (<50 employees) put less emphasis on change management. Note that small enterprises are characterized by constant and ongoing change regardless of major IT projects. ERP Experience Change is top-of-mind for IT leaders new to ERP and those who consider ERP implementation to be a core competency.

10. Info-Tech Research Group10 Mid-sized firms and ERP implementation rookies must put particular emphasis on the transition to ERP operation All enterprises must address change management, but IT departments with between 6 and 10 staff are particularly prone to the cost impact of managing the transition. Industry IT Department The transition from implementation to operation is particularly important for industries with extensive support operations such as business services, education, and financial services. We do change requests, yeah. But if somebody chooses to cure world hunger, it’s like, no. - CIO, Manufacturing Company Size Enterprises with between 250 and 500 employees must pay particular attention to the transition. They have mature processes and veteran employees that are threatened by new projects. ERP Experience Preparing users for change is the biggest challenge for enterprises with little ERP implementation experience.

11. Info-Tech Research Group11 The smallest enterprises have the most to gain from documenting business processes Enterprises with less than 100 IT staff see the most value in documenting business processes. Shops with fewer than 50 staff consider it to be crucial for cost control. Industry IT Department Documenting business processes is important for most industries. It is particularly relevant in education due to site- specific processes for admissions, development, and class management. … sometimes processes get designed by people who don’t do the work day-to-day, and when they hand it off to somebody, there’s all kinds of problems. - CIO, Manufacturing Company Size Enterprises of all sizes see value in effectively documenting business processes. Those with revenue between $5-million and $50-million think it’s particularly important for cost control. ERP Experience Enterprises with little ERP experience under-estimate the importance of business process documentation. The most experienced enterprises already have competencies with documenting processes.

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