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Avoiding failure when implementing an enterprise system

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Presentation on theme: "Avoiding failure when implementing an enterprise system"— Presentation transcript:

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

2 Experiences of putting the enterprise into an enterprise system
2010 F

3 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

4 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

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

6 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

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

8 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

9 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?

10 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

11 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

12 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

13 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

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

15 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

16 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

17 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

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

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

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

21 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

22 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

23 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

24 Experiences of putting the enterprise into an enterprise system
Conclusion

25 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

26 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


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