1. The Relation between BPR and ERP Systems: A Failed Project
Chapter XI
The Relation between BPR and ERP Systems: A Failed Project
David Paper, Kenneth B.Tingey, Wai Mok

2. Executive Summary Vicro Communications (pseudonym)
Reenginering its basic business processes
With the aid of data-centric enterprise
Relying completely on the software
Software might increase:
Information sharing
Process efficiency
Standardization of IT
Data mining /warehousing capabilities

3. Executive Summary Management made no attempt to:
Rethink existing processes before implementation of the software
Obtain feedback from employees familiar with existing business or legacy systems
For Vicro, reengineering effort failed even after investing hundreds of millions of dollars
Software is currently being phased out

4. Background
International provider of products and services that help companies communicate through print and digital technologies
Leading supplier of document formatted info.,print outsourcing and and data based marketing
Vicro designs, manufactures and delivers business communication products, services and solutions to customers

5. Background Operates over 100 warehousing facilities
Nearly employees serving 47 countries
2.45 bil in 1999 and 2.26 bil in 2000 revenue
Provides consulting, proj. management, reenginering and distribution of high volume, customized communications to its clients
Latest print and digital technologies
Market leader in managing critical business communications

6. Setting the Stage A conservative organization
It doesn’t embrace “bleeding edge” tech.
Wants to deploy proven tech. that will help satisfy and exceed customer requests and expectations
Experimented with business process reengineering(BPR)

7. Literature BPR as a savior of underperforming organizations
BPR as next revolution in performance via process improvement and process change
Flawed BPR strategy:
Inappropriate use of consultants
Workforce tied to old technologies
Failure to invest in training
Legacy system out of control

8. Case description Virco Communications under-performing
BPR efforts would be facilitated by data-centric enterprise software
Vicro chose 30 years software
Legacy systems were never considered
Stakeholders wanted to complement BPR with IT
Vicro made no attempt to align business propcess changes with business objectives

9. Data Analysis
Formal and Informal Interviews Common Patterns /Themes General Theme : Breakthrough technology in the BPR process

10. Data Analysis Interview Use of Computers
Use of HPT (High Profile Technology)
Manufacturing systems Project Manager
Ron Dickerson

11. Technology Usage PCs and Mainframes Data Collection Storage Reporting
Communication
Data-Centric problem solving

12. Process Improvement Relationship between BPR and Technology
No Design for new processes
Not Redesigning existing processes
No match between enterprise software and best practices

13. HPT Adoption
HPT was not flexible enough Mismatching the existing processes Legacy systems are still in place HPT doubled the activity HPT was not user friendly 20 modules in HPT HPT was not customizable

14. CEO Mandate Change of Leadership HPT forced everyone to use a standard
No real experience with BPR
Invest Much NO RESULT
No look at the state of the existing processes
Change of Leadership

15. Enterprise Integration
HPT did nothing to facilitate enterprise integration. Invest on HPT instead of Rethinking the business

16. Resistance to change HPT was forced No punishment
No one have the power to tell what to do
Pontificating that HPT will be the standard
HPT was so inflexible
Account payable (AP)

17. Current Challenges Top management had no plan!
Top management delegated BPR
Top management trusted the software vendor
Not involving people and resistance to change
Forcing “Best Practices”

18. JUST AP MOST EXPENSIVE 280$ million Complete Failure!
Current Situation
JUST AP MOST EXPENSIVE 280$ million Complete Failure!

19. Contribution to BPR literature
Super Themes
Immersion
Technology usage, HPT adoption
Fluidity
Responsiveness, Effectiveness, Knowledge sharing & capture
Top management support

20. Summary See if processes and systems are fluid Obtain feedback
Communicate to management
Main reason for failure
Business processes are not streamlined
Forced HPT

21. Developing an Information System Solution
Define and Understand the Problem
Develop Alternative Solutions
Choose the Best Solution
Implement the Solution
Systems Analysis

22. Strategies for Acquiring IT Applications
Options for Obtaining Information Systems
Build your own
Outsourcing

23. The Systems Development Lifecycle
Systems Investigation
Systems Analysis
Systems Design
Systems Implementation
Systems Maintenance

24. Discussion
If you were the first CEO, what would you do to prevent failure?
In your opinion what was the main reason for project failure?