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the CSF-s of ERP Implementations

Top management support


The implementation team
Project Management
Business plan/vision/goals
Architecture choices, technical implementation, technological infrastruc
ture
Training
Legacy systems knowledge (data analysis & conversion)
Re-engineering Business Process
Organizational Culture
Change management programme
Communication
Partnership / Vendor Support
Testing Effectiveness
Employee s general IT skills
Company-Wide Commitment
Management of Risk
Organization s or firm size
Organizational structure
Data Management
what s really important and difficult about ERP systems is the dramatic change the
y bring to a business .
Consensus, Homing-in, and Implementation, (CHI) mrthodology
Phase 1
intended to build a consensus amongst the management as to the m
ost important issues facing the company,
and therefore what any enterprise-wide systems must tack
le.
Thus, this phase aligns the strategic with the tactical
and operational levels and analyses the impact of
improving the current legacy information system
across the organisation.
Such an analysis will indicate the amount of organizatio
nal change required across the different functional areas of the enterprise,
as legacy information systems encapsulates exist
ing business process, organisation structure, culture and information technology
this phase is a key determinant for success or failure in enterp
rise-wide implementations as it consolidates management support,
clarifies strategies, objectives, expectations and highl
ights the commitment required across the whole organisation.
In order to achieve the above, three day workshops are held in
the company
and are attended by the whole management team plus selec
ted technical and administrative staff.
Identify the current nature of operations the or
ganisation undertakes
Determine how integrated the organisation is in
relation to people, systems and technology
Identify Critical Success Factors (CSFs) that wi
ll assist with the achievement of the organisation?s mission.
CSFs
Work Environment
Management style
Professional development
Responsibility
Interdepartmental Teamwork
Departmental Teamwork
Cooperation
Communication

Project Management skills


Soft skills
Technical Skills
Flexibility/Adaptability
Interdepartmental Awareness
Paperwork levels
Identify what are the Key Business Processes (KB
Ps) to achieve the CSFs.
Map the KBPs against the CSFs identifying which
KBPs having an influence on each particular CSF.
The KBPs are then prioritised and three
pivotal KBPs are agreed
Explain why senior management has decided to uti
lise the TIE approach, and share the outcomes of the management Consensus worksh
ops
Undertake a mapping exercise that shows the top
level process and sub-processes for the participants functional area.
Select appropriate activities to identify the en
d to end Critical Success Factors (CSFs) in the participants? functional area.
Determine the Key Business Processes (KBPs) and
identify the critical information required in the department, prioritise the KBP
s identified.
We may, for example, identify the KBPs that show the hig
hest count against the CSFs,
check whether they also carry a high Impact rati
ng (pivotal KBPs),
and then conduct in depth brainstorming
on those KBPs to look at possibilities of improvement.
For brainstorming, individuals write their ideas on post-it note
s and attach them on to walls, and they go on to create clusters and affinity gr
oups.
The team then assigns headings for these clusters, and t
hese headings are used as the CSFs and KBPs that are actually recorded in the ma
trix.
Experience has shown that the first phase occupies between 4 and
6 elapsed weeks.
Presentations are made to the company and a written report deliv
ered.
Feedback and discussions take place and a plan for Phase 2 is fi
nalized.
This can last between 8 and 15 weeks, depending upon the
size of the organization and the agreed scope of the work.
Phase 2 - In the Homing-in stage a series of questionnaires and exercise
s are undertaken as a conduit for the organisations employees,
at the tactical and operational level, to buy in to the CHI proce
ss and to encourage open dialogue in respect to company issues and problems.
The Homing-in stage consists of 2 3 hour long sessions with two o
r three employees in attendance.
Typically between twelve and thirty employees are interviewed, t
hough the number of participants is dependent upon the size of the organisation.
The Homing-in phase uses the following steps:
the Cultural, Organisational and Technological (COT) ana
lysis developed
The COT analysis investigates the level of chang
e required from the organisational, cultural and technological point of view,
in order to achieve the overall mission
of the organisation.
The key activity in this phase is process mappin
g,other techniques are used to obtain holistic views of an organization.
These include, for example, generation o

f input-output transformation diagrams


Another useful technique that we use at
this stage is the Importance-Performance Matrix.
In this technique we examine the Critica
l Success Factors (CSFs) identified from Phase 1 and create two different scales
of measurement,
each going from 1 to 9.
One scale denotes the relative i
mportance of the CSF to the company and the other scale is its relative performa
nce against competitors.
So, on the Importance sc
ale, 1 to 3 would denote order winners; 4 to 6 would be qualifiers; and 7 to 9 w
ould be less important.
On the Performance scale, 1 to 3
would denote better than competitors, 4 to 6 would be same as competitors,
and 7 to 9 would be wors
e than competitors.
the two scale are plotted agains
t each other,Here we can identify zones showing where urgent action is needed (l
ower right side),
or where the performance
seems to be in excess of what might actually be justified (upper left side).
A two man team conducts intensive meetings and i
nterviews at the company, covering each function of the organization,
guided substantially by the findings fro
m Phase 1.
These are aimed at providing a full pict
ure of the individual business operations and the information interfaces across
the various departments
Thus, the management team begins to see a pictur
e of the overall systems requirements
and also the organisational procedures t
hat should be taken into account,
and perhaps may need to be modified, for
the enterprise systems to operate effectively
Answer and provide comments for a Cultural, Organisation
al & Technological questionnaire.
Furthermore, the interviewers from each departme
nt were asked to provide their opinion about thirteen CSFs
for the successful implementation of ERP
systems,
where the grades are 9-10 (excellent), 7
-8 (good), 6-5 (average), 4-3 (poor), 2-0 (very poor),
The results gathered from the interviews are rep
resented using the cultural web representation
Phase 3
we move into the next tasks to identify prospective products and
vendors,
organise presentations, visit user sites, and make the f
inal selection of product.
The final phase of the process, the actual implementation, can n
ow commence.
the team should not allow itself to be rushed.
customisation should be avoid unless it is absolutely crucial fo
r the organisation.
Top management is encouraged to reengineer the organisat
ion as appropriate.
Typically, the tools and techniques that may be applied in a man
ufacturing company would include
TQM, QFD, lean manufacturing, poke yoke, performance mea

surement and benchmarking, amongst others


How improve the ERP systems
Plan
Survey of ERP system end users