4.

40 Post Implementation
Enterprise Resource Planning
4.5.4. -SUCCESS FACTORS responsibility to identify examine and
rethink
The
project. implementation
ERP
of an ERP system is not simply a technical
processes. Fully supported by top
should also have the authority to e
management
reengineer
x i
,stinthgesebustienaenss
implementations are people projects: Successful
implementations require that people, departments. Processes processes or develop new
business processesextoisting
organizations change.
times of As a result, ERP system implementations are
and
organization's goal
s u butsinetshe
ppor
high stress, long hours, and 3. Mid-level management is totally
the opportunity to improve
operates. The way a company dramatically
uncertainty but they also provide
the way the company implementation. Middle. revels involved mustin the
of
largely determine its success. implementsuponits thenewspecific
ERP system will included in the decision-making management
process,
variety of factors might be Depending situation, a
critical to the success of an bRP
determining the detailed
im plement
This will ensure that everyone s interests
especi
ation aly when
implementation. and plans.
Given that the prerequisites for
considered before final
managers should level
decisions
hands-on responsibility and
Concer
are made
Mi d- nS are
level
are 9 prominent critical implementation are satisfied, there
success factors: the detailed aspects of the implementation. author ity for
1. Strong Leadership
provided by an Executive Management
Planning Committee: This group must
Successful implementations require constant
between the implementers and end users. co Morceaotveiorn,
mmuni
will integrate the entire
enterprise,
understand how ERP must facilitate continual feedback from Mid-level managers
the implementation, champion the support the costs required by honest answer to their questions and employees, provide
project, and demand full
integration and cooperation. The successful problems
help resolve their
will have a highly respected, implementation 4. Excellent project
to spearhèad the project. executive-level project champion teams should takeManagement Techniques: Implementation
a disciplired
The approach to project
implementation is viewed as an ongoing process. The management, including a clear definition of objectives
ultimate goal of an ERP development of a work plan and establishment of a resource
the business - not simplyimplementation should be to improve
to install software. requirement plan. Milestones .should be established, and
Therefore, the
acquisition of new technology should be considered progress against those milestones should be carefully tracked
process of learning and adaptation that continually an ongoing Since timely decisions save time and money,
time the implementation should be evolves over should empower rapid decision-making at the propermanagement
directed by business requirements and business- drËven and 5.
levels
2. Great opportunities Old systems are eliminated: Everyone must work
within the
ImplementationTeams: new system, not around it. If people are to trust
composed ofthe company's best Implementation teams are
workers representing all data in it must be sufficiently available and
the system, the
functions. These cross-functional teams, accurate. Once the
consisting highly new system is fully operational, old systems should be killed.
respected individuals from each function, should be entrusted This commits the company to using the new system.
with critical decision- making responsibility Guided Running
by parallel or informal systems gives employees a way to avoid
executive-level input, these teams should be charged with the using the new System.
4.42
6. Proper Measurements Enterprise Resource Planning Post Implementation 4.43
implemented and information and enable more improvements than first seemed
Monitored:before
included Appropriate
the
are

project evaluation measures must be

closely Possible.
implementation begins. If system 9. Extensive Education and Training is provided: Education is
Implementation
successful. If
is not tied
management vill
to compensation. It will not be
receive their raises and
arguably the most important and widely recognized critical
next year even if the bonuses success factor because user understanding and buy-in are
system is not
implemented, successful.
implementation is less likely Management, If essential. A successful implementation requires a critical mass
implementation team, and the vendors, the of knowledge to enable people to solve problems within the
responsibility
obiectives, they
If
some staff are unable to users must
the
achieve agreed-upon
share
framework of the system. This critical mass of knowledge
e should either receive includes general education about the ERP system for everyone
replaced When teams reach their the needed assistance or from top managemnent down to the end users before the
ret be specified goals, rewards
presented in a very visible way. implementation begins. It includes a massive amount of end
nroiect must be The system and the
monitored until final completion user training before and during implementation as well as
ressive Implemen tation schedule is established: The follow-rip training after the implementation. To make end user
implementation schedule
should
ey Especially if BRP is instill and maintain a Sense of training successful, the training should start early, ideally
eCCesses Will Increase installed in a phased approach. before the implementation begins. Executives often

a eto change during themomentum rest of the

and help reduce dramatically underestimate the training costs necessary for a
scope creep, which will complicate implementation.
and slow down the
successful ERP implementation.
implementation and strain the ERP budget. This 4.5.5. FAILURE FACTORS
minimizing any customization of the basic
includes ERP implementation failures fall into 10 categories:
ERP code.
Standardizing the implementation as much 1. Poor Leadership from Top Management: If top manage
and effort
as possible reduces time required to implement ment is not strongly committed to the system, does not
exceptions
and helps keep the implemnentation
foresee and plan for the profound changes necessitated by
on schedule. ERP, or does not actively participate in the implementation;
failure. The
likelihood of
change Management Techniques: The the implementation has a high
Successful
implementation team, top mnanagement mid-level managers, implementation of ERP must be viewed by top management
company does business.
as a transformation in the way the
should use successful change management Automating
supervisors Existing Redundant or Non-Value-Added:
and identify and target resistance to change. Al1
2.
processes in the new
techniques to existing redundant or non-value-added
made to understand how the new system ERP system
employees must be company and make their jobs easier. If the system. The integrated environment of the new
different way
can both benefit
the
enough take advantage of will require the organization to do business in a
to
need to be reengineered
organization is flexible ERP will make available more Therefore, existing business process
arise,
pportunities as they
4.44 Enterprise Resource Planning Post Implementation
business processes and procedures. An ERP \4.43
from the bottom up to dovetail with the ERP structure and System is not
designed to meet the specific business needs of thethat
4.46]
requirements.
3. Unrealistic Expectations: Many companies grossly can cause tremendous problems. A significant
company relationship managSTTert sog

systemmismateh
between the technological imperatives of the impact measures.
underestimate the amount of resources, time, and outside
assistance required to implement and run the new. system. existing structure, processes, or business needs andof the versus failure include
organization will generate widespread chaos. the project focus,
Moreover, managers and workers frequently assume that project schedule.he proget
performance will begin to improve immediately. Because the 8 Inaccurate Data: Data entered into al ERP
used throughout the organization. If a System may be
usertraining, and ehare
new system is complex and difficult to master, organizations
must be prepared for an initial decline in productivity afterthe
new software is put into operation.
inaccurate data just forges ahead under the company with
assumption
data errOrS will be corrected when they are spotted, the FpD that
1. Customization
echnolog
implement ERP whe
4.
Poor Project Management: Managers are often surprised by will lose credibility. This encourages people to ignore the neu
system and continue to run the company under the old systerm
increases project ti
he best practices
the scope, size, and complexity of an ERP implementation. As
a result, management sometimes does not initiate the 9. ERP Implementation is Viewed as an IT Project: If the increases the ha
necessary level of detailed project management planning and implementation is treated as simply an T project, the FRD benefits of ERP
control. system will never realize its full capabilities. In such casesit gained by ador
not achieve th
5. Inadequate Education and Training: Top managers and all is likely that the technology will be deployed it a
vacuum avoid having
system users must be fully educated so that they understand business processes will not be properly reengineered and 2. Use of
how the ERP system should be integrated into the overall aligned with the software requirements, and staff will resist
external c
company operation. All users must be trained to take full using it.
advantge of the system's capabilities. because tt
10. Significant Technical Difficulties: Every ERP functiona
6. Trying to Maintain the Status Quo: People have a natural implementation will encounter a certain number of problems. applicati
tendency to be comfortable with the statçs quo and may be These difficulties can include bugs in the software, problems Howeve
fearful of changes brought about by any new system, interfacing with existing systems, and hardware difficulties. the en
especially One as pervasive as an ERP system. Normally, such problems simply contribute to the
They may fear that the new system will make their jobs more interna
organization not achieving its target goals. However, if take
difficult, reduce their importance, or even cost them their technical problems go unresolved or are poorly managed, they
jobs. Some front-line staff may be uncomfortable with the can doom the implementation. 3. Supr
realization that with better information, 'upper management dep
can keep better track of what they aré doing and the money 4.5.6. COMPARISON OF SUCCESSFUL VERSUS imr
they are spending. UNSUCCESSFUL ERP PROJECTS rel
7. A Bad Match: Some of the biggest ERP system A number of research projects address the question of what factors
implementa distinguish successful ERP projects versus unsuccessful ERP projects.
tion failures occur because the néw software's çapabilities and
needs are mismatched with the organization's existing These factors include customization, the use of consultants, supplier 4.