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 The Five Levers of Change in any
Organization

Strategic understanding of the The governance model for the

role, positioning and focus for management, administration,
enterprise-wide decision-making in and evaluation of initiatives,
support of overall organizational w ith a strong focus on the
objectives
g y Co appropriate metrics applied for
e nt
at ro measurement
tr ls
S

Alignment
Pr

ple
oc

P eo
es
s

Operating methods and The human resource

practices, including policies environment, including skills,
and procedures, w hich organizational culture, and
determine the w ay activities Technology organizational structure
are performed
Enabling information
systems, applications,
tools, and infrastructure

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 ERP I mplementation Lifecycle

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 ERP I mplementation Lifecycle -
Stage 1-Solution I nquiry

• Key questions that a business should ask are:

• Are we ready for ERP?
• How will an ERP help our business?
• Have we considered other solution areas beyond ERP?
• Who will lead our implementation effort?

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 Best P ractices for
Stage 1- Solution I nquiry

• Identify what benefits the organization needs to

get out of an ERP, and focus on these benefits
throughout the implementation
• Executive management should endorse the
ERP project
• Develop a Mission Statement or Project Charter
• Establish metrics to measure how well the
objectives of the ERP effort are being met.
• Designate a Project Champion
• Implementation responsibilities to be shared between
the IT department and functional areas
• Build a framework for participation from all quarters

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 Best P ractices for
Stage 1- Solution I nquiry

P ersons directly responsible for ERP

implementations

Other

COO

CTO

CFO

CI O

I T Director

CEO/ P resident
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Source: IT toolbox ERP Implementation Survey

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 ERP I mplementation
Lifecycle-Stage 2-ERP Approach

• Key questions that a business should ask are:

• Do we have the in house resources, skills and
experience to implement ERP?
• Should we build effective strategic
partnerships?
• Have we considered how the implementation
will differentiate our business?
• Have we developed a business case for the ERP
implementation project?

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 Best P ractices for
Stage 2- ERP Approach

• Determine the number of partners, the scope

of the partnerships etc.
• Set up the internal project team
• Steering Committee (Executive level)
• Advisory Committee (One level lower,-Key
Directors & major stakeholders)
• Cross Functional Project Team

• Create the business case, justification & ROI

scenarios to determine the most feasible
approach
• Ensure that all gaps between plans &
performance are closed out

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 ERP I mplementation Lifecycle -
Stage 3 - P ackage Selection

• Key questions that a business should ask are:

• Do the features and functions meet our needs?
• Is the ERP package compatible with our
business?
• Should we buy an integrated package from a
single vendor or best-of-breed solutions from
several vendors?

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 Best P ractices for
Stage 3- P ackage Selection

• Develop and document a project scope statement

• Conduct a business process review & identify signature
business processes
• Document “as is” flows of current information
• Identify functional gaps
• Document & sign off “to-be” flows of current information
• Customize the RFP to include features that meet your “to-
be” flows
• Key factors should be kept in mind while selecting the
software
• Functional Capabilities
• Technical Attributes
• Partnership’s Capabilities
• Cost

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 ERP I mplementation Lifecycle –
Stage 4 - I mplementation P lan

• Key questions that a business should ask are:

• How do we get started with the implementation?

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 ERP I mplementation M ethodologies

• The Big Bang

• Modular Implementation

• Process Oriented Implementation

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 I mplementation Approach

Phase Tasks Deliverables

Detailed • Project Initialization • Accepted norms & Conditions

Discussions • Evaluation of current processes, • Project Organization Chart
business practices, requirements • Identify Work Teams
• Set-Up Project Organization

Design & • Map Organization • Organization Structure

Customization • Map Business Processes
• Define Functions and Processes
• ERP S/w Configuration
• Build ERP System Modifications
• Design Specification
• Process Flow Diagrams
• Function Model
• Configuration Recording
• Systems Modification

Implementation/ • Create G o-Live Plan • Testing Environment report

Prepare to Go Live & Documentation • Customization Test Report
• Integrate Applications • Implementation Report
• Test the ERP
Customization
• Train Users
Production / Go Live • Run Trial Production • Reconciliation Reports
• Maintain Systems • Conversion Plan Execution

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 I mplementation Time

Size of
Business

Scope Of
P rocesses

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 Best P ractices for
Stage 4 - I mplementation P lan

• Procure and install required hardware and

package software
• Roll out with preliminary implementation plan
that covers
• A Phased Approach
• Segregation of Duties Plan
• Quality Plan
• Security Plan

• Package training for implementation team

• Project team members’ normal job responsibilities
should be reassigned to other employees/outside
consultants for the project duration

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 ERP I mplementation
Lifecycle - Stage 5 - Sandbox

• Key questions that a business should ask

are:
• What steps do we take to ensure that the
implementation is on track?

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 Best P ractices for
Stage 5 - Sandbox

• Create a separate dedicated work environment

specifically for the project team
• Build user acceptance test scripts
• Identify required custom reports
• Implement a system of sign off’s & hand off’s for
deliverables and work products
• Ensure complete data migration from the old software
system to the new begins early in the implementation
process
• Constantly evaluate risks, constraints & assumptions
• Develop training plan for all users
• Develop rollout plan

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 ERP I mplementation Lifecycle -
Stage 6 - Design & Deployment

• Key questions that a business should ask

are:
• How do we ensure that the project team and
the end users are in sync?
• How do we ensure that our people are
accepting change?

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 Best P ractices for
Stage 6- Design & Deployment

• Roll out training plan for all users in a phased manner

• Conduct user group conferences & prototype sessions to
demonstrate the system’s capabilities
• Solicit feedback from end users and ensure that all
concerns & questions are addressed
• Encourage end users to network with peers at other
institutions undergoing similar implementation initiatives
• Ensure that implementation information is continuously
communicated to the user community
• Pilot rollout / evaluation
• Complete live rollout - rollout support

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 ERP I mplementation Lifecycle -
Stage 7- ERP I ntegration

• Key questions that a business should ask

are:
• How do we integrate the ERP with our other
legacy systems?

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 Best P ractices for
Stage 7- ERP I ntegration

• Design interfaces ( if required) to integrate

existing applications (e.g. CRM, HR)
directly with the ERP system
• Ensure adequate documentation exists to
support the integration between interfaces

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 ERP I mplementation Lifecycle -
Stage 8 - I T I nfrastructure

• Key questions that a business should ask

are:
• Is our IT infrastructure ready for ERP?

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 Best P ractices for
Stage 8 - I T I nfrastructure

• Set up server infrastructure to build

training, development and production
instances that run concurrently
• Ensure that the infrastructure can
handle the load of concurrent
transactions from all instances
• Ensure system security policy is in force

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 ERP I mplementation
Lifecycle - Stage 9 - Operations

• Key questions that a business should

ask are:
• How will we recover from a major outage?

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 Best P ractices for
Stage 9 - Operations

• Execute a onsite maintenance SLA

with partners
• Implement a Disaster Recovery Plan
• Review Business Impact & Associated
Risk
• Off site backups
• Provide disaster recovery training to key
personnel

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 ERP I mplementation Lifecycle -
Stage 10 - Extending the Enterprise

• Consider expanding ERP to other

solution areas
• Supply Chain Management
• Customer Relationship Management
• E-commerce Solutions

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 ERP I mplementation Lifecycle -
Stage 10 - Extending the Enterprise

Key decision makers in adding new modules

Others

CTO

COO

CI O

CEO/ P resident

I T Director

CFO

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Source: IT toolbox ERP Implementation Survey

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 Current Enterprise Applications
Environment

Combination of
standalone &
bespoke packages,
M ainly based on
Combination of 3%
integrated ERP
integrated and packages,
bespoke packages, 44%
11%

Combination of integrated
and standalone packages,
21%

M ainly based
on bespoke Mainly based on
applications, standalone packages,
14% 7%

Source: PMP Research

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 Enterprise/ ERP Systems Usage

Do you feel that you are using your existing enterprise

or ERP softw are to its full extent?

Y es, softw are is used

to its full extent, 5%

Y es, Softw are is used extensively,

22%

No, a large portion of

the softw are is not
used, 32%

No, a small portion of

the softw are is not
used, 41%

Source: PMP Research

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 ERP I mplementation Quality

How w ould you describe the information delivered to managers

in your organization via your ERP and enterprise systems?

I nformation is I nformation is
targeted or generally available,
personalized for but managers need to
specific identify w hich
functions/ managers, elements are
29% relevant, 44%

Other, 7%

Many managers w ithin the

organization are suffering
from an " information
overload" and cannot pick
w hat is relevant, 20%
Source: PMP Research

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 Top Ten Reasons
ERP I mplementations Fail

1. Governance Lack of a single person in charge who

reports directly to openly
accountable for theexecutive
supportive senior solution. Also,
steering ineffective of cross-
body executives functional senior

2. Scope Failure to align contract for services with the

requirements expectations. Also, make
sure initial scope is achievable to build
momentum
3. Change Management Insufficient investment in all facets of change
management

4. Skills Team members lack a thorough understanding of

the technical capabilities of the solution or of the
underlying business processes

5. Decision M aking Relying too much on consensus-based decision-

making, rather than rapid evaluation of options
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 Top Ten Reasons
ERP I mplementations Fail

6. Communications Lacking at all levels (executives, functional

owners, across team, with working level
system users, external stakeholders, etc.)

7. Solution Architecture Lack of a solution architecture or proven

implementation methodology

8. Training Insufficient investment at all levels (including

executives)

9. Culture Trying to force an integrated, enterprise-wide

solution into a stove-piped culture. Systemic
resistance to change

10. Leadership Lack of “public” leadership from senior,

accountable executive and/or lack of continuity in
this leadership position

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