ERP Implementation

Methodology
How to succeed with your ERP
implementation
Why do Projects Fail?
 Reasons Why Projects
Fail
13.1% Incomplete
requirements
12.4% Lack of user
10.6% involvement Lack of
9.9% resources Unrealistic
9.3% expectations Lack of
8.7% executive support
Changing
8.1% requirements or
7.5% specifications
6.2% Lack of planning
4.3% Didn’t need the software any
longer Lack of IT management
 Reasons for Late/Over
Budget
12.8% Lack of user
input
12.3% Incomplete
requirements or
11.8% specifications
Changing
7.5% requirements or
7.0% specifications
6.4% Lack of executive
5.9% support Technology
5.3% incompetence Lack of
4.3% resources
3.7% Unrealistic
expectations
Implementation
Methodology
 Methodology
Approach & Objectives
• Simplification of traditional implementation process
• Streamlined methodology for efficient implementation
• Knowledge transfer throughout the project
 ERP Implementation Approach
6 Steps
Setup Piloting Integration Cutover Post Support Cont. Improvement

Project Functional Integration/ End User Post Follow Continuous

Planning CRP Testing customization Training Implementation Improvement
Methodology for ERP
testing Support
System Data System Improvements
Install Migration Integrated CRP Cutover
Business Customization Stress Testing User
Process Design and Acceptance
Data Migration
Workshops Development Testing
System
Application Procedures
Performance
Analysis and and
Assessment
Design Documentation
Application
Setup
Project
Team
Training
 High Level Project View
Project Management / Change Management

Project Team Procedures End User

Training and Documentation Training

Project System Integrated System

Planning Install Conference Room Cutover
Pilots
Application Functional
Setup Test
User
Acceptance
Business Process Data Post Implementation
Workshops Migration Support

Application Analysis Customization Design Improvement

and Design and Development Process

Knowledge Transfer

Continuous
Setup Piloting Integration Cutover Post Support Improvement
 Project Organization
Roles & Responsibilities
Steering Committee:
 Set project direction and maintain project oversight
Steering  Communicates expectations
Committee  Assess impact of proposed opportunities and
recommendations and make final decisions
 Provide leadership and ongoing support
 Own project

Project Management Team:

 Provide day-to-day project management
 Ensure that project objectives are achieved
 Provide process & systems advice to action teams
Project  Provide leadership
Managemen  Coordinate resources and action team participants
Team  Serve as liaison between action teams and steering
committee
 Provide necessary resources
 Monitor and track project status and budget
 Own Project

Action Teams:
 Analyze issues, activities and processes
Functional  Develop and test creative ideas and solutions
Teams  Take ownership of ideas and solutions
 Develop specific action steps and commit to action
plans
 Perform day-to-day project tasks
 Assume accountability for design changes
 Own project
 Project Management
A process that continues throughout the project, ensuring that the project is completed on time,
within
budget and within scope, making the best use of the resources available

Project Management Process

1. Structure the project
2. Plan the project
3. Control the project
4. Assess change
Sustained 5. Report progress status
Sponsorship 6. Conclude the project
Clearly Defined Goals/
Objectives/Deliverables
•Measurable objectives
SUCCESS!!

Project Manager as
Coach/Facilitator/
Coordinator
Effective, Synergistic Team
•Team building
Workplan •Appropriate skill sets
• Individuals given responsibility/accountability •Well understood objectives
•Set milestones •Change management
•Time boxed •Buy in
 Detail Project Startup
Identify and deploy project team – clarify and
assign project roles and responsibilities
Identify risks and mitigation plan
Detailed project plans prepared
Establish project team workspace
Establish project team ground rules
Establish project infrastructure:
Milestones
Meeting schedules and process
Identify project deliverables
Establish document templates, repository and
version control
Project Plan
 Change Management
A structured approach to shifting/transitioning individuals, teams, and organizations from
a current state to a desired future state. It is an organizational process aimed at helping
employees to accept and embrace changes in their current business environment. In
project management, change management refers to a project management process where
changes to a project are formally introduced and approved

•
 Stage 1 - Set-Up
 WHAT
 Preparation for the first
configuration of the application &
Project Team
Training
high level process definition
 GOAL
Project System Application
 To establish the road map for
Planning Install Setup subsequent phase
 DELIVER
Business Process  Extended team kickoff
Workshops
 Install hardware and software
 Project team application training
Application Analysis
and Design
 High level process design
 Review completed analysis
 Configuration entered and
validated
 Stage 1 – Set-Up
Project Planning

 TASKS
 Detail Project Planning
 PARTICIPANTS
 Project manager, process owners,
team leads, IT
Project
Planning
 DELIVERABLES
 Training Plan
 Issues database
 Installed software
 Project tracking and reporting
methods
 Documentation standards
 Initial end user training strategy
 Stage 1 – Set-Up
Application Analysis and Design

 TASK
 Review all sales cycle
documentation.
 Schedule and attend design
meetings
 Develop design review
presentation document,
including scope, phases, major
issues/gaps
 Signoff Project Design
 Complete initial setup
Documentation
Application Analysis
and Design  Signoff setup documentation
 Incorporate any changes to
scope into the project plan,
budgets etc.
 Stage 1 – Set-Up
Application Analysis and Design (cont.)

 PARTICIPANTS
 CTCI consultants, client
functional leads, XXX
Consulting Services PM, Client
PM

 DELIVERABLES
Application Analysis
and Design  Preliminary design
documentation
 Setup
documentation
 Finalized Scope
documentation
 Stage 1 – Set-Up
System Install

 TASK
 Plan for prototype
environment
installation
System  Install
Install Software
 PARTICIPANTS
 Install consultants, IT

 DELIVERABLES
 Plan to prepare for the facility,
hardware, software and
resources.
 An environment to utilize
during
prototype
 Summary
System Install

 Network tuning
 Server Acquisition
 PC Client Acquisition
 Software Installation
 Deployment server
installation
 Installation Planner
 Installation Workbench
 Server installation
 Workstation installation
 Stage 1 – Set-Up
Application Setup

 TASK
 Create an empty Pilot environment
(1st pass)
 Enter ERP software application
setups
 Validate setup in pilot
Application
setup  Update setup documentation to
reflect actual setup
 PARTICIPANTS
 Client MIS personnel
 CTCI consultants (Client will assist
to increase clients familiarity with
setup steps)
 DELIVERABLES
 Completed setup documentation
 Stage 1 – Set-Up
Project Team Training

 TASK
Project Team
Training  Identify training requirements
for client implementation project
team
 Obtain / develop ERP
functional/technical training
schedule and schedule the
classes documenting the dates
on the project schedule

 RESPONSIBILITY
 Client project manager, CTCI
project manager

 DELIVERABLES
 Project team training plan
 Project teamColumbia
training
Inc.
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 Stage 2 - Piloting

 WHAT
 Testing discrete transactions,
Procedures
and Documentation
inquiries, reports within each
module
 GOAL
Functional Testing
 90% of the business
requirements configured,
detailed processes defined
Data
Migration  DELIVER
 Pilot test plan
Customization Design  Desktop procedures
and Development
 Conversion, interface plan
 Application gap analysis
 Report development matrix
 Detailed design
 Proof of concept
 Knowledge transfer to client
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 Stage 2 – Piloting
Procedures and Documentation

 TASK
 Deliver “Top Ten” template
procedures
 Complete desktop procedures
Procedures
and Documentation

 RESPONSIBILITIES
 CTCI consultants
 Client Functional Leads

 DELIVERABLES
 Desktop procedures
 Quick Reference Cards

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 Stage 2 – Piloting
Functional Testing

 TASK
 Create scripts for each function
 Collect non-converted business data
 Configure & test
 Create versions, menus, etc.
Functional Testing
 Conduct preliminary test to validate
system setup
 RESPONSIBILITIES
 Consultants
 Client Functional Leads
 DELIVERABLES
 Pilot Plan
 Test scripts

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Inc.
 Stage 2 – Piloting
Data Migration

 TASK
 Create migration plan
 transfer business data, control
tables, central objects
 Create selected master tables
 Run conversions
 Run integrities and
reconciliation
 RESPONSIBILITY
Data  Client MIS personnel
Migration
 CTCI consultants
 Client functional leads

 DELIVERABLES
 Migration Plan
 Conversion plan
 Stage 2 – Piloting
Customization Design and Development
 TASK
 Gather requirements from client
functional leads
 Write functional specification
 Write program specification
 Develop customization
 Install customization
 Test
 Signoff

Customization Design
RESPONSIBILITY
and Development  Consultants, Client

DELIVERABLES
 Functional specifications
 Program specifications
 Completed customization
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 Stage 3 - Integration

 WHAT
Integration / Conversion  Building on base design
Testing
 Validating integrated business
processes
 Stress testing
Conference Room
Pilot

 GOAL
 Verify that the processes and system
Stress Testing
will support the business across
interfaces

System Performance and

Assessment  DELIVER
 Integrated conference room pilot
 Conversion testing & validation
 Stress test/performance tuning
 System performance assessment
 Integration testing
 Report and interface development and
validation
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Inc.
 Stage 3 – Integration
Integration/Conversion Testing

 Task
 Develop acceptance criteria at Project
Integration / Conversion Kickoff
Testing
 Final validation of application setup
 Validate converted data
 Review pilot – Functional
 Review pilot – Integration
 Signoff pilot
 Responsibilities
 Client project manager
 CTCI Project Manager
 Client functional leads
 CTCI consultants
 Client project team
 Deliverables
 Acceptance Criteria
 Client acceptance of the system
 Completed integrated pilot

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 Stage 3 – Integration
Conference Room Pilot

 Task
 Deliver pilot plan templates and pilot
concepts to client functional leads
 Approve pilot plan
Conference Room
Pilot  Run functional pilot scripts
 Modify desktop procedures as needed

 Responsibilities
 CTCI consultants
 Client functional leads

 Deliverables
 Approved pilot plan

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 Stage 3 – Integration
Stress Testing

 Task
 Hardware response time
 Database throughput
 Network traffic and performance
 Application response time

 Responsibilities
Stress Testing
 Client MIS personnel
 Client functional lead
 CTCI consultants

 Deliverables
 Completed stress tests

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Inc.
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 Stage 3 – Integration
Data Migration

 TASK
 Confirm migration plan
 Final test to transfer business
data, control tables, central objects
 Create selected master tables
 Run conversions
 Run integrities and reconciliation
 RESPONSIBILITY
Data  Client MIS personnel
Migration  CTCI consultants
 Client functional leads

 DELIVERABLES
 Migration Plan
 Conversion plan
 Preliminary Production DB
 Final Gap Analysis

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Inc.
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 Stage 3 – Integration
System Performance and Assessment

 TASK
 Review stress test results
 Analyze breaking points
 Re-test

 RESPONSIBILITIES
 Client MIS
 CTCI Consultants

 DELIVERABLES
System Performance
and Assessment  System analysis report
 System design

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 Stage 4 - Cutover

 WHAT
End User  Full business simulation
Training
 Training

System
Go
Cutover  GOAL
Live
 To fine-tune cutover procedures
User and verify potential impacts
Acceptance

 DELIVER
 User system acceptance
 End user training
 Validate cutover/fall back plan
 Process optimization
 Stage 4 – Cutover
End User Training

 TASK
End User  Develop “Go Live” plan
Training
 Identify end user training
needs
Go  Setup client site training
Live facilities
 Develop and publish
schedule
 Complete training prior to
going live
 RESPONSIBILITY
 Client project manager, Client
functional leads

 Deliverables
 End user training plan
 End user training
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 Stage 4 – Cutover
User Acceptance

 TASK

Final validation of application

Validate converted data

Review pilot – functional

Review pilot – Integration desktop
procedures, end user training,
Go integration testing
Live  Signoff/User Acceptance Testing
User (UAT)
Acceptance
 RESPONSIBILITY
 Client functional lead
 Client project manager
 Client project team
 CTCI consultant
 DELIVERABLES
 Acceptance criteria
 Client acceptance of the system
 Stage 4 – Cutover
Cutover

 TASK
 Develop schedule
 Develop a contingency plan
 Process final conversions
Cutover
Go
Live
 RESPONSIBILITY
 Client Project Manager, CTCI
Project Manager

 DELIVERABLES
 Go Live cutover schedule
 Stage 4 – Cutover
Cutover/Go Live
Going Live is a Process, Not a Milestone

 TASK
 Complete end user menus,
responsibilities
 Deliver final setup
Cutover
documentation, issues logs.
 Begin live processing

 RESPONSIBILITY
Go  Client system administrator,
CTCI consultants

Live  DELIVERABLES
 Go Live
 Final documentation
 Stage 5 - Post Implementation
Support
 TASK
 To support the client team and
infrastructure during initial use of
the system back up support during
Go first days
Live
 First „month end‟ support
 Identify remaining issues
 RESPONSIBILITIES
 Client project team, CTCI
Post Implementation
Support consultants, CTCI Project Manager
 DELIVERABLES
 Onsite support
Stage  Next phase recommendations
5 Post
Implementation
 Project review
Support  Celebration!

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Stage 6 – Continuous Improvement

Define

Monitor Plan

Continuous
Implement Improvement Analyze

Measure Develop

Test
 Continual Improvement

• Phase 2 Improvements Identified

• Upgrade to latest version
– Upgrade planning
– Analyze new features
– Train & Implement new features
• Perform periodic systems audit
– Analyze new business requirements
– Review system performance & manual operations
– Develop audit report and action plan
Implementation Project Deliverables
 Project Plan
 Scope Documentation
 Status Reports
 Process descriptions and process flows
 Setups
 Training materials
 Customizations detail, both design and
implementation
 System Designs
 Interface specifications
 Conversion documentation
 Desktop Procedures
 Issue Log and Issue Resolution
 Conference Pilot - All test scripts / Signoffs
 User Acceptance Testing Signoffs
ERP Implementation Case Studies
Questions

?
 John Paulson presents this ERP methodology presentation offering his
experiences, and insight, in what it takes to succeed in your organizations ERP
initiative. Using real world case studies of ERP implementations; what worked,
what didn’t, and the red flags to watch for, he’ll discuss how to prepare,
manage, and steer the course of your ERP initiative through the Finish Line.

John provides ERP consulting assistance in planning, software selection,

project planning and management, training, process consulting, and facilitating
your organizations ERP initiative

For more information regarding this presentation, methodology, and tools

used, or to schedule this presentation at your organization contact John
Paulson;

John Paulson, ERP

Consultant Cell: 503-819-
0190
Email: jpaulson@columbiatci.com Columbia Tech Consulting, Inc.