ERP IMPLEMENTATION SUCCESS FACTORS- Involvement of senior management - Cross functional implementation team- Accountability- Performance measurement guideline- Consultant strategy- Training- Most of time is spent on business requirements and how does that software meet requirements- Full time involvement of the best and most knowledgeable employees- Process oriented approach - Involves the user community

THE STRATEGIC LEVEL- Current legacy system evaluation: evaluate existing IT, processes, organization structure, culture- Project vision and objective - ERP implementation strategy- Hiring consultants: ERP selection, business process planning or reengineering, ERP implementation, end-user

support, ERP maintenance and support- Benchmarking

TACTICAL LEVEL- Client consultation- Business process change - ERP software selection- Implementation approach

OPETATIONAL LEVEL- Business process modeling- Configuring system- Final preparation- Going live

STRUCTURED- Project initiation: feasibility study, planning, determining scope, costing, and staffing- Process improvement: as-is analysis and to-Be development- System configuration: configuring, testing, and deploying R3- Monitoring: evaluate, support, maintain and upgrade systems

NIBCO

Why did it need it?- Had information silos and legacy systems- Information poor, needed to step away from patchwork systems

What did BCG recommend- Get integrated systems- Implement over 3-5 years

Actions- Gary Wilson to oversee IS (20 yrs experience, 4 project implementations)- BCG hired to help develop strategic information systems plan to meet new business prospective

Approach for selecting vendor- Cross functional team: Chief Financial Officer and 8 director level managers- ERP package evaluations- Module walkthroughs- Vendor customer visits- Strength and weaknesses of each mapped into evaluation matrix

ERP implementation strategy- Big bang- Benchmarking and success rates analysis

Team recommendation- Rejected BCG advice- Single vendor- SAP R/3 benefits: multimillion dollar operational improvements and reductions to inventory costs- Move from mainframe to client/server environment

Board agrees- Contract signed for modules, 620 user licenses

Final plan- Change in scope: North America only, consolidated 17 distribution centers down to 4 large ones- Incentive pay bonus for implementation that is on time, successful, and within budget- Retention incentives: stock options- 17 million budget: 1/3 technology infrastructure, 1/3 team & education costs, 1/3 third party consulting

Project Success Criteria- On time, successful, within budget

Change Management Practices Catagories- Identification of new work- Automation of old work- Elimination of related activities- Transfer of work between groups- Risk of process not being efficient - Increase in level of difficulty- Identification of new business relationships

User Training- 1200 hours of training - 2 NIBCO training sites- Training focused on new processes

Harley Davidson

Process: procurement/ supplier management Importance: purchased parts comprise of 55-60% of motor cycle value

Selection criteria for project team members- Opinion leaders- Power users- Though customer- Worker mix progress

Supplier selection process- Create functional specification of system (RFQ)- Get internal acceptance- Determine potential supplier candidates (internal/external)- Ask for intent to bid- Provider conference- Proposals and presentations (self- evaluation checklist)- Short listing (criteria functionality vs. cost)- Creating scenarios- Site visits