ERP (Re)-Implementation

(Post) Implementation Review

Anand Subramaniam

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“It is our responsibilities, not ourselves, that we should take seriously.”

- Peter Ustinov

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Highlights

Current Challenges Post Implementation Review (PIR) Considering (Re)-Implementing Drivers Risk Management Strategies Project Management - Maturity

Current Challenges

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Departmental Conflicts..

• Long production runs• Lesser number of products• High raw material inventory

ValueValue

MarketingMarketing

Finance Finance

ProductionProduction

• High inventory• Flexible production• Extensive distribution

system

• Reduce inventory• Large production runs• Continuous production runs• Make to order

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Risk Exposure due to..

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Undertaken (taking) a Review

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Found that…

Lack of cross collaboration Failed to involve stakeholders Tried to do too much, too fast Insufficient training and testing Failed to manage the change process Processed not improved and worse off Underestimated the complexity of the system Inaccurate or overoptimistic demand forecasts Believed everything the software vendors said Lack of proper knowledge, tools, and guidelines Inaccurate production, inventory, and other business

data

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Currently your system lacks …

Real TimeEnterpriseReal TimeEnterprise

Empower Users

Empower Users

Bottom LineImprovementBottom LineImprovement

Adherence to Best

practices

Adherence to Best

practices

Demand driven

Demand driven

ImprovedProcess

ImprovedProcess

Full Integration

Full Integration

Enable QuickDecisions

Enable QuickDecisions

Post Implementation Review (PIR)

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PIR Objective

To document and communicate how well the project has performed against its original business case, project plan, costs, time-scale, tolerances etc

To gain a common understanding of what went right and wrong, so that the good things are done again and the wrong things are avoided

To be used as an opportunity to learn from and to improve delivery of future projects

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Your Business Case..

Continuous Improvement• Assess baseline value for

ongoing business performance• Measure business performance

against industry best practices• Justify continuous business

change and performance tuning• Realise continuous

improvement

Implementation• Incorporate business case as part of implementation methodology• Ensure KPI’s are measured throughout implementation• Use business case for scope / change control • Use integrated content to monitor project risk performance

Evolution• Develop business strategy• Identify business solution • Align industry solution with key

process indicators (KPI’s)• Estimate total cost of ownership• Use integrated content to

develop business case

Discovery• Qualification of Improvement Opportunity

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Questionnaire - Project Performance

Have all suggestions for process improvement been documented?

Was all approvals, variances and sign offs, in accordance to RASCI chart?

Was the project delivered on time, budget and as per the contractual terms?

Did solution meet the requirements, as set out in the approved business case?

Is there evidence that all errors, defects etc were investigated in a timely manner?

Has an analysis of the system development process and methodology been performed?

Did the deliverables meet the quality standards, as set out in quality management plan?

Were the nominated stakeholders trained as per the training plan / training needs analysis?

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Questionnaire – Performance (Contd.)

Did the project achieve the desired outcomes and benefits, as set out in the benefit realisation Plan?

Did the solution address all functions and benefits, as set out in the scope definition document?

Do the users view the system roll out, as a success or what is laid out in the acceptance criteria plan?

Did the handover to Production Support managed, as per the operating level agreements (OLA)?

Have the final system development and roll out costs been compared to the project plans and initial estimates?

Has the corporate estimating model been updated to reflect the actual productivity rates achieved?

Has the stakeholder satisfaction / dissatisfaction been performed and the final results documented and reviewed?

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PIR - Others

Project Management Did each member in the team fulfill their duties, as per the team

charter / definition? How was the team dynamics managed, was it as per the

reporting protocols? Did the team receive appropriate input from the Business?

Methodology Was a methodology followed and improvements to it made? Were the methods and tools used, the most appropriate for the

project?

Other Feedback What could have been improved upon?

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Eg. PIR Worksheet

Considering (Re)-Implement

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Critical Success Factors

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Note …

Master data is the key Tool for achieving enterprise

wide data discipline Common language across

enterprise Impact of wrong data across

organisation Define data ownership

Data entry at source Removes redundancy Reduces reconciliation activity Improves business process

efficiency Data may not be available or

have to be keyed in

System uses best business processes

Enable online transparency of transactions Need to know basis Comprehensive view of the

enterprise

Reduce back office work

Exercise strict control on enterprise functions Authorisation Authentication

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Rough Estimate – Time & Cost

Change Management

15%

Review Process

35%

Hardware10%

Software15%

Training25%

Drivers

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Internal Drivers

Internal pressures Provide additional enterprise-wide functionality Integration beyond the enterprise

• With all customers and suppliers• Real-time• Plug and play

Alleviate pain Reporting Visibility of processes and data Business cycle times hampered by technology cycle times Want less integration pain for best-of-breed functionality

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External Drivers

General industry drivers E-commerce (B~B, B~C, C~C) Customer demand for self-service

• Access/visibility into your data, processes, and supply chain

Agility/flexibility

Marketplace drivers ERP Vendor Consolidation and diversification

Risk & Governance

Risk Management Strategies

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Eg. Risk Tolerance

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Risk Strategies

Culture and bias

Technology vision

Governance model

Process Integrity

Data strategy

Stakeholder alignment

Alignment of bus. and IT

IT plan

First Second Third Fourth FifthIncreased Awareness

More "joined up"thinking, but still

silo-oriented.

Early AttemptsTo resolve

Governance issues

Process integrationAt department

level

Focus on silo quality

StakeholderAnalysis, Trade

Off analysis

Understanding and focus at silo

level

Strongfunctionalitywithin silos

Consistency ofPast and Future

Actions

Vision becomesCompetitive Edge

Strong GovernanceCulture

End-to-endprocess

optimisation

CompetitiveDifferentiator

Optimal Stakeholder

Benefits

Understanding ofwider scope;collaboration

Superior functionality;integrated beyond

the company

Early awareness

Isolated projects;initiated from the

bottom up

Becomes a concern

Team-based;fragmented;

minimal insight

Operational focus

First signs of Stakeholder

centricity; silos

Weak, earlyawareness

Fragmented;limited functionality

and focus

Unaware

None

None

No processorientation

None, poorquality

No alignment

Unknown concept

Weak, Very fragmented;

Culture becomesKnown and

Uniform

Governance modelDefines and in

Place

Shared processesacross

the company

Ongoing, IterativeProcess to maintain

Quality

Well Understood,Drives Decisions

Understandingand focus acrosslines of business

Strong functionalitywith company-

level integration

Vision drives decisions

Project Management Maturity

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Your Org. Maturity in Managing Projects..

Seat of the pants

Projects just ‘happen’ Poor project initiation Inadequate buy-in Poor communication Inter-dependencies not

managed Insufficient planning Unknown benefits Poor standards (if any)

Success rate less than 40%

Aware

Competent

Best Practice

Projects formally initiated Plans endorsed Varying standards with few

disciplines Methodologies introduced Stakeholders managed Projects become business-

driven

Success rate less than 60%

Methodology & standards well established & supported

Stakeholders understand & accept accountabilities

Discrete measures support good management

End-to-end projects set up & managed as such

Risks clearly defined & controlled

Project Management accepted as profession

Success rate less than 75%

Improvement programs formal

Good measurement enables optimisation

High risk projects successfully managed

Respect & support of projects

Success rate better than 75%

This model is meant to give a very quick ‘snap-shot’ of an organisation’s maturity in regards to its ability to effectively manage projects. The model relies on a fairly subjective assessment of a number of indicators which point to the overall maturity of the organisation.

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“Example is not the main thing in influencing others.

It is the only thing.”

- Albert Schweitzer

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Good Luckhttp://www.linkedin.com/in/anandsubramaniam