ERP Implementation Project Management

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Questions and Answers

Explain the potential advantages and disadvantages of using a consulting partner to manage an ES implementation project versus attempting an internal implementation.

Consulting partners bring expertise and manage complexity, but can add costs. Internal implementation can be more cost-effective but may lack specialized knowledge.

What are the three main parties typically involved in an ES implementation project, and what role does each play?

The three parties are the vendor, implementation partner, and buyer (beneficiary). The vendor provides the software, the implementation partner assists with the implementation, and the buyer is the company implementing the ES.

What are the key differences between Vanilla Implementation and Customized Implementation strategies of an ERP system and the impact each has on integration with new versions?

Vanilla implementation follows standard vendor processes and is easier to integrate, whereas customized implementation is tailored to specific needs, increasing time/cost and reducing ease of integration with new versions.

Explain different types of go-live strategies (Big Bang, Parallel Adoption, Mini-Big Bang) and discuss which one is the riskiest for large companies.

<p>Big Bang launches instantly, Parallel Adoption runs new and old systems together, and Mini-Big Bang is phased. The Big Bang approach is the riskiest due to its all-at-once nature.</p> Signup and view all the answers

Describe the 'cutover phase' in an ERP implementation project, and list at least three critical activities that occur during this phase.

<p>Cutover is the final transition phase from the old system to the new ERP system. Critical activities include reviewing operations procedures, assigning process ownership, performing go-live checks, and locking down the system.</p> Signup and view all the answers

Define what constitutes a 'project' and 'project management'.

<p>A project has a specified beginning and ending and produces a unique output; project management involves planning, organizing, and controlling activities to achieve time and budget goals.</p> Signup and view all the answers

List five roles a Project Manager must undertake to ensure the successful completion of the project.

<p>A project manager must be a leader, planner, organizer, controller, communicator, negotiator, peace maker, risk manager, and must hold knowledge.</p> Signup and view all the answers

Explain the 'Three Factors of Success' in project management and how they are related.

<p>Cost, time, and quality are the three factors. They are interrelated because changes in one affect the others, and all need to be within the scope of work.</p> Signup and view all the answers

Identify at least three key sources of risk that can impact an implementation project.

<p>Key sources of risk include people, technology, organization, finances, law/contract and physical sources.</p> Signup and view all the answers

Explain how a risk prioritization chart (impact vs. probability) is used in risk management and why it is important.

<p>The chart plots risks by their potential impact and likelihood, helping to prioritize risk mitigation efforts toward high-impact, high-probability risks.</p> Signup and view all the answers

Give the names of at least three different 'Risk Management Approaches' and provide a short description of each.

<p>Avoid it (prevent the risk), accept it (live with consequences), transfer it (share the risk), and mitigate it (reduce impact).</p> Signup and view all the answers

List at least five factors that significantly influence the success of a project.

<p>Factors include the degree of customizations, effective communications, authority for project implementation, top management commitment, quality of end-user training, data conversion, and Organization Change Management (OCM).</p> Signup and view all the answers

Identify at least five distinct factors that can lead to project failure.

<p>Lack of resources, changing requirements, poor technical specifications, lack of user engagement, unclear authority on OCM, resistance to change, lack of documentation, and overruns cause failure.</p> Signup and view all the answers

Explain why the 'Poor technical specifications' can influence project failure. Please provide examples.

<p>Poor specs, such as inadequate hardware sizing, can lead to system unavailability, impacting performance and reliability and potentially resulting in project failure.</p> Signup and view all the answers

Describe the impact resistance to change might have on a project. Give two examples of ways in which resistance to change might present itself.

<p>Resistance to change can slow adoption, reduce user engagement, and increase errors. This might happen if users refuse to use the new system or fail to participate in training.</p> Signup and view all the answers

In the context of ERP implementation, what does 'sizing' refer to?

<p>Sizing refers to selecting the appropriate hardware and infrastructure to support the ERP system, ensuring adequate performance and availability.</p> Signup and view all the answers

Why is the task of 'sizing' important and what could lead to failure in hardware server i.e., system unavailability during go-live?

<p>The task is important because improper sizing can cause system unavailability during go-live because the server hardware is unable to cope with the new system load.</p> Signup and view all the answers

What needs to be in place so that the task of 'sizing' does not lead to system unavailability during go-live?

<p>Coordination between system customer, implementation consultants and hardware vendor is needed to avoid poor sizing.</p> Signup and view all the answers

In an ERP implementation what does documentation consist of and why is it important?

<p>Documentation includes project plans, requirements, designs, test cases, and user manuals. It's important for communication, training, compliance, and maintenance.</p> Signup and view all the answers

What could be the consequences of a lack of documentation of a project?

<p>A lack of documentation can lead to decreased knowledge sharing, ineffective training, difficulty in troubleshooting and maintaining the system.</p> Signup and view all the answers

Flashcards

Implementation project

The start of a new ES system after selection, typically managed by a consulting partner.

Go-live (production system)

The point at which an ES goes live and becomes the production system.

Beneficiary (Buyer)

The company or organization that will benefit from the ERP system.

Vendor Role

A company that sells and supports the ERP system software.

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Implementation Partner

A company that helps implement and customize the ERP system.

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Vanilla Implementation

An ERP implementation method using standard features only, with less customization.

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Customized Implementation

An ERP implementation that involves significant modifications to meet unique needs.

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Best-of-breed

Integrating ERP modules alongside existing systems.

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Big Bang Adoption

A go-live strategy where the entire system switches over at once.

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Parallel Adoption

Running old and new systems side-by-side during transition.

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Mini Big Bang (Phased)

A staged transition, implementing the system in phases.

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Cutover Phase

The final phase before going live during ERP implementations.

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Project Definition

Work with a defined beginning, end, and unique output.

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Project Management

Planning, organizing, and leading activities to achieve goals on time and within budget.

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Risk Management: Avoid It

Work around a risk so it never occurs.

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Risk Management: Accept It

Live with the consequences of a risk.

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Risk Management: Transfer It

Share the burden of the risk with someone else.

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Risk Management: Mitigate It

Prepare through contingency planning

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Influencing Project Success

Degree of customizations; Effective communications; Authority for project implementation

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Influencing Project Failure

Insufficient resources; Keep-changing requirements; Poor technical specifications

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Study Notes

Managing an Implementation Project

  • ERP vendors include SAP, Oracle, Odoo, Microsoft Dynamics 365, Jeeves, Salesforce, Abas, and Zoho
  • An implementation project normally commences once a buyer or beneficiary chooses an Enterprise System (ES)
  • Most companies require a consulting partner for implementation, with few opting for internal implementation
  • Successful implementation projects result in the ES being live and refered to as a production system

Parties involved in ES implementation project

  • Beneficiary (Buyer)
  • Vendor
  • Implementation Partner (Consultancy)
  • Vendors: SAP, Oracle, Odoo, Jeeves, etc
  • Implementation Partners: Accenture, Jeeves, CapGemini, Satyam, KPMG, HP and sometimes the vendor handles the implementation
  • Buyers: Nike, Nestle, Volvo, Swedish Army, Unilever, Sony, Coca-Cola, Dell, etc

ERP Implementation Strategies

  • Vanilla Implementation is easy, by following the vendor's methodology, and usually, is on time and within budget
  • Customized Implementations increase time and costs, and are not easily integrated into new versions
  • Best-of-breed implementations can be expensive
  • Maintaining legacy systems and adding ERP modules is cost-effective and less disruptive, but integration can be a problem

Go-live strategy

  • Big bang adoption requires many resources, not recommended for large companies because it’s risky
  • Parallel adoption requires the old and new systems to run simultaneously for some time, afterwards the old system is disabled if criteria are met
  • Mini big bang / phased-out adoption is phased by module on a module-by-module basis
  • Mini big bang / phased-out adoption is phased by site with a location-based implementation

Cutover Phase

  • The final phase before going live with an ERP system, and describes the process of transitioning from one to a new system
  • Activities during cutover phase include:
  • Reviewing and updating all system-related procedures like backup policies and system monitoring
  • Assigning ownership of the ERP's functional processes to function owners
  • Performing a "Go-live" check
  • Locking system, barring more changes to the ERP system

Project and Project Management

  • A project is defined as work with a specified beginning and end and that produces a unique output
  • Project management involves planning, organizing, scheduling, leading, communicating, and controlling work activities to achieve time and budget goals

The Role of Project Manager

  • Leader
  • Planner
  • Organizer
  • Controller
  • Communicator
  • Negotiator
  • Peace Maker
  • Risk Manager
  • Knowledgeable

Three Factors of Success

  • Cost
  • Time
  • Quality
  • All within the scope of work

Sources of Risk

  • People
  • Technology
  • Organization
  • Finances
  • Law/Contract
  • Physical

Risk Management Approaches

  • Avoidance occurs when work is done to ensure a risk never occurs, e.g redundancy in case of Power outages
  • Acceptance involves living with the consequences, e.g technology obsolescence or salary increases
  • Transfer involves sharing risk, e.g project go-live overrun with fixed cost
  • Mitigation involves preparing through contingency planning, e.g assigning assistant project manager if the ERP project manager resigns

Factors Influencing Project Success

  • Degree of customizations
  • Effective communications
  • Authority to make project implementations
  • Top management commitment
  • Quality of end-user training
  • Data conversion
  • Organizational Change Management OCM

Factors Influencing Project Failure

  • Insufficient resource allocation to the project
  • Keep-changing requirements
  • Poor technical specifications (e.g., sizing)
  • Lack of user engagement
  • No clear authority on OCM
  • Resistance to change
  • Lack of project documentation
  • Overruns

Sizing

  • Appropriate hardware selection for enterprise system implementation projects is important
  • Choosing the correct hardware is important as it could lead to failure in the hardware server, and/or system unavailability during go-live
  • The process is conducted through coordination between enterprise systems customers, implementation consultants, and hardware vendors
  • ERP implementation history includes project failures from implementing Oracle ERP system at Cisco arising from poor sizing

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