01 Porque Falla Un ERP

8/2/2019 01 Porque Falla Un ERP

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ERP Implementation

How and why of ERP failure & tipsfor successful ERPimplementation

BYJYOTINDRA ZAVERI

ERP Implementation Issues and tips 1J. Zaveri



Need for training. Education

Not understanding what the new 'system' is designedto achieve. At least 100 hrs of training is required forkey users. Preparing masters / transaction on practiceata ases to get t e com ort eve an singing o is

highly recommended. The CEO can m ak e t h i s

happen , if he / she personally take interest, otherwise,

then chances of success are reduced.

In one company, the training was given after the

‘ ’ .implementation and most people saw the data entryscreen for the first time when the legacy was removed.

ERP Implementation Issues and tips 2

.

J. Zaveri



Lack of To p M an a gem en t co m m i t m en t (management

being involved but not dedicated).

If the owner is not spending enough qualitytime, then the ERP project is likely to beunsuccessful. In one or anization the MD

ha rd l y t ook pa r t i n t he d i scussion with ERP

vendor and delegated the task to the General,system, so he created all the roadblocks, andthe vendor got frustrated and finally left




SRS

Inadequate SRS or System RequirementsSpecification: Current processes are notadequately addressed. User must w r i t e d ow n

e r eq u r em en s, w c means a ng ou meand extra effort. The user usually explains

casually, verbally, and hurriedly, then how the

If sufficient time is not given for preparing theSRS, ERP is likely fail

a er the ERP goes Live is observed, if SRS exercise isnot done properly.




Poor ERP Package Selection

The package does not address the basicbusiness functions of the client

,i nclud ing accoun t s

Some organizations are so comfortable witht eir c eap account-centric pac age t at t eydo inventory and other functions in ERP but askfor data transfer from ERP to such accounting

package!




I n t e rna l Resi st ance

Resistance to changing the 'old' processes. This isperhaps human nature

training) the user will still want to use the old

method (or the legacy way)

so adamant that the MD had to ask him to resign(and he was the works manager who was expert

, preven altogether).




Give m e m oon

Unrealistic Expectations of theBenefits

A user starts ex p ect i n g m o on ne mus raw a ne, e

satisfied, at least in the first

phase, and let the system takeoff.




Return on investment. ROI?

Unrealistic Expectations of the ROI. People forgetto quantify the intangible benefit or they simplyex ect ret u r n s ov er n i h t

Most users do not know even, what the ROI is

For examplecan e re uc ng nven ory eve y x percen age

• or ROI can be preparing of Excise (TAX) Invoice quicklyand accurately

or s o ge e correc ma er a requ remenplanning. JIT.




Time Frame

Unrea istic Time Frame Expectations.ERP is like changing the wall itself (andnot chan in merel the aint of thewall)

CEO / CFO expect things to happentrouble to define (in writing); to whatextent customization will be allowed

ne as o earn o p u a u s op ochopp ing and chang in g .




TCO - Money

Anot er issues is t at t e Tota Cost oOwnership (TCO) is not understood

paid in time

The ERP implementing company is

project goes into a kind of negative cycle E. . Think of a mobile hone:

•When the SIM card charge is over it stopsworking and needs to be charged by payingadditional amount.




“….By-the-way, we will do ERP also…. “

User / top management safely assume that certainprocedure should be present in ERP. If the procedureis not explained in the beginning, legacy is not givenw ic it may not re ect in t e Business B ueprint(these reference guidelines) or in the POC

If it is not in the Business Blueprint, it will not be therein ERP program

TI P: ERP p r o j ect i s tak en as ‘ by - t he -w ay ’ p ro j ect ;whereas in true sense it should be the only priority

ur ng mp ementat on p ase.• Do not take ERP casually




Tight linking (integration) is good

Another example, one user from marketing,did not appreciate the link of quotation and

• He asked implementer to remove the link. Later,

after six months, he realized his mistake and asked

Sometime Director or CEO of the companydoes not share his or her lon -term vision of

the company, with the middle management orlower management.




Follow the checklist given below

• What Kind of products?

• E.g., Make to stock or make to order. E.g. Continuousprocess production or discreet production.

• What ERP modules are you looking for? Write itdown from the scope list of ERP modules given by

ERP vendor.

• Are you planning on replacing legacy softwareapplications? Within the next 3 years? Which ones?Make list and lan to hase out ‘out-dated’ software

ASAP.




infrastructure

What databases and operating systems do we haveexpertise? What will the IT department agree to andwhat is the long-term plan? List them

If you are not sure, consult I. T. expert. For instance,in one corporate company EDP manager was asked to

select ERP. She was trained by Red Hat on Linux. Sheinsiste t at ERP s ou e on Linux p at orm. Duringthe ERP deployment, seven moths down the line, sheleft the organization for greener pasture . Nobody knew

.• One year later the company deployed ERP on Microsoftplatform.




Learn about Technology

Technology has advanced, therefore the selection team

members will need to learn about workflow, TCP/IP, and manyother issues involved. ERP coordinator should be trained in thefollowing areas: basics of SQL. ERP can give intelligent alertsautomatically by email. This needs understanding of emailmanagement settings (e.g., MS Outlook or MS ExchangeServer settings). It is expected that ERP coordinator or I. T.support person knows about networking of computers (LAN).If necessary, plan a separate training for the InformationTechnology and new techniques that are akin with ERP. E.g.,UPS can be connected to Server to shut give messages tousers that battery backup is low, so users can logout and

shutdown properly. E.g., using RFID technology and so forth. Embrace technology with both hands. Do not be afraid of

using new technology. May be attending seminars and train


.

J. Zaveri



DAILY BACKUP

Make a disaster management plan. Nobody wishes that

accident should happen. Nevertheless, it is necessary tohave a written document in place. Especially, mention about

. .For instance, one factory was near river. Floods came. ERPserver was on the ground floor and was damaged.

Fortunately, backup CD was taken home everyday. Theycould restore the data on another computer and start thework.

Selecting ERP.

• Invest lot of time in the ERP selection process. It is not like buyinga mobile. If you do not like a cell phone, you can discard, and buynew one. ERP is like a long-term partnership (marriage, shall wesay). There are going to be difference of opinion with the spouse.


This can be sorted out. Similarly, one cannot keep on changing ERP.

J. Zaveri



DO YOUR HOME WORK WELL. COMPARE ERP MODULES OFFEREDBY VARIOUS ERP COMPANIES

Do not get carried away by impressive PowerPointpresentations. Marketing people are trained toive ‘Ros ’ icture. The chief of ERP main

sponsor) should know the limitation of ERP and itscustomization. ERP implementers cannot deliverMoon. Althou h sales team will romise Moon(and Jupiter also). ☺.




ERP is not bed of roses.

Business transformation is a painful process. Do not underestimate. It is like ‘ ’ .

is amused when she is looking at the

Dinosaurs for the first time. She is toldthat in beginning, it is always ‘wah wah’

but it ends up in screaming!




journey and not the final destination

PRESENTATION BY

ERP Consultant

pE-Learning site www.dnserp.com


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01 Porque Falla Un ERP