Case Study #2 by 66B661g

VIEWS: 191 PAGES: 80

									Enterprise Resource
  Planning (ERP)
         Group 6

    Zhenyu Zhu (Adam)
      Rich Stansfield
       John Palmer
      Ryan Kramme


                        1
What will we cover today?
• The Background Knowledge of ERP--Adam
• One case study of failed ERP implementation
  (Raskas Foods)--Rich
• One case study of successful ERP implementation
  (Cisco Systems)--John
• ERP Best Practices / Summary--Ryan



                                                    2
       Background of ERP
•   History of ERP
•   What is ERP?
•   Major ERP suppliers
•   Why companies want to implement ERP
•   ERP implementation procedures




                                          3
            History of ERP
• 1960's-focused on Inventory control issues

• 1970's focused on MRP (Material Requirement
  Planning) systems

• 1980's focused on the concept of MRP-II
  (Manufacturing Resources Planning) which was an
  extension of MRP

• Early 1990's MRP-II was further extended to cover
  areas like Engineering, Finance, Human Resources,
  Projects Management, etc.
                                                      4
   • Beginning of ERP as we know it today
History of ERP (Cont.)


                                ERP
                     MRP II
            MRP
Inventory
  control


1960’s      1970’s    1980’s   1990’s
                                        5
     The Concept of ERP
• ERP software ties all departments in a company
  together into one common system

• ERP allows Information Technology to integrate
  with your company's core business processes to
  achieve specific business objectives

   – Information Technology
   – Core Processes
   – Specific Business Objectives

                                                   6
 Enterprise Integration
                          Purchase
        Inventory




Sales                                Manufacturing
                                         Units
                    ERP




          HR              Treasury

                                                     7
The Relationship Among Three
     Components of ERP
             Information
             Technology integrates
             with your company's
Business     core business processes
management
practice
                                       Specific
                                       business
                                       objectives




                                                    8
          ERP Market Space
• $16 Billion Total Annual Spending (2002)

[The Steady Stream of ERP Investments Fenella Scott, Jim Shepherd AMR research August
                                        24, 2002]



• U.S. Federal Government spending on ERP and
  related systems and services will increase at a
  compound annual growth rate of 13%
• 2002 = $3.5 Billion
• 2007 = $6 Billion

       [http://www.input.com/article_printver.cfm?article_id=606] (Viewed March 18)   9
        Major ERP Suppliers
                    The Top Five ERP Vendors

1.   SAP
2.   Oracle Corporation
3.   Peoplesoft, Inc.
4.   JD Edwards & Company
5.   Baan International

        http://erp.ittoolbox.com/pub/erp_overview.htm#r2 (Viewed March 18, 2003)


 Microsoft purchased two ERP vendors; Great Plains in
                2001 and Navision in 2002

     http://erp.ittoolbox.com/documents/document.asp?i=1662 (Viewed March 18, 2003)
                                                                                      10
Market Share for ERP Suppliers




                            11
       Different Markets
     for Different Providers
• 11% of the companies surveyed are still using
  homegrown (legacy) applications

• SAP is the market leader in Manufacturing companies
• Oracle shows strength in both Manufacturing and
  Service companies
• PeopleSoft is the market leading is Services companies

[The Steady Stream of ERP Investments Fenella Scott, Jim Shepherd August 26, 2002
   AMR Research]



                                                                                    12
Leading ERP Companies
              General Market Shares

  40                            SAP
                                Oracle
  20
                                Peoplesoft
    0


50                           25
40                           20
30                           15
20                           10
10                            5
 0                            0
Manufacture                    Service
   ERP                          ERP
                                         13
         Benefits of ERP
•   Improve productivity
•   Increase customer demand (sales)
•   Increase competitive advantage
•   Increase market share
•   Position company for sale

                                       14
      Business Drivers for ERP



                                  others     im proving
                                   29%      productivity
                                                31%
                                com petitive
                                         custom er
                                 advantage
                                    16% dem and
                                             24%




www.amrresearch.com/Research/Alerts/Pdf/020826alert14775.pdf (viewed March 16, 2003)   15
 How Does ERP Improve
     the Business?
 ERP helps improve information sharing, enhance
    business performance, and promote service
                     efficiency

1. Allow companies to better understand their business.
2. Helps companies standardize business processes and
   more easily enact best practices.
3. More efficient processes enable companies to
   concentrate their efforts on serving their customers,
   maximizing profit, and building a competitive
   advantage.
                                                           16
ERP Cost/Benefit Analysis
•       Average Cost for ERP

        Among the 63 companies surveyed—including small, medium
        and large companies in a range of industries—the average cost
        for an ERP implementation was $15 million.

•       Average Payback for ERP (Time & Dollars)

        Among the 63 companies surveyed, it took eight (8) months after
        the new ERP system was implemented to see any benefits. The
        median annual savings from a new ERP system was $1.6 million.


    http://www.cio.com/research/erp/edit/erpbasics.html#erp_abc (viewed March 24, 2003)
                                                                                          17
             ERP Strategies
1. The Big Bang-companies cast off all their legacy
   systems at once and install a single ERP system across
   the entire company.
2. Franchising-Independent ERP systems are installed in
   each unit, while linking common processes, such as
   financial bookkeeping, across the enterprise.
3. Slam Dunk-ERP dictates the process design in this
   method; where the focus is on just a few key processes,
   such as those contained in an ERP system's financial
   module. The slam dunk is generally for smaller
   companies expecting to grow into ERP by initially
   purchasing only a few modules.                         18
      ERP Implementation
          Procedure
         Steps for ERP implementation

•   Cost analysis
•   Blueprinting of Business Processes
•   Staff Training
•   Integration
•   Data Conversion
•   “Going Live” with ERP
                                         19
           ERP:
  Winner’s Legend, Loser’s
        Nightmare
  While 9 out of 10 ERP implementations failed in
  India, the one success story produced such
  spectacular results that it was enough to keep the
  entire ERP market alive!

http://216.239.57.100/search?q=cache:ji6Ym4n6lLYC:www.expresscomputeronline.co
     m/20020107/focus6.shtml+ERP+market+statistic&hl=en&ie=UTF-8 [2002.Jan 7]
                                                                          20
      Case Study #1
Failed ERP Implementation at
      Raskas Foods, Inc.




                               21
       Raskas Foods, Inc.
• One of the 150 Largest Privately held companies
  in St. Louis
• Purchased by Schreiber Foods in October, 2002




              [St. Louis Business Journal, April 2002]
                                                         22
Raskas Foods Background
• Founded in 1888
• Nations first private
  label manufacturer of
  cream cheese for retail
  grocery distribution
• Sales of over $280
  million in 2002
• 3 Manufacturing Plants
                            23
       Raskas Foods, Inc.
• Dr. Heschel Raskas, President and CEO
• Ed Thibeault, Sr. Vice President – Marketing and
  Sales
• Rich Coker, Sr. Vice-President – Operations
• Rich Scheuerman, Sr. Vice-President – Finance




                                                     24
        Raskas Foods, Inc.
             Four Factions to Satisfy:

•   Owners
•   Marketing
•   Operations
•   Finance



                                         25
                  Owners
• Seven owners, all related
• Three were employed by Raskas
• Two had been looking to sell Raskas for over ten
  years
• Wanted to position Raskas Foods for sale




                                                     26
               Marketing
• Finance helped Marketing get Gross-to-Net and
  Cognos BI software
• ERP wouldn’t do anything for them
• Since Finance helped Marketing get their programs,
  Marketing was willing to back Finance on the ERP
  project – provided that Marketing wouldn’t have to
  supply any bodies to the implementation process


                                                 27
              Operations
• Operations has wanted a new plant since 1994
• Operations liked their “homegrown” Excel based
  system
• Operations traded support for the ERP system in
  exchange for future support from Finance for a new
  plant – as soon as certain production levels were
  met.



                                                  28
                 Finance
• Finance felt about the legacy Accounting system
  that “the wheels were about to come off the cart”
• Wanted an entire package…”It’s time to get into
  the Big Leagues”
• Just came off successful implementation of Gross-
  to-Net and Cognos for Marketing




                                                  29
         The ERP Package
•   Approved in early 1999
•   Adage ERP package
•   SCT consultants
•   Budgeted $2.2 million
•   Anticipated 6 months to 1 year to complete
•   Waited until after the Y2K problem to implement
•   Completed the Blueprint of Business Processes
•   Training for IS
                                                      30
         Project Personnel
•   Mike Doyle (Finance), Project Manager
•   Cliff Thomason (Finance), Project Facilitator
•   John Lazare (IT), Project Lead
•   Wayne Dixon, Director - IT, was left out




                                                    31
               Problems

• Implementation started in April of 2000
• Employees found that the ERP system didn’t do
  things the same way they did things
• Changes approved to keep Operations involved
• Stopped for fall Busy Season September 2000


                                                  32
  Startup-January, 2001
• No momentum restarting
• Had to upgrade the software to the latest release
• Budget increases to $3.3 million




                                                      33
     Large Sales Increase
• The number two private label Cream Cheese
  manufacturer develops quality and delivery
  problems
• Spring 2001, Operations gets approval for a new
  plant
• Operations pulls key people from ERP for new
  plant startup

                                                    34
       More Problems….

• Work on the ERP implementation stopped for fall
  busy season again
• By February, “something was wrong.”
• March 2002, lack of Upper Level Management
  interest in ERP
• April 2002, a successful ERP implementation was
  no longer necessary

                                                35
        Lessons Learned
• The budget will increase when changes are made
• Senior level personnel have to stay involved
• Everyone involved in the project has to be 100%
  dedicated to the project
• The people involved in the ERP project have to be
  “key” employees
• ERP has to be the number one priority



                                                  36
   Case Study #2

    Successful ERP
Implementation at Cisco
     Systems, Inc.



                          37
      Cisco, NOT Sysco!
Just to clarify, the company I will
 be talking about today is not the
 food company Sysco, it is Cisco
           Systems, Inc.


YES                NO
                                 38
   Company Background
              Corporate Overview

• Worldwide leader in networking for the Internet
• Provide Internet Protocol-based (IP) networking
  suite of solutions
• Cisco solutions are in most corporate, education,
  and government networks worldwide


   http://newsroom.cisco.com/dlls/company_overview.html (viewed March 14, 2003)
                                                                                  39
Company Background-Cont.
• Founded in 1984 by a group of computer scientists
  from Stanford University
• Publicly traded starting in 1990 (NASDAQ: CSCO)
   – $13.71 per share (as of April 4, 2003 4:00 PM)
• 34,987 employees (as of February 2003)




      http://newsroom.cisco.com/dlls/corpfact.html (viewed March 14, 2003)
                                                                             40
                Cisco Systems, Inc. Annual Report 2002, page 1
Company Background-Cont.
• Global company (HQ in San Jose, CA)
• 2002 Net Sales of $18.9 Billion




      http://newsroom.cisco.com/dlls/corpfact.html (viewed March 14, 2003)
                 Cisco Systems, Inc. Annual Report 2002, page 1              41
John Chambers-President &
 CEO of Cisco Systems, Inc.




      Cisco Systems, Inc. Annual Report 2002, page 3   42
       Core Product Offering
• Cisco provides the broadest line of solutions for
  transporting data, voice, and video within
  buildings, across campuses, or around the world
• Primary products are “routers” and “switches”
• Main competitors are 3Com and Dlink
• Market share leader with over 75% of the market




        http://newsroom.cisco.com//dlls/corpfact.html (viewed March 14, 2003)
  Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School 43
                   Online Case Study #9-699-022 (Rev: May 6, 2002)
             Company Structure
• Centralized functional organization
• Manufacturing, customer support, finance, human
  resources, IT, and sales are centralized
• Product Marketing and R&D are decentralized
  into the following “Lines of Business”:
     – Enterprise (Large Corporations)
     – Small / Medium Business
     – Service Provider


Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School Online
                        Case Study #9-699-022 (Rev: May 6, 2002)                      44
                Time for a Change
• January 1993, Cisco was $500 million
  company running a Unix-based legacy
  software package
• CIO Pete Solvik saw the need for change
• Initially, Cisco avoided an ERP solution



Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School Online
                        Case Study #9-699-022 (Rev: May 6, 2002)                       45
                  Pete Solvik-CIO
 “We wanted to grow to a $5 billion-plus company.
We were not able to make changes to the application
     to meet our business needs anymore. The
   application had become too customized. The
software vendor did offer an upgrade but we knew
 even after the upgrades it would still be a package
for $300 million companies--and we’re a $1 billion
                  dollar company.”
Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School Online
                        Case Study #9-699-022 (Rev: May 6, 2002)                     46
  Randy Pond-Dir. of Manuf.
   “We knew we were in big trouble if we did not do
  something. Anything we did would just run over the
legacy systems we had in place. It turned into an effort
 to constantly band-aid our existing systems. None of
     us were individually going to go out and buy a
package….the disruption to the business for me to go to
the board and say ‘Okay, manufacturing wants to spend
  $5 or $6 million dollars to buy a package and by the
   way it will take a year or more to get in….’ was too
                     much to justify.”
  Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School
                                                                                     47
                  Online Case Study #9-699-022 (Rev: May 6, 2002)
                 The Final Straw
• System failure in January, 1994
• Company shut down for 2 days
• February, 1994 assembled team in charge of
  finding a suitable replacement application
• Decided on the Big Bang implementation strategy



  Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School
                                                                                     48
                  Online Case Study #9-699-022 (Rev: May 6, 2002)
Carl Redfield-SVP of Manuf.
 “I knew we wanted to do this quickly. We were not
going to do a phased implementation, we would do it
   all at once. We were not going to allow a lot of
  customization either. Also, we wanted to create a
schedule that was doable and make it a priority in the
 company as opposed to a second tier kind of effort.”




 Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School
                                                                                    49
                 Online Case Study #9-699-022 (Rev: May 6, 2002)
                    “A Team Effort”
 •Team consisted of internal resources (Cisco
 employees), consultant (KPMG), and ERP software
 vendor (Oracle)

Solvik said, “Our orientation in pulling people out of their
  jobs to work on the project was if it was easy then we
were picking the wrong people. We pulled people out that
    the business absolutely did not want to give up.”

  Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School Online
                          Case Study #9-699-022 (Rev: May 6, 2002)                      50
   Software Vendor Selection
• 20 person team did extensive research on ERP
  providers
• 5 vendors in 2 days
• 10 days to draft RFP for vendors
• Visited vendor reference clients
• Scheduled 3 day onsite software demos
• Entire process took only 75 days!
 Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School
                                                                                    51
                 Online Case Study #9-699-022 (Rev: May 6, 2002)
                          Why Oracle?
•Win-win situation for both Cisco and Oracle
Pond said, “Oracle wanted this win badly. We ended up
getting a super deal. There are, however, a lot of strings
  attached. We do references, allow site visits and in
  general talk to many companies that are involved in
                  making this decision.”




Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School Online 52
                       Case Study #9-699-022 (Rev: May 6, 2002)
                 Project Approval
 • Target timeline was 9 months
 • Projected cost was $15 million
 • Largest capital project ever approved by Cisco
Pond said, “Before we even get the first slide up I hear
 the chairman speaking from the back of the room. He
   says ‘How much?’ I said I was getting to it and he
responded: ‘I hate surprises. Just put up the slide right
now.’ After I put it up he said ‘Oh my God, there better
               be a lot of good slides….”
  Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School
                                                                                     53
                  Online Case Study #9-699-022 (Rev: May 6, 2002)
            Implementation Team
 • Expanded from 20 to 100 members (See slide #55)
 • Steering committee at top to ensure project
   visibility, sponsorship, and motivation
 • Split into 5 key areas (Order Entry,
   Manufacturing, Finance, Sales/Reporting, and
   Technology)
 • All areas consisted of internal Cisco
     employees, KPMG consultants, and
     Oracle consultants

Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business   54
         School Online Case Study #9-699-022 (Rev: May 6, 2002)
   Cisco ERP Implementation Team Structure
                                        Executive Steering
                                           Committee

                                       Project Management
                                              Office

 Order Entry        Manufacturing           Finance          Sales/Reporting    Technology

Business Lead        Business Lead        Business Lead          IT Lead          IT Lead

   IT Lead              IT Lead              IT Lead             Business      IT Consultants
                                                                Consultants
  Business             Business             Business
 Consultants          Consultants          Consultants        IT Consultants

IT Consultants       IT Consultants       IT Consultants

    Users                Users                Users


Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business           55
         School Online Case Study #9-699-022 (Rev: May 6, 2002)
                       ERP Rollout
• Broke into phases called CRP’s (Conference
  Room Pilots)
   – CRP0 = Training and technical configuration
   – CRP1 = System works for each specific area
   – CRP2 = Modifications (red, yellow, or green),
     continued training, and initial testing (See slide #57)
   – CRP3 = Full system testing “preparation to go live”




 Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School   56
                 Online Case Study #9-699-022 (Rev: May 6, 2002)
    List of “Red” Modifications
  • Packout-custom barcoding, queues, inventory, and
    shipping modifications
  • Canada-separate set of books for separate currency
  • Product Configurator-enables Cisco to enter
    “rules” for product ordering
  • OE Form-discounts, cost data, multinational
    orders, etc.
  • Net Change Bookings-daily log of all order
    activity
Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business   57
         School Online Case Study #9-699-022 (Rev: May 6, 2002)
                  Initial Challenges
  • Hardware failures
  • System instability
  • Software unable to handle initial volume

Solvik said, “I wouldn’t say the company hit a wall, but I
would say we had major day to day challenges that
needed to be solved quickly to avoid significant impact
to the company.”

  Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard
  Business School Online Case Study #9-699-022 (Rev: May 6, 2002)

                                                                     58
           Vendor Commitment
 • Team effort-overcame problems within 3 months

Solvik said, “So for about 60 days we were in complete
SWAT-team mode, get this thing turned around. For
example, the president of the hardware vendor was our
executive sponsor. This vendor probably had 30 people on
site at one point. They were all over it. They lost money on
this big time. It was great for them to get such a great
reference, but it was a tough experience for them.
Remember we had bought a capability, so everything they
did to add capacity was out of their own pocket.”

  Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School
                                                                                     59
                  Online Case Study #9-699-022 (Rev: May 6, 2002)
                         ERP Results
•   Project completed on-time (See slide #61)
•   Project completed on budget
•   Cisco ERP team bonus totaling $200,000
•   Overall successful systems replacement
•   Minimal company interference




    Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School
                                                                                       60
                    Online Case Study #9-699-022 (Rev: May 6, 2002)
    ERP Implementation Dates
•   Project Kickoff                                      •   June 2, 1994
•   Prototype Setup Complete                             •   July 22, 1994
•   Implementation Team Training                         •   July 31, 1994
•   Process, Key Data, Modification                      •   August 31, 1994
    Designs Complete
•   Functional Process Approval                          •   September 30, 1994
•   Hardware Benchmark and Capacity                      •   October 15, 1994
    Plan Validated
•   Critical Interfaces, Modifications                   •   December 1, 1994
    and Reports Complete
•   Procedures and End-User
    Documentation Complete                               •   December 16, 1994
•   CRP Pilot Complete-Go/No Go                          •   December 22, 1994
•   End-User Training Begins                             •   January 3, 1995
•   Data Conversion Complete                             •   January 27, 1995
•   Go Live!                                             •   January 30, 1995


       Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business   61
                School Online Case Study #9-699-022 (Rev: May 6, 2002)
          Lessons Learned
  Why was Cisco’s ERP Implementation a
                Success?
• Recognized the problem & developed a realistic
  plan of attack
• Project was a high priority in the company
• Upper management supported the project
• All areas of the company were involved
• Diligent vendor/consultant selection
• Limited customization
• Meet target implementation dates
• Stayed within the initial project budget         62
     “Projects Do Fail. They
     Fail for Many Different
            Reasons.”


Source: Thompson, Olin, “Who to Blame for Project Failure?”, www.Technologyevaluation.com,
                                      Sept 20, 2002                                   63
 ERP Best Practices

  Let’s analyze what can
increase our chances of a
      successful ERP
     implementation

                            64
Characteristics of IT Best
       Practices
• Knowledge of business process and ERP is
  essential to becoming an informed buyer
• Effectively Communicate company goals to the
  Software Providers
• Multiple Bids/Proposals
• Effectively Evaluate and Compare Bids
• Active Leadership Role in Project

                                             65
                Knowledge is Power
      • Thorough knowledge and
        understanding of the entire business
        process being effected
      • Understand which (or all) business
        divisions are to be incorporated into
        your new ERP system
      • Distinguish between Customized
        vs. Standard ERP Software




Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”,   66
Harvard Business Review, July-Aug 1998.
           Multiple Bids
• Unlike most IT
  functions an In-
  house bid is not
  normally an option
• Provide each
  potential provider
  with identical
  information

                           67
            Comparing Bids
• Make sure that you are
  comparing Apples to Apples

• Decide which system will
  best fit your company’s
  needs

• Hire a third party consultant
   Source: P.J. Jakovljevic, “The ‘Joy’ Of Enterprise Systems Implementations”,
                                                                                  68
                   www.TechnologyEvaluation.com, July 8, 2002
     Customization vs.
   Standard Application
• Decision depends on multiple factors
  – Company Goals
     • Happy with Current Productivity?
     • Desiring Change?
  – Employee Willingness to Change
  – “Implementing/Upgrading a enterprise system
    offers a good opportunity for enterprises to review
    their key business processes and resources.”
   Source: P.J. Jakovljevic, “The ‘Joy’ Of Enterprise Systems Implementations”,
                  www.TechnologyEvaluation.com, July 8, 2002                      69
          Standard Application
   • Cheaper
   • Requires Company Operational Processes
     to Change
   • Constantly requires Employees to Change
   • “Vendors try to structure the systems to
     reflect best practices”

Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”, Harvard Business
                                    Review, July-Aug 1998.                                70
                       Customization
   • Already an Industry Leader – No Major
     Changes Needed
   • Adapt the Software to Business Functions
     – Unique Business Operations
   • Less Change for Employees
   • More Expensive and Complex Implementation


Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”, Harvard Business
                                    Review, July-Aug 1998.                                 71
   Contract Negotiations
• Detailed
   – Time Frame
   – Price
• “Users are strongly
  advised to require fixed
  time and cost contract
  commitments”


    Source: P.J. Jakovljevic, “The ‘Joy’ Of Enterprise Systems Implementations”,
                                                                                   72
                   www.TechnologyEvaluation.com, July 8, 2002
          Implementation:
         Big Bang vs. Phased
              Approach
• Big bang has attributed to                   • Phased approach-new
  a number of failures                           parts are introduced
                                                 incrementally.
• “Once and its done”
                                               • Start with mature parts
  theory - False                                 that need the least
                                                 customization
                                               • Builds momentum,
                                                 support and enthusiasm
       Source: P.J. Jakovljevic, “The ‘Joy’ Of Enterprise Systems Implementations”,
                                                                                      73
                      www.TechnologyEvaluation.com, July 8, 2002
 All the previous factors
 discussed can effect the
  implementation of an
ERP system, however one
 factor has the ability to
    outweigh all other
    circumstances….
                         74
            Employees
• Top Management

• Project Leader

• Project Champion




                        75
          Top Management
• “The person at the top of the
  organization can stop or fix
  most of these problems
  before they derail the
  project.”
• Enthusiasm “Trickles Down”
• Top Management, “If they
  know I care, they care.”

 Source: Thompson, Olin, “Who to Blame for Project Failure?”,   76
         www.Technologyevaluation.com, Sept 20, 2002
            Project Manager
• “The best person for the job . .
  Cannot be spared from their
  current role.”
• Relieved of all previous job
  duties.
• Understand the whole
  business process.


   Source: Thompson, Olin, “Who to Blame for Project Failure?”,   77
           www.Technologyevaluation.com Sept 20, 2002
       Project Champion
• Typically an influential
  employee-not a member of the
  management team.
• Created in the Phased In
  approach after seeing positive
  results.




                                   78
        Strategies for ERP
         Implementation
• Background Research
• Use consultant to:
    – Review Business Process
    – Narrow down vendors
    – Evaluate proposals
•   Standard Application
•   Strict Contract
•   Phased Implementation
•   Employee Support – Starting at the Top
                                             79
Questions?



             80


								
To top