01 porque falla un erp
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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
8/2/2019 01 Porque Falla Un ERP
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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
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J. Zaveri
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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
ERP Implementation Issues and tips 3J. Zaveri
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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.
ERP Implementation Issues and tips 4J. Zaveri
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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!
ERP Implementation Issues and tips 5J. Zaveri
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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).
ERP Implementation Issues and tips 6J. Zaveri
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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.
ERP Implementation Issues and tips 7J. Zaveri
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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.
ERP Implementation Issues and tips 8J. Zaveri
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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 .
ERP Implementation Issues and tips 9J. Zaveri
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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.
ERP Implementation Issues and tips 10J. Zaveri
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“….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
ERP Implementation Issues and tips 11J. Zaveri
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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.
ERP Implementation Issues and tips 12J. Zaveri
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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.
ERP Implementation Issues and tips 13J. Zaveri
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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.
ERP Implementation Issues and tips 14J. Zaveri
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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
ERP Implementation Issues and tips 15
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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.
ERP Implementation Issues and tips 16
This can be sorted out. Similarly, one cannot keep on changing ERP.
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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 Implementation Issues and tips 17J. Zaveri
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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!
ERP Implementation Issues and tips 18J. Zaveri
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journey and not the final destination
PRESENTATION BY
ERP Consultant
pE-Learning site www.dnserp.com
ERP Implementation Issues and tips 19J. Zaveri