Planning for a Successful Implementation
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1 Planning for a Successful Implementation Scott Lennartson Epicor Software Corporation 1
2 Agenda 1. Change Management 2. Disciplined Project Approach 3. Managing Scope and Responsibilities 4. Other Considerations 5. Q&A 2
3 Change Management 3
4 Change Management is Critical Most ERP Implementations issues are related to people and not systems Change Management Internal Staff Adequacy Project Team Training Prioritization/Resource Allocation Top Management Support Consultants Ownership (of benefits to others) Discipline Program Management Process Reengineering Stage/Transition Benefit Realization Software Functionality Application Portfolio Management Enhancements/Upgrades Data Reporting 2% 2% 1% 2% 2% 3% 4% 4% 4% 7% 7% 6% 6% 5% 6% 8% 8% 16% PEOPLE - 50% Process - 24% Technology - 18% Knowledge - 8% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Source: Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP system) 4
5
6 Phases of Successful Change ~ Criteria Needed Define Purpose Create Shared Need Shaping Vision Design the Future State Build Investment Initiating Change Mobilizing Commitment Making Change Last Transitioning Monitoring process Changing systems and structures Monitor results & learning Build systems & structures
7 Leading Complex Change 7
8 Leading Complex Change 8
9 Leading Complex Change 9
10 Leading Complex Change 10
11 Leading Complex Change 11
12 Leading Complex Change 12
13
14 Risk Management Workshop RISK is the process of identifying, assessing, and controlling risks arising from operational factors and making decisions that balance the risk costs with the benefits. Pre Go Live RISK Options Include: Avoid, Mitigate, Transfer or Accept 14
15 Disciplined Project Approach 15
16 Structured Methodology Prepare Plan Design Validate Deploy Requirements Discovery Scope Definition Project Initiation Epicor Process Review Project & Resource Plan Foundation Education Configuration Business Procedures User Acceptance Preparation Testing Analysis End-user Training Deployment/Go Live Project Close Support Hand-off Proof of Concept Project Governance Collaborative Implementation Continuous Improvement 16
17 Tools and Techniques to Reduce Risk 17
18 Focus your team on key process changes 18
19 Deciding on a Roll-Out Strategy Approach Factors All Suites, All Facilities Rollout by Function Big Bang Site Factors Site Locations Who Has the Most Urgent Need Lifecycle of Legacy Systems Personnel Factors Resources Other Strategic Initiatives Change Impact ROI, Success, Desire, Future Potential 19
20 Managing Scope and Responsibilities 20
21 The Triple Constraints Scope should be managed to the mission, goals, and objectives (compelling business reason) of the project Scope should be clearly defined Scope should be managed Scope should be prioritized Scope (work) Constraint Variance Flexibility The approved project goal and objectives are achieved. Least Time (schedule) Implementation is completed by the approved target date. Moderate Cost (resources) Cost does not exceed +/- 15% of the approved budget. Most
22 Building the project team Epicor Project Manager Epicor Executive Sponsor Epicor Consulting Technical Data Conversion Infrastructure Reporting Sales Eng Pur Qual Inv Prod Sched Finance Core Team Customer Executive Sponsor Customer Project Manager 22
23 Project Team thoughts Project Manager will dedicate 50% to 100% of their time Core team members should be able to make decisions on process improvements, generally some of your best people. Team needs to make decisions in a timely fashion Create a change control board to help govern scope creep and stalemates Create relief for the people on the team by backfilling or using temps. Think about backups for key core members 23
24 Other Considerations 24
25 Think about data conversion early Data Extraction Data Load Legacy System (s) Epicor Software Transformation Key Principles: What do you NEED to bring over? Develop legacy data conversion strategy early on in project Cleanse the data before bringing over Identify the timings required to execute each data migration method. These timings are critical for the go live planning. Identify volume, number of years to load for historical elements early on Identify the different data sources and determine the ease of extraction 25
26 Reports and Security Get a list of your current reports and determine which ones are really being used How often are they run? Who is the intended audience? What is it s priority? Consider which would be better served as a dashboard Consider security roles Are proper firewalls in place? 26
27 Integrations and Customizations Identify any integrations that you might need to connect to the ERP system At a high level, determine what data may need to be passed between systems and the necessary timing of the data. Are there unique characteristics of your industry that aren t addressed by the ERP suppliers? Identify and prioritize 27
28 How will you measure success? Try to find tangible metrics Make sure they align with strategic objectives Decide what is a Key Performance Indicator Differentiate from a performance indicator Limit to around a dozen KPI s Determine how often to measure Determine owner of metric Baseline Possibly benchmark 28
29 29
30 30
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