Prd 003 An upside-down view of ERP implementation? NO! Created by James on 6/23/2013 9:04:24 AM
Many people think that the approach advocated by Dr James Robertson, the ERP Doctor, with regard to ERP implementation is back-to-front or upside-down – is it?
In actual fact NO -- it is an engineering, that is a high reliability, view of ERP based on a belief that an ERP investment should have a lifespan of 20 to 50 years:
1. Business process is almost irrelevant as an input
Many ERP firms place huge emphasis on “as is” business process mapping and development of “to be” designs yet most of the time these documents cannot be correlated to the final outcome giving rise to the conclusion that business process mapping at the start of an ERP project is a total WASTE of time – precision configuration to model the fundamental first principles essence of the business is what matters
2. Silo module by module ERP experience is a major hindrance
Many ERP firms place great reliance on personnel who are “experts” on specific modules and yet there is seldom a senior strategic solution architect with a holistic, integrated view of the system and the business which is what really matters
3. Junior consultants have limited application
The body shop approach of relatively junior consultants full time on site for months at an end is counter-productive, a more limited scale of involvement of highly experienced consultants to guide business personnel in the configuration of the system is much more important – thought leadership NOT contract labour is required
4. A gray haired client Project Leader is non-negotiable
The client needs to have a very senior Project Leader / Project director to lead the project from the client perspective. Gray haired, at least in their forties, preferably in their fifties with diverse business and systems experience, the ability to lead tough but fair negotiations with the contractor and employed directly by the client is non-negotiable
5. Technology is almost irrelevant
Today technology is almost irrelevant – the minute the conversation gets into the merits of different brands of ERP, the case for upgrading to the latest version, etc you can be sure that the participants have lost the plot – any ERP on the planet well implemented will deliver a better result than any ERP badly implemented – ERP is about people NOT technology and how the people configure the ERP
6. Executive strategic decision support is THE issue
When it comes to making a significant ERP investment there is NOTHING more important than delivering a solution that provides comprehensive support for executive level strategic decision making – answers to the questions the executives have never before thought to ask
7. Precision configuration is the foundation
All the above funnel into strategic engineered precision configuration based on precision taxonomies – these are the ESSENCE of ERP configuration – the entire project should be focussed on ensuring a high quality precision configuration that supports strategic analysis in any way that can reasonably be considered to be a requirement
8. An ERP laboratory is essential
A formal, rigorous laboratory for testing and fine tuning the configuration, documenting the system, testing the reports, training personnel and developing training materials is NOT an optional extra, it is an essential element of the project plan – even though it adds months to the time line
9. Rigorous contracting with severe penalties
Robust contracting is essential in order to focus the implementation contractors on ensuring that they mobilize their best personnel and keep them focussed – concepts like a three stage procurement process geared to ensuring contractors have enough time to fully scope and therefore price the project are vital. Delivery must be coupled to issue of certificates and penalties for failure on commissioning together with professional indemnity insurance – a lawyer on the project team is increasingly a significant consideration
10. ERP implementation is fundamentally an engineering endeavour
The implementation of ERP’s is fundamentally an engineering endeavour but engineers lack most of the soft and business knowledge and experience necessary to do the job just as those who have the soft skills, business skills and ERP system skills lack the engineering skills to deliver robust results – carefully crafted multi-disciplinary systems engineering teams are a vital necessity for a successful outcome
11. Implementer -- work yourself out of a job
It is the duty of the implementer to work themselves out of a job – senior contractors on-site for years after commissioning (go-live) are a no no – by the time the system is fully commissioned the contractors should walk away leaving the client fully equipped to operate and maintain the system
12. 10 to 20 year design life
A well configured ERP and associated systems should run reliably for ten to twenty years or longer with limited refurbishment about every five years to clean up the taxonomies, master data, etc – this assumes that the system is run as a precision machine with an expectation of a long life span. We are fast approaching the point where continuous upgrades to ERP systems will be regarded as an unnecessary irritation to be avoided.
13. The right to maintain and repair
Coupled to the previous point, clients will increasingly demand the right to freeze the version of the ERP they are currently running for lengthy periods and will use the legal principle of “The Right to Maintain and Repair” to force software vendors to support “obsolete” versions of software for many years – remember that the vast majority of version X+1 is the same as version X and the business case for software change is becoming increasingly weak.
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