Bài giảng enterprise resource planning chương 8

Enterprise Resource Planning, 1st
Edition by Mary Sumner
Chapter 8:
Managing an ERP Project

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Objectives
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Acknowledge the importance of project
management and control
Examine the process of organizational
change

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Factors Influencing Information
Systems Project Success
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Number of modifications
Effective communications
Authority for project implementation
Business management
Ability to generate additional funds to
cover implementation

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Factors Causing Information
Systems Project Failures
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Poor technical methods
Communication failures
Poor leadership
Initial evaluation of project

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Risk Factors
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Organizational factors
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Changes in scope
Sufficiency of resources
Magnitude of potential loss
Departmental conflicts
User experience

Management support
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–

•

Changing requirements and scope

Lack of commitment

Software design
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Developing wrong functions, wrong user interface
Problems with outsourced components
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Risk Factors, continued
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User involvement
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Project management
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Lack of commitment
Ineffective communication
Conflicts
Inadequate familiarity with technologies
Size and structure
Control functions

Project escalation
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Societal norms
Continue pouring resources into sinking ships
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Implementation Risks
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Technology
– Consistencies with current infrastructure

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Organizational
– Customization increases risks
– Redesign of business processes to fit
package decreases risk

•

Human resource factors
– IT staff skills and expertise

ã

Project size
â Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

8-8/24


Managing Large-Scale Projects
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MRP or ERP
– Package implementation differs from
custom implementation
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Vendor participation
User skills and capabilities

– Management commitment
•
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Project champion
Communication with stakeholders

– Training in MRP
– Good project management
© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Managing ERP Projects
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Implementation factors
– Re-engineering business processes
– Changing corporate culture
– Project team
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Include business analysts on project team

– Management support
– Commitment to change

ã

Risk management
â Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Factors in Successful ERP
Projects
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Customization
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–

•

Increases time and cost
BPR advantage from “best practices” adoptions lost

Use of external consultants
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•

Offer expertise in cross-functional business processes
Problems arise when internal IT department not involved

Supplier relationship management

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•

Need effective relationships to facilitate and monitor
contracts

Change management
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•

People are resistant to change
Organizational culture fostering open communications

Business measures
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Create specific metrics at start of project
© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Project-Related Factors
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Project division into subprojects
Project leader with proven track record
Project focus on user needs instead of
technology
Project champion
Slack time in project schedule

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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Additional Factors in the Success
of a Project
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User training
– Focus on business, not just technical
– Critical

•

Management reporting requirements
– May need to add query and reporting
tools

ã

Technological challenges
Data conversion
Interface development
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© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

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FoxMeyer versus Dow Chemical
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FoxMeyer
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Project went over budget because of new client
Implemented two new systems at same time
Technical issues with the ERP software
No open communications
Unrealistic expectations on ROI

Dow
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Had project implementation problems
Dow had strong leadership and project champion
Was able to adjust scope and maintain control
Fostered open communications

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

8-16/24


Featured Article: FoxMeyer’s Project Was
a Disaster. Was the Company Too
Aggressive or Was It Misled?
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Was FoxMeyer misled?
What strategies could have been put
into place to avoid the project disaster?
What business misjudgments
occurred?

Was FoxMeyer’s failure due to
technology failure or business failure?
© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

8-17/24


Featured Article: FoxMeyer’s Project Was a
Disaster. Was the Company Too Aggressive or
Was It Misled?, continued

•

Nation’s fourth largest pharmaceutical
distributor
– 1990s engaged in enterprise-wide
software and warehouse automation
project
– Filed Chapter 11 in 1996
•

Claimed to be misled by SAP, Anderson
Consulting, Pinnacle Automation
– Claimed vendors oversold capabilities
– Computer integration problems topped $100 million
– Vendors blame management

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

8-18/24

Featured Article: FoxMeyer’s Project Was a
Disaster. Was the Company Too Aggressive or
Was It Misled?, continued
•

Background
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FoxMeyer had orders for over 300,000 items per
day, anticipated much growth
•

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Processing hundreds of thousands of transactions each
day

Old system was Unisys mainframe
Wanted scalable client/server system
Tested SAP’s software on both DEC and HP
against benchmarks
Implementations scheduled by Andersen for 18
months
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Modules to be implemented in 2-3 months
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Unrealistic – could take up to 12 months
All modules fast-tracked

© Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

8-19/24


Featured Article: FoxMeyer’s Project Was a
Disaster. Was the Company Too Aggressive or
Was It Misled?, continued
– Two systems for most important business
systems
•

SAP supplied the accounting and
manufacturing software
– Claims volume was issue

•

Warehouse system from McHugh Software
International
– Purchased through Pinnacle
» Pinnacle also supplied some hardware

ã
ã

Added complexities to project
Functional holes in systems

â Prentice Hall, 2005: Enterprise Resource Planning, 1 st Edition by Mary Sumner

8-20/24