300 Quotes for ERP Implementations

Brett's Hobby

My Little Hobby

 

Not sure if I’m wiser but as part of my knowledge sharing efforts, I would like to share 300+ quotes from over 50 books/resources that have influenced/guided my ERP journey.  Nothing beats “hands-on” experience but trust you may find some value.  These quotes are grouped into the following areas:

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FYI:  I’m working on gathering 300 quotes.  Not there yet but I’m still reading and exploring.  Education never ends.

Requirements Management

“For any organization there are just a few key processes that handle the core business.  All the other processes support the key processes on a certain aspect.” ERP: Tools, Techniques, and Applications, Carol Ptak, Eli Schragenheim.

“To maximize a revenue-supporting process is illogical as it will take effort away from revenue-generating business processes.” Bill Curtis.

“Rules always cost the business something.  This cost must be balanced against business risks.” Principles of the Business Rule Approach, Ronald Ross.

“Reduce complexity through standardization.” Lean Six Sigma for Service, Michael L. George.

“Organizations with broken systems typically suffer from broken business processes and vice versa.” Why New Systems Fail, Phil Simon.

“The cost of control obviously should not exceed the cost of inaccuracies.” ERP: Making It Happen, Thomas Wallace & Michael Kremzar.

“Testing is the only way to ensure that you have satisfied all of the requirements for accurate data.” Consider, Select & Implement an ERP system, O’Sullivan, Rico, Goldensohn.

“Making the effort to understand your customer’s expectations can save a lot of friction and extra work.” Rapid Development, Steve McConnell.

“A key aspect of enriching mental models is bringing assumptions to light.  People’s assumptions are their blind spots.” Developing Knowledge-Based Client Relationships, Ross Dawson.

“Not all process-integration problems are technical and not all about IT.  Integrating computer systems is not the same as integrating the business.” Business Process Management – the Third wave, Howard Smith and Peter Fingar.

“Adaptive approaches are good when your requirements are uncertain or volatile.” Agile Project Management, Agile Software Development.

“A common mistake is to design and configure the system for only the first site and worry about the others later.” Control Your ERP Destiny, Steven Scott Phillips.

“The cost of complexity isn’t offset by what you can charge.  Complexity creates opportunities for you to fail your customer.” Gerand Arpey – President of American Airlines.

“Customers tend to interpret requirements broadly, and developers tend to interpret them narrowly.”, Rapid Development, Steve McConnell.

“The proposed process designs should always be designed within the logic of the ERP systems.” Maximize Return on Investment Using ERP Applications, Worster, Weirick, Andera.

“The ability to trace requirements flow from their source (originator), through the various project phases (design, prototyping, customizations, testing, piloting, and delivery) is a requirements generation best practice.” Directing the ERP Implementation, Michael Pelphrey.

“If you do not define the lowest level of detail required for reporting, you will not be able to design the transaction input to achieve that result.” ERP Implementation Best Practices Success And Cautionary Tales, Valerie Campbell CPA CGMA.

“When managers of a company select an ERP package to implement, they are “buying into” the ERP vendor’s view of a certain industry’s best practices and relying on the system to support their efforts to embrace these practices.” Modern ERP.  Marianne Bradford.

“Paralysis through analysis” is a futile attempt to develop the perfect solution.  Control Your ERP Destiny. Steven Scott Phillips.

“Iterations systematically reduce the trade space, grow the knowledge of the solution, and increase stakeholder buy-in.  At the same time, each iteration, or spiral, is planned to mitigate specific risks in the project.”  Evolutionary Process for Integrating COTS-Based Systems (EPIC), Carnegie Mellon – Software Engineering Institute.

“Requirements creep must first be differentiated from requirements evolution (elaboration).” Agile Project Management. Jim Highsmith.

“If you’re using a waterfall model, forgetting something can be a costly mistake.  You don’t find out until you get down to a system testing that one of the requirements was missing or wrong.” Rapid Development, Steve McConnell.

“The advantage of the incremental approach is that the company can get feedback on the implementation and how it is received and possibly fin tune the implementation strategy.” ERP Demystified, Alexis Leon.

Results-Oriented

 “How you gather, manage, and use information will determine whether you win or lose.” Bill Gates.

“Improvements in the use of the ERP system are an outcome of improvements in the process.”  ERP – The Implementation Cycle, Stephen Harwood.

“Be open to new ways to accomplish the same goal.” The Executive Guide to Implementing Accounting Software, Ken E. Sebahar.

“Competitive advantage comes not from systems, but from doing something better than competitors. “ Mission Critical – Realizing the Promise of Enterprise Systems, Thomas Davenport.

“Whilst technology is a great enabler, it is not a panacea in itself.” ERP – The Implementation Cycle, Stephen Harwood.

“Often the problem lies not with the ERP concept. But in the demand for quick fixes and rapid cures to underlying structural problems.” e-Business Roadmap for Success, Dr. Ravi Kalakota & Marcia Robinson.

“Using an ERP system simply to run things in the same way as before implementation is a guarantee of disappointment.” Enterprise Resource Planning (ERP) The Great Gamble, Ray Atkinson.

“The goal should not be to fail fast but to learn fast.” R “Ray” Wang: An interview by Bob Morris, Ray Wang.

“ERP is first an attitude; second, a process, and only third, a set of tools.” ERP Demystified, Alexis Leon.

“An information system only has value when people use it correctly.” ERP – The Implementation Cycle,, Stephen Harwood.

“A company may employ the most sophisticated software in the world, but unless information is managed, timely, accurate, and complete, the system serves little purpose.” ERP Lessons Learned – Structured Process, Wayne L. Staley.

“Benchmarking has its limits.” The Reengineering Handbook, Raymond L. Manganelli, Mark M. Klein.

“One dollar of prevention spent on fail proofing strategies can be worth several thousand dollars of expensive fixes and rehabilitation.” ERP A-Z: Implementer’s Guide for Success, Travis Anderegg.

“The success of the Go Live day is measured by the lack of problems.” ERP – The Implementation Cycle, Stephen Harwood.

“One guiding tenet is every present: any change we administer should add more value, cost less, or deliver services more rapidly.” Transitioning the Enterprise to the Cloud, Ed Mahon, CIO at Kent State University.

“Optimizing individual function areas generally does not result in optimization of the whole process because, within departments, only individual activities are goal oriented.”  Business Process Oriented Implementation of Standard Software , Mathias Kirchmer.

“Utilize a “test first” approach.  Test scripts are written in advance of any configuration or development.” Secrets to a Successful COTS Implementation, Nick Berg.

“The first comprehensive picture of whether the accounting numbers balance and make sense will arise during the month end process.” ERP – The Implementation Cycle, Stephen Harwood.

“Users only care about their experiences.” Transitioning the Enterprise to the Cloud, Ed Mahon, CIO at Kent State University.

“Collectively employees do understand the processes, but individually, they do not.” Control Your ERP Destiny, Steven Scott Phillips.

Applying knowledge is the final step that makes the knowledge valuable. Developing Knowledge-Based Client Relationships, Ross Dawson.

“End results modeling and pilot room testing with the company can eliminate surprises and uncover almost all “invisible” ghosts in the closet”. ERP Readiness Checklist, Gerry Poe.

“In the absence of knowledge and ability you can expect lower utilization throughout the organization, incorrect usage of new processes and tools, a negative impact on customers and sustained reduction productivity.”  ADKAR – A Model for Change in Business, Government and Our Community.  Jeffrey M. Hiatt

“Content without the context of business process is meaningless.” Dennis Howlett.

“Reliability is results driven.  Repeatability is input driven.” Agile Project Management, Jim Highsmith.

Process thinking is a discipline. Maximize Return on Investment Using ERP Applications, Worster, Weirick, Andera.

“Are the business processes that will be automated clearly understood and documented?  An adage says, “If you don’t know where you’re going, any road will take you there.” The software equivalent is less positive “If you don’t know what it is you’re automating, no system will help””. Successful Packaged Software Implementation, Christine B. Tayntor.

“Decreasing variability early in the process has larger impact than decreasing variability late in the process.” Lean Software Development. Mary Poppendieck & Tom Poppendieck.

“The rule is efficiency never trumps effectiveness”. ERP Lessons Learned – Structured Process, Wayne L. Staley.

“Good design can’t fix broken business models.” Jeffrey Veen.

“All of the work that goes into development is not adding value until the software is in the hands of the customer.”  Lean Software Development, Mary Poppendieck & Tom Poppendieck.

“The way to reduce the impact of defects is to find them as soon as they occur.” Lean Software Development.  Mary Poppendieck & Tom Poppendieck.

“Optimizing a business function is futile and non-value-added if it is not part of a revenue/competitive business process.” Maximize Return on Investment Using ERP Applications. Worster, Weirick, Andera.

“Remember that if you fail to implement, who cares what the software (ERP) does?” Modern ERP, Marianna Bradford.

“Standardization is the key antidote to low productivity.” Lean Six Sigma for Service.  Michael L. George

“You give me good people and a great process, and we’ll beat any organization with the best technology but a poor process and under motivated people.” Information Week – Focus on the Process.  Doug Patterson, VP and CIO.

Organizational Enablement

“Untrained (or under trained) users may end up needing three to six times as much support as end-users who have been trained.” ERP: Tools, Techniques, and Applications, Carol Ptak, Eli Schragenheim.

“Experience shows that the greater employee involvement in the change, the greater the positive response in understanding the compelling need for the change and the sharing of the vision.”Managing the Change Process, David K. Carr, Kelvin J. Hard, William J. Trahant. Coopers & Lybrand Center of Excellence for Change Management

“Prototyping and testing provides one of the highest forms of learning that ERP team participants can receive.” ERP A-Z: Implementer’s Guide for Success, Travis Anderegg.

“An ERP system cannot be installed without the capability of an organization to change.”ERP A-Z: Implementer’s Guide for Success, Travis Anderegg.

“People are one of the hidden costs of ERP implementation.  Without proper training, about 30 to 40 % of front-line workers will not be able to handle the demands of the new system.” Consider, Select & Implement an ERP system, O’Sullivan, Rico, Goldensohn.

“The users of the ERP will be confronted with a huge amount of data; most of the data will have no relevancy to any decision that needs to be considered.”ERP: Tools, Techniques, and Applications, Carol Ptak, Eli Schragenheim.

“Operation and maintenance phase begins with a period of initial struggle until people become comfortable in their roles and tasks.  The duration of this stage depends on how effective the training was.” Enterprise Resource Planning, Alexis Leon.

“Old adage is true: the longer the work stays in process, the more it costs.” Lean Six Sigma for Service, Michael L. George.

“Every forward-thinking enterprise values productivity, which is one of the first things to suffer when technological systems are not end-user-friendly.”, Enterprise Resource Planning, Alexis Leon.

“When data cleansing or manual translations are required, end users should be part of the team.” Successful Packaged Software Implementation, Christine B. Tayntor.

 “Untrained users simply do not take advantage of the system for the intent that is was purchased.” Enterprise Resource Planning , Alexis Leon.

“Education may be viewed as understanding of concepts and practices. Training, however, if the application of education into day-to-day events.” Directing the ERP Implementation, Michael Pelphrey.

“Maintain the project team for at least 1 month after the go-live date.” Consider, Select & Implement an ERP system, O’Sullivan, Rico, Goldensohn.

“Manual input of data is the best possible training method.” The Executive Guide to Implementing Accounting Software, Ken E. Sebahar.

“People can’t be controlled like machines: Service processes are far more dependent on the interaction of people (both internal handoffs and working with customers) than are manufacturing processes.” Lean Six Sigma for Service, Michael L. George.

“Go at a pace that suits the organization’s readiness.” Lean Six Sigma for Service, Michael L. George.

“The logic is inexorable – the better the training, the faster you will see the business metrics move in the direction you are looking for.”  ERP Demystified. Alexis Leon.

“Without change, performance would never improve. Modern ERP.”  Marianne Bradford.

“Resistance, in many cases, is simply a sign of a lack of communication.” ERP A-Z: Implementer’s Guide for Success, Travis Anderegg.

“How can one manage change if one does not understand exactly what is changing”. ADKAR – A Model for Change in Business, Government and Our Community, Jeffrey M. Hiatt.

“There are limits to how much change an organization and its end users can stomach at once.” Why New Systems Fail. Phil Simon.

“In an organization undergoing change, building a resilient work force by widely disseminating the change vision and strategy and by minimizing disruption is essential.” Managing the Change Process, David K. Carr, Kelvin J. Hard, William J. Trahant. Coopers & Lybrand Center of Excellence for Change Management.

“Train and then re-train: The best approach to training is to do it several times. Once is not enough. Three recommend points of training are follows are: On Design, Before test, Post go-live.” Top 5 Recommendations to Ensure Your ERP Implementation is Successful, Sandeep Walia.

“If you think education is expensive, try ignorance.” Derek Bok.

“Although consultants may participate in testing to some extent, employees should drive the majority of testing.  Doing so maximizes knowledge transfer and readies them for real life under the new system.” Why New Systems Fail. Phil Simon.

 “A common mistake made by many business leaders is to assume that by building awareness of the need for change they have also created desire.”  ADKAR – A Model for Change in Business, Government and Our Community,  Jeffrey M. Hiatt.

“Every organization that implements an ERP system is, in effect, reengineering.” Modern ERP, Marianne Bradford.

“A time-tested maxim in training is always to build on what you know.” Principles of the Business Rule Approach.  Ronald Ross.

“The development of knowledge is an iterative process, in which experience and lessons provide the basis for deeper understandings in ongoing feedback loops.” Developing Knowledge-Based Client Relationships, Ross Dawson.

“Nothing is more irritating than being forced to serve the system instead of the system serving the customer”, ERP Information at the Speed of Reality.  Wayne L Staley.

Rapid Implementation

“In order to do rapid implementations, trade-offs must be made.” E-Business and ERP, Murrell G. Shields.

“Rapid Implementations: The data cleanup must start early in the project for the organization to be prepared for the data conversion.” E-Business and ERP, Murrell G. Shields.

“Rapid implementation cannot be done with a massive project team.” E-Business and ERP, Murrell G. Shields.

“Deliver sooner rather than later.  It is rare to get 100% support for any project; “fence sitters” will wait to see how things turn out before giving their support.” Modern ERP, Marianne Bradford.

“The training in a rapid implementation should be hands-on.” E-Business and ERP, Murrell G. Shields.

“The four key characteristics or enablers of knowledge transfer in communication are: (1) Interactivity, (2) Bandwidth, (3) Structure, (4) Reusability.” Developing Knowledge-Based Client Relationships, Ross Dawson.

“Good people can make a bad system work; bad people can’t make a good system work”.  The Reengineering Handbook. Raymond L. Manganelli, Mark M. Klein.

“The “Train the Trainer” Pitfall: It is not realistic to assume someone can be trained several weeks before the go-live and expect him/her to deliver quality training.” Control Your ERP Destiny.  Steven Scott Phillips.

Data Conversion

“If your existing data is inaccurate and unreliable a new software system will not fix that.” Consider, Select & Implement an ERP system. O’Sullivan, Rico, Goldensohn.

“In order to increase the chances that the conversion will go smoothly, do a dry run test of the conversion plan prior to the real go-live.” Control Your ERP Destiny. Steven Scott Phillips.

“When implementing a new ERP system you need to start data migration from the existing legacy business systems as soon as possible.” ERP Demystified. Alexis Leon.

“It is recognized that information accuracy is not a system problem, but rather a management problem.” Directing the ERP Implementation. Michael Pelphrey.

“Do it once, right at the source.”  Principles of the Business Rule Approach, Ronald Ross.

“The data migration phase of a project can consume up to 30% of the total project resources.  The most common flaw in data migration planning is that too few resources are invested in it.”  Top 10 Reasons Why Systems Projects Fail. Dr. Paul Dorsey.

“Extracting and cleansing the data from the existing system can be the single largest task in the project.” ERP Demystified.  Alexis Leon.

Evaluating Consulting Partners

“Consultants are there for guidance, but the final say regarding implementation should fail upon the management’s responsibility.” ERP 308 – Most Asked Questions, Leonard Frost.

“No implementation partner will have a complete appreciation of the customer’s business solution until the customer makes the investment to perform knowledge transfer with the implementation partner.” Max Your Investment: 10 Key Strategies for ERP/COTs Success, Brett Beaubouef.

“There is a misguided belief that experienced consultants face no learning curves with the software.”  Control Your ERP Destiny.  Steven Scott Phillips.

“Competent ERP implementation partners should be able to provide industry and configuration best practices day one.”  Max Your Investment: 10 Key Strategies for ERP/COTs Success. Brett Beaubouef.

“The more the consultants know about the company the better they will be equipped to provide good advice.”  ERP A-Z: Implementer’s Guide for Success, Travis Anderegg.

“Bait and switch.  This is the practice of displaying certain consultants, during the sales process, to show the sales company understands business and the ERP implementation process to ensure a successful outcome.” Enterprise Resource Planning (ERP) The Great Gamble, Ray Atkinson.

“Have successful project managers who are capable of anticipating what can go wrong.” ERP Demystified, Alexis Leon.

“No company, no manager is sufficiently brilliant to think about all of the complexities and complications inherent in a cross-functional ERP project.” Mission Critical – Realizing the Promise of Enterprise Systems, Thomas Davenport.

“Overspend on consultancy is often compensated for by a cut-back in training.  This is not helped by the fact that training costs tend to be under-estimated in the first place.” ERP – The Implementation Cycle, Stephen Harwood.

“The less you know the more money they (consultants) make.” Control Your ERP Destiny, Steven Scott Phillips.

“Where knowledge transfer is a key objective, project handover should be formalized, rather than just letting the engagement end.” Developing Knowledge-Based Client Relationships, Ross Dawson.

“Process is not a substitute for skill.” Agile Project Management, Jim Highsmith.

“Selecting the consultants (and an implementation methodology) is as important as selecting the (ERP) package.” ERP Demystified. Alexis Leon.

“There is often a level of arrogance in ERP consultants who are taken with replacing existing systems, a level of arrogance that is generally counter-productive.”  Maximize Return on Investment Using ERP Applications, Worster, Weirick, Andera.

“It is better to know all the questions than some of the answers.”  James Thurber.

“There is no such thing as an easy implementation of an ERP project.” Enterprise Resource Planning (ERP) the Great Gamble. Ray Atkinson.

“Discipline creates well-organized memories, history, and experience.” Balancing Agility and Discipline. Barry Boehm, Richard Turner.

“(ERP) Service organizations are essentially big “people machines”, where having a high level of turnover is just as deadly as if a manufacturer was constantly asked to change machine parts.” Lean Six Sigma for Service. Michael L. George.

“Implementation audits are necessary to keep the project on track.  Audits should be conducted to compare project results, business objectives, systems objectives, and project objectives.” Directing the ERP Implementation. Michael Pelphrey.

“Claims of ‘proven paths’, ‘best practices’, and simplistic implementations methodologies, that fail litter the ERP landscape as each software company seeks to gain some form of advantage over its rivals. “Enterprise Resource Planning (ERP) the Great Gamble. Ray Atkinson.

Creating documentation is far easier than generating decisions.  Producing a great volume of documentation does not result in producing a great amount of knowledge.” Max Your Investment: 10 Key Strategies for ERP/COTs Success, Brett Beaubouef.

ERP Innovation

“Machine learning is a logical progression, not a human inspiration.” Brett Beaubouef.

“Roles are finite.  People are infinite.” Agile Project Management, Jim Highsmith.

“Knowledge often emerges from the collaboration of people with very different ways of looking at their field.”  Developing Knowledge-Based Client Relationships, Ross Dawson

“As the level of control increases, the level of innovation decreases.” Max Your Investment: 10 Key Strategies for ERP/COTs  Success, Brett Beaubouef.

“Interaction drives innovation.  Innovation emerges from the interaction of diverse individuals.” Agile Project Management, Jim Highsmith

 “Digital Darwinism is unkind to those who wait.” R “Ray” Wang: An interview by Bob Morris, Bob Morris

“What businesses need is not a one-time fix for individual processes but an environment that combines business and technical systems to produce processes that flex and recombine as required by changes in the market.” Business Process Management – the third wave, Howard Smith and Peter Fingar.

ERP Project Success

“A real configuration of an ERP system can only happen when there is real data in the system.”  Enterprise Resource Planning “Alexis Leon.

“Control is not a cost effective substitute for education.” Brett Beaubouef.

“As Tom DeMarco and Tim Lister (2003) so pithily state, “If a project has no risks, don’t do it.” Risk is an essential characteristic of innovation”.”, Agile Project Management, Jim Highsmith.

“Cost overruns are manageable if the project will achieve worthwhile benefits; however, failing to satisfy business goals is always unacceptable.” Principles of the Business Rule Approach, Ronald Ross.

“Customers like rapid delivery.  Rapid delivery means companies can deliver faster than customers can change their minds.”  Lean Software Development, Mary Poppendieck & Tom Poppendieck.

“Lack of alignment of ERP system and business processes is a major issue in the implementation of ERP.” ERP Implementation Challenges & Critical Organization Success Factors, Rajeshwar Vayyavur.

“A hybrid (cloud) model will add complexity”.  Transitioning the Enterprise to the Cloud, Ed Mahon.

“It is important to recognize how fast ERP team members, and organizations, can acquire new knowledge.” ERP A-Z: Implementer’s Guide for Success, Travis Anderegg.

“You can have a cheap, fast or quality implementation, but you only get two”. How to select your ERP without losing your mind, Andy Pratico.

“Understand the implications of the decisions you make.” Rapid Development , Steve McConnell.

“Industry leaders have not effectively defined the set of business skills that should be included in any ERP consultant’s educational process.” Maximize Return on Investment Using ERP Applications, Worster, Weirick, Andera.

“One of the biggest mistakes during ERP projects is not taking the time to build a common understanding of how business is conducted today and potential improvement opportunities.” Control Your ERP Destiny,  Steven Scott Phillips.

“If the project becomes all things to all people, it will fail to meet anyone’s expectations.” Control Your ERP Destiny, Steven Scott Phillips.

“A consultant with software knowledge is one thing, but if the consultant is a poor communicator, it undermines the transfer of knowledge.”  Control Your ERP Destiny, Steven Scott Phillips.

“Job 1 is to run the business.  Very close to that in importance should be implementing ERP.” ERP: Making It Happen, Thomas Wallace & Michael Kremzar.

“A methodology will help ward off risk, but a contingency plan is still absolutely necessary.” ERP Demystified, Alexis Leon.

“The lesson here is that organizations will encounter great peril when the system they seek to install does not fit their culture.” Mission Critical – Realizing the Promise of Enterprise Systems, Thomas Davenport.

“ERP Success: Know what features and objectives will NOT be included in the project.” The Executive Guide to Implementing Accounting Software, Ken E. Sebahar.

“Regarding methodologies, there is nothing new under the sun.  Every methodology is based upon a set of rules, environmental conditions and assumptions.  All have strengths and challenges that must be addressed for success.” Max Your Investment: 10 Key Strategies for ERP/COTs  Success.  Brett Beaubouef.

“Due diligence may feel like a waste of time and money, but weighed against the high cost of failure, it is imperative.” ERP Information at the Speed of Reality, Wayne L Staley.

“There must be awareness throughout the organization of the importance of scope management.” E-Business and ERP  , Murrell G. Shields.

“The longer the timeframe and the further apart the milestones in a project, the harder it is to create a sense of urgency.” E-Business and ERP, Murrell G. Shields.

“Plans are worthless, but planning is everything.” General Dwight Eisenhower.

“Deferring decision(s) will cause significant risks to the (ERP) project success.”  Directing the ERP Implementation, Michael Pelphrey.

“Many of the major decisions and actions that ultimately determine whether a project is a success or a failure occur very early in the life of the project.” E-Business and ERP  , Murrell G. Shields.

“The best people for the project are likely to be those who have the least free time, since they are already in key positions.” ERP – The Implementation Cycle, Stephen Harwood.

“Success is not to be found in excellent project management alone. ADKAR – A Model for Change in Business, Government and Our Community, Jeffrey M. Hiatt.

“There are literally thousands of decisions that must be made on these projects.  The project team must be empowered to make most of them.  That is one reason organizations must put their best people on these teams.” E-Business and ERP  ,Murrell G. Shields.

“The rumor mill and grapevine are active in most companies, and it is in the project team’s best interests to preempt them by providing clear, consistent, targeted, and ongoing communications.”  Successful Packaged Software Implementation, Christine B. Tayntor.

“But technology is not reengineering.  Reengineering changes the business processes – the way the work is done.”  The Reengineering Handbook, Raymond L. Manganelli, Mark M. Klein.

“Projects that skimp on upstream activities typically have to do the same work downstream at anywhere from 10 to 100 times the cost of doing it properly in the first place.” (Fagan 1976; Boehm and Papaccio 1988).  Rapid Development, Steve McConnell.

“The success or failure of a new system hinges directly on the acceptance of that system by the organization’s end users.” Why New Systems Fail, Phil Simon.

“The goal of an integrated enterprise is to reduce information float, that is, the time between when data is captured in one place in the system and when it becomes available and usable.  e-Business Roadmap for Success.  Dr. Ravi Kalakota & Marcia Robinson.

Chris Koch of CIO.com writes, “Blank sheet reengineering can lead to unrealistic business process designs that can’t be implemented through enterprise software.”.

“A major cause of this difficulty (failures) is that organizations building these systems tend either to assume that components can be simply thrown together or they fall back on the traditional engineering skills and processes with which they are familiar-skills and processes that have been shown not to work in the building of COTS- based (ERP) system.” Evolutionary Process for Integrating COTS-Based Systems (EPIC) Carnegie Mellon – Software Engineering Institute.

“Agile methods universally need close relationships with the customer and users of the systems under development.”  Balancing Agility and Discipline. Barry Boehm, Richard Turner.

“The truth is, no organization plans to fail – rather, they fail to plan…” Control Your ERP Destiny, Steven Scott Phillips.

“Two overriding criteria that mast be present if the implementation of a COTS solution are to be successful: realistic expectations and organizational flexibility.” Successful Packaged Software Implementation. Christine B. Tayntor.

“Planning can become mechanistic and succumb to a checklist mentality.” Balancing Agility and Discipline.  Barry Boehm, Richard Turner.

“The longer a team, large or small, goes without delivering an integrated product to a review process, the greater the potential for failure.” Agile Project Management. Jim Highsmith.

“Inclusion of end users promotes acceptance of the solution and helps break down “us versus them” barriers.  Working together, the two groups will provide a balanced evaluation.”  Successful Packaged Software Implementation, Christine B. Tayntor.

“It is only prudent to allow for some slippage in time and budget, and not to count on full project functionality until after testing and installation are complete.” Managerial Issues of Enterprise Resource Planning Systems, David L. Olson.

Maximizing Total Cost of Ownership

“ERP systems will not exhibit their full potential unless they are properly integrated with other enterprise software applications.”  ERP Demystified. Alexis Leon.

“ERP is a philosophy for operating a business model.  If your company does not want to adapt to this philosophy, save yourself the headache and don’t pursue ERP.” Directing the ERP Implementation. Michael Pelphrey

“Implementing the ERP system and realizing the promised benefits are two different ball games. Implementation can be a success, but if the operational phase is not planned and organized properly with the support of all the people involved, then the promised benefits will not materialize.”  ERP Demystified.  Alexis Leon.

 “Achieving early wins and optimizing user buy-in can pave the way for controlling both political and fiscal costs down the road and increase the chances of delivery project on time and on budget.” Total Cost of Ownership: A strategic tool for erp planning and implementation. Richard West, Stephen L. Daigle – California State University.

 

 

 

 

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ERP Project 101: Challenging ERP Requirements

I am not arrogant enough to believe that ERP software vendors are the guardians of best practices.  Nor do I blindly subscribe to the notion that the customer is always right.  What I do know and believe is that a good implementation partner will balance customer needs and wants with the fundamental value proposition of the ERP software to ensure customers have relevant information to make informed decisions.  The following blog posting will discuss some practical guidance that implementation partners can utilize to vet business requirements.

You must be given permission to challenge customer requirements

Regardless of your previous experience or how smart you think you are in order to be effective as an ERP implementation partner, you must be given permission by the customer to challenge their ERP requirements.  It is rare to receive this permission automatically but rather it must be earned by the implementation partner.  Following are core principles I use to earn that permission:

Vetting ERP Requirements

Earning the Right to Challenge Requirements

 

Knowing ERP functionality is simply not good enough.  A competent implementation partner is able to advise and influence their customers to draw the right conclusions and make informed decisions.  Next we will discuss how a good consultant guides the customer towards making an informed decision.

Lead by asking informed questions

In my early days of ERP consulting, I was taught to ask open-ended questions to prompt the customer to provide as much information as possible.  I agree with this approach as long as the information is value-add and guides the customer down the right path.  Too often I see ERP consultants mindlessly ask the customer 100+ ERP functional questions that focus more on “how” than “what” and “why”.  The following illustration provides key concepts that questions should drive customers to consider: 

Asking the Right Questions

Asking Informed Questions

 

Use questions to educate.  Use questions to persuade.  Questions should lead your customer to challenge assumptions and perceptions in their current environment.  A perceived requirement may be a limitation of the current system or organizational structure.  Just remember that asking the right questions is just the beginning to changing minds.

The best pressure is peer pressure

As a third-party external resource with limited knowledge of the customer’s business model, there are limitations implementation partners will have on generating customer ownership and adoption.  What consultants should do is facilitate and promote a process where relevant information is presented and evaluated.    Do not evaluate business requirements in functional silos but as part of the larger business process across all business stakeholders.  Visibility across the business process creates accountability – especially with peers within the customer’s organization.

Results of Business Requirements

Understanding the Impact of Business Requirements

 

The basic value proposition of ERP systems is providing the automation of best practices – that is common business practices – across a broad market/industry.  A direct contradiction against this key benefit is when a business requirement has to be addressed via a software customization.    Additional scrutiny listed above should be undertaken to validate the additional investment required.

Not challenging business requirements is a disservice to customers

A fundamental expectation that customers have for ERP solutions is to have a flexible and cost-effective business solution.  A key assumption required for cost-effectiveness is that ERP “out of the box” functionality addresses the majority of the customer’s business model.  Customizations have both a short-term and long-term impact on cost effectiveness.   I am not arrogant enough to state that ERP software addresses all the best practices a customer may be utilizing.  However, I have observed too many ERP implementation partners take the easy option of catering to user requests without leading the customer through a critical analysis to determine both the short-term and long-term implications of a specific customization. There are legitimate needs for customizations.  It is not an ERP implementation partner to prevent customizations but rather to ensure that customers have appropriate expectations and conclusions as a result of their implementation decisions.

Summary

In my humble opinion, good ERP implementation partners educate their customers in how to best utilize ERP software to support their business.  This not only requires ERP software knowledge and but more importantly requires the business acumen to understand current requirements and advise on future requirements.  Customers, if you are looking for an implementation partner that can act as a leader then you will have to pay a higher rate versus a staff augmentation partner.   ERP vendors play a very important role during an implementation – especially where it comes to best practices that are not delivered out of the box by the ERP software.  ERP vendors should provide multiple processes and examples of working with customers to influence software roadmaps and/or co-develop automated solutions.  Action speaks louder than words!  True partnership requires an investment from every player.

ERP Project 101: Organizational Fit Gap

I think we can all agree that organizational fit is a key consideration for successful ERP selections and implementations.  However, mention the phase “fit/gap” or “gap analysis” and most people will fixate on the ERP software.  There are several examples of functional/software fit-gap templates/activities but very few organizational fit-gap templates/guides.  The goal of this blog is to shed some light on this very important activity.

 What is an Organizational Fit/Gap?

An organizational fit/gap analysis is a comparison of the customer’s existing organizational model that supports the business to the defined organizational model supported (or assumed) by the ERP system.  Consider the following illustration: 

Org Gap Analysis

Organizational Fit Gap Analysis

If you do not know what is changing in the organization then how can you manage organizational change?  Too often I see ERP projects only focus on the “To Be” model and expect business users to figure out how to transition. I have also observed that customers see organizational change activities as an opportunity to reduce implementation costs by performing the activity themselves – regardless of their capabilities. 

In order to effectively conduct an organizational fit/gap analysis there are two key sources of information that are required: 

Information   Source Comments
Customer’s Organizational Structure and Business   Processes A   majority of peers and customers believe that this exercise is a non-value-add activity given the imminent organizational change that will occur as part of   the ERP implementation.
ERP Business Process Maps Consider   ERP business process maps as a demonstration by the ERP vendor to show how   their ERP software supports business processes.

Just as you perform a formal Fit/Gap analysis on ERP functionality you should also consider performing a formal organization Fit/Gap analysis as illustrated below:

Organizational Gap Analysis for ERP

Template to identify possible organizational changes based upon predefined ERP roles/responsibilities

An organizational fit/gap analysis should be performed during the ERP selection stage and refined during the early design stages of the ERP implementation.  Do not limit yourself to performing this exercise only once.  The analysis performed during an organizational Fit/Gap will drive future decisions and implementation activities.

What Activities should an Organizational Fit/Gap Influence?

The organization fit/gap analysis will have a direct impact on your organization change management plan and communication plan.  In addition, this analysis will provide insight into user security requirements.  Utilizing this approach will highlight how well the predefined ERP user security profile(s) align to the organization’s existing users.  As a general rule, the majority of predefined ERP workflows are based upon predefined user security roles; therefore keep in mind that ERP user security profile changes may require additional testing for related ERP workflows. 

Why Do We Need a Formal Organizational Fit/Gap?

Conducting a formal organizational fit/gap enables you to quantify the level of change.  Instead of taking a broad stroke at managing change you can provide a focused effort to accomplishing your objective. Remember that people are the most important component of a business solution.  Given the importance I believe that formalizing this activity is worth the investment.

Summary

Predefined ERP implementation tools, templates, roles can provide limited value to an implementation.  Too often the ERP market wrongly perceives that these predefined components result in faster implementations.  This misconception is most pronounced in the ERP SaaS/Cloud arena.  At the end of the day, an ERP implementation should only move as fast as the customer can handle the change.  Conducting a formal organizational fit/gap can enable the customer to adapt faster by focusing on the specific changes required for success.

Troubleshooting ERP Projects

During my career in ERP consulting I  had several opportunities to be involved in deployment of emerging ERP products and services.  As with any innovation rollout there are challenges to overcome and I had to learn how to quickly triage ERP projects for success.  Troubleshooting an ERP project is more than just performing an assessment – it’s implementing a realistic action plan and making it work for all stakeholders involved.   Following is a tested and proven approach to jumpstart stalled ERP projects.

Method

Similar to a Forest Fire Hotshot I typically got dropped into a “hot” ERP project that had stalled or had serious show stoppers.   Time is always against you.  However, you must first put in the effort to objectively understand the situation and establish your credibility:

Troubleshooting ERP Challenges

Troubleshooting ERP Projects

Too often I see project managers jump into the details (WBS, Risks, Issues, CPI, SPI, Cost) without first understanding the context.  You cannot be perceived as a busy body looking for who dropped the ball.  Vendors, Customers, and System Implementers are made up of people.  People make mistakes – especially me.  People don’t care what you know until they know you care.   It will be people – not technology – that will play the biggest role in getting the ERP project back on track.

Before hitting the ground running you first need to do your homework.  As part of an ERP assessment it is important to review the key project artifacts generated and updated throughout the project.

Key Project Documents

Key Project Documents

This is the easy part and it is usually a simple process to review and evaluate.  If a project scope statement does not exist or is not well-defined then chances are this absence is contributing to the problem.  Creating or refining the project scope statement is a very small part of the action plan you need to execute.  Now, let’s turn our attention to the implicit artifacts and information that are harder to identify and resolve.

Understand the Underlying Drivers

ERP vendors,  System Implementers (SIs), and Customers want their ERP implementation to be successful.  Yet there are fundamental drivers for each stakeholder  appears to be in contradiction.  Consider the following illustration:

ERP Stakeholder Implicit Drivers

ERP Stakeholder Implicit Drivers

Understanding the fundamental drivers of your stakeholders enable you to relate, empathize and align the efforts of all project stakeholders.  It is important to note that you need the efforts from ALL stakeholders for success – regardless of who is at fault.  I humbly submit that it is extremely rare when a single stakeholder is responsible or is at fault.  On the flip side it is even more extreme to have a single stakeholder solely responsible for saving the day.

Strategy & Execution

It is a straight-forward exercise to develop a plan for troubleshooting an ERP project but providing a plan by itself does not add business value.  How you execute and implement the plan is more important than the plan itself.  Many of my project management colleagues may not agree with my assessment but I am  convinced that this is true.  Following are my guiding principles for ERP troubleshoot efforts:

  1. Create quick wins.  Triage is required to stop the bleeding.  You need to quickly seize the initiative  and  create positive events.
  2. Attack problems from multiple angles.  If you have one approach get stonewalled you still have other ongoing activities to continue the march forward.  This means that you have contingency plans in flight.  Be aggressive.
  3. Triage is not the time for lessons learned.  There will be opportunity for reflection after the immediate problem(s) have been addressed.
  4. Problem solving is not about assigning blame.  You need every individual to have laser focus on resolving the problem and not on how to protect them own interests.
  5. All stakeholders must be willing to stretch outside their comfort zone.       Customer and vendors limit their response based upon contractual arrangements.  Partners think outside the box for mutual success.
  6. The answer lies within the team.  Many times the greatest impact you can have is to enable the  key players to recognize the solution. Communication skills will be vital to your success:
Communication Skills

Survival Skill – Communications

Summary

There is a fair amount of information available in books, articles, and blogs related to avoiding ERP problems and I agree that you should take reasonable steps to minimize known ERP problems.  However, I believe that it is prudent to be prepared for the “unknown unknowns” that always occur with any ERP project.  Troubleshooting ERP projects require process knowledge of project management fundamentals, problem solving techniques, and most importantly – perseverance.  Just like the rudder steers the ship, finding small success(es) can get your ERP project back on the path for success.

BPR, BPM and ERP

I had a customer ask me about the relationship between BPM and ERP.  Does ERP implement BPM or do you need to have BPM before ERP?  Is an ERP implementation a BPR project?  Who’s on first?  As the ERP industry evolves it has become evident that additional disciplines like Business Process Management (BPM) and Business Process Reengineering (BPR) must be employed for a successful ERP experience.  In the following blog posting I plan to define and demonstrate the roles that BPM/BPR play in the ERP lifecycle.

BPR, BPM, and ERP Revisited

Allow me to establish some basic definitions for our discussion:

  • Business Process Management (BPM) consists of methods, techniques and tools to design, deploy, control, and analyze operational business processes involving humans, organizations, applications, documents and other sources of information.
  • Business Process Reengineering (BPR) is the redesign of business processes – and the systems, policies, and organizational structures that support them – to optimize the work flows and productivity in an organization.
  • Enterprise Resource Planning (ERP) is integrated business software that supports multiple business functions across an enterprise.  ERP implies the use of Commercial Off-The-Shelf (COTS) packaged software rather than proprietary software written by or for one customer.

There are a couple of key concepts we should review to compare/contrast BPR and BPM.

Compare BPM and BPR

Compare & Contrast BPM & BPR

BPM focuses on the business process model to monitor, identify, and implement incremental improvements.  These improvements or eliminations fall within the fundamental rules, parameters, and culture established by the existing business model.  However, there comes a point in time where the law of diminishing returns applies and a transformation to the underlying business model is required.  A more aggressive approach like BPR must be utilized to evolve to the next level of business process maturity.  Consider the following illustration to demonstrate how BPM and BPR interact along the Capability Maturity Model Integration (CMMI):

 

BPR, BPM within CMMI

BPR, BPM within CMMI

Allow me to provide an example.  Company A performed a CMMI assessment of their purchasing process.  Results from the assessment showed that the purchasing process was defined for certain business sales (revenue stream) but not for all purchasing events (direct & indirect).  Another key finding was that there was no formal integration between demand planning, supply planning and purchasing which resulted in reactive purchasing. From the above CMMI reference, it was determined that Company A’s purchasing process is at the Managed level.  Company A implemented several incremental initiatives (BPM) to improve process execution including documenting purchasing tasks for all purchasing events and conducting periodic purchasing planning meetings with operations. 

Company A realized process improvement yet the value was limited by following model constraints: (1) each revenue stream (business line) had its own unique purchasing process & rules and (2) Purchasing had limited visibility across the entire supply chain.  Two fundamental mindsets have to change:

  1. Move from unique purchasing processes to a common enterprise purchasing model that is flexible enough to address the competitive requirements for each business line
  2. Enable Purchasing to have visibility across the entire supply chain to support a process-oriented management model versus a function-oriented management model.

Implementing these changes will require a formal, projectized (BPM) effort that will redefine existing business rules, culture, and business process activities.   As Company A continues to evolve their purchasing process they will conduct both BPM within the CMMI maturity level and BPR as they move to the next CMMI maturity level. 

How Do BPR, BPM, and ERP Relate?

ERP provides the automation of business activities.   There are two fundamental value propositions that ERP provide to customers looking to move up the CMMI maturity model

  1. ERP reduces the effort required to perform tactical business activities so customers can focus on strategic activities. Expanding on our purchasing example, this would include basic functionality like automating the creation of purchase orders, approving purchase orders, and matching purchase orders with receipts & supplier invoices.
  2. ERP provides the opportunity for visibility across business functions to support business process management.  That said, there are several factors that determine the level of visibility. 
ERP Business Process Visibility

Factors Impacting ERP Business Process Visibility

A competent ERP solution should provide robust, closed-loop integration between the functional modules provided out-of-the-box.  As a practical note, there is always a need to integrate ERP to legacy systems and this requirement should be not overlooked.  A business solution is only as good as its weakest integration.  Process consistency will enable a relevant comparison of results and management of business processes.

A mature ERP solution should provide automation and integration support for both tactical and strategic business activities across the CMMI model.   

ERP Evolution within CMMI

Interaction of BPR, BPM, and ERP within CMMI

I am a firm believer that business should lead and technology supports.  Therefore, as the business model evolves it is important to identify the corresponding ERP functionality to support the business activities.   This model also communicates that the best approach to implement ERP is to follow a logical maturity path for business processes.

Common ERP Misconception and Mistakes Related to BPR & BPM

Allow me to address some common misconceptions and mistakes made during ERP implementations related to BPR and BPM.

BPR is part of the ERP implementation.

While I agree that the initial ERP implementation will result in major changes with existing business functions, BPR will not happen unless there is a concerted effort to redefine the holistic business model and organizational structure to be successful with the ERP software.

Implementing ERP will give us BPM.

The direct answer is no.  ERP does provide an information foundation that can support BPM.  BPM is more about a discipline for managing processes and less about software. 

Do I need ERP to mature my business processes?

Technically speaking, ERP is not a hard requirement for BPM.   However, manual routine tasks and limited visibility hinder strategic activities.  ERP can play a key support role in automating business tasks and provide visibility through integration.

Should I implement ERP features that support business activities at different maturity levels?

Business realities will necessitate that customers implement ERP features supporting different CMMI maturity levels.    The problem lies in two areas:

  1. Customer expectations are not appropriate set regarding the limited value realized from mature ERP functionality due to less mature business activities supporting strategic activities.  Example:  A procurement process scorecard measuring standard Key Performance Indicators (KPIs) will have limited value if there is not a standard, enterprise procurement process.
  2. Implementation partners and business solution advisors should provide a short-term strategy and roadmap to evolve the supporting business activities to same level of maturity.   This approach provides a “quick-win” opportunity for customers to drive additional value from the existing ERP investment.

Summary

Understanding how BPR, BPM, and ERP should relate to one another can be a challenge.  Some believe that it is an “either or” proposition.  I do not subscribe to this school of thought but rather believe that BPR and BPM are disciplines that should be interweaved as part of your ERP application strategy.  Knowing and appreciating these interdependencies will put you in a better position for ERP success. 

Business to IT Alignment – A Practical Discussion

Business to IT alignment is an objective that most technology and business leaders would agree as essential for agility.  However, ask for a definition of Business to IT alignment or how to implement an alignment strategy and the likely results are conflicting information and vague guidance.  In the following blog I will try to add clarity to this topic as well as provide practical guidance.

Definition

Let’s start with a basic definition of Business to IT alignment by addressing some common misconceptions.  Business to IT alignment is far more than just Project Portfolio Management (PPM).  Business to IT alignment consists of several domains:

Knowledge Map for Alignment

Business – IT Alignment Domains

Several Tier I & Tier II ERP software vendors provide software solutions to address certain Business to IT Alignment requirements, including PPM and Communications (social collaboration).  However, it is important to remember that technology alone is not the answer.  Collaboration tools can be used to generate more noise than effective communication.   Also consider that having strategic initiatives stored in a common platform (ex. PPM) does not mean the all stakeholders share a common interpretation.    

Just as Business – IT alignment is more than just PPM, enterprise governance is much more than just IT governance.  In simple terms, enterprise governance is a process that ensures that enterprise capacity (Business, Operations, IT) are working on the right things at the right time to enable business goals. It’s a set of guidelines that focuses on organizational success while managing associated risks.  Alignment is hard to achieve when governance is not consistent across the enterprise.  Knowledge transfer is the most underestimated and misunderstood area.  Effective knowledge transfer is more about education and trust than software and templates.  Before one can be successful with Business – IT alignment it is important to fully appreciate the scope and breadth of effective alignment.  A viable alignment strategy must address the key challenges listed in the next section.

The Challenges of Business to IT Alignment

Consider the following alignment model.  This is a very simple model that I would like to use for discussion purposes.

Governance Model

Business – IT Alignment Governance Model

Allow me to highlight some key challenges associated with the traditional alignment model provided.  First is the notion that Business and IT operate separate silos.  Notice in the example above that there are separate Business and IT goals.  Thus, there must be an exercise to reconcile Business goals and IT goals to identify commonalities and gaps.  Practically speaking, given the level of effort required to align these separate strategies, a reasonable conclusion is that alignments occur periodically based upon corporate milestones.  This is where the model breaks down because effective alignment must be a daily activity.  Every business request from strategic initiatives to daily support tickets is an opportunity to reinforce alignment.  Another possible concern implied in this model is that the majority of alignment effort happens at the enterprise level.  Sustainable alignment must happen at every level within the organization.

A results-oriented alignment strategy must address the inhibitors of alignment.  Consider the following relationship between alignment and communication:

Alignment and Communication Inhibitors

Alignment and Communication Inhibitors

Success alignment requires successful communication.  Successful communication requires the effective use of all the key communication skills

Key Communication Skills

Key Communication Skills

Process is important but the soft skills like communications, emotional intelligence (empathy), and knowledge transfer will have the greatest import on long-term alignment success.

Practical Steps to encourage Alignment

Before you can start implementing practical steps you need to assess the level of alignment within your organization.  The Strategic Alignment Maturity model referenced below was developed by Dr. Jerry Luftman and is based upon the Capability Maturity Model Integration (CMMI).

CMMI - Strategic Alignment

Strategic Alignment Maturity

Once you have identified your current maturity level then you can devise realistic, increment steps to move forward to the next maturity level.  It is also important to periodically assess your organization’s alignment.  What gets measured gets done!

Summary

Why is Business to IT Alignment so hard? Consider the following statements to highlight  the key challenge with alignment.

Business vs IT Value Perspective

Business vs IT Value Drivers

Is Business to IT alignment an impossible goal? No, as long as a practical, measured approach is taken to achieve tangible results.  Business to IT alignment is a strategic goal that can only be reached by taking tactical steps to bring Business and IT closer together to generate mutual understanding and trust. When alignment is achieved communication is effective resulting in valued partnership.

The Next Evolution of ERP: Adaptive ERP

With the initial release of ERP, one of the key “game changers” was the ability of business users to access data and generates reports without direct IT involvement. This empowerment of the business user had a significant impact on business agility. Today, we continue to see ERP vendors focus on providing business-friendly tools for reporting and analysis.  Yet, I can see a new evolution brewing in the ERP industry what I like to call “Adaptive ERP” where business users can perform on-demand actions to meet business changes real-time.  In the next sections we discuss the key capabilities of Adaptive ERP and a practical assessment of where the ERP industry is today.

What is Adaptive ERP?

Adaptive ERP would enable business users to configure, simulate, test, and implement business technology changes with limited traditional IT services (ex. software development).  Predictive analysis will become a reality.  Logical thinking and search methods will be more valuable than technical syntax. Information will become context and even transactional specific.   Following is an illustration of the major domains that Adaptive ERP should address:

Adaptive ERP

Conceptual Model of Adaptive ERP

Domain:  Logical Development

Too often a change in the business model requires an IT development effort.  Any competent IT development will require the following activities:

  • Business requirements gathering
  • Technical design
  • Technical construction
  • Unit, System testing

In general, the greater the number of individuals involved in a project the greater the coordination/communication effort resulting in a greater time commitment.  Enabling business to become agile will require an evolutionary change in how ERP supports business activities.  However, simply removing people out of the equation is not the answer.  What is required is providing business owners the tools and experience required to become more self-sufficient.

Logical Development

Logical Development for ERP

Following is a brief list of the capabilities required to enable business users to perform logical development

  • Business models must be defined as metadata within the ERP software.
  • Business rules are separate from technical components and are exposed directly to business users.
  • Business scenarios are defined separate from the respective business models. Business exceptions are variations to a specific business scenario.
  • Business users should have the ability to run simulations in production (i.e. parallel testing)
  • ERP must provide automated testing support
    • Automated unit and system testing (self-learning via business model metadata).
    • Automated business process test scripting.
    • Test scripts are a results-oriented view of business requirements.
    • Automated impact analysis with logical development change.
  • Business users should be trained in logical and structured thinking.  There has to be a prescribed process to effectively conduct knowledge transfer with the ERP software.  Business users should be able to directly educate (i.e. configure) the ERP software on how they run their business.

Remember that a key value proposition for ERP is to reduce software development.  This is not an argument to eliminate IT but rather to refocus IT from tactical support to strategic activities.  IT will play a very important role in enabling business users in logical and structured thinking.

Domain: Predictive Analysis

Today, there is interest in Big Data and Enterprise 2.0 technologies but they are not the final destination.

Predictive Analysis

Predictive Analysis

At the end of the day, business decisions have an impact on business results. Enterprise 2.0 and Big Data are supportive technologies.  Enterprise 2.0 focuses on the utilization of Web 2.0 standards in developing collaborative technologies like blogs, RSS, social bookmarking, social networking and wikis.  Enterprise 2.0 emphasizes employee, partner and consumer collaboration for creating knowledge.  Big Data is the next evolution in Knowledge Management where it is now viable to manage and utilize both structured and unstructured data.   However, the key challenge remains – how to effectively leverage all the information we are collecting.  We need to flip the following time paradigm:

Data Analysis Cycle

Business Information Cycle

Changing this paradigm will require inference engines that streamline analysis generation and enable predictive analysis.  Following is a brief list of capabilities that will support predictive analysis:

  • Case-Based Inference will provide recommendations based upon data and transactional patterns.
  • Rules-Based Inference will provide tactical, operational decision support based upon standard business principles.
  • Big Data will facilitate the assimilation of structured and unstructured data to identify patterns and provide operational context.
  • Collaborative ERP 2.0 will support collaborative discussions and provide transactional context for decision support.

Advancements like this in analytics will enable business users to focus on the value-add activities of reviewing analysis and drawing conclusions for effective business decisions. 

Domain: Open

Whether or not you are sold on open source ERP,  you have to admire the new paradigm and simplicity that open source ERP promotes.  As we continue to see the consumerization of legacy ERP technologies, the market will continue to drive individual user enablement and vendor independence.  Following is a brief list of capabilities that will promote a more open ERP industry

  • BYOD (Bring Your Own Device)will enableemployees are able to bring their own computing devices – such as smartphones, laptops and PDAs – to the workplace for use and connectivity on the corporate network.
  • BPMN compliance will ensure that ERP business process definitions will agree with business process definition standards outlined in the Business Process Modeling Notation (BPMN) model.  This model is governed by the Object Management Group (OMG).  In my humble opinion, the OMG is in the best position to define a global standard for business process models.  This advancement will be a key enabler to the holy grail of true enterprise system interoperability.  This is no small task and will require significant market demand to promote this standardization initiative.
  • Collaborative Shared Development is a key benefit of an open community.  Sometimes it takes a village of developers to support an ERP solution.  Today, I can go to the Apple App Store to purchase an app for my iPhone.  In the future, we should see an ERP App Store when a customer or an individual business user can download an object (software, report, role-based feature) to customize their ERP experience.
  • Open Partner Network.  The more integrated your ERP is within your business value chain (suppliers, vendors, customers, providers) the more powerful your ERP system can be.  I expect we will see the ERP market put more value in delivered integrations with partner, supplier, and provider networks over software product features.  SOA will be a key enabler for making open partner networks a reality.

Openness is about creating flexibility and the freedom for a customer to respond to the changing business environment in the most effective manner.

Domain: Viable Solutions

A profound lesson I learned the hard way is that regardless of how many features and products an ERP vendor can provide (even for free); it will all be all in vain if the software is unmanageable.  It is unacceptable that a customer has to pay triple and even quadruple the original software cost to maintain their ERP investment.  Some may argue that ERP vendors have not acted in the best interest of their customers by building features upon features without providing tools to significantly reduce the Total Cost of Ownership (TCO).

Simplifying Technical Support

Simplifying Technical Support

Following is a brief list of capabilities that will significantly reduce TCO:

  • Automated testing (self-learning tools).
  • Automated master data management (information awareness tools).
  • Eliminate the need for multiple instances.
  • Assimilated, holistic solutions– loosely coupled point systems will not work and result in greater costs and possible failures.
    • Minimize the technical stack.
  • Higher Quality Assurance
    • Upgrades/Software Maintenance releases included the test cases and results performed by the ERP vendor.
  • Implementation Wizards
  • Support for Hybrid Deployments
    • Software architecture can support either single or multiple tenants.
    • On-Premise, Hosted, Public Cloud, Private Cloud for either applications and/or data.
      • Example:  Customer decides to store mission-critical data on-premise and internal data on the public cloud.

It should no longer be acceptable that an ERP customer has to totally shoulder additional implementation and upgrade costs.  This is not indicative of a true partnership.

Challenge to ERP Industry for Adaptive ERP

Today, we continue to see a consolidation of the ERP industry.  With these acquisitions some ERP vendors provide some limited capabilities of Adaptive ERP but these capabilities are spread across multiple software products and platforms.  An ERP solution is only as strong as its weakest link (integration).  More technologies loosely coupled together usually mean (a) more IT resources, (b) additional points of failure, and (c) a more complicated experience for business users. We have witnessed where ERP software has become bloated with features upon features without any logical progression.  ERP customers are forced to deal and pay for unused features resulting in more frustration than simplicity.

Many top-tier ERP software solution packages use a systems configuration concept to set up the business environment for some time but please allow me to challenge the industry a little more. I agree that several ERP software packages provides configuration concept yet there is no clear decrease in implementation schedule (ex. SAP) or cost savings associated with this approach because the currently exposed configurations do not change that frequently (ex. Earning Codes, GL Accounts). Objects like business rules, scenarios, and exceptions change more frequently. This is a challenge for some ERP software (ex. PeopleSoft) where many business rules are encapsulated within the technical object. Pre-configurations are only a beginning – it adds value in the short-term but ERP is a long-term proposition. In my humble opinion, the key is to expose the underlying business model to business users for greater real-time interaction.

Also, there are Master Data Management (MDM) solutions available to support a tactical level of data governance by removing duplicates, standardizing data and, incorporating rules to eliminate incorrect data from entering the ERP system.  For Adaptive ERP, MDM must advance in what I call “information awareness”.   Information awareness means two things (1) MDM is able to automatically detect and define new information sources within the enterprise ecosystem via data polling, and (2) MDM is able to determine how data is used.  These capabilities will be key enablers for automated impact analysis.

What we need to have is a mature, open, holistic solution where all the individual software platforms are assimilated into a robust, uniformed solution.  This is not simply building a dashboard that brings together two separate user sessions together or an orchestration level that adds another level of technology abstraction and performance overhead.  A viable solution is a manageable solution.

Summary

I’m a firm believer in performing non-competitive business activities as competent and cheap as possible.  In that end I am a firm believer in ERP.  However, the ERP industry has come up short in the areas of total cost of ownership and business adaptability.  Many on both sides of the aisle have wrongly concluded that more software features and increasing the technical stack are the answers for making ERP adaptable.  Putting more power in the hand of business users is the strategic answer for business agility.  People are the most important and adaptive component of a business solution.

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