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.

“There is no direct relationship between a company size and the complexity of its (ERP) software requirements.”, Control Your ERP Destiny. Steven Scott Phillips.

“One of the advantages, but also criticisms, of ERP systems is that they impose a standardized way of conducting business processes.” , Modern ERP: Select, Implement, and Use Today’s Advanced Business Systems, Marianne Bradford.

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.

“The assumption is the thicker the report the greater the “due diligence”. This may actually be measuring waste, not actionable information.” ERP Information at the Speed of Reality: ERP Lessons Learned, Wayne L. Staley.

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.

“Ollie Wight said it well: “Grease-gun education doesn’t work.” He was referring to the one-shot, quick-hit educational approaches tried so often without lasting results.”, ERP: Making It Happen: The Implementers’ Guide to Success with Enterprise Resource Planning, Thomas F. Wallace.

“Gartner Research recommends allocating 17 percent of the project’s budget for training. Those companies spending less than 13 percent on training are three times more likely to have problems.”, Concepts In Enterprise Resource Planning, Ellen Monk and Bret Wagner.

“A key point: Don’t train before you educate.  People need to know what and why before they’re taught how.  Education should occur either prior to, or simultaneously with the training.”,  Erp: Making It Happen; The Implementers’ Guide to Success with Enterprise Resource Planning, Thomas F. Wallace.

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.

“The highest probability of successful implementations of ERP software is when there is only a minimal need to change business processes and ERP software.” Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk,  Daniel E. O’Leary.

“Bad processes (and systems) beat up good people.”, Consider, Select & Implement an ERP system, Dr. Jill O’Sullivan, John Rico, Dennis Goldensohn.

“Effectively managed implementations are deliverable driven.”, E-Business and ERP: Rapid Implementation and Project Planning. Murrell G. Shields.

“Change control is about coordination, not denial.”, Agile Project Management. Jim Highsmith.

“For an ERP implementation to go smoothly and provide value, it is critical that a company understand both its current processes and the state of the process after implementation.” Concepts in Enterprise Resource Planning, by Ellen Monk, Bret Wagner.

“No ERP methodology is a substitute for thinking.”, Brett Beaubouef.

“Making partners of customers means they become more likely to understand technical constraints. You start to get rid of the “I need it all now” phenomenon, and customers begin cooperating to find realistic, mutually satisfying technical solutions.” Rapid Development, Steve McConnell.

“The timelier the validation, the better.”, Directing the ERP Implementation, Michael Pelphrey.

ERP  Utilization

“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.

“A good system will shine light into dark corners.” Making ERP Work. Sam Graham.

“A major overhead in operating ERP systems is entering transactions. Transactions take time, cost money and introduce the possibility of errors.” Making ERP Work. Sam Graham.

 

 

 

 

 

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JIT is Just Plain Wrong for Cloud ERP

Given that we are well in the third decade of ERP implementations, I still observe ERP implementations following outdated/misguided concepts that do not utilize limited resources to the fullest.  One of these misapplied concepts is Just-In-Time (JIT) training.  End user enablement continues to be an implementation challenge primarily due to the limited investment made for the most important component of an ERP business solution.  This limitation must be addressed in order to realize the value of ERP in the Cloud.

Evolving Traditional ERP Testing for Cloud ERP

Consider the following illustration that highlights the tradition user involvement model:

Limited User Involvement

Traditional User Involvement

Traditional ERP implementation approaches view end users as an audience versus an active participant to leverage during the entire implementation.  End users by far make up the largest stakeholder group in an ERP implementation however; they have the least amount of involvement and responsibility.  Let’s further contrast and identify opportunities where end-user involvement can have a positive influence on ERP implementations.

Rethinking the Waterfall Testing Paradigm

If we take a stroll down memory lane we can recall the standard testing approach we learned from the Waterfall Software Development Lifecycle (SDLC):

Limited ERP Testing

Traditional Testing Approach

Consider the following:

  • The majority of testing and hands-on experience occurs with a limited group of users leaving a small window for direct users to gain confidence and experience with the ERP system.
  • The limitation with direct user involvement is based on the premise that a working system is not available until the end of the implementation.       This is not the case with a Cloud ERP system that can be provisioned early during the implementation life cycle.
  • JIT End User training is a big bang approach – one time shot to get end-user training right. It also gives end users limited time to internalize the change. This approach naturally requires additional support and creates a greater potential for user errors.

Waterfall is based upon software being developed from scratch – i.e. you could not actively involved end users until the software existed.  When ERP came to the market many approach/processes designed for software development were incorrectly applied to ERP implementations.  The next section we will discuss how to involve the target audience sooner during a Cloud ERP implementation.

Increasing End User Involvement

There are two key value propositions for increasing end-user involvement:

  1. Additional validation of the solution via testing.
  2. Greater user adoption and enablement.

For robust testing business users should first be trained on the ERP Cloud service.  Remember that testing can be “hands-on” learning for business users.  Consider the following illustration:

Increasing User Involement

Incremental User Involvement with ERP Implementations

Let’s expand on some key themes.  First, education/learning is an iterative process where new information needs to be assimilated by users before knowledge is created.  Second, an educated user is a better contributor to the project.  Third, it is easier to manage and support educated end users.  A forward-thinking end-user enablement process drives greater participation and ownership.

Consequences of Not Evolving your User Enablement Approach

As ERP Cloud adoption continues we will see an increase in the following implementation drivers:

Market Drivers for Cloud ERP

Market Drivers for ERP Cloud Implementations

Consider that traditional ERP implementation approaches do not effectively leverage the largest resource pool available.  I can appreciate that with additional resources comes greater coordination and communication channels (N * (N-1) / 2) yet I have witnessed that the business value outweighs the associated project risk.  With the above said I do not recommend we start involving end users without some level of enablement and guidance.  Just as an individual user learns a new system over time the end-user training approach should incrementally prepare the user for greater involvement during the ERP Cloud implementation.

Following are key consequences if we continue with a JIT user involvement strategy:

JIT User Enablement

Potential issues/risks from take a JIT user enablement approach

The JIT approach is being used to squeeze pennies out of an ERP Cloud implementation when the potential risk that results is far greater and eventually must be solved through additional dollars or lost opportunities.

Challenge to Cloud ERP Service Providers and Implementation Partners

Cloud ERP Service Providers and Implementation Partners should take the lead in promoting and supporting end-user involvement earlier during the implementation.  Unfortunately, Cloud ERP Service Providers are not providing a robust set of tools and services for incremental user enablement.  Test cases should be business process focused and not just business function oriented.

Implementation Partners must also adapt to this new paradigm.   It is unfortunate that many implementation partners choose to address ERP Cloud Implementation drivers (mostly cost) by reducing project leadership and transferring user enablement to the customer – regardless if the customer have the required tools/competencies for incremental user involvement.  This short-sighted approach ultimately leads to an unfavorable customer experience with Cloud ERP.

Summary

Just in Time (JIT) is an operations management approach for improving ROI by minimizing inventory and related carrying cost for a production process.   JIT is a viable strategy given that the process is production quality and all input variables are within controlled tolerances.   Implementing a Cloud ERP solution is not a production quality process nor are all input variables can be controlled.  This concept has been applied to ERP end-user training with the intent of maximizing training investment.  JIT training reduces the need for refresher training due to ERP knowledge loss experienced if training precedes the go-live event over a long period of time.  JIT training may be a valid approach for end users after the ERP Cloud service is in Production but it is a limited strategy to employ during an ERP implementation.   Make the end-user an active partner not a passive customer.

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.

ERP SaaS 101: Services Trump Software

How many ERP SaaS offerings are in the market today?  The number depends on who you ask but it is a fair statement to say that all Tier I and the majority of Tier II ERP vendors have a SaaS offering.  A majority of the market and many ERP analysts still take an on-premise approach to evaluating ERP SaaS offerings.  Services, not software, will have the greatest impact on ERP SaaS success.  The purpose of this article is to examine the impact services will have in a SaaS model.

Installation Is Not an Implementation

Ah, the battle cry of ERP SaaS “You can be up and running in a matter of minutes!”  Now, it is a fair statement you will have a running system but it is a far cry from a configured business solution.  Consider the key activities required for this transformation:

SaaS Implementation Services

SaaS Technical Services

Even though ERP software and infrastructure can be provided in an accelerated fashion, the business value realization of an ERP SaaS model can only be achieved through the effective delivery of technology services.   SaaS ERP is not a push-button solution.  I submit that technology services should have an equal or greater emphasis on ERP SaaS selection than ERP SaaS software. 

Great Services Can Cover a Multitude of Software Gaps

ERP SaaS software installation is a very small step in ERP SaaS experience.  Consider the following illustration:

ERP SaaS Solution Lifecycle

ERP SaaS Lifecycle

Following are a few points I would like to elaborate.  First, installed ERP software does not provide any business value own its own.  Business value is only realized when software is configured and implemented in a production environment.   Second, let’s not forget that an ERP SaaS model is outsourcing technical services to the ERP vendor.   Third, ERP SaaS software release cycles will be at least three times faster than traditional on-premise ERP software.  That means that a SaaS software model will address gaps in a shorter term.  As more customers look at SaaS ERP I believe that services not software will be the emerging competitive differentiator. 

Majority of ERP SaaS Offerings are Non-Competitive Differentiators

For purposes of this discussion please allow me to broadly categorize business processes into three areas:

ERP supporting business models

ERP supporting key business process groups

There are some key concepts that should factor in the ERP SaaS selection process.  First, competitive advantage only comes from revenue-generating business processes.  For example, would having the best of breed solution for SOX compliance enable you to gain market share?  Also consider if you would highlight your Payroll system as a competitive advantage to your customers. A best practice is not a competitive practice.  Organizations, just like individuals, cannot be the best in everything but it makes sense to be the best in your revenue generating activities.  A best-of-breed SaaS solution is of little value if the ERP SaaS provider does not provide competent technical services for reliable integration across multiple environments.

Summary

Too often we focus on the cart before the horse.  I believe that we are experiencing this misalignment with the emerging ERP SaaS market.  The best ERP software is of little value if you cannot implement a viable, manageable solution.  Technical services provided by the ERP vendor’s SaaS operations will have the greatest, long-term impact for business success.  Pick an ERP vendor that will focus on improving both their ERP software and SaaS technical services.

ERP Project 101: Deployment vs Requirements Gathering

Customers, System implementers and ERP vendors are always looking for ways to accelerate ERP implementations.  One popular approach is to take a phased deployment approach based upon criteria such as location, ERP module or feature set.   Requirements are gathered, validated, and tested based upon a limited scope.  Unfortunately, many ERP projects utilizing this approach result in failure given requirements conflict and misaligned expectations.  In the following blog posting we will discuss how to minimize challenges associated with phased ERP deployments.

Reality Check!  There will be ERP requirements conflicts

A reality with any cross-functional or multi-site deployment is that there will be requirement conflicts as part of an ERP implementation.  In our focus for rapid results and simplifying ERP deployments we forget the fundamental result – an ERP implementation is the implementation of a business solution.  Consider the following illustration:

ERP REquirements Conflict

Example of Requirements Conflict for ERP

Let’s assume that we want to accelerate an ERP HR implementation by deploying ERP solution by region.   To further streamline our efforts the project only gather requirements from the North America HR stakeholders (Phase I). The above approach appears to work for the initial ERP deployment; however; these short-sighted decisions can have a negative impact to future deployments.   Remember that correcting problems and limitations are more costly once an ERP system is deployed in a production environment. 

With the above said, I appreciate that ERP vendors are evolving their ERP software to provide additional flexibility in configurations to allow variances based upon industry, line of business, country and even user preferences.  However, we should understand that all ERP solutions leverage a common data model with specific data dependencies.  We can address this constraint in one of two methods.  Either we take a risky approach of gathering requirements in silos hoping that we clearly define all ERP configuration dependencies or take the practical approach of gathering requirements across all HR operational areas. In the next section we discuss several practical steps to ensure requirements conflicts are minimize.

Practical Steps to Minimize ERP Requirements Conflict

Let’s brief speak to some common-sense approaches to deal with the reality of ERP requirements conflicts.

How to address ERP requirements conflicts

Practical approaches to address requirements conflicts

The first step of requirements management is to perform a stakeholder analysis to identify the appropriate business owners and subject matter experts in include in requirements gathering.  It is important to note that we always implement to a business process not simply to the software (ex. module, feature). Utilize solution modeling to analyze business requirements from multiple perspectives.  Too often I observe ERP projects spend more time on defining exceptions to standard business scenarios versus defining a common requirements set that can be leverage to isolate and manage unique requirement criteria.  Consider the following illustration:

 

Logical Business Requirements Model

Logical progression of gathering ERP requirements

There should be a logical progression of business requirements from the global level to the specific user level.  Isolate requirement exceptions to effectively quantify frequency, impact, and cost.  Utilizing this approach will provide the customer with greater insight for an informed decision.   Finally, let’s not forget the Lean principle that states process efficiency is gained when variability (exceptions) is minimized.

Summary & Conclusion

The ERP industry is hyper-competitive where every ERP vendor and System Implementer is looking for an edge to accelerate and reduce the costs associated with ERP implementations.  This desire is intensified by the entrance of ERP SaaS offerings with lower entry costs for a growing target market.  The challenge is to identify competent options for accelerating ERP implementations without putting long-term customer success at significant risk.  Requirements management (gathering, validating, and testing) is the critical discipline that impacts all downstream implementation activities.  Taking a technology-oriented approach results in (a) unclear requirements, (b) requirements conflicts, and (c) additional rework to support future deployments.  Making the right investments in requirements management will be the best chance to accelerate downstream activities including deployments.                    

SaaS ERP is not a push button solution

SaaS ERP is the latest effort in the ERP industry to provide a rapid, cost-effective solution for customers who want an enterprise solution.  A SaaS deployment model does provide the potential for greater value realization; however, the value proposition is dependent upon appropriate expectations and implementation approach.  The purpose of the following article is to provide insight to ensure customers make realistic and informed decisions.

General Expectations for SaaS ERP

I firmly believe that one of the key reasons for failed ERP implementations is that expectations were not correctly established and managed throughout the implementation.   Consider the following:

Common Expectations of SaaS ERP

Common Expectations of SaaS ERP

 

  1. Cheap:  The customer does not need to make a huge expenditure to implement and utilize.
  2. Fast: Answer a few questions and have an up and running software in weeks.
  3. Flexible:  Business users can make changes.  Minimize IT involvement.
  4. Intuitive:  Quick to learn and easy to navigate.

We can all agree that the above targets are worthy goals of any ERP solution.  However, this is only part of the story.   The next section discusses the efforts required to achieve the goals listed.

Desired Results of SaaS ERP

To better understand ERP SaaS expectations we need to elaborate on the desired results that should be realized by customers. 

Elaborating on SaaS ERP Expectations

Elaborating on SaaS ERP Expectations

 

Some of the desired results are directly addressed by the SaaS model but the majority of results are addressed either by (a) the ERP software architecture or (b) the delivery model.   Example:  SaaS ERP does not require an initial outlay of funding for capital expenditures for hardware and related infrastructure.  SaaS ERP eliminates the need for a separate effort for ERP software installation and certification.  Yet, it is important to remember that ERP software installation represents at most 5% of the total time required to implement an ERP solution.  Therefore the SaaS model by itself does not have a dramatic impact on accelerating ERP implementations.

SaaS ERP Realities

Allow me to share some observations I have regarding the ERP SaaS model that may not appear to be readily evident:

SaaS ERP Realities

Let’s take one of the above desired results to elaborate on the above diagram.  A goal for SaaS ERP is to reduce the Total Cost of Ownership (TCO).  One of the key ERP design strategies is to enable business users to tailor the functionality to meet requirements without having IT to make a costly customization.  However, it is important to understand the shift of effort from IT to functional users.  There may be a reduction in the effort or a change in the nature of the work but the effort is still required.  There is no “push button” to eliminate this work. 

For another example let’s take the ERP value stream.  ERP vendors can create additional value to customers by providing new and enhanced functionality.   The leading SaaS ERP delivery model should provide a 3:1 ratio increase in the software release cycle.   Yet, it is important to realize that more frequent ERP software releases require additional testing and deployment (organizational change) work.  It is interesting to note that many of the leading SaaS ERP vendors do provide an out-of-the-box testing automation solution.  Again, the customer will experience a shift from technical to functional effort.

 Summary

Sorry if I burst your bubble, but I rather have an informed customer that will have reasonable expectations versus a customer with unrealistic expectations.  SaaS ERP is one of many delivery models that ERP vendors offer to customers.  While it is true that SaaS ERP provide customers with new options not available previously, it is not a slam dunk for all customers.  Developing the customer’s use case and understanding all technical and organizational impacts will better ensure an informed decision is reached.

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. 

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