Information Systems Project Management—David Olson
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Chapter 10: Project
Implementation
State of IS project success
critical success factors
key IS project factors
Need for User Training
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State of IS Projects
• Most IS projects fail to some degree
– time, cost, technical performance
• Usually don’t know until late in the project
– testing the least predictable project element
– everything seems fine until the end
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Information Systems Project Management—David Olson
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ERP & Hershey’s Supply Chain
Stedman [1999]
Osterland [2000]
Songini [2000]
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History
• 1997 Hershey’s adopted a $110 million ERP
system
– SAP R/3
– Siebel CRM
– Manugistics logistics package
• To replace many legacy systems
• Original 4 year project
– Compressed to 30 months to precede Y2K
– July 1999 three months behind schedule
– Adopted big-bang approach to beat deadline
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Information Systems Project Management—David Olson
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Hershey Business
• Very seasonal
– Halloween, Thanksgiving
• Sept 1997 serious order processing & shipping
problems
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Shipping delays
Sent incomplete deliveries
Delivery time formerly 5 days, with ERP 12 days
Sales revenue dropped 12% from prior year
Inventory piled up at Hershey warehouses
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Information Systems Project Management—David Olson
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Problem Diagnosis
• Attempted ERP implementation in supply
chain environment
– That can be done
– Confounding factors
• During peak season
• Tried to do too much as once
• Complexity from CRM & Logistics Planning addons
• Time pressure
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Supply Chain & ERP
• Can be done
• Hershey’s was a bleeding edge pioneer
• Hershey’s seems to have solved problems
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Failure Types
• Corresponding Failure
– fail to meet design objectives
• Process Failure
– on time & within budget
• Interaction Failure
– system not used
• Expectation Failure
– doesn’t meet stakeholder expectations
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Information Systems Project Management—David Olson
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Reasons for IS Project
Failure
Engler (1996)
• Lack of Client Involvement
• Lack of Top Management Support
– project champion helps
• Lack of Project Definition
– includes clear plan, goals
– also standards for testing
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Implementation Planning
Boehm (1981)
• Stage Relative cost of defect removal
requirements definition
1
design stage
3.5
coding stage
10
testing stage
50
after delivery
170
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Key factors for software
quality
Phan, et al. (1995)
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•
•
•
well defined quality goals
good management of reusable code
good quality assurance planning & control
effective feedback
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Outsourcing
• Avoid problems by hiring specialists
• Becoming more popular
– Faster, less expensive
• Lose a great deal of control
– Tradeoff: cost & time versus control
• Don’t outsource core competencies
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User Involvement
• Meetings to specify design features
• Meetings during project
• Training
– a key part of many projects
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User Training
• Can build great system
– If users don’t use, system a failure
– Sound training helps explain benefits of system
• Common pitfalls
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Focus on software rather than business processes
Focus on command sequences without discussing why
Skimping on training time
Tendency of users to solve problems the old way rather
than learn the new system
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Options to Deliver Training
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Web-based virtual training
Computer-based training
Video courses
Self-study books
Pop-up help screens
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Installation Options
• Parallel Installation
– very expensive
• Pilot Operation
• Cold Turkey
– not recommended
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Caveat
Kirby (1996)
• requisitioning information system
– food producer, interact with 36 existing systems
– High top management support
– Heavy user involvement
• Cost $3 million est., $5 actual; late
– accountants saw system would replace them
– plant people saw greater control by HQ
– sales force saw imposition, monitoring
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Summary
Top management support
User involvement
Clear system objectives
• for successful implementation, need
– implementation planning
– early system testing
– user training
© McGraw-Hill/Irwin 2004