CHAPTER 7 Operational and Postimplementation Opening Case More than 20 years old • • • Stand-alone system Out of date with the needs Decided to implement an integrated ERP 01 Compiere • • open-source ERP system the software was installed and implemented in very short period of time. 02 03 04 Selection process Software work • • • • midsized ERPs selected Compiere The company chose the package based on : its needs cost of the software. • The IT staff made most of the decisions on how the software was to work. No documentation was created on the implementation Opening Case solution User training • • • User training was minimal at best a true understanding of the system was not achieved by “Go-live”—a recipe for disaster. 05 A consulting company, implementation experience with Compiere used a well-documented project methodology, Two dedicated IT staff, and the inclusion of users in the process 06 07 08 Users problems performance • • • Data entry was slow and incorrect, which resulted in orders and customer information that made no sense. IT staff left after the implantation. improved the system performance Timeline Go-Live Readiness 01 02 Stabilization ERP Training 03 04 Postproduction Support Knowledge Transfer 05 Preview 01. In assessing an ERP project’s 02. Readiness process needs readiness for Go–live, planned tasks and activities must be completed to allow project management to address any outstanding issues that may jeopardize the Go-live date. to include as many team members, appropriate users, and managers as possible. 04. All resources should be 05. Continual monitoring of focused on ensuring users understand how to use the system and that issues and problems are resolved as quickly as possible. implementation issues will provide a basis for moving from stabilization to postproduction support. 03. Much of the success of an implementation lies with the stabilization and post-production support processes. 06. Training also gears up during the readiness process and continues through stabilization and postproduction support. Figure 7-1 Sample Project Methodology Go-Live Readiness ERP Training Stabilization Postproduction Support Knowledge Transfer 1 2 Go-Live Readiness 28% 3 4 An elaborate readiness checkpoint should be in place for Go-live to make sure steps are not missed . The first readiness checkpoint gives management and the project team a very good idea of what remains to be done before going live. Assessing the level of readiness should start several months before the actual Go-live date Infrastructure, development, configuration, conversion, testing, training, communications, operations, command central, reporting, and users must be assessed in the readiness process.(implementation areas) Input from the project teams, users, and team leaders needs to be gathered and summarized for Review .Readiness reviews need to be documented and communicated to the project team and the company. A detailed report needs to be available, along with an executive summary for senior management. 5 Go-Live Readiness 28% The Go-Live Readiness Review and Status Report is often a table that shows the status of each area at a glance, with the key activities that need to be completed agreed to before going live. 6 The process for determining readiness consists of a series of meetings and discussions on the status of each area’s tasks and activities. The meeting will be with each of the team leads, team members, and the subject matter experts (SMEs). 7 If the PMO sees a lot of RED items the first time through, it will help to focus the project teams on what needs to be accomplished in the time period between the assessment and Go-live . Go-Live Readiness ERP Training Stabilization Postproduction Support Knowledge Transfer ERP Training Training must be provided to everyone that will be using the system, and should use real data and examples. ERP training personnel could include trainers who work for the software vendor, in-house staff, third-party trainers that have specific experience in ERP 3 systems. If done correctly training will capture about 90 percent of what users will see on a daily basis. Developing a variety of ways to train will better ensure the effectiveness of training. (e.g., Web-based virtual classrooms, computer-based training, knowledge warehouses, video courses, self-study books, and pop-up help screens) 1 2 4 ERP Training Training needs to be endorsed by senior management early to ensure adequate funding. 5 Go-Live Readiness $2500 ERP Training $3500 Stabilization Postproduction Support $5500 Knowledge Transfer $6500 The stabilization process begins when the ERP system software is in production, initial training is complete, and conversion of critical data is done. After the ERP system goes live, the organization will need to shift to stabilization process—60 to 90 days. , depending on the number of issues IT staff will be monitoring the infrastructure for response times and ensure that backups are taken appropriately. Subject matter experts should be prepared to help many users from their departments operate the system in the correct way. Stabilization 1 Customizations add to the complexity if not documented and communicated well. 2 Not being able to perform ad hoc activities, not because the system is unable, but more about learning how to accomplish the activity. 3 Issues Arising During Stabilization 28% business process reengineering. Business processes are new to users, and they make mistakes as they use the new process for the first time. 4 In a parallel implementation approach, the ERP system is operated concurrently with the old legacy system, which is labor-intensive, confusing, and frustrating. 5 Reconciliation has to be done between the new ERP system and the old legacy system to validate the inputs and outputs. Go-Live Readiness $2500 ERP Training $3500 Stabilization Postproduction Support Knowledge Transfer $6500 Postproduction Support 01. Managing the daily system operations and ensuring that the system is doing what it needs to do is really the purpose of postproduction support. 02. If the post-production process is inadequate, then the implementation may be considered a failure. 03. Many of the risks associated with cutting over to the new ERP can be reduced by appropriate pre–Go-live and end-user training. 04. Subject matter experts and core project team members should be used to provide general support to answer simple process and system questions. The support process is divided into tiers: 2 1 Tier 1 • • • is considered triage and is usually the help desk or call center. This group will attempt to address very straightforward problems or questions. The calls are often related to password problems or resets or general access issues. 3 Tier 2 • • is where the subject matter experts are used. The subject matter experts must be available to answer system process questions or provide resolution on how to maneuver through the system to complete processes. If Tier 2 subject matter experts cannot resolve the issue or problem within a short period of time, then the issue should be bumped to Tier 3 Tier 3 • can be a combination of technical staff along with vendor or implementation partner support. These are often complex problems that will require the technician to research and fix. 1 Postimplementation support is generally divided into the following points: Training: Usually addressed before the Go-live and will continue at varying rates after Go-live, depending on the training strategy to be used. Go-Live Support: This is a day-to-day process when the users require assistance in using the system, or related to any mistakes and defects in the new system. The help desk plays a key role in this area. The tracking and resolution of day-to-day issues is the job of the help desk. Data Validation: This must be conducted periodically to ensure that the system is being used correctly and that data entry processes are being followed Data Correction: The system is sometimes implemented, but the data are not converted correctly or automated interfaces update the system incorrectly. The ability to identify bad data and correct it will be a part of the stabilization process Patched and Fixes: All during the implementation process and even while in production, software errors/bugs will be encountered and reported to the vendor for a solution. New Features: No system is ever complete: Businesses change or grow, and with that the system must keep pace to remain current. The change control process must be managed and addressed with the implementation. Postproduction Support 28% 2 By clearly defining and communicating Go-live and the ongoing support processes, overall expectations will be better set to realize measurable business benefits and ROI from the ERP project Go-Live Readiness $2500 ERP Training $3500 Stabilization Postproduction Support Knowledge Transfer Knowledge Transfer Some problems related to knowledge management are loss of knowledge due to an employee who leaves the company, high learning curve for new users, forgetting system features, and misuse of the system There must be a well-defined process in place to transfer knowledge and skill to new or existing staff or team members during and after the implementation process. Multiple aspects of the implementation process must be documented during the Definition and Build phases: • project management perspective: project monitoring and tracking, collaboration and communication, subject matter expertise, and lesson-learned repository should be documented. • operational perspective: business processes and how they are mapped to the ERP software • IT perspective: hardware and software architecture, network configuration 1 A knowledge management plan should be in place to monitor the transition from one phase of the implementation to the other, which enables a smooth transfer of knowledge. 2 A knowledge management plan will: Ensure knowledge is retained. Reduce the cost of support due to lower number of support calls. Facilitate faster learning. Better maximize the capabilities of the system. Cut time in troubleshooting problems. Ensure a correct use of the system. Knowledge Transfer 28% 3 One centralized data repository can then be used to store documents which will eliminate confusion, duplication, and losing data. Implications for Management The closer an ERP implementation gets to its Go-live date the more project management must focus on the issues, tasks, and activities to identify the issues and help focus resources and efforts. To ensure a successful and sustainable ERP implementation, there must be a well thought-out and understood knowledge transfer process when consultants, implementation partner staff, full-time and part-time staff, and even end-users leave. THANKS