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Out of date with the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.
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