Columbia Technical Consulting, Inc.

ERP Implementation Methodology

How to succeed with your ERP implementation

Presented by John Paulson, ERP Consultant & Project Manager

Email: jpaulson@columbiatci.com Phone: 503-819-0190

John Paulson
ERP Consultant and Project Manager

Since 1997, John has consulted on over 27 ERP engagements for some of the nations leading companies. Founder of Columbia Technical Consulting, Inc., and JDE Resources Services, John has provided ERP solution services, consulting, project management, supply chain consulting, operational assessments, and process and systems alignment and optimization services to organizations throughout the nation.
. Johns expertise in ERP systems, supply chain consulting, and project management have been requested by, and provided to, national consulting firms as; Accenture, Ernst and Young, Cap Gemini, Delta Cubed, Panex Consulting, Premier Consulting, AMX International, Foothills Consulting, Rapidigm Consulting, The Hunter Group, Jagwire Group, PCM Solutions, Systems Management Inc., Versa Tech, PCI, Jibe Consulting, and many more

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AGENDA
Introduction Why Do Projects Fail? Implementation Methodology Project organization roles and responsibilities Project management Change Management Stage 1 Setup Stage 2 - Piloting Stage 3 Integration Stage 4 Cutover Stage 5 - Post Implementation Support Stage 6 Continuous Improvement Process Phase 2? Implementation project deliverables Case studies Pit falls What worked The Common Theme for ERP Success Columbia Technical Consulting Services, Inc. All Rights Reserved Q&A

Why do Projects Fail?

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Reasons Why Projects Fail

13.1% Incomplete requirements 12.4% Lack of user involvement 10.6% Lack of resources 9.9% Unrealistic expectations 9.3% Lack of executive support 8.7% Changing requirements or specifications 8.1% Lack of planning 7.5% Didnt need the software any longer 6.2% Lack of IT management 4.3% Technology illiteracy
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Reasons for Late/Over Budget

12.8% Lack of user input 12.3% Incomplete requirements or specifications 11.8% Changing requirements or specifications 7.5% Lack of executive support 7.0% Technology incompetence 6.4% Lack of resources 5.9% Unrealistic expectations 5.3% Unclear objectives 4.3% Unrealistic time frames 3.7% New technology

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Implementation Methodology

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Methodology Approach & Objectives

Simplification of traditional implementation process Streamlined methodology for efficient implementation

Knowledge transfer throughout the project

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ERP Implementation Approach 6 Steps

Setup
Project Planning System Install Business Process Workshops Application Analysis and Design Application Setup Project Team Training

Piloting
Functional CRP Testing Data Migration Customization Design and Development Procedures and Documentation

Integration
Integration/ customization testing

Cutover
End User Training System Cutover User Acceptance Testing

Post Support

Cont. Improvement

Follow Continuous Post Implementation Improvement Methodology for ERP Support Improvements

Integrated CRP
Stress Testing Data Migration System Performance Assessment

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High Level Project View

Project Management / Change Management
Project Team Training Procedures and Documentation

End User Training

System Cutover

Project Planning

System Install Application Setup Functional Test

Integrated Conference Room Pilots

User Acceptance Data Migration

Post Implementation Support

Business Process Workshops

Application Analysis and Design

Customization Design and Development

Improvement Process

Knowledge Transfer

Setup

Piloting

Integration

Cutover

Post Support

Continuous Improvement

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Project Organization Roles & Responsibilities

Steering Committee:

Steering Committee

Set project direction and maintain project oversight Communicates expectations Assess impact of proposed opportunities and recommendations and make final decisions Provide leadership and ongoing support Own project

Project Management Team:

Project Managemen Team

Provide day-to-day project management Ensure that project objectives are achieved Provide process & systems advice to action teams Provide leadership Coordinate resources and action team participants Serve as liaison between action teams and steering committee Provide necessary resources Monitor and track project status and budget Own Project Analyze issues, activities and processes Develop and test creative ideas and solutions Take ownership of ideas and solutions Develop specific action steps and commit to action plans Perform day-to-day project tasks Assume accountability for design changes Own project
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Action Teams:

Functional Teams

Project Management
A process that continues throughout the project, ensuring that the project is completed on time, within budget and within scope, making the best use of the resources available

Sustained Sponsorship

Project Management Process 1. Structure the project 2. Plan the project 3. Control the project 4. Assess change 5. Report progress status 6. Conclude the project

SUCCESS!!
Project Manager as Coach/Facilitator/ Coordinator

Clearly Defined Goals/ Objectives/Deliverables Measurable objectives

Workplan Individuals given responsibility/accountability Set milestones Time boxed

Effective, Synergistic Team Team building Appropriate skill sets Well understood objectives Change management Buy in
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Detail Project Startup

Identify and deploy project team clarify and assign project roles and responsibilities Identify risks and mitigation plan Detailed project plans prepared Establish project team workspace Establish project team ground rules Establish project infrastructure:
Milestones Meeting schedules and process Identify project deliverables Establish document templates, repository and version control
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Project Plan

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Change Management
A structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at helping employees to accept and embrace changes in their current business environment. In project management, change management refers to a project management process where changes to a project are formally introduced and approved

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Stage 1 - Set-Up

Project Team Training

Project Planning

System Install

Application Setup

Business Process Workshops

Application Analysis and Design

WHAT Preparation for the first configuration of the application & high level process definition GOAL To establish the road map for subsequent phase DELIVER Extended team kickoff Install hardware and software Project team application training High level process design Review completed analysis Configuration entered and validated

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Stage 1 Set-Up
Project Planning TASKS
Detail Project Planning

PARTICIPANTS
Project Planning

Project manager, process owners, team leads, IT

DELIVERABLES
Training Plan Issues database Installed software Project tracking and reporting methods Documentation standards Initial end user training strategy
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Stage 1 Set-Up
Application Analysis and Design

TASK
Review all sales cycle documentation. Schedule and attend design meetings Develop design review presentation document, including scope, phases, major issues/gaps Signoff Project Design Complete initial setup Documentation Signoff setup documentation Incorporate any changes to scope into the project plan, budgets etc.
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Application Analysis and Design

Stage 1 Set-Up
Application Analysis and Design (cont.)

PARTICIPANTS
CTCI consultants, client functional leads, XXX Consulting Services PM, Client PM

Application Analysis and Design

DELIVERABLES
Preliminary design documentation Setup documentation Finalized Scope documentation

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Stage 1 Set-Up
System Install

System Install

TASK
Plan for prototype environment installation Install Software

PARTICIPANTS
Install consultants, IT

DELIVERABLES
Plan to prepare for the facility, hardware, software and resources. An environment to utilize during prototype
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Summary
System Install

Network tuning Server Acquisition PC Client Acquisition Software Installation Deployment server installation Installation Planner Installation Workbench Server installation Workstation installation
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Stage 1 Set-Up
Application Setup

TASK

Application setup

Create an empty Pilot environment (1st pass) Enter ERP software application setups Validate setup in pilot Update setup documentation to reflect actual setup Client MIS personnel CTCI consultants (Client will assist to increase clients familiarity with setup steps) Completed setup documentation

PARTICIPANTS

DELIVERABLES

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Stage 1 Set-Up
Project Team Training TASK
Identify training requirements for client implementation project team Obtain / develop ERP functional/technical training schedule and schedule the classes documenting the dates on the project schedule

Project Team Training

RESPONSIBILITY
Client project manager, CTCI project manager

DELIVERABLES
Project team training plan Technical Consulting Services, Inc. Project team Columbia training All Rights Reserved

Stage 2 - Piloting

Procedures and Documentation

Functional Testing

Data Migration

WHAT Testing discrete transactions, inquiries, reports within each module GOAL 90% of the business requirements configured, detailed processes defined

DELIVER
Pilot test plan Desktop procedures Conversion, interface plan Application gap analysis Report development matrix Detailed design Proof of concept Knowledge transfer to client
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Customization Design and Development

Stage 2 Piloting
Procedures and Documentation
TASK
Deliver Top Ten template procedures Complete desktop procedures

Procedures and Documentation

RESPONSIBILITIES
CTCI consultants Client Functional Leads

DELIVERABLES Desktop procedures Quick Reference Cards

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Stage 2 Piloting
Functional Testing
TASK
Create scripts for each function Collect non-converted business data Configure & test Create versions, menus, etc. Conduct preliminary test to validate system setup

Functional Testing

RESPONSIBILITIES Consultants
Client Functional Leads

DELIVERABLES
Pilot Plan Test scripts

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Stage 2 Piloting
Data Migration
TASK
Create migration plan transfer business data, control tables, central objects Create selected master tables Run conversions Run integrities and reconciliation

Data Migration

RESPONSIBILITY
Client MIS personnel CTCI consultants Client functional leads

DELIVERABLES
Migration Plan Conversion plan

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Stage 2 Piloting
Customization Design and Development

TASK
Gather requirements from client functional leads Write functional specification Write program specification Develop customization Install customization Test Signoff

Customization Design and Development

RESPONSIBILITY
Consultants, Client

DELIVERABLES
Functional specifications Program specifications Completed customization
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Stage 3 - Integration

Integration / Conversion Testing

WHAT
Building on base design Validating integrated business processes Stress testing

Conference Room Pilot

GOAL

Stress Testing

Verify that the processes and system will support the business across interfaces

System Performance and Assessment

DELIVER
Integrated conference room pilot Conversion testing & validation Stress test/performance tuning System performance assessment Integration testing Report and interface development and validation
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Stage 3 Integration
Integration/Conversion Testing
Task
Integration / Conversion Testing

Develop acceptance criteria at Project Kickoff Final validation of application setup Validate converted data Review pilot Functional Review pilot Integration Signoff pilot

Responsibilities
Client project manager CTCI Project Manager Client functional leads CTCI consultants Client project team

Deliverables
Acceptance Criteria Client acceptance of the system Completed integrated pilot
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Stage 3 Integration
Conference Room Pilot

Task
Conference Room Pilot

Deliver pilot plan templates and pilot concepts to client functional leads Approve pilot plan Run functional pilot scripts Modify desktop procedures as needed

Responsibilities
CTCI consultants Client functional leads

Deliverables

Approved pilot plan

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Stage 3 Integration
Stress Testing Task
Hardware response time Database throughput Network traffic and performance Application response time

Stress Testing

Responsibilities
Client MIS personnel Client functional lead CTCI consultants

Deliverables
Completed stress tests

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Stage 3 Integration
Data Migration
TASK
Confirm migration plan Final test to transfer business data, control tables, central objects Create selected master tables Run conversions Run integrities and reconciliation Client MIS personnel CTCI consultants Client functional leads

Data Migration

RESPONSIBILITY

DELIVERABLES
Migration Plan Conversion plan Preliminary Production DB Final Gap Analysis
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Stage 3 Integration
System Performance and Assessment
TASK
Review stress test results Analyze breaking points Re-test

RESPONSIBILITIES
Client MIS CTCI Consultants

System Performance and Assessment

DELIVERABLES
System analysis report System design

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Stage 4 - Cutover

End User Training

WHAT
Full business simulation Training

System Cutover

Go Live

GOAL
To fine-tune cutover procedures and verify potential impacts

User Acceptance

DELIVER
User system acceptance End user training Validate cutover/fall back plan Process optimization

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Stage 4 Cutover
End User Training

End User Training

TASK
Develop Go Live plan Identify end user training needs Setup client site training facilities Develop and publish schedule Complete training prior to going live

Go Live

RESPONSIBILITY
Client project manager, Client functional leads

Deliverables
End user training plan End user training
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Stage 4 Cutover
User Acceptance

TASK
Final validation of application Validate converted data Review pilot functional Review pilot Integration desktop procedures, end user training, integration testing Signoff/User Acceptance Testing (UAT)

Go Live
User Acceptance

RESPONSIBILITY Client functional lead Client project manager Client project team CTCI consultant

DELIVERABLES
Acceptance criteria Client acceptance of the system
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Stage 4 Cutover
Cutover

TASK
Develop schedule Develop a contingency plan Process final conversions

Cutover

Go Live

RESPONSIBILITY
Client Project Manager, CTCI Project Manager

DELIVERABLES
Go Live cutover schedule

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Stage 4 Cutover
Cutover/Go Live

Going Live is a Process, Not a Milestone

TASK
Complete end user menus, responsibilities Deliver final setup documentation, issues logs. Begin live processing

Cutover

Go Live

RESPONSIBILITY
Client system administrator, CTCI consultants

DELIVERABLES
Go Live Final documentation

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Stage 5 - Post Implementation Support

TASK
To support the client team and infrastructure during initial use of the system back up support during first days First month end support Identify remaining issues

Post Implementation Support

Go Live

RESPONSIBILITIES
Client project team, CTCI consultants, CTCI Project Manager

Stage 5 Post Implementation Support

DELIVERABLES
Onsite support Next phase recommendations Project review

Celebration!
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Stage 6 Continuous Improvement

Define Monitor Continuous Improvement Plan

Implement

Analyze

Measure Test

Develop

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Continual Improvement
Phase 2 Improvements Identified Upgrade to latest version Upgrade planning Analyze new features Train & Implement new features Perform periodic systems audit Analyze new business requirements Review system performance & manual operations Develop audit report and action plan

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Implementation Project Deliverables

Project Plan Scope Documentation Status Reports Process descriptions and process flows Setups Training materials Customizations detail, both design and implementation System Designs Interface specifications Conversion documentation Desktop Procedures Issue Log and Issue Resolution Conference Pilot - All test scripts / Signoffs User Acceptance Testing Signoffs

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ERP Implementation Case Studies

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Questions

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John Paulson presents this ERP methodology presentation offering his experiences, and insight, in what it takes to succeed in your organizations ERP initiative. Using real world case studies of ERP implementations; what worked, what didnt, and the red flags to watch for, hell discuss how to prepare, manage, and steer the course of your ERP initiative through the Finish Line. John provides ERP consulting assistance in planning, software selection, project planning and management, training, process consulting, and facilitating your organizations ERP initiative For more information regarding this presentation, methodology, and tools used, or to schedule this presentation at your organization contact John Paulson;
John Paulson, ERP Consultant Cell: 503-819-0190 Email: jpaulson@columbiatci.com
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