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Implementation Project
ERP Projects
According to market research data, ERP projects
55 to 75% does not meet its objective
31% cancelled before completion
53% cost 189% more than original estimates
Cause of failure
Cross-functional agreement on enterprise wide business processes
Lack of visible, vocal, and meaningful executive sponsorship
Lack of formal and disciplined project management
Project team turn-over of key staf
Inability to identify and mitigate risks or remedy incidents that ultimately
escalate
Troubled user adoption
Too much software customization
Project viewed as IT project
Inadequate data cleansing
Source: Gartner, Analyst Firm and Standish Group, Research Firm
Simplified
Org Structure (OUs, SOB, Inventory Orgs)
Pricing
Intercompany etc
Standardize on Oracle
Remove Trade Mgmt module build on Force.com
Replace Ariba with Oracle Sourcing
3
We faced challenges
Executives misalignment
Inefective implementation approach
Oracle Business Accelerator (OBA)
Cost over-run
Lost key resources
Much higher customization than
assumption
Missing detailed project plan
4
Our Journey
Dec-2011:
RFP
System
Integrator
Selection
Feb-2011:
Oracle R12 Upgrade
Assessment
Year 2012:
Several Upgrades
AIX to Linux
Exadata, Exalytics,
Exalogic
Apr-2013:
Kick-of
R12 Reimplementation
Aug-2006:
Oracle EBS R11i
Implementation
Project Objectives
Standardize using
R12 mega
processes one version of the
truth for reporting
and analytics
Simplify with
streamlined
processes
Simplify
Standardi
ze
Globalize
Orac
le
R12
Global integration to
promote organization
alignment and
enterprise efficiency
Reduce
Customizatio
n
Reduce
customization
with a focus on
market
diferentiators in
the core areas
Scope
Mega
Processes
Developmen
t
(in scope)
Out of
Scope
Oracle
(RICEW)
Data Conversion
Less than 10%
customization of
current level
Business
Intelligence
Retrofit BI Reports
Retrofit BI
Applications
Retrofit BI
Dashboards
Market to
Customer
Finance to
Manage
Integration
Edge applications
(OTM, PeopleSoft
etc)
Third-party
systems
Trading Partners
Lifesize processes
PLCM
Oracle Modules
Financials
Credit
Management
Manufacturin
g
iStore
Sales &
Marketing
General Ledger
iExpense
Bill Of Materials
Shipping
Channel
Revenue Mgmt
Accounts
Receivable
Sub Ledger
Accounting
Work In
Progress
Global Order
Promising
Deduction
Management
Costing
Procurement
Channel Rebate
& POS
ASCP
Quality
Purchasing
Collaborative
Planning
Demantra
Demand
Planning
Mobile Supply
Chain Mgmt
Engineering
iProcurement
Application
Admin &
Integ
Order Mgmt
& Logistics
Sourcing
Order
Management
iSupplier Portal
E-Comm
Gateware
Inventory
Advanced
Pricing
Supplier Life
Cycle Mgmt
Workflows &
Alerts
Accounts
Payable
AGIS
Intercompany
Cash
Management
Advanced
Collection
Fixed Assets
E-Biz Tax
Supply Chain
Plan&
Logistics
Trading Comm
Architecture
XML-Gateway
Cost
System Integrator Cost
Functional Consultants
Project Management
Professional Fees
Incremental Employee Cost
Business/IT resources dedicated to project (a backup resource is hired to do
their regular job)
je
o
Pr
O
t
c
n
it o
za
i
n
a
rg
re
u
t
c
ru
t
S
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Executive Sponsors
Com Nameh
Steering Committee
Steering Committee Chair: Com Nameh Executive Sponsor
Com Nameh Executives, IBM
Key
Business
Decisions
Project Governance
Project Governance Leaders: Com Nameh Project Executive Director, Com Nameh Project
Manager,
IBM Project Manager
CrossFunctional
Decisions
Mega Process
Business
Leads
Testing Lead
Technical
Lead
Organization
Change
Management
Lead
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Detailed
Team
Decisions
5%
15%
80%
Project Plan
Issues / Actions
Log
Key Business
Decisions Log
Change
Control/Scope
Management
Risk Log
Status Reports
Program
Team
MASTER SCHEDULE
PMO
Milestone 1
Milestone 2
Milestone 3
Milestone 4
Alignment
Mega
Process
Teams
WORKPLANS
WORKPLANS
Activity
1
WORKPLANS
Activity
2 1
Activity
Activity
Activity
3 2 1
Activity
Activity
Activity
Activity
4 3 2
Activity
Activity
4 3
Activity 4
Mega Process Teams will maintain detailed Workplans that align with
the schedule requirements of the overall Project Plan. The overall
Project Plan does not contain the high level of detail contained in the
Mega Process Teams Workplans.
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15
CRP2
Conference
Conference
Room Pilot
SIT1
System
System
Integration
Integration Test
Test
SIT2
System
System
Integration Test
Integration
Test
UAT
User
User
Acceptance
Acceptance
Test
Test
16
Project Cadence
Weekly meetings
Monthly/Bi-weekly meetings
Daily meetings
During CRPs, SITs, UAT daily wrap-up
calls
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Challenges early on !!
6 weeks behind schedule
Misunderstood OBA potential, resulted delay in CRP1
instance
Reduced CRP1 scope from 12 OUs configuration to 7 OUs
Delayed starting first CRP
Executive misaligned
Project objectives: total transformation vs tech upgrade
Customization vs standardization discussions were
contentious
Not clear when to allow customization
Actions taken
Executive alignment workshop (4 weeks)
A small group, led by IBM, conducted Executive Alignment workshop
Several key decisions made
Executive Mega Process ownership established
Steering Committee reformed
Strategies where customization is permissible
20
Stakeholder analysis
Inventory of customization (RICEW)
Implementation strategy
Upgrade, Re-implementation, Hybrid
Implementation vs Upgrade
23
Screen SI consultants
Team structure, Roles & Responsibilities, RACI
SI vs IT work responsibilities
Work as a team
Plan contingency
Exit plan for legacy system
25
Red Flags
Look for early warning signals and take
appropriate action:
No milestones
Missing periodic checkpoints
Missed milestone and deadlines
Shifting priorities and specifications
Infrequent or weak executive sponsorship
Staf turnover
Poor incident management and spotty
reporting
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Hard Factors
92%
72%
70%
65%
55%
48%
38%
36%
33%
19%
27
28
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Abstract
Oracle E-Business Suite 12.2.___ ERP implementation at Com name
began with four clearly defined objectives: process simplification,
standardization, globalization, and customization reduction.
It involved global implementation of Oracle Financials, Oracle Supply
Chain solutions, and moreplus several new Oracle modules.
Com Name standardized on Oracle by replacing hybrid systems such as
Tally ERP and several custom solutions.
It simplified the org structure, pricing, and intercompany and global
banking processes and cut customization to one third.
This session discusses the strategy, implementation method, and project
management and ofers advice, with practical tips and lesson learned
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