The most profound consulting company is quoted by ERP failure. (2003.06.12) From: IT Manager World CLIVE Weightman ---- the failure of ERP project failure is often another person. ---- Execute a large ERP project, which is difficult to climb the Everest. Many unable obstacles often make the project unchanged. Public opinion believes that the results of most ERP projects are in the expected large phase. These items or unable to achieve a measured commercial interest, or worse, it is possible to threaten the company's economic strength.
---- Is it exaggerated with the ERP project and the mountaineering? Pervually. However, it emphasizes huge obstacles in the implementation of ERP projects. It is these obstacles to a large extent, enabling enterprises to effectively integrate business processes as bubbles with ERP projects, and final results are expensive spending and heart. Although people always blame the problem of technical defects, but to tell the truth, the problem of problems often have other people - such as those who apply the ERP program to the system's function and run a semi-solving.
---- It is true that it is difficult to climb the peak. But the success of the ERP project gives the sweetness of the company to this hard journey still look forward to it. The ERP system is a busy pillar - whether it is internal or external - effective integration from internal financial information and business performance data to future extension enterprises and collaborative business platforms. These are the foundations of the company's long-term development.
---- Consulting company can provide some useful reference through many years of experience, and may provide some beneficial reference to help companies eliminate heavy resistance to failure of ERP projects. There is no "ERP Textbook" to make each project are perfect, but listening to the experience of "old soldiers" is a hundred and no harm. The following is the first 10 major disasters that fail to fail in the severity of the severity.
---- 10. Putting "Online" as the end of the project
---- ERP's implementation is not just a simple project, "online" is not the end point, but the beginning of a new journey. In general, the pre-investment of the ERP project is very large, and the desired application life cycle is also around 10 to 20 years. The company has organized a team that has been used for 15 to 30 months, and finally completed the project's "online". How can I get in a month after investment?
---- Imagine, a large chemical plant burst by millions of dollars, which took millions of dollars, and sent their engineers to home soon. This is impossible! In the future years, the factory will also rely on these engineers to continue to develop. The main personnel of retaining the ERP project implementation team, including business and technicians, can guarantee the application of ERP, processing bottlenecks in the application, improve the system, and continue to find ways to improve productivity.
---- 9. Temporarily low tide performance after the system is lacking psychological preparation
---- Most ERP project changes to the corporate architecture are revolutionary, sometimes more than half of the background trading system, which is replaced, which affects 90% of business traffic. This is not just a technology transformation, which greatly changed a business process, corporate culture, corporate knowledge, and working environment. Therefore, the adaption period after the project is online is inevitable. Studies have shown that even those projects that have a smooth implementation phase are also unable to avoid the adhesion period after the new system startup. For example, transaction processing efficiency may drop from 98% to 90%, and it is possible to slow down the speed of the sales order or the goods stored.
---- Enterprises must reduce the likelihood of this situation through a series of means of detailed planning, pilot trial, internal education and risk analysis. However, companies must fully recognize the presence of this adapted period for the project online. If it is performed, then this negative effect can be minimized and eliminated within the shortest time.
---- 8. It is difficult to balance business integration and pursuit of short-term performance
---- Today, every CEO must make achievements as soon as possible, not after a year and a half. Due to a huge challenge for a complete ERP project implementation, they are difficult to commit to the board of directors, and they may save specific costs within 2 to 3 years after the implementation of the ERP project, they want the immediate return. ---- Thus, the challenge for ERP project implementation is: How to plan the scale and implementation order of the project, thus rapidly obtain the maximum business returns, while do not endanger the best effect of ERP integration.
---- 7. Starting with data related work is too late
---- The consistency and accuracy of data are critical. The investment of the ERP project is huge, but it is necessary to remember that the effective use of the system relies on the accuracy of the original input data. The problem is often here. According to the survey, most companies are too late when realizing the quality and accuracy of the data.
---- In the beginning of the project, the data should be considered, not to leave the first 2 months before the system, just wake up. It is necessary to decide what new data standards, cleanup and transfer, existing data, also require a lot of time. This will ensure that important information about customers, suppliers, and accounts is consistent with future business development.
---- For example, the supplier's procurement of customers is more clear than the customer, this situation is unsatisfactory. Suppose you buy products and services from a major chemical manufacturer, and this manufacturer serves you in 32 countries. If this is a good manufacturer, then their global purchase is likely to be clear than yourself. The implementation of ERP can take advantage of you to take advantage of it, so get more discounts. However, the price advantage is only possible when updating the data in the system and timely updates, and you can instantly get these data.
---- 6. "Core Team" lacks top business personnel and technicians
---- This may become a huge challenge. Your project requires the top masters - not just technology stars, but also need business. Even if you have to sacrifice the quality of a certain aspect, you can't give up your business. Instead, maybe you can sacrifice technical expert, because you reserved consultants can bring skilled technicians.
---- These masters should be more closely surrounded around the project manager than other members of any team, don't be included in the team because Zhang San or Li Si does not do things. This may be difficult, because your best subordinates are undoubtedly busy with other matters, while some large ERP projects take 200 ~ 300 participation. However, you must liberate your best players from a daily business, join the ERP project group.
---- 5. The project started, but there was no support for the senior management team.
---- Any large ERP project involves a plenty of business processes, roles, responsibilities, standards, and data definitions, and these changes cannot be carried out from bottom. A effective management team is particularly important, and a senior executive leadership is also the same. ERP projects will trigger some difficulties, sometimes even malignant problems, and the senior executive that is responsible can be disposed of and observed whether the headquarters understand and accepts these decisions.
---- Management team can meet one hour each month, encourage project managers, or spend more time to understand and guide project processes, making important decisions, planning the company's future. There is a bird between the two.
---- From a business perspective, this senior manager usually is a chief financial officer, or the chief executive, especially those involving key business transformation, and is related to the company's future success. If the ERP project affects sales and distribution, then the lead should be the sales and market vice president. The "Guardian God" of the ERP project must be a member of the group leadership, and it is best not to be CEO. Unless CIO is also an excellent business manager, it can affect other senior business managers. Otherwise, other managers will not actively participate, and ERP projects will become CIO and his technician's tasks.
---- 4. Ignoring a strong system integration team --- Company often spends a lot of time and money to choose a strong system integrator, Si, but in the project process, it is enemy, which is really The people think thinking. If you always question Si, or think that it is just to simply generate more income, why should I spend huge money for consultants? Si should be your left right arm, because ERP is likely to be only the first or second contact, while Si may have experienced similar cases in dozens of times or hundreds of times. So why do you have to suspect for Si?
---- Mutual respect and partnerships are the key to success, including respect for each partner and software supplier. Similarly, Si can not first convince the main consideration of the customer, it is unwilling to provide strong advice.
---- When choosing Si, the company should:
---- First, consider compatibility. You want the consulting company to replace all your work from the day, or work with you to solve difficulties? Some si companies prefer the attitude of "Working together", while other companies like to say to you: "This is a directive to you, this is the scene of the future, let's start working."
---- Second, you can decide which work mode of decision according to company culture.
---- Re-examine the work records of Si carefully. Remove Si packaging, and software suppliers and industry analysts exchange, and listen to their opinions.
---- Finally, spending time to invest each team member who will work side by side, remember that in the contract, the project leaders and partners should always be around you.
---- 3. Trying to create an incompatible solution with company culture
---- 190s, regulation and development, many companies that perform ERP projects are considered to eliminate unwanted panacea - even if the solution "style" is incompatible with the company's cultural tradition.
---- Managers may wish to work in a global business centralized environment. It is quite similar to Wal-Mart, and the global headquarters has unsuspetent powers and discipline. However, if the company's cultural advocates the spirit of entrepreneurship, then the Wal-Mart style is not suitable. You cannot use technology to force the company's culture, so if the company's structure is very discrete, it is best to choose the installation of the ERP application, or it will come to a huge change in it.
---- If you are ready to merge 93 warehouse into 5 or 6, and "I hope" ERP program will help you complete. From a technical point of view, ERP can do it. But this is not a simple technical process, but the business / personnel process. If there is no one to change attitude, the entire company does not understand such a merger, and your project will pay it.
---- However, if the CEO authorizes someone to completely examine the entire company and its culture, then it is another matter. It should be reaffirmed that CEO does not consider ERP as a simple technical solution while it is also a business and organization solution. CEO should choose a suitable candidate from the primary and secondary manager, working under a new system, and make ERP projects success.
----2. There is no power to give full play to the power of new integration information
---- Please do not misunderstand, ERP technology is practical, but 30% of ERP projects comes from the technical level, while the remaining 70% come from personnel and processes. I rarely like some people like change, but when the company turns to the implementation SAP, the change cannot be avoided. In a little, the computer screen of employees will change; in most, the entire life of employees will change.
---- Emerging technology is considering everything, and in general, the information can be obtained. For example, anyone can use this information when the raw material reaches the company's warehouse and is scanned into the system. When product production is completed, when automatically or manually entered the system, it is immediately a sales product, and the employee does not have to wait until the next day to obtain this information. ---- Real-time integration and precise data have changed people's work. A traditional order operator can become a full-capacity customer service representative. For example, there is an online passage of entering the integrated ERP main system. Customer service representatives can immediately retrieve customer history and other important identification content, and can also access real-time stocks in all warehouses (not only local warehouses) and future production plans. Frozen part of the product in the production plan is supplied to the customer according to customer needs. New ERP technology will affect many people, they need to train to master the process.
----1. ERP business plan has no vitality
---- There is no doubt that ERP projects usually take 12 to 36 months before they can be implemented, and usually cost 5 million to 50 million US dollars, and the continuous capacity is crucial. Therefore, you must confirm the reason for the ERP project, ready to prepare a solid business plan.
---- On the other hand, if there is no real business plan, you can't get support for the entire business team. Many times, a business implementation of the ERP project is not just to reduce technical costs, because the total technical costs of ERP will tend to rise significantly. The implementation of the ERP project is often for a broader business purpose. If you know the purpose of the project implementation, it is impossible to obtain full support of the senior management in advance of the project content and investment funds.
---- 5 years ago, although there are some big companies to do business plans for ERP projects, the appropriation application is submitted, however, once the plan is approved, the project began to start, these programs are called the high. Compared with 5 years, the current situation is improved.
---- An ERP business plan is vital and is constantly updated as the project is carried out. It should set how to track the benefits brought by ERP applications. It must provide a reference for CEOs to raise cost reductions and benefits growth to the company's annual operating budget, and use this as each sub-profile performance indicator. It must clarify that managers in the middle and high-level managers are responsible for the target to ensure the expected bottom line benefits. This practice is still quite small, partly because many managers will have "" At the end of the project, I may not work here. "This idea.
---- There is only technique that it is impossible to help you reach business goals. The success of the ERP project is inseparable from a business plan for designing Zengquan, a long-term test. So how important is the business plan? We believe that its importance is enough to list it as the first one.
---- Recall that the day of 1953 Restaurant, Jazz, New Zealand, and Nepalese Denzi Norga successfully mounted Mount Everest and became the first group of visitors in the world's highest peak. Does their success have give you inspiration and revelation? They are not novelty techniques to board the peak, and their equipment is actually quite simple. They are successful because they learn how to successfully avoid fatal errors from the failure of the mountaineering pioneers.
---- Successfully implemented ERP projects may not be able to compare with the first peak of the world, but its failure will bring a terrible blow to the company's business. Please learn to avoid 10 errors above, so that your ERP project is in a hurry.
