Change management is critical to the success of any project and especially to the implementation of a new system. Are employees resistant to change? There is a widely held view that employees are inherently resistant to change. I disagree. Employees are resistant to change only when it will adversely affect them. If a new system could eliminate their jobs, do you blame them? But if the change does not threaten their jobs, they are more likely to accept and even welcome the change. New systems can make employees more marketable, eliminate the drudgery of inefficient manual processes and allow them […]
ERP Business Case
The problem with busines cases are usually not the calculations but in the underlying assumptions. There is also the lack of independence factor that will find a way to make the models and statistics work in a favourable way. What is included in a business case? A business case usually contains a number of sections, including executive summary, objectives, methodology, cash flow, return on investment (ROI), assumptions, in-tangible benefits and recommendations, as well as appendices for the preliminary work done, such as a business process review and the request for proposals. Independence is Key Sometimes the compelling business case in […]
Total Cost of Ownership
Total Cost of Ownership (TCO) TCO is a very good way to evaluate the costs related to a new system. You need to include not just the software license costs, but also all the other direct and indirect costs. Sometimes vendors will give a low-ball cost for software, but will make up for it in later charges. You don’t want any cost surprises part way through an implementation. What can you do? Steps to Calculating TCO Avoid ambiguity You need to be very specific about your needs so that there is a minimum of ambiguity. If there is ambiguity, the […]
ERP Requirements Analysis Best Practice
Executive View There are multiple ways to do define requirements depending on the size and complexity of an organization. However, you should always start with executive group. Ask them to identify the Critical Success Factors (CSFs) and then discuss how a system could help you achieve the CSFs. Also ask them to identify the biggest problems and then discuss how a system could eliminate them. Finally ask them what they like about their existing system, and these also become requirements. If an organization also has middle management, then you want to do repeat the discussion of problems and strengths but […]
Business Process Review
Definition of Business Process Business Process is defined a collection of interrelated work tasks, initiated in response to an event that achieves a specific result for the customer of the process. A business process often spans departments – it could start with an event that occurs in sales and ends with shipment of goods. The customer may be an internal person. For example, when an employee requests supplies, the employee will be the customer. Objective The objective of the BPR will dictate the level of detail and information collected. For the purposes of this article, we have assumed that business […]
Top 10 System Implementation Mistakes
Top 10 implementation mistakes New ERP implementation process is riddled with pitfalls. But don’t expect implementation to be any easier. Let’s count down to the number one reason for ERP implementation failure and examine how you and your team can overcome these 10 pitfalls. This article was published in the CAmagazine in February 2008. 1. Poor job in system selection process Companies that do a poor job at the selection stage whether in defining their scope, choosing the right product or gaining buy-in will find their mistakes come back to haunt them. 2. Lack of testing If you haven’t properly […]
Top 10 ERP Software Selection Mistakes
Making an ERP software selection mistake is going to cause significant damage to your company and end your career at your current employer. So, before you start your selection journey, avoid all these Top 10 mistakes. 1. Requirements not defined properly Requirements are like the architectural drawings prepared to build a home. Imagine building a home without them or if they are not done well? Defining requirements is not easy and needs to include input from the top of an organization down to the employees in the trenches doing the day-to-day work. The requirements need to be clear, accurate, […]
What is Best Practice?
This article was published in the CAmagazine in April 2009. Hype You will often hear business consultants claiming that they offer “best practices” — that they teach their clients the most efficient and effective way of accomplishing certain tasks based on proven, repeatable procedures. Sounds great but be careful. The so-called best practice may be good for one organization but a disaster for another. It’s not best practice if the costs outweigh the benefits. Reality Organizations often set up operational processes that differentiate them from the competition. If those processes help them achieve their critical success factors (i.e., what they […]
BI/CPM Comparison
A lot has changed since we last published the BI, CPM, and budgeting survey in 2015 now shortened to BI/CPM as CPM includes budgeting. Then the big trends were big data, mobility, cloud computing and in-memory processing. Although those technologies are still very much with us, the biggest trends today are AI (Artificial Intelligence) / Machine Learning, self-service and visualization. Just another reminder about what is meant by BI and CPM: Business intelligence (BI) is defined as transforming data into information to make decisions. It might include online analytical processing (OLAP), dashboards, scorecards, visualization (graphical representation), ad hoc query, a […]
CPM Whitepaper
Corporate Performance Management – It’s ready – Are You? Imagine driving a car without an instrument panel? Or the speedometer shows your speed from 5 minutes ago. You run the risk of getting a ticket, or much worse getting into an accident. Or maybe you will be late because you’re being overly cautious. Introduction Now imagine you’re the CEO of a company without an instrument panel – that’s one of the reasons for CPM. But you need more than an instrument panel; you also need a map especially if you’re trying to get somewhere you have not been before. To […]