Additional Factors in the Success of a Project – Focus on business, not just technical – Critical – May need to add query and reporting tools – Data conversion – Interface development...
Trang 1Enterprise Resource Planning, 1st
Edition by Mary Sumner
Chapter 8:
Managing an ERP Project
Trang 2management and control
change
Trang 3Factors Influencing Information
Systems Project Success
Trang 4Factors Causing Information
Systems Project Failures
Trang 6– Developing wrong functions, wrong user interface
– Problems with outsourced components
Trang 7Risk Factors, continued
Trang 8Implementation Risks
– Consistencies with current infrastructure
– Customization increases risks
– Redesign of business processes to fit
package decreases risk
– IT staff skills and expertise
Trang 9Managing Large-Scale Projects
Trang 10Managing ERP Projects
– Re-engineering business processes
– Changing corporate culture
Trang 12Factors in Successful ERP
Projects
• Customization
– Increases time and cost
– BPR advantage from “best practices” adoptions lost
• Use of external consultants
– Offer expertise in cross-functional business processes
– Problems arise when internal IT department not involved
• Supplier relationship management
– Need effective relationships to facilitate and monitor
contracts
• Change management
– People are resistant to change
– Organizational culture fostering open communications
• Business measures
Trang 13Project-Related Factors
technology
Trang 14Additional Factors in the Success
of a Project
– Focus on business, not just technical
– Critical
– May need to add query and reporting
tools
– Data conversion
– Interface development
Trang 16FoxMeyer versus Dow Chemical
– Had project implementation problems
– Dow had strong leadership and project champion – Was able to adjust scope and maintain control
Trang 17Featured Article: FoxMeyer’s Project Was
a Disaster Was the Company Too
Aggressive or Was It Misled?
into place to avoid the project disaster?
occurred?
technology failure or business failure?
Trang 18Featured Article: FoxMeyer’s Project Was a Disaster Was the Company Too Aggressive or
Was It Misled?, continued
• Claimed to be misled by SAP, Anderson
Consulting, Pinnacle Automation
– Claimed vendors oversold capabilities – Computer integration problems topped $100 million – Vendors blame management
Trang 19Featured Article: FoxMeyer’s Project Was a Disaster Was the Company Too Aggressive or
Was It Misled?, continued
• Background
– FoxMeyer had orders for over 300,000 items per
day, anticipated much growth
• Processing hundreds of thousands of transactions each
day
– Old system was Unisys mainframe
– Wanted scalable client/server system
– Tested SAP’s software on both DEC and HP
against benchmarks – Implementations scheduled by Andersen for 18
months
• Modules to be implemented in 2-3 months
– Unrealistic – could take up to 12 months – All modules fast-tracked
Trang 20Featured Article: FoxMeyer’s Project Was a Disaster Was the Company Too Aggressive or
Was It Misled?, continued
– Two systems for most important business
systems
• SAP supplied the accounting and
manufacturing software
– Claims volume was issue
• Warehouse system from McHugh Software
International
– Purchased through Pinnacle
» Pinnacle also supplied some hardware
• Added complexities to project
Trang 21Featured Article: FoxMeyer’s Project Was a Disaster Was the Company Too Aggressive or
Was It Misled?, continued
price-cutting– Hoped new system would be more
efficient, but did not improve processes
Trang 22Featured Article: FoxMeyer’s Project Was a Disaster Was the Company Too Aggressive or
Was It Misled?, continued
– FoxMeyer got major new client
• Out of capacity of mainframe
• Issues on balancing system traffic
• Unisys-based management system eventually
failed
• Information wasn’t being received timely
• FoxMeyer suffered losses in transferring
inventory to new centers
• Customers received incorrect shipments
• New customer didn’t deliver expected volume
• FoxMeyer overspent
Trang 23• A number of factors will effect the success
or failure of a systems project
– Operational methods and techniques
– Business management and style
– Leadership and communications
• Risk factors effecting projects must be
considered
– Organizational factors, management support,
software design, the levels of user involvement, and the scope and size of the project itself
– Implementation risks for technologies, the
organization, and human resource
Trang 24Summary, continued
factoring in
– Consideration of customizations, use of
external consultants, management of supplier relationships, establishing metrics, and change management– Project-related concerns
– Technological changes, user training, and
management requirements