Besides the small introduction, subscribers and consulting clients within this management domain have access to:
A business-led, top-management-supported initiative partnered with IT has the greatest chance of success.
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
To build understanding and alignment between business and IT on what an ERP is and the goals for the project
Clear understanding of how the ERP supports the organizational goals
What business processes the ERP will be supporting
An initial understanding of the effort involved
1.1 Introduction to ERP
1.2 Background
1.3 Expectations and goals
1.4 Align business strategy
1.5 ERP vision and guiding principles
1.6 ERP strategy model
1.7 ERP operating model
ERP strategy model
ERP Operating model
Generate an understanding of the business processes, challenges, and application portfolio currently supporting the organization.
An understanding of the application portfolio supporting the business
Detailed understanding of the business operating processes and pain points
2.1 Build application portfolio
2.2 Map the level 1 ERP processes including identifying stakeholders, pain points, and key success indicators
2.3 Discuss process and technology maturity for each level 1 process
Application portfolio
Mega-processes with level 1 process lists
A project of this size has multiple stakeholders and may have competing priorities. This section maps those stakeholders and identifies their possible conflicting priorities.
A prioritized list of ERP mega-processes based on process rigor and strategic importance
An understanding of stakeholders and competing priorities
Initial compilation of the risks the organization will face with the project to begin early mitigation
3.1 ERP process prioritization
3.2 Stakeholder mapping
3.3 Competing priorities review
3.4 Initial risk register compilation
Prioritized ERP operating model
Stakeholder map.
Competing priorities list.
Initial risk register.
Select a future state and build the initial roadmap to set expectations and accountabilities.
Identification of the future state
Initial roadmap with expectations on accountability and timelines
4.1 Discuss future state options
4.2 Build initial roadmap
4.3 Review of final deliverable
Future state options
Initiative roadmap
Draft final deliverable
Analyst Perspective |
Phase 3: Plan Your Project |
Executive Summary |
Step 3.1: Stakeholders, risk, and value |
Phase 1: Build Alignment and Scope |
Step 3.2: Project set up |
Step 1.1: Aligning Business and IT |
Phase 4: Next Steps |
Step 1.2: Scope and Priorities |
Step 4.1: Build your roadmap |
Phase 2: Define Your ERP |
Step 4.2: Wrap up and present |
Step 2.1: ERP business model |
Summary of Accomplishment |
Step 2.2: ERP processes and supporting applications |
Research Contributors |
Step 2.3: Process pains, opportunities, and maturity |
Related Info-Tech Research |
Bibliography |
Enterprise resource planning (ERP) is a core tool that the business leverages to accomplish its goals. An ERP that is doing its job well is invisible to the business. The challenges come when the tool is no longer invisible. It has become a source of friction in the functioning of the business
ERP systems are expensive, their benefits are difficult to quantify, and they often suffer from poor user satisfaction. Post-implementation, technology evolves, organizational goals change, and the health of the system is not monitored. This is complicated in today’s digital landscape with multiple integration points, siloed data, and competing priorities.
Too often organizations jump into selecting replacement systems without understanding the needs of the organization. Alignment between business and IT is just one part of the overall strategy. Identifying key pain points and opportunities, assessed in the light of organizational strategy, will provide a strong foundation to the transformation of the ERP system.
Robert Fayle
Research Director, Enterprise Applications
Info-Tech Research Group
Organizations often do not know where to start with an ERP project. They focus on tactically selecting and implementing the technology but ignore the strategic foundation that sets the ERP system up for success. ERP projects are routinely reported as going over budget, over schedule, and they fail to realize any benefits.
ERP projects impact the entire organization – they are not limited to just financial and operating metrics. The disruption is felt during both implementation and in the production environment.
Missteps early on can cost time, financial resources, and careers. Roughly 55% of ERP projects reported being over budget, and two-thirds of organizations implementing ERP realized less than half of their anticipated benefits.
Obtain organizational buy-in and secure top management support. Set clear expectations, guiding principles, and critical success factors.
Build an ERP operating model/business model that identifies process boundaries, scope, and prioritizes requirements. Assess stakeholder involvement, change impact, risks, and opportunities.
Understand the alternatives your organization can choose for the future state of ERP. Develop an actionable roadmap and meaningful KPIs that directly align with your strategic goals.
Accountability for ERP success is shared between IT and the business. There is no single owner of an ERP. A unified approach to building your strategy promotes an integrated roadmap so all stakeholders have clear direction on the future state.
Enterprise resource planning (ERP) systems facilitate the flow of information across business units. It allows for the seamless integration of systems and creates a holistic view of the enterprise to support decision making.
In many organizations, the ERP system is considered the lifeblood of the enterprise. Problems with this key operational system will have a dramatic impact on the ability of the enterprise to survive and grow.
A measured and strategic approach to change will help mitigate many of the risks associated with ERP projects, which will avoid the chances of these changes becoming the dreaded “career killers.”
Enterprise resource planning (ERP) systems facilitate the flow of information across business units. They allow for the seamless integration of systems and create a holistic view of the enterprise to support decision making.
In many organizations, the ERP system is considered the lifeblood of the enterprise. Problems with this key operational system will have a dramatic impact on the ability of the enterprise to survive and grow.
An ERP system:
50-70%
Statistical analysis of ERP projects indicates rates of failure vary from 50 to 70%. Taking the low end of those analyst reports, one in two ERP projects is considered a failure. (Source: Saxena and Mcdonagh)
85%
Companies that apply the principles of behavioral economics outperform their peers by 85% in sales growth and more than 25% in gross margin. (Source: Gallup)
40%
Nearly 40% of companies said functionality was the key driver for the adoption of a new ERP. (Source: Gheorghiu)
Drivers of Dissatisfaction | |||
Business
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Data
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People and teams
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Technology
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Finance, IT, Sales, and other users of the ERP system can only optimize ERP with the full support of each other. The cooperation of the departments is crucial when trying to improve ERP technology capabilities and customer interaction.
While technology is the key enabler of building strong customer experiences, there are many other drivers of dissatisfaction. IT must stand shoulder-to-shoulder with the business to develop a technology framework for ERP.
1. Build alignment and scope | 2. Define your ERP | 3. Plan your project | 4. Next Steps | |
Phase Steps |
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Phase Outcomes | Discuss organizational goals and how to advance those using the ERP system. Establish the scope of the project and ensure that business and IT are aligned on project priorities. | Build the ERP business model then move on to the top level (mega) processes and an initial list of the sub-processes. Generate a list of applications that support the identified processes. Conclude with a complete view of the mega-processes and their sub-processes. | Map out your stakeholders to evaluate their impact on the project, build an initial risk register and discuss group alignment. Conclude the phase by setting the initial core project team and their accountabilities to the project. | Review the different options to solve the identified pain points then build out a roadmap of how to get to that solution. Build a communication plan as part of organizational change management, which includes the stakeholder presentation. |
Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:
ERP Strategy ReportComplete an assessment of processes, prioritization, and pain points, and create an initiative roadmap.
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ERP Business ModelAlign your business and technology goals and objectives in the current environment. |
ERP Operating ModelIdentify and prioritize your ERP top-level processes. |
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ERP Process PrioritizationAssess ERP processes against the axes of rigor and strategic importance. |
ERP Strategy RoadmapA data-driven roadmap of how to address the ERP pain points and opportunities. |
Aerospace organization assesses ERP future state from opportunities, needs, and pain points
Several issues plagued the aerospace and defense organization. Many of the processes were ad hoc and did not use the system in place, often relying on Excel. The organization had a very large pain point stemming from its lack of business process standardization and oversight. The biggest gap, however, was from the under-utilization of the ERP software.
By assessing the usage of the system by employees and identifying key workarounds, the gaps quickly became apparent. After assessing the organization’s current state and generating recommendations from the gaps, it realized the steps needed to achieve its desired future state. The analysis of the pain points generated various needs and opportunities that allowed the organization to present and discuss its key findings with executive leadership to set milestones for the project.
The overall assessment led the organization to the conclusion that in order to achieve its desired future state and maximize ROI from its ERP, the organization must address the internal issues prior to implementing the upgraded software.
DIY Toolkit |
Guided Implementation |
Workshop |
Consulting |
"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." | "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." | "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." | "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project." |
A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.
A typical GI is between eight to twelve calls over the course of four to six months.
Contact your account representative for more information.
workshops@infotech.com1-888-670-8889
Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | |
Activities |
Introduction to ERP1.1 Introduction to ERP 1.2 Background 1.3 Expectations and goals 1.4 Align business strategy 1.5 ERP vision and guiding principles 1.6 ERP strategy model 1.7 ERP operating model |
Build the ERP operating model2.1 Build application portfolio 2.2 Map the level 1 ERP processes including identifying stakeholders, pain points, and key success indicators 2.3 Discuss process and technology maturity for each level 1 process |
Project set up3.1 ERP process prioritization 3.2 Stakeholder mapping 3.3 Competing priorities review 3.4 Initial risk register compilation 3.5 Workshop retrospective |
Roadmap and presentation review4.1 Discuss future state options 4.2 Build initial roadmap 4.3 Review of final deliverable |
Next Steps and wrap-up (offsite)5.1 Complete in-progress deliverables from previous four days 5.2 Set up review time for workshop deliverables and to discuss next steps |
Deliverables |
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Phase 1
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Phase 2
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Phase 3
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Phase 4
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Build a common language to ensure clear understanding of the organizational needs. Define a vision and guiding principles to aid in decision making and enumerate how the ERP supports achievement of the organizational goals. Define the initial scope of the ERP project. This includes the discussion of what is not in scope.
When faced with a challenge, prepare for the WHY.
Most organizations can answer “What?”
Some organizations can answer “How?”
Very few organizations have an answer for “Why?”
Each stage of the project will be difficult and present its own unique challenges and failure points. Re-evaluate if you lose sight of WHY at any stage in the project.
Business and IT have a shared understanding of how the ERP supports the organizational goals.
Every group has their own understanding of the ERP system, and they may use the same words to describe different things. For example, is there a difference between procurement of office supplies and procurement of parts to assemble an item for sale? And if they are different, do your terms differ (e.g., procurement versus purchasing)?
Term(s) | Definition |
HRMS, HRIS, HCM | Human Resource Management System, Human Resource Information System, Human Capital Management. These represent four capabilities of HR: core HR, talent management, workforce management, and strategic HR. |
Finance | Finance includes the core functionalities of GL, AR, and AP. It also covers such items as treasury, financial planning and analysis (FP&A), tax management, expenses, and asset management. |
Supply Chain | The processes and networks required to produce and distribute a product or service. This encompasses both the organization and the suppliers. |
Procurement | Procurement is about getting the right products from the right suppliers in a timely fashion. Related to procurement is vendor contract management. |
Distribution | The process of getting the things we create to our customers. |
CRM | Customer Relationship Management, the software used to maintain records of our sales and non-sales contact with our customers. |
Sales | The process of identifying customers, providing quotes, and converting those quotes to sales orders to be invoiced. |
Customer Service | This is the process of supporting customers with challenges and non-sales questions related to the delivery of our products/services. |
Field Service | The group that provides maintenance services to our customers. |
Record this information in the ERP Strategy Report Template.
Download the ERP Strategy Report Template
Example/working slide for your glossary. Consider this a living document and keep it up to date.
Term(s) | Definition |
HRMS, HRIS, HCM | Human Resource Management System, Human Resource Information System, Human Capital Management. These represent four capabilities of HR: core HR, talent management, workforce management, and strategic HR. |
Finance | Finance includes the core functionalities of GL, AR, and AP. It also covers such items as treasury, financial planning and analysis (FP&A), tax management, expenses, and asset management. |
Supply Chain | The processes and networks required to produce and distribute a product or service. This encompasses both the organization and the suppliers. |
Procurement | Procurement is about getting the right products from the right suppliers in a timely fashion. Related to procurement is vendor contract management. |
Distribution | The process of getting the things we create to our customers. |
CRM | Customer Relationship Management, the software used to maintain records of our sales and non-sales contact with our customers. |
Sales | The process of identifying customers, providing quotes, and converting those quotes to sales orders to be invoiced. |
Customer Service | This is the process of supporting customers with challenges and non-sales questions related to the delivery of our products/services. |
Field Service | The group that provides maintenance services to our customers. |
Guiding principles are high-level rules of engagement that help to align stakeholders from the outset. Determine guiding principles to shape the scope and ensure stakeholders have the same vision.
Guiding principles should be constructed as full sentences. These statements should be able to guide decisions.
EXAMPLES
1 hour
Record this information in the ERP Strategy Report Template.
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We, [Organization], will select and implement an integrated software suite that enhances the growth and profitability of the organization through streamlined global business processes, real time data-driven decisions, increased employee productivity, and IT investment protection.
Corporate Strategy | Unified Strategy | ERP Strategy |
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ERP projects are more successful when the management team understands the strategic importance and the criticality of alignment. Time needs to be spent upfront aligning business strategies with ERP capabilities. Effective alignment between IT and the business should happen daily. Alignment doesn’t just to occur at the executive level alone, but at each level of the organization.
1-2 hours
Download the ERP Strategy Report Template
Corporate Strategy | ERP Benefits |
End customer visibility (consumer experience) |
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Social responsibility |
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New business development |
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Employee experience |
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A project scope statement and a prioritized list of projects that may compete for organizational resources.
Establishing the parameters of the project in a scope statement helps define expectations and provides a baseline for resource allocation and planning. Future decisions about the strategic direction of ERP will be based on the scope statement.
Well-executed requirements gathering will help you avoid expanding project parameters, drawing on your resources, and contributing to cost overruns and project delays. Avoid scope creep by gathering high-level requirements that lead to the selection of category-level application solutions (e.g. HRIS, CRM, PLM etc.) rather than granular requirements that would lead to vendor application selection (e.g. SAP, Microsoft, Oracle, etc.).
Out-of-scope items should also be defined to alleviate ambiguity, reduce assumptions, and further clarify expectations for stakeholders. Out-of-scope items can be placed in a backlog for later consideration.
In Scope | Out of Scope |
Strategy | High-level ERP requirements, strategic direction |
Software selection | Vendor application selection, Granular system requirements |
1 hour
Record this information in the ERP Strategy Report Template.
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The following systems are considered in scope for this project:
The following systems are out of scope for this project:
The following systems are in scope, in that they must integrate into the new system. They will not change.
Organizations typically have multiple projects on the table or in flight. Each of those projects requires resources and attention from business and/or the IT organization.
Don’t let poor prioritization hurt your ERP implementation.
BNP Paribas Fortis had multiple projects that were poorly prioritized resulting in the time to bring products to market to double over a three-year period. (Source: Neito-Rodriguez, 2016)
Project | Timeline | Priority notes | Implications |
Warehouse management system upgrade project | Early 2022 implementation | High | Taking IT staff and warehouse team, testing by finance |
Microsoft 365 | October 2021-March 2022 | High | IT Staff, org impacted by change management |
Electronic Records Management | April 2022 – Feb 2023 | High | Legislative requirement, org impact due to record keeping |
Web site upgrade | Early fiscal 2023 |
1 hour
Record this information in the ERP Strategy Report Template.
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List all your known projects both current and proposed. Discuss the prioritization of those projects, whether they are more or less important than your ERP project.
Project | Timeline | Priority notes | Implications |
Warehouse management system upgrade project | Early 2022 implementation | High | Taking IT staff and warehouse team, testing by finance |
Microsoft 365 | October 2021-March 2022 | High | IT Staff, org impacted by change management |
Electronic Records Management | April 2022 – Feb 2023 | High | Legislative requirement, org impact due to record keeping |
Web site upgrade | Early fiscal 2023 | Medium | |
Point of Sale replacement | Oct 2021– Mar 2022 | Medium | |
ERP utilization and training on unused systems | Friday, Sept 17 | Medium | Could impact multiple staff |
Managed Security Service RFP | This calendar year | Medium | |
Mental Health Dashboard | In research phase | Low |
Phase 1
| Phase 2
| Phase 3
| Phase 4
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External Considerations
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Organizational Drivers
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Technology Considerations
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Functional Requirements
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1 hour
Record this information in the ERP Strategy Report Template.
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Environmental Factors | Technology Drivers | Business Needs |
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Functional Gaps
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Technical Gaps
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Process Gaps
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Barriers to Success
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Business Benefits
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IT Benefits
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Organizational Benefits
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Enablers of Success
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1 hour
Record this information in the ERP Strategy Report Template.
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Organizational Goals | Enablers | Barriers |
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In business architecture, the primary view of an organization is known as a business capability map.
A business capability defines what a business does to enable value creation rather than how.
Business capabilities:
A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further assessment.
If you do not have a documented process model, you can use the APQC Framework to help define your inventory of business processes.
APQC’s Process Classification Framework is a taxonomy of cross-functional business processes intended to allow the objective comparison of organizational performance within and among organizations.
APQC’s Process Classification Framework
2-4 hours
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Core Finance | Core HR | Workforce Management | Talent Management | Warehouse Management | Enterprise Asset Management | ||||||
Process | Technology | Process | Technology | Process | Technology | Process | Technology | Process | Technology | Process | Technology |
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Planning & Budgeting | Strategic HR | Procurement | Customer Relationship Management | Facilities Management | Project Management | ||||||
Process | Technology | Process | Technology | Process | Technology | Process | Technology | Process | Technology | Process | Technology |
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1-2 hours
Record this information in the ERP Strategy Report Template.
Download the ERP Strategy Report Template
Inventory your applications and assess usage, satisfaction, and disposition
Application Name | Satisfaction | Processes Supported | Future Disposition |
PeopleSoft Financials | Medium and declining | ERP – shares one support person with HR | Update or Replace |
Time Entry (custom) | Low | Time and Attendance | Replace |
PeopleSoft HR | Medium | Core HR | Update or Replace |
ServiceNow | High ITSM CSM: Med-Low |
ITSM and CSM CSM – complexity and process changes |
Update |
Data Warehouse | High IT Business: Med-Low |
BI portal – Tibco SaaS datamart | Keep |
Regulatory Compliance | Medium | Regulatory software – users need training | Keep |
ACL Analytics | Low | Audit | Replace |
Elite | Medium | Supply chain for wholesale | Update (in progress) |
Visual Importer | Med-High | Customs and taxes | Keep |
Custom Reporting application | Med-High | Reporting solution for wholesale (custom for old system, patched for Elite) | Replace |
For each mega-process:
Congratulations, you have made it to the “big lift” portion of the blueprint. For each of the processes that were identified in exercise 2.2.1, you will fill out the following six details:
It will take one to three hours per mega-process to complete the six different sections.
Note:
For each mega-process identified you will create a separate slide in the ERP Strategy Report. Default slides have been provided. Add or delete as necessary.
*A “stage gate” approach should be used: the next level begins after consensus is achieved for the previous level.
1 hour per mega-process
Record this information in the ERP Strategy Report Template.
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30+ minutes per mega-process
Record this information in the ERP Strategy Report Template.
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30 minutes per mega-process
Record this information in the ERP Strategy Report Template.
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1 hour
Record this information in the ERP Strategy Report Template.
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1 hour
Record this information in the ERP Strategy Report Template.
Download the ERP Strategy Report Template.
Establishing an order of importance can impact vendor selection and implementation roadmap; high priority areas are critical for ERP success.
Phase 1
| Phase 2
| Phase 3
| Phase 4
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Identify which stakeholders to include and what their level of involvement should be during requirements elicitation based on relevant topic expertise.
Sponsor | End User | IT | Business | |
Description | An internal stakeholder who has final sign-off on the ERP project. | Front-line users of the ERP technology. | Back-end support staff who are tasked with project planning, execution, and eventual system maintenance. | Additional stakeholders that will be impacted by any ERP technology changes. |
Examples |
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Value | Executive buy-in and support is essential to the success of the project. Often, the sponsor controls funding and resource allocation. | End users determine the success of the system through user adoption. If the end user does not adopt the system, the system is deemed useless and benefits realization is poor. | IT is likely to be responsible for more in-depth requirements gathering. IT possesses critical knowledge around system compatibility, integration, and data. | Involving business stakeholders in the requirements gathering will ensure alignment between HR and organizational objectives. |
Large-scale ERP projects require the involvement of many stakeholders from all corners and levels of the organization, including project sponsors, IT, end users, and business stakeholders. Consider the influence and interest of stakeholders in contributing to the requirements elicitation process and involve them accordingly.
1 hour
Record this information in the ERP Strategy Report Template.
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Understanding the technical and strategic risks of a project can help you establish contingencies to reduce the likelihood of risk occurrence and devise mitigation strategies to help offset their impact if contingencies are insufficient.
Risk | Impact | Likelihood | Mitigation Effort |
Inadequate budget for additional staffing resources. | 2 | 1 | Use internal transfers and role-sharing rather than external hiring. |
Push-back on an ERP solution. | 2 | 2 | Use formal communication plans, an ERP steering committee, and change management to overcome organizational readiness. |
Overworked resources. | 1 | 1 | Create a detailed project plan that outlines resources and timelines in advance. |
Rating Scale: |
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Impact: | 1- High Risk | 2- Moderate Risk | 3- Minimal Risk |
Likelihood: | 1- High/Needs Focus | 2- Can Be Mitigated | 3- Remote Likelihood |
The biggest sources of risk in an ERP strategy are lack of planning, poorly defined requirements, and lack of governance.
Apply the following mitigation tips to avoid pitfalls and delays.
1-2 hours
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Risk | Impact | Likelihood | Mitigation Effort |
Inadequate budget for additional staffing resources. | 2 | 1 | Use internal transfers and role-sharing rather than external hiring. |
Push-back on an ERP solution. | 2 | 2 | Use formal communication plans, an ERP steering committee, and change management to overcome organizational readiness. |
Overworked resources. | 1 | 1 | Create a detailed project plan that outlines resources and timelines in advance. |
Project approval | 1 | 1 | Build a strong business case for project approval and allow adequate time for the approval process |
Software does not work as advertised resulting in custom functionality with associated costs to create/ maintain | 1 | 2 | Work with staff to change processes to match the software instead of customizing the system thorough needs analysis prior to RFP creation |
Under estimation of staffing levels required, i.e. staff utilized at 25% for project when they are still 100% on their day job | 1 | 2 | Build a proper business case around staffing (be somewhat pessimistic) |
EHS system does not integrate with new HRMS/ERP system | 2 | 2 | |
Selection of an ERP/HRMS that does not integrate with existing systems | 2 | 3 | Be very clear in RFP on existing systems that MUST be integrated to |
Rating Scale: |
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Impact: | 1- High Risk | 2- Moderate Risk | 3- Minimal Risk |
Likelihood: | 1- High/Needs Focus | 2- Can Be Mitigated | 3- Remote Likelihood |
By answering the seven questions the key stakeholders are indicating their commitment. While this doesn’t guarantee that the top two critical success factors have been met, it does create the conversation to guide the organization into alignment on whether to proceed.
30 minutes
There are no wrong answers. It should be okay to disagree with any of these statements. The goal of the exercise is to generate conversation that leads to support of the project and collaboration on the part of the participants.
Record this information in the ERP Strategy Report Template.
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Question # | Question | Strongly disagree | Somewhat disagree | Neither agree nor disagree | Somewhat agree | Strongly agree |
1. | I have everything I need to succeed. | 1 | 2 | 3 | 4 | 5 |
2. | The right people are involved in the project. | 1 | 2 | 3 | 4 | 5 |
3. | I understand the process of ERP selection. | 1 | 2 | 3 | 4 | 5 |
4. | My role in the project is clear to me. | 1 | 2 | 3 | 4 | 5 |
5. | I am clear about the vision for this project. | 1 | 2 | 3 | 4 | 5 |
6. | I am nervous about this project. | 1 | 2 | 3 | 4 | 5 |
7. | There is leadership support for the project. | 1 | 2 | 3 | 4 | 5 |
Consider the core team functions when composing the project team. It is essential to ensure that all relevant perspectives (business, IT, etc.) are evaluated to create a well-aligned and holistic ERP strategy.
There may be an inclination towards a large project team when trying to include all relevant stakeholders. Carefully limiting the size of the project team will enable effective decision making while still including functional business units like HR and Finance, as well as IT.
1 hour
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Of particular importance for this table is the commitment column. It is important that the organization understands the level of involvement for all roles. Failure to properly account for the necessary involvement is a major risk factor.
Role | Candidate | Responsibility | Commitment |
Project champion | John Smith |
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20 hours/week |
Steering committee |
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10 hours/week | |
Project manager |
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40 hours/week | |
Project team |
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40 hours/week | |
Subject matter experts by area |
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5 hours/week |
Build a list of the core ERP strategy team members and then structure a RACI chart with the relevant categories and roles for the overall project.
1 hour
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Project champion | Project advisor | Project steering committee | Project manager | Project team | Subject matter experts | |
Determine project scope & vision | I | C | A | R | C | C |
Document business goals | I | I | A | R | I | C |
Inventory ERP processes | I | I | A | C | R | R |
Map current state | I | I | A | R | I | R |
Assess gaps and opportunities | I | C | A | R | I | I |
Explore alternatives | R | R | A | I | I | R |
Build a roadmap | R | A | R | I | I | R |
Create a communication plan | R | A | R | I | I | R |
Present findings | R | A | R | I | I | R |
Phase 1
| Phase 2
| Phase 3
| Phase 4
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There are several different paths you can take to achieve your ideal future state. Make sure to pick the one that suits your needs as defined by your current state.
CURRENT STATE | STRATEGY |
Your existing application satisfies both functionality and integration requirements. The processes surrounding it likely need attention, but the system should be considered for retention. | MAINTAIN CURRENT SYSTEM |
Your existing application is, for the most part, functionally rich, but may need some tweaking. Spend time and effort building and enhancing additional functionalities or consolidating and integrating interfaces. | AUGMENT CURRENT SYSTEM |
Your ERP application portfolio consists of multiple apps serving the same functions. Consolidating applications with duplicate functionality is more cost efficient and makes integration and data sharing simpler. | OPTIMIZE: CONSOLIDATE AND INTEGRATE SYSTEMS |
Your existing system offers poor functionality and poor integration. It would likely be more cost and time efficient to replace the application and its surrounding processes altogether. | TRANSFORM: REPLACE CURRENT SYSTEM |
Keep the system, change the process.
Your existing application satisfies both functionality and integration requirements. The processes surrounding it likely need attention, but the system should be considered for retention.
Maintaining your current system entails adjusting current processes and/or adding new ones, and involves minimal cost, time, and effort.
INDICATORS | POTENTIAL SOLUTIONS |
People Pain Points | |
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Process Pain Points | |
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Add to the system.
Your existing application is for the most part functionally rich but may need some tweaking. Spend time and effort enhancing your current system.
You will be able to add functions by leveraging existing system features. Augmentation requires limited investment and less time and effort than a full system replacement.
INDICATORS | POTENTIAL SOLUTIONS |
Technology Pain Points | |
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Data Pain Points | |
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Get rid of one system, combine two, or connect many.
Your ERP application portfolio consists of multiple apps serving the same functions.
Consolidating your systems eliminates the need to manage multiple pieces of software that provide duplicate functionality. Reducing the number of ERP applications makes integration and data sharing simpler.
INDICATORS | POTENTIAL SOLUTIONS |
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Data Pain Points | |
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Start from scratch.
You’re transitioning from an end-of-life legacy system. Your existing system offers poor functionality and poor integration. It would likely be more cost and time efficient to replace the application and its surrounding processes all together.
INDICATORS | POTENTIAL SOLUTIONS |
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Data Pain Points | |
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Process Pains | |
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1-2 hours
Record this information in the ERP Strategy Report Template.
Note:
Your roadmap should be treated as a living document that is updated and shared with the stakeholders on a regular schedule.
Download the ERP Strategy Report Template
Initiative | Owner | Start Date | Completion Date |
Create final workshop deliverable | Info-Tech | 16 September, 2021 | |
Review final deliverable | Workshop sponsor | ||
Present to executive team | Oct 2021 | ||
Build business case | CFO, CIO, Directors | 3 weeks to build 3-4 weeks process time |
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Build an RFI for initial costings | 1-2 weeks | ||
Stage 1 approval for requirements gathering | Executive committee | Milestone | |
Determine and acquire BA support for next step | 1 week | ||
Requirements gathering – level 2 processes | Project team | 5-6 weeks effort | |
Build RFP (based on informal approval) | CFO, CIO, Directors | 4th calendar quarter 2022 | Possible completion January 2023 2-4 weeks |
1 hour
Record this information in the ERP Strategy Report Template.
Download the ERP Strategy Report Template
A communication plan is necessary because not everyone will react positively to change. Therefore, you must be prepared to explain the rationale behind any initiatives that are being rolled out.
“The most important thing in project management is communication, communication, communication. You have to be able to put a message into business terms rather than technical terms.” (Lance Foust, I.S. Manager, Plymouth Tube Company)
Project Goals | Communication Goals | Required Resources | Communication Channels |
Why is your organization embarking on an ERP project? | What do you want employees to know about the project? | What resources are going to be utilized throughout the ERP strategy? | How will your project team communicate project updates to the employees? |
Streamline processes and achieve operational efficiency. | We will focus on mapping and gathering requirements for (X) mega-processes. | We will be hiring process owners for each mega-process. | You will be kept up to date about the project progress via email and intranet. Please feel free to contact the project owner if you have any questions. |
1 hour
Record this information in the ERP Strategy Report Template.
Download the ERP Strategy Report Template
Use the communication planning template to track communication methods needed to convey information regarding ERP initiatives.
This is designed to help your organization make ERP initiatives visible and create stakeholder awareness.
Audience | Purpose | Delivery/ Format | Communicator | Delivery Date | Status/Notes |
Front-line employees | Highlight successes | Bi-weekly email | CEO | Mondays | |
Entire organization | Highlight successes Plans for next iteration |
Monthly townhall | Senior leadership | Last Thursday of every month | Recognize top contributors from different parts of the business. Consider giving out prizes such as coffee mugs |
Iteration demos | Show completed functionality to key stakeholders | Iteration completion web conference | Delivery lead | Every other Wednesday | Record and share the demonstrations to all employees |
After completing the activities and exercises within this blueprint, the final step of the process is to present the deliverable to senior management and stakeholders.
“When delivering the strategy and next steps, break the project down into consumable pieces. Make sure you deliver quick wins to retain enthusiasm and engagement.
By making it look like a different project you keep momentum and avoid making it seem unattainable.” (Scott Clark, Innovation Credit Union)
“To successfully sell the value of ERP, determine what the high-level business problem is and explain how ERP can be the resolution. Explicitly state which business areas ERP is going to touch. The business often has a very narrow view of ERP and perceives it as just a financial system. The key part of the strategy is that the organization sees the broader view of ERP.” (Scott Clark, Innovation Credit Union)
1 hour
Download the ERP Strategy Report Template
ERP technology is critical to facilitating an organization’s flow of information across business units. It allows for seamless integration of systems and creates a holistic view of the enterprise to support decision making. ERP implementation should not be a one-and-done exercise. There needs to be an ongoing optimization to enable business processes and optimal organizational results.
Build an ERP Strategy and Roadmap allows organizations to proactively implement continuous assessment and optimization of their enterprise resource planning system, including:
This formal ERP optimization initiative will drive business-IT alignment, identify IT automation priorities, and dig deep into continuous process improvement.
Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889
Name | Title | Organization |
Anonymous | Anonymous | Software industry |
Anonymous | Anonymous | Pharmaceutical industry |
Boris Znebel | VP of Sales | Second Foundation |
Brian Kudeba | Director, Administrative Systems | Fidelis Care |
David Lawrence | Director, ERP | Allegheny Technologies Inc. |
Ken Zima | CIO | Aquarion Water Company |
Lance Foust | I.S. Manager | Plymouth Tube Company |
Pooja Bagga | Head of ERP Strategy & Change | Transport for London |
Rob Schneider | Project Director, ERP | Strathcona County |
Scott Clark | Innovation Credit Union | |
Tarek Raafat | Manager, Application Solutions | IDRC |
Tom Walker | VP, Information Technology | StarTech.com |
Gheorghiu, Gabriel. "The ERP Buyer’s Profile for Growing Companies." Selecthub. 2018. Accessed 21 Feb. 2021.
"Maximizing the Emotional Economy: Behavioral Economics." Gallup. n.d. Accessed 21 Feb. 2021.
Neito-Rodriguez, Antonio. Project Management | How to Prioritize Your Company's Projects. 13 Dec. 2016. Accessed 29 Nov 2021. Web.
"A&D organization resolves organizational.“ Case Study. Panorama Consulting Group. 2021. PDF. 09 Nov. 2021. Web.
"Process Frameworks." APQC. n.d. Accessed 21 Feb. 2021.
Saxena, Deepak and Joe Mcdonagh. "Evaluating ERP Implementations: The Case for a Lifecycle-based Interpretive Approach." The Electronic Journal of Information Systems Evaluation, 29-37. 22 Feb. 2019. Accessed 21 Feb. 2021.