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WHY ERP PROJECTS FAIL
ERP VALUE CREATION CYCLE
METHOD VALUE PROPOSITION
WHY METHOD
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?
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Contents
IT’S MORE EXPENSIVE NOT TO USE METHOD6
WHY ERP PROJECTS FAIL
ERP VALUE CREATION CYCLE
METHOD VALUE PROPOSITION
WHY METHOD
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?
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5
Contents
IT’S MORE EXPENSIVE NOT TO USE METHOD6
WHY ERP PROJECTS FAILS1
Lack of end user buy-in,
build ERP among inefficient or ineffective processes,
inadequate functional requirements definition,
misfit of application software with business
processes,
poor ERP package selection,
unclear implementation scope,
un-systematic approach for vendor selection, and
miscalculation of time and effort
WHY ERP PROJECTS FAIL
ERP VALUE CREATION CYCLE
METHOD VALUE PROPOSITION
WHY METHOD
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?
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4
5
Contents
IT’S MORE EXPENSIVE NOT TO USE METHOD6
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?2
ERP by itself will NOT deliver value to your business if you
are not improve your business
performance first
ERP just automate your operational
transactions
There is a big difference
between installing and implementing ERP
Method makes a lot of effort to ensure your readiness to
handle a success ERP story
Going directly to
the ERP vendor will
launch the ERP quickly, NOT
the value.
WHY ERP PROJECTS FAIL
ERP VALUE CREATION CYCLE
METHOD VALUE PROPOSITION
WHY METHOD
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?
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5
Contents
IT’S MORE EXPENSIVE NOT TO USE METHOD6
ERP VALUE CREATION CYCLE3
Don’t Perform “DO” alone, then you will
overlook:
Planning = Baseline
Check = Closed – Loop
Act = Continuous Improvement
WHY ERP PROJECTS FAIL
ERP VALUE CREATION CYCLE
METHOD VALUE PROPOSITION
WHY METHOD
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?
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Contents
IT’S MORE EXPENSIVE NOT TO USE METHOD6
METHOD VALUE PROPOSITION4
• ERP Readiness Assessment
• BP Excellence & Performance Improvement
• Organizational Change Management
• ERP Optimzing
• ERP Software Selection
• ERP Vendor Selection
• Clients Representative (PM & QA)
• ERP Benefits Realization Assessment
METHOD VALUE PROPOSITION4
Conducting comprehensive surveys, detailed
diagnosis for existing systems, uncovering all existing
challenges
Advise you either to start looking for vendors, or
postpone ERP implementation
•ERP Readiness Assessment
METHOD VALUE PROPOSITION4
•Organizational Change Management
Involvement Empowerment
Awareness Desire Knowledge Ability Reinforcement
Workshops Incentives / Re-assigning
Training Needs Assessment & Delivery
Training / Incentives
Which is Remedied By:
Tool
s
Of FailureOf the Unknown
Fear
Project Implementation Period Operation Time
People resist change because they are:
METHOD VALUE PROPOSITION4
There is no ERP fit for all
Buying ERP by looking to its capabilities before
looking to your business needs may lead you to pick
ERP modules and functions that are not required for
your business case.
Steps
understanding your business needs,
determing functional requirements (FRs)
filtering FRs by existing IT application capabilities
•ERP Optimizing
METHOD VALUE PROPOSITION4
Applying "ERP Optimizing" means that you decide
what the functions to be in ERP by looking to your
actual business need and existing IT applications NOT
by temptation from ERP presales team.
it's not important what ERP can do, the question is:
What I need from ERP?
•ERP Optimizing
METHOD VALUE PROPOSITION4
•ERP Software Selection
We are 100% impartial and unbiased advisor, we do not sell
or implement any ERP or accept any
compensation from ERP vendors or Value Added Resellers for our advice
or services
METHOD VALUE PROPOSITION4
Build RFP & Publish it to prospective vendors.
Conduct proposals evaluation process
Comparison and ranking among vendors based on
hard & soft criteria
Vendor selection
Contract Negotiation and Closing
•ERP Vendor Selection
METHOD VALUE PROPOSITION4
PM
perform progress tracking, scope management,
escalation process, issues tracking, and tasks-oriented
monitoring activities.
QA
performing audit on implementers, conduct acceptance
cycle to ensue that deliverables meet various criteria,
build quality procedures within implementation, and
monitoring deliverables consistency.
•Clients Representative (PM & QA)
METHOD VALUE PROPOSITION4
reviews the business case for implementing the ERP
collects and documents the organization's baseline
performance levels before the ERP "goes live" and
post-implementation
analyzes the gabs, and
recommends action plans to bridge that gap.
•ERP Benefits Realization Assessment
METHOD VALUE PROPOSITION4
Determine whether the current forecast for
completion is reasonable
Determine whether any changes should be made to
the implementation process
Evaluate work completed to date
Determine whether there are software gaps that
were not expected
Gain insight that would assist in implementation
•Audit
METHOD VALUE PROPOSITION4
Compare implementation methodologies to best practice
Evaluate software based on whether it meets defined requirements
Review affidavits for validity, accuracy and reasonability
Recommend potential solutions to resolving the dispute
Prepare opinion letters and affidavits
Provide testimony in court
Assist in settlement negotiations
•Arbitration
WHY ERP PROJECTS FAIL
ERP VALUE CREATION CYCLE
METHOD VALUE PROPOSITION
WHY METHOD
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?
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Contents
IT’S MORE EXPENSIVE NOT TO USE METHOD6
WHY METHOD5
Broad and deep market experience
100% Independent, unbiased and impartial advisor
Do not sell or implement any ERP or accept any
compensation from ERP vendors or Value Added
Resellers for our advice or services
The only in MENA region have an ERP Software
Solutions and vendors Database, and extensive ERP
research and reports
WHY METHOD5
The only "ERP Enabling" provider in MENA region
who has a proven, specialized , and progress
developed Methodology for this consulting service
Consultants have operational experience in multiple
industries
Leverage industry best-practices
Deliver measurable results and return on investment
exceeding our fees
Experts work on-site at your office
WHY ERP PROJECTS FAIL
ERP VALUE CREATION CYCLE
METHOD VALUE PROPOSITION
WHY METHOD
IS IT RIGHT TO GO TO THE ERP VENDOR DIRECTLY?
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Contents
IT’S MORE EXPENSIVE NOT TO USE METHOD6
IT’S MORE EXPENSIVE NOT TO USE METHOD6
Average ERP Implementation
Average ERP Implementation
With "ERP Enabling"
ERP Implementation Duration 19 Months 17 Months
ERP Implementation Cost $8.5M $3.9M
Cost as a Percentage of Sales 9% 5%
Percentage of Potential
ERP Benefits Realized39% 80%
Management Satisfaction With ERP
Software Project71% 100%