ERP Implementation Strategies and Best Practices
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1 AGC'S Contractor to Contractor Webinar Series: ERP Implementation Strategies and Best Practices LaDonna Darland Lead Business Analyst Steven Gross Director of Client Solutions Computer Guidance Corporation Sponsored by
2 Over 20 years experience in the construction industry, working for Skanska in various roles and functions from project accounting, safety and ISO 14000, back-office accounting, marketing, human resources and IT. In her role, LaDonna manages process design and rollout of software packages within the organization. She has over 20 years experience working with Computer Guidance s ecms ERP solutions. LaDonna has a Bachelor of Arts in Asian History and Master of Science in Environmental Engineering. LaDonna Darland
3 Skanska USA Heavy Highway/Civil US Divisions: Commercial Development USA Civil USA Building Infrastructure Development Skanska is one of the world's leading construction groups. In the U.S., we are a provider of comprehensive construction services and a developer of public-private partnerships. We apply our expertise to everything from small renovations to billion-dollar projects, using a variety of delivery methods.
4 Steven Gross Responsible for directing initiatives designed to maximize the effectiveness and utilization of Computer Guidance software applications at customer environments. His extensive expertise helps customers in realizing the highest levels of ROI from Computer Guidance ERP solutions Steve delivers expert review and analysis of system usage, gap analysis and best practices consulting. Steven has over 20 years of experience working with and advising construction companies on successfully implementing accounting and project management systems Steven holds a BS degree in Business Information Systems from Illinois State University.
5 Discussion Points Implementation Strategy ERP Functionality Considerations Project Planning and Management Requirements and Expectations Process Management and Re-engineering Data Conversion Considerations User Training Executive Buy-ins Documentation Change Management Communication Employee Motivation Post-implementation Analysis and Review Sponsored by
6
7 Implementation Strategy Review of ERP Purchase and Implementation Goals Relationship to the business Examine current business processes and information flow Different Approaches Application-based Division-based Traditional vs. Turnkey Approach
8 Implementation Strategy Considerations influenced by ERP technology ERP functionality ERP platform ERP deployment IT infrastructure Third-party solution integrations Business Requirements Technology solutions Operations and Processes
9 Implementation Strategy Why is it important that you select and utilize the right implementation strategy? Higher stakes Management expectations are high, as ERP success brings faster and better reporting along with improved workflow and efficiency. Substantial costs There is generally a hefty price tag attached to the project in terms of software, IT services, and staff hours. Company-wide ramifications There are people to please across the organization. Failure to implement the system correctly can diminish the ability to generate necessary reporting and can quickly become a career-limiting exercise.
10 ERP Functionality Business areas touched Business strategy and goals are aligned with functionality Industry-specific functionality vs. common technology functionality Security Standardization Automation Productivity Compliances
11 Implementation Project Planning and Management Things you need to have: Readiness Assessment Plan Timeline Budget/Cost Governance Resources Technology Solutions Human Resources/The Team Milestones Requirements Data Conversion Plan Training Program Things to continuously manage: Executive buy-in Team Motivation Process Re-engineering Change Management Requirement Solution Goal Business IT Requirements Documentation Communication Training
12 Project Plan Installation Test Environment Process Design Configuration Training Testing Validation Go-live Postimplementation
13 Human Resources/Project Team Project sponsors Executive buy-in Project team Communication Project team charter Business area experts
14 Budget/Cost and ROI Key Items to Consider: There is no real endpoint to an ERP implementation Clearly-defined ERP implementation goals are critical Business strategy and objectives change over time Continuous improvement efforts to gain expected ROI Plan for new functionality introductions Technology innovations
15 Do the work before the go-live Don t underestimate the importance of testing Establish governance over the testing process Data Conversion Software Testing Technology Validation Create a detailed testing plan that addresses converted data as well as process change. Test Test Comm unicat e Chang e
16 Training Program A recent survey conducted by Aberdeen Group polled 170 organizations with implemented ERP systems. Some Findings: the best run companies are the ones who implement training strategies for new ERP end users. best-in-class organizations are more than three times as likely to have a certification program for their ERP users and are over four times as likely to measure the ERP aptitude of users. On-line/Web-based On-site/classroom Self-paced/group-style Mixed approach Per business areas High-level all user training Specialized business-line application training
17 Requirements and Expectations Succinct business case Clearly defined goals Actionable solution Business needs to drive technology solution implementations
18 Process Management and Re-engineering Revisit the goal of the project again and again and again Continuously review where you are and where you are headed and why Must plan ahead with every decision and anticipate the consequences to the best you can Measure upstream and downstream impact of an integrated system when designing and before executing
19 Incorrect Assumptions Skanska Case Study Conversion to a new ERP package is an IT project and should not tie up business resources How the current ERP system functions does not matter Conversion will force processes to align The business can dedicate resources to assist The business can articulate current processes Schedule can be created prior to analysis of the current and future business processes Management on an individual basis can make decisions about process changes The new ERP system could not fit their requirements where in fact the ERP could address the third-party functionality that was in place
20 Lessons Learned Skanska Case Study What we did not do from the beginning Put together the right team to perform an accurate evaluation by asking the right questions Give the right team enough time to perform evaluations Identify a leader for that team that can communicate with the business directly and drive the process changes Form partnerships with subject experts to come to the right decisions. Identify the exceptions to the rules and measure their significance but focus on core processes Communicate findings to the Business Decision Makers in a manner that is simple and well defined
21 Lessons Learned Skanska Case Study What took too long to ask What practices differ from the Skanska model and should they be accommodated? Can the current software package meet the required accommodations? Are modifications necessary? What can change in the business process to meet the software limitations or the parent process requirements? What can IT do, technically, to assist in or smooth the transition? Are we solving any current business issues with the new ERP package? Are we creating new business issues with the new ERP package?
22 Proposing Major Process Changes Skanska Case Study What we developed Clearly identify all process changes with a list of pros and cons Outline alternative designs and what the preferred design is and why Identify resources from within the business to assist. Highlight solutions to current business issues. Explain what the business may be giving up as a result. Give an honest assessment of the time it will take to implement. Present to the right mix of business professionals
23 Emotional Response / Change Management Skanska Case Study Excitement Recognition Momentum Doubt Disappointment Fear ERP User Base Delivery
24 Executive Buy-in Present the case for the project with actual facts Demonstrate progress with KPIs Communicate both positive and negative results Unified executive leadership A must have to secure success It needs to be nurtured along the way Communication back and forth is essential Employees need to know this exists Endorsement vs. fear factor
25 Employee Motivation Share information from start to finish Share the good and bad Seek their insight and feedback Make them feel part of something important, exciting and new Endorse change Make them accountable Allow creativity Measure performance and adjust behavior accordingly
26 Documentation Content management software Shared files Shared calendars Project documents Project Management solutions Communication solutions Leverage technology solutions if you can Document why decisions are made and when
27 Post-implementation Analysis and Review Celebrate successes Learn from mistakes Do both as a team Document findings Review them before starting next project Did we meet the goal? Did we meet the budget? Did we do it on time? Are we better off today than before the project?
28 Implementation Pyramid by Skanska
29 Key Success Factors Chart by Computer Guidance Corporation
30 AGC FedCon CFMA Conference Computer Guidance Corporation ecms Construction ERP Solution
31
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