Critical Success Factors for ERP Implementations
July 2009
- Critical success factors for ERP implementations
- The Buzzz…Improving Project Success Rates with Better Leadership
- Microsoft licences and special offer (offer ends July 3rd)
- Webinars
- Product Tours/White Papers
- Case Studies
Critical success factors for ERP implementations
A recent study of five ERP implementations in Canada drew some revealing conclusions. The analysis, performed by students at the Haskayne School of Business, University of Calgary, looked at five implementations of two different ERP software packages at small and medium sized companies. Read the full study. Click here for PDF version.
The numbers of user licenses at the interviewed companies were 10, 12, 17, 40 and 100 respectively. 3 of the implementations were deemed successful the other two unsuccessful.
The aspect I found most interesting, and most relevant to Blue Link customers, were the critical success factors the students identified. These were the factors in the implementation process itself that differentiated the successful implementations from the others. These relate solely to the actual implementation and not to the software selection process (but see my comments further in this article):
1. Operational process discipline: inconsistent operational processes were identified as a factor in unsuccessful implementations. This reminds me of an old computer industry saying: "If you automate a flawed process, you get the same errors, they just happen faster."
2. A small internal implementation team was a factor in the successful implementations - where more than 4 internal employees were given authority over the process (and thus the ability to get in the way), implementation suffered.
3. Project management capabilities were a key factor, and this role was provided by an external project manager in the successful implementations (mostly by the software vendor). Those that tried to manage the project internally were hampered by the project leaders having to perform their regular tasks while simultaneously trying to spearhead an ERP implementation that was beyond their day to day skill set anyway.
4. External end user training: the more training provided by external (usually vendor-supplied) consultants, the more successful the implementation.
5. Management support: in a small company this is obvious. If management is engaged with the project, employees have leaders to follow and resources can be prioritized.
6. Qualified consultant: internal project teams that were able to rely on an external consultant's technical expertise and soft skills were more likely to succeed.
I find it interesting that several of these 6 critical success factors duplicate or complement the success factors involved in selecting an ERP solution and vendor. The points above numbered 2, 3 and 5 are all generally accepted elements of a successful software solution search. Additionally, companies with solid operational processes (point 1) are more likely to select the appropriate software, and usually do so comparatively quickly.
The full study at 49 pages is valuable reading for anyone staring down the barrel of an ERP implementation. Click here for PDF version.
The Buzzzz...
Improving Project Success Rates with Better Leadership
A recent article in ProjectTimes indicated that "Factual and anecdotal evidence confirms that IT investments are inherently risky. On average, about 70% of all IT related projects fail to meet their on-time, on-budget objectives or to produce the expected business results. In one KPMG survey, 67% of the companies who participated said that their program/project management function was in need of improvement. Why? A number of leading factors for project failure were suggested by the survey, including the "usual suspects": unreasonable project timelines, poorly defined requirements, poor scope management, and unclear project objectives. Granted, all of these factors can play a role in project success. But are they the cause or project failure, or just a symptom of some larger issue?"
According to Michael Burns at 180 Systems – The article identifies missing leadership as the key reason for project failure and discusses the competencies required by leadership – 1) Leading courageously, 2) Influencing others, and 3) Acting with resilience. We agree that leadership is vital but we are not convinced that project management leadership is the primary driver of success or failure. Project managers are often middle management types or external consultants. The real power is usually found elsewhere. So it is vital that management demonstrate clearly their support of the project manager. The project manager may also not be able to select all the project team members or the amount of time they can spend on the project.
Microsoft software licences from Blue Link
Blue Link delivers certain licences to customers as an added service because we understand the needs of our customers – and we understand the Microsoft criteria for using these licences. And (by the way), Blue Link just happens to get these licences at great prices. So, for Windows, SQL Server, Terminal Server and Office licences email Darren@bluelink.ca and ask him for details and pricing.
Special offer now available: for copies of Microsoft Office – get a rebate of up to $300 per eligible license. Conditions:
- Minimum of 5 and a maximum of 100 qualifying Open Licenses (Note: the minimum of 5 is what's required to start an Open License agreement with Microsoft – this isn't anything new)
- Purchase between April 1, 2009 and July 3, 2009
- Redeem on or before July 31, 2009
Email Darren@bluelink.ca and ask him for details and pricing.
Webinars
Over the last few months we have run a number of webinars, all of which you can now view online at our website – at your leisure. Topics include Inventory Replenishment, Sales Order Processing, Workflow, What's new with Version 12 and much more.
Take some time to fine tune your skills, or just see what Blue Link Elite can do for you and your business.
Product Tours/White Papers
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Case Studies
View some of our more recent case studies to see what we have accomplished for our clients.
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