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Abstract:
their risk mitigations, program teams often miss out on the tactical nuances of
at Infosys.
This paper does not cover the mitigation of these mistakes, as mitigation will
vary program to program and can be best formulated by the team on the
ground.
Mar 2010
Contents
1. Introduction ................................................................................................................... 3
2. Approach ....................................................................................................................... 4
3. ERP Implementation Stages .......................................................................................... 6
4. Survey Findings ............................................................................................................. 7
5. Conclusion ................................................................................................................... 13
6. References ................................................................................................................... 13
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1. Introduction
ERP systems are capable of providing rich customer experience, high productivity and significant
returns on investment (ROI) to organizations. However, if not managed & implemented correctly,
they can also cause sleepless nights to stakeholders and can lead to massive organizational
upheaval. Many ERP implementation programs do not see the light at the end of the tunnel due to
several tactical mistakes and oversights made along the way. Even if implementation program
gets completed with agreed scope, it is believed that 41% of ERP implementations fail to
deliver at least half of the stated benefits, around 57% of ERP implementations take longer
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than expected and around 54% of implementation cost exceeds the budget . Thus, it’s
important for managers to understand strategic and tactical plans, success factors and best
practices before launching a new ERP implementation program.
Through this paper, we have tried to highlight the Top 30 “Tactical” Mistakes that lead to ERP
Implementation failures. The data presented in this paper is corroborated with 21 Infosys
ERP Practitioners who have vast experience that they have gathered through multiple ERP
Implementations.
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2. Approach
1. The Authors based on their own Implementation experience (cumulative around 20 years
spanning ~ 10 end-to-end Programs) put together a comprehensive list of Tactical Mistakes
during different stages of ERP Implementation.
i. Mistakes which were chosen by more than 50% of the respondents as having high
probability and more than 50% of the respondents as having high impact. These were
called “TROUBLEMAKERS”
ii. Mistakes which were chosen by more than 50% of the respondents as having high
probability and less than 50% of the respondents as having high impact. These were
called “TRIVIAL but FREQUENT”
iii. Mistakes which were chosen by more than 50% of the respondents as having high
impact and less than 50% of the respondents as having high probability. These were
called “CRITICAL but INFREQUENT”
iv. Mistakes which were chosen by less than 50% of the respondents as having high
probability and less than 50% of the respondents as having high impact. These were
called “MARGINAL”
ii. There were 12 mistakes with High Probability of Occurrence and 18 with Low Probability
of Occurrence.
iii. There were 5 mistakes of utmost concern (having high impact and high probability)
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Mistakes Low Impact High Impact
5. The subsequent section of this paper elaborates these 30 Tactical Mistakes in relation to the
various stages of the ERP Implementation Program.
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3. ERP Implementation Stages
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4. Survey Findings
Based on survey done amongst 21 Infosys Program Managers/Project Managers, following are
the findings:
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B. Scoping and Planning
6) Customer Side Under Staffing (TROUBLEMAKERS)
While Implementation Partners have mature staffing estimation models for executing
the ERP Implementation, customers often struggle to get their business SME and IT
staffing right. Customer Program Managers are not able to envisage the magnitude of
work and required participation from their teams. To get upfront Organization buy-in
for the ERP Implementation, the Customer Program managers often underestimate
implementation cost and under staff. This leads to bottlenecks at several stages
during the implementation.
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ii. Staffing Lead times for its team
iii. Time and effort required for bug fixes
iv. Time and effort required for status reporting, team coordination and
communication
v. T&E expenses
vi. Time required for new entrants to onboard and become effective
C. Process Modeling
12) Conflicting Multi Site Requirements (TROUBLEMAKERS)
In case of multi site, multi country ERP implementations, the program team is not
equipped to harmonize business requirements, which suits everyone. There are
multiple mandates for the team like:
i. How to have requirements which can fit within the vanilla ERP suite.
ii. How to have uniform set of requirements for all sites/countries
iii. How to have operationally efficient and best in class processes
Sometimes these mandates lead to conflicting pulls and pressures, leading to delay.
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due to missing data and testing is not full proof. This leads to surprises post go live
when different kinds of data sets are deployed and used.
E. Deploy
22) Impractical Contingency Planning (TRIVIAL but FREQUENT)
ERP cutover Contingency (Plan B) Plan is impractical, too theoretical and often slow
to respond. For example, if the contingency plan is to do shipping manually after go
live when ERP warehouse interfaces fail, typically the detailed steps of how to handle
shipping manually are not documented and even if documented, mentioned steps are
not easily implementable. So, if the contingency is really invoked, people struggle to
bring the contingency plan into action in a timely fashion.
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minimum downtime, sometimes IT teams overlook or compromise on cutover activities
(like validations & controlled testing) which may lead to bigger issues post go live.
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Implementation Partner tends to release the senior folks too fast after implementation
even without proper Project closure and Knowledge Transfer to the Steady state
support team.
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5. Conclusion
The above 30 mistakes should serve as a checklist for ERP Programs. There may be variation in
probability and impact of these mistakes from program to program. Managers should understand
the occurrence and the impact of these mistakes in their program scenario and according plan
their ERP implementation. They need to give lot of emphasis to tactical mistakes made during
initial planning and scoping as it can have multi fold impact on subsequent phases of
implementation. Also other key stakeholders should be aware of such nuances and need to
collaborate at appropriate times to make the ERP program a success.
6. References
1. Critical Success Factors for ERP Implementations: Market Perspective, ERP deals
website, Feb 2010.
2. 2010 ERP Report, Panorama Consulting Group, 2010.
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About the Authors:
Copyright in whole and in part of this document “Infosys Virtual Concierge Solution” belongs to Infosys Technologies Limited. This work
may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole or in part in any manner or form or in any media
without the prior written consent of Infosys Technologies Limited.
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