1/23/2019
1
Best Practices for ERP Upgrades
To Receive CPE Credit› Individuals
• Participate in entire webinar
• Answer polls when they are provided
› Groups• Group leader is the person who registered & logged on to the webinar
• Answer polls when they are provided
• Complete group attendance form
• Group leader sign bottom of form
• Submit group attendance form to [email protected] within 24 hours of webinar
› If all eligibility requirements are met, each participant will be emailed their CPE certificate within 15 business days of webinar
1/23/2019
2
Presenter
Chad BackPartnerBKD [email protected]
Signs It Might be Time to Upgrade Your ERP System
Your desktop looks like this …
Or your reports get
delivered in a truck …
› No mobile functionality
› No web functionality
› Lack of standard features
› No vendor support
› Poor/manual integration
› Compliance
• SOX, GPDR, PCI
› Paper, paper, paper
› Lack of visibility
• KPIs, metrics
› IT costs excessive
• IT backlog never-ending
› Spaghetti systems
› No cloud strategy
1/23/2019
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› Project key components
• People
• Process
• Technology
• Data
› Maximum value & lowest risk by paying attention to all components
› Future state focuses in all these areas on improving the business, this is not just a technology upgrade
End State: Key Components Working Together
TECHNOLO
GY
DATA
PERFORMANCE
RESOURCES
STRATEGY
PEO
PLE
PROCESS
Common Limitations Faced on Projects› Limitations
• Complexity of structure
• Processes rarely challenged
• Cultural belief that we can’t change
• Design by exception
• Change management
› Results of limitations
• Adversity to change
• A series of fire drills
• Results not consistent/timely
• Reactive decision making
• Increased costs
• Limits on market value
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Project Risks Mitigated By
› 55%+ of ERP projects fail (Source: Gartner)
› Lack of internal process knowledge
› Fragmented silos
› Unrealistic expectations
› Duplicating what we have
› Not keeping it simple
› Need for enhancements
› Losing sight of goals• Not having goals
› Budget & timeline
› Weak IT process history
› Internal resource availability
› Scope creep
› Fee fatigue
Critical Success Factors› Project ownership by the client, this is not the consultant’s project
› Best people on the project, not best “available”
› Change acceptance by all employees
› Strong support from all levels of management
› Realistic end goal (too much oversell in ERP space)
› Realistic budget & time frame
› Managed expectations & scope to meet client needs
› Rapid response to decision making
› Address both operational & management needs
› Adhere to the ERP implementation life cycle
Design
Develop
Test
Cutover
Support
1/23/2019
5
End State: Design Early, Review Often
“Good design is good business”
– Thomas J. Watson Jr.
› Early design allows scope control
• Scope control protects against scope creep
• Scope creep #1 cause of cost overruns
Recommended Project Tracking/Reporting› Requirements (third party, consultant or customer)
› Scope document (consultant)
› Billing plan
› Communication plan (joint)
› Roles & responsibilities (joint)
› Data migration plan (joint)
› Process documents (consultant)
› Budget vs. actual (joint)
› Training plan (joint)
› Test plan(s) (consultant)
› Test scripts (consultant)
› Cutover sign-offs (consultant)
› Mock go-live validation (Joint)
› Go-live validation (Joint)
1/23/2019
6
Walk-Through – SampleImplementation Approach
Design Develop Test Cutover Support
Core Team Build
Data Conv Scope
Mod Dev Scope
Blueprint Process Design
Report Catalog
Baseline Scenarios
Operations Reports
Shadow Systems
Security Tested
Security Enforced
Compile Training
Critical Reports
Go or No Go
Support Plan
Final Training
Data Conv.
Validation
Go Live Execution
Preliminary Support
Transition to Help Desk
Prioritize Future
Project Debrief
Updated Issues Log
POC Setup
Create
EUD
SIM 1POC
POC Data Conv
Scenario
Creation
SIM 2
Update EUD
External
Reports
1st
Pass Data
Scenario
Scoping
Iterative
Update EUDUAT
Full Data
SIM 3
Live
Assess
Update EUD
Process
Adjust
Full Data ConvRole
Defined
Typical Project TimelineNew Implementation
› Phase I (30%) – consultant-heavy• Kickoff project
• Project plan
• Budget & cost approval
• Gather requirements
• Module setup/configuration
› Phase II (40%) – balanced• Data migration (initial)
• Training
• Module exploration
• Test plans
› Phase III (30%) – client-heavy• Testing
• Data migration (Final)
• Validation
• Go live
Upgrade› Phase I (60%) – consultant-heavy
• Kickoff project
• Project plan
• Budget & cost approval
• Gather requirements
• Module setup/configuration
• Code/data upgrade
› Phase II (20%) – balanced• Training
• Test Plans
› Phase III (20%) – client-heavy• Testing
• Upgrade (final)
• Validation
• Go live
1/23/2019
7
Ownership vs. Facilitation
Client Consultant Client Consultant
VS.
› Since this solution will ultimately be your solution, the role of the consultant should be facilitation, not execution
› Consultants are resources with knowledge that can help answer questions on how the application behaves under different circumstances as well as share industry best practices
› Client core team members must be responsible for the design because they will need to own the solution after the preliminary support phase
Data Matters› Data conversion
• Business – is the data in the source system ready for conversion?
• IT – develop applications to convert the data
• IT – business mapping
• Business – validate data in the new system is correct
› Ongoing operation
• Business – is data getting into the system in a timely manner?
• IT – assist with program &/or process changes to help ensure timely input
• IT – business update mapping
• Business – validate changes worked as planned
› Recommend an early start on data conversion plan
1/23/2019
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Why ERP Projects Fail
› Lack of internal process knowledge
› Fragmented silos
› Unrealistic expectations (oversell)
› Duplicating what we have
› Not keeping it simple
› Need for enhancements
› Losing sight of goals• Not having goals
› Budget & timeline
› Weak IT process history
› Internal resource availability
› Scope creep
› Fee fatigue
› Other risks
• Competing initiatives
• Time dedication
• Insufficient testing
• Data conversion
1/23/2019
9
Continuing Professional Education (CPE) Credit
BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org
The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered
CPE Credit
› CPE credit may be awarded upon verification of participant attendance
› For questions, concerns or comments regarding CPE credit, please email the BKD Learning & Development Department at [email protected]
1/23/2019
10
bkd.com | @BKDLLP
The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered
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