The theoretical implementation Why systems fail Four types of system failures Consequences of system failures Organizational risks So, why do systems fail? johncachat@hotmail.com www.peproso.com

1. Living in a Fantasy World?
The Theoretical System Implementation
June 19, 2012

2. Housekeeping
Phones are muted
Use the question block for
questions
Copy of presentation
available upon request

3. About Your Presenter
• 25 years experience in enterprise systems
– USAF Research Project (1985)
– Founder of enterprise quality software company (1988)
• Trusted advisor to global organizations,
government agencies, and professional groups
• Sr. VP Consulting KeyedIn Solutions
– Helping companies align their business and technology
– Focus on people, process, and then the technology
– Subject matter expert on business process
management
– On-going research into next generation of technology
for enterprise systems
http://www.linkedin.com/in/johncachat

4. Thought for the Day
It would be illogical to
assume that all conditions
remain stable.
Spock, "The Enterprise Incident“
stardate 5027.3
4

5. Today’s Discussion
• The theoretical implementation
• Why systems fail
• Four types of system failures
• Consequences of system failures
• Organizational risks
• So, why do systems fail?

6. Theoretically…
• System is purchased
• System is implemented
• All issues are known and addressed
• System is activated – “the go live”
• Post production support and training is performed
• Company maintains the system
• The consultants leave
6

7. Why Systems Fail
• Failed to identify key business requirements
• Data conversion issues
• Testing is delayed
• Go Live is delayed, over and over again
• Reporting is inadequate
• Inadequate resources – “people have full time jobs”
• Project becomes adversarial
• Project goes live with no post-production support
7

8. Four Types Of System Failures
• The unmitigated disaster
– millions spent, junk the system, lawsuits
• The big failure
– way over budget and way over time frame, with less
functionality than promised
• The mild failure
– A little over budget, a little late, most functionality
• The forthcoming failure
– Under budget, on time, but….
8

9. The Forthcoming Failure
• Key mistakes that will haunt
the organization
• End users do not understand
the system and revert to the
old ways
• Documentation is poor
• Only a few employees
understand the system
• Key benefits not realized
9

10. Consequences of System Failures
• Employee’s job’s become more difficult
• New system with no benefits
• Data lost, inaccurate, ….
• Key employees quit
• Company moral drops
• Executives, project manager’s get fired
10

11. On-going Organizational Risks
• Systems upgrades
• New functionality
• Mergers & acquisitions
• Staff reductions
• Employee turnovers
• Changes to business processes
11

12. So, Why Do Systems Fail?
• The people
• The process
• The technology
• The approach
– Vendors push software
– Company’s buy software with poor preparation
– Company’s implement software with
• Inexperienced project managers
• People with full time jobs
• Without understanding their processes
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13. How to Do Systems the Right Way
Create User Models That Sit on Top of The System
Use Systems Out of the Box
13

14. Things to Remember….
• Rare is the implementation that is under budget
and on time and give users the functionality that
was promised
• People, Process & Technology
• Culture will each technology for lunch
14

15. About KeyedIn Consulting Group
Experts providing solutions to specific problems
– Enterprise Software Selection
– Project Management
– Project Rescue
– Business and IT Alignment
– People and Process Alignment
15

16. Follow Keyedin
Corporate Website: www.keyedin.com
www.twitter.com/keyedinsolution
www.linkedin.com/company/2434133?trk=tyah
16

17. Free Whitepapers
Download
@
www.keyedin.com
17

18. Upcoming Webinars
6/21/12 Why Organizations Maintain Legacy Systems
6/26/12 Why Organizations Implement New Systems
6/28/12 Project Rescue: Fix It or Kill It?
7/10/12 The Replacement System: Why, How, When and Who
7/12/12 How to Successfully Engage Software Vendors & Their Software
7/17/12 Business Processes: Can’t Live With ‘Em, Can’t Live Without ‘Em
7/19/12 Support for the New System: Go Live Is Just The Beginning
7/24/12 Selecting Consultants: Just Like A Marriage–For Better Or For Worse
7/27/12 Enterprise System Implementation Strategies and Phases
7/31/12 Project Teams: People Issues, Roles and Responsibilities
Register at
www.keyedin.com
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19. Questions & Answers
&
Copy of Presentation Future Webinars
Contact:
Shelly Bird Visit:
sbird@keyedin.com www.keyedin.com
952-835-1041 ext.163