This document summarizes the key factors for a successful ERP implementation project based on ATCO's experience in implementing SAP. The top three reasons for ERP project failures are identified as lack of executive support, user involvement, and experienced project management. The document then outlines the 10 quality principles ATCO followed, including anchoring business value, determining clear requirements, stakeholder cooperation, timely delivery tracking, competent staffing, appropriate methodology, joint risk management, using standard software, production readiness, and change management. ATCO attributes its project success to intensive stakeholder communication and responsibility distribution, adherence to proven methodologies, following best practices, clear requirements, and enthusiastic end user participation.
2. ERP Projects Challenges
Failure Factor %
Executive Support 18%
User Involvement 16%
Experienced Project Management 14%
Clear Business Objective 12%
Clear Project Scope 10%
Standard Software Infrastructure 8%
Firm Basic Requirements 6%
Formal Methodology 6%
Reliable Estimates of Budget & Time 5%
Others 5%
Total 100%
Based on the Chaos study by Standish
group only 30% of ERP projects are
considered successful, the rest is either
failure or challenged. The same study
identifies to following as the top 10 reasons
for ERP projects failures:
As you can see from the
top 5 reasons of failure
that such a project is all
about people and
involvement for which
we all have to commit
even before we allocate
the funds.
This is not an IT or
Finance project it is a
Business
Transformation Project ,
for which we all have to
participate actively.
4. How we got this project right on track
and WON the SAP Quality Award?
5. Delivering Successful Solutions
Following ASAP and PMBOK Project Management
Methodologies and Best Practices.
The Project Management Body of Knowledge (PMBOK) is a collection of
processes and knowledge areas accepted as best practice for the project
management profession developed by the Project Management Institute.
Accelerated SAP (ASAP) is SAP's standard implementation methodology. It
contains the Roadmap, a step-by-step guide that incorporates experience from
many years of implementing R/3.
Accelerated SAP contains a multitude of tools, accelerators and useful
information to assist all team members in implementing R/3. Quality checks are
incorporated at the end of each phase to easily monitor deliverables and critical
success factors.
And committing to SAP 10 Quality Standards Explained
next…..
6. Principle 1: Anchor Business value firmly in
your project.
1. The project main objective is establishing a solid ERP infrastructure that
will be able to handle business current and future growth requirements.
2. Improve business processes by following SAP business Process Best
Practices.
3. Unify processes and master data across different business units by making
use of SAP functionality in that respect.
4. Introduce production planning (PP), Plant Maintenance (PM), customer
service (CS), Payroll (HCM), and Fixed Assets.
7. Principle 2: Determine clear requirements early
on.
1. Requirement gathering started early in the project preparation phase (1
month) and continued during the Business Blueprint phase (2 Month).
2. Senior FI consultant was involved from day-one by visiting different
business units and understanding their business requirements from FI and
Operational point view.
3. More detailed requirement gathering was done by the different specialized
consultants based on the preliminary findings of the FI consultant.
4. Interviews and business walkthroughs conducted with end users and
middle and higher management in each business unit.
5. Findings and proposed solutions verified and confirmed with business unit
management and corporate management.
8. Principle 3: Cooperate with stakeholders and
use a proper governance model
1. Business unit’s management teams were participant in the ERP selection process.
They have attended evaluation and solution presentation by SAP, Oracle and
Microsoft. Based on their scoring and other criteria’s set by IT/ERP Manger, CFO
and CEO SAP was selected.
2. Orientation on ASAP implementation mythology was given to higher management
and to end users before the kickoff of the project. Two important messages
where stressed in such meetings:
a. The fact that this is not only an IT project but mainly a business
transformation project.
b. Stakeholder (end user, Manger and executives) active participation is
indispensable for the success of the project.
3. Project charter was drafted jointly by ATCO and BaasKaar project managers and
approved by ATCO executive management before project start.
4. Kick off meeting held with the attendance of ATCO executive management, ATCO-
SAP team, and implementation partner team.
9. Principle 4: Ensure Timely delivery and
effective tracking.
1. High level project scope and time line were agreed with implementation
partner and ATCO stakeholders before project kickoff.
2. A better understanding of project scope and requirements, during project
preparation phase a led to some schedule adjustments. These adjustments
in time and budget (project 2 month extension) were discussed and formally
agreed on with implementation partner and ATCO project sponsors.
3. Go live date was split into 2 groups of company codes.
4. Further discussions and consideration happened during the business
blueprinting phase , which resulted in modifying some milestones while
maintaining the overall project timing.
5. Weekly reports where generated and discussed comparing actual versus
planned activities status and who is the responsible person. This reports
discussed between ATCO and BaasKaar teams.
6. Project steering committee was informed on a monthly basis on the status
of the project schedule, and involved when needed to facilitate activities that
might affect the project schedule.
10. Principle 5: Staff Project with sufficient,
competent, motivated people.
1. Project was announced to all company employees, and volunteers were
requested to participate. They were asked to fill in a form explain how they
can contribute to the project and what are their areas of experience.
2. In all orientation session with projects sponsors and business units
managers it was always highly stressed the importance of committing their
star employees to the project.
3. Business units were asked to nominate their power users in each module.
4. Fully dedicated team was formed from IT for the project.
11. Principle 6: Apply appropriate methodology
and plan for quality.
1. ASAP Implementation methodology and PMI-PMBOK standards were fully
applied in the project because they are tested and reliable project
management tools.
2. Joint ATCO-BaasKaarProject planning session held.
3. Weakly progress report of Actual Vs Planned activates reviewed.
4. Requirements gathering session held between consultants and end users.
Confirmation session where held with general manager.
5. Blue prints were presented and explained to the business unit managers,
before handing over for sign off. Question and answer session were held to
clarify the requirements.
6. User acceptance testing session realized during the realization phase,
together with training sessions. UAT was formally accepted by user sign
offs.
7. Over all phase sign off was done based on phase deliverables individual
sign offs.
12. Principle 7: Identify and manage risks jointly
throughout the project.
Risk management plan was established during the early stage. The key
elements of the project Risk Management process are as follows:
1.Risk Planning concerning with determining how to approach the Risk
Management activities for business area or project.
2.Risk Identification involving identifying the threats to business or project
objectives.
3.Risk Analysis involving determining which risks are the most important by way
of a quantitative and qualitative assessment of the identified risks.
4.Risk Response involving deciding what actions to take concerning specific
risks or opportunities.
5.Risk Monitoring-keeping track of the risks and the corresponding actions, and
looking for new threats to predefined objectives.
13. Three most important risks identified during
the project were
1.Accuracy of requirements: To mitigate these risk requirements were
confirmed vertically within the department and cross checked with other related
departments.
2.Data migration: requirements for master data and opening transactions were
shared with the concerned departments early in the blueprinting stage. Owners,
responsible and delivery date was followed on jointly by ATCO and
Implementation partner weekly.
3.Training and user acceptance testing: training schedule was circulated and
GM where asked to assign staff for the training. Attendance sheets signed by
the users accepting the training and the solution testing. Different timing
choices where given to accommodate daily routine work and SAP training.
14. Principle 8: Exploit standard software using
solution best practices
1. Follow SAP best practices was a main assumption in the project conception
and was followed strictly throughout the project.
2. Custom developments were very minimally used for reports and smart
forms.
3. Integrations and interfaces with other systems were identified early in the
blueprinting phase.
4. These interfaces were approved functionally with the end user, before
sending them for development.
15. Principle 9: Achieve production readiness:
1. Routines for data extraction and conversion were discussed early on
between ATCO and BaasKaar teams. This includes AP/AR/GL Balances,
Stock, Open PO and SD.
2. Routines tested in quality environment.
3. Cutover plan discussed thoroughly between ATCO and BaasKaar teams.
Agreed to lunch SD, MM, PP , PM and finally FI.
4. Closing dates were presented and agreed on with operations and finance
departments.
5. Schedule of delivery of opening balance was closely monitored and
controlled.
6. Go live was announced one week ahead with the distribution of flyers with
frequently used T-Codes and contact information of ATCO SAPDESK.
16. Principle 10: Use organizational change
management to transform business:
1. Buy-in, collective ownership and consensus at all organizational levels were
main themes for this project. Starting with the ERP vendor selection
process where all business units general managers and key users where
actively involved ending up with going live and support.
2. A serious of executive and managerial presentation were delivered explain
that this a business project in the first place and in technology one in the
second place.
3. Business unit level kick of meeting explained, about possible difficulties
during the project and how we plan to overcome them.
4. The importance of SAP business best practice process was repeatedly
stressed and explained.
5. Measured the success of the strategy by hearing more “We” and less
“SAP,IT people”.
6. Extensive end user training.
17. In Summary we attribute our success to:
1.Very intensive work on project communication and stakeholders
management.
2.Clear distribution of responsibilities between ATCO team and
BaasKaar teams.
3.Adherence to ASAP, Agile and PMI-PMBOK project management
tools and standards
4.Following SAP best practice processes and minimizes customization.
5.Good understanding of business requirements by the ATCO IT team
and transfer of this knowledge to BaasKaar teams.
6.Very enthusiastic end users’ contribution and cordial environment
between users and the implementation (Baaskaar & ATCO-IT) teams.
Hinweis der Redaktion
Why use a methodological approach to Implementation?
Investing in a new business solution can bring major benefits to an organisation.
The success or failure of a new Solution depends on how well it is implemented.
A recent survey of software implementations showed that over 30% of projects perceived to have failed did so because of a lack of effective project planning.
On the other hand less than 10% of projects perceived to have failed did so because of technology driven causes.
AcceleratedSAP is the SAP Methodology for the Implementation (Initial, Upgrade, Extension) of SAP Solutions and supports cost effective and speedy Implementation of the SAP Solutions
It has the following constituent parts:
AcceleratedSAP (Methodology) Contentthe structured methodology content (processes, procedures, accelerators checklists, links to Standard SAP Documentation, etc. necessary for the Implementation (Initial, upgrade, Extension) of SAP Solutions.
AcceleratedSAP (Methodology) Toolsetthe tools necessary for the Implementation (Initial, Upgrade, Extension, Template, etc. ) of SAP Solutions.
AcceleratedSAP (Methodology) Roadmapsthe guidance and navigation necessary for the Implementation (Initial, upgrade, Extension) of SAP Solutions.
AcceleratedSAP (Methodology) ExpertiseSAP knows SAP best and based on its vast experience provides this knowledge in concentrated form to its customers & partners through AcceleratedSAP.