| Member You |
Hubs | Hubbers | Topics | Request |
| #1 in Business | Subscribe Email Print |
|
You are here: Home > Business > Management > The 12 Cardinal Sins of ERP Implementation |
|
Member You - The 12 Cardinal Sins of ERP Implementation
Foreign Direct Investment (FDI) On Sustainable Development an be a "kiss of death" for the program. Time and time again we run across this mistake in ERP implementations. The financial and emotional drain of what seems sometimes to be perpetual extensions, reschedules and delays of implementations takes its toll. People burn out after having put in extensive hours over a long period of time.The UTIP project should be highly commended for making this data accessible online at no cost. At a glance, it appears that when FDI inflows increase, inequality decreases in Malaysia.Economists claim that FDI is both good and bad for income inequality, depending on the type of FDI that a nation attracts. FDI improves income inequality if much of the flows create employment for the masses, especially the low-skilled, thus boosting their income.FDI tends to worsen inequality when it flows into industries that are high-tech and it does not create much employment for the masses.Some economists attribute increasing income inequality in Thailand in the late 1980s to FDI inflows into capital-intensive and relatively skill-intensive chemical, machinery and electrical manufacturing sectors.This suggests that FDI was unlikely to have reduced wage inequality, which would have resulted in lower income inequality since wages are a large part of income.The neo-liberal camp argues that FDI is good for improving income inequality while the neo-Marxist camp argues that FDI has a negative impact on income distribution in the long run.My model (using data from sources including UTIP, the International Monetary Fund, the United Nations Conference on Trade and Development and World Bank’s World Development Indicators) suggests that FDI has helped to reduce income inequality in Malaysia from 1970 through 1999.In fact, it did more to reduce inequality levels than Gross Domestic Investment.One of the reas (5) Resistance to Change/Lack of Buy-in (6) Miscalculation of Time and Effort (7) Misfit of Application Software with Business Processes Having A Blast in the Office with a Corporate Theme Party IntroductionCorporate party is a challenging task. If you are the person who is to plan everything for the corporate party then you need to define a theme at first so that all your ideas and planning will be focused around it and it would become a lot easier for you as to where do you need to spend. Planning a corporate party requires a lot of creativity and innovation unlike any other party. For example you can theme your party as a vacation trip to Hawaii, the gents can wear shorts and Bermuda shirts and the ladies can wear colorful dresses.Your corporate party must be something that just keeps everyone upbeat as if the participants start feeling down then that party can clearly be categorized as a failure. It is really important that you inquire all your colleagues that whether they want it to be a truly exclusive party for all the colleagues or do they want to bring a friend along, this is something that needs to be done before you give order to print invitations. It would be great if you are thinking out of the box, as this will make you come up with spontaneous ideas and will make your party a success.For your corporate party, you need to think new to make it a success. Planning games is a really interesting idea and if you are finding it difficult to come up with the games, then you need to ask your colleagues as to who can help you with planning the games. A very important aspect of the party is that you make a code of conduct that everyone has to follow, so that you are able to prevent mishaps of any kind. This code sh Enterprise Resources Planning (ERP) is an outgrowth of Material Requirements Planning (MRP) initiated in the 1970's as a new computer-based approach to planning and scheduling of material requirements and inventory, featuring the time-phased order point. MRP evolved to MRP II (Material Resources Planning) the "closed loop" process, to Business Requirements Planning (BRP) and eventually to ERP. As MRPII came into vogue in the late 1970's and early 1980's, software companies began to develop software packages around MRPII concepts. At the same time, research of integrated data bases was in progress at a university, and out of that research emerged data base management systems (DBMS). One of the earliest successful commercially-produced data base management systems was IDMS (for IBM-based systems) and DBMS (for DEC-based systems) produced by Cullinane, who's company name was later changed to Cullinet. IMS, a structured data base management system for high transactions, was another data base management system produced by IBM. The idea of the integrated data base as the engine for fully integrated software was probably one of the greatest outgrowths of Ollie Wight's and Dave Goddard's MRP. Eventually, the acronym ERP was conceived to represent what had already been developed by software companies. The early software packages were developed by way of a transactional approach, and were highly unfriendly to a user. With the advent of the personal computers, the development of Microsoft's Windows NT, and the mid-range IBM AS/400 computer, client-server systems began to emerge. Windows, used as the base operating system, allowed software packages to become more and more user-friendly. Today, ERP systems have proliferated extensively, and have reached a stage where development has become industry specific. Thus it is plausible to search for an ERP package developed for one's specific industry idiosyncracies. The Issues The biggest single issue in ERP is the failure of a successful implementation. It is mind-boggling to continually encounter companies who make major ERP gaffes in this day and age, especially since most of the trials and tribulations of MRPII implementation were suffered and learned from in the early 1980's with alpha, beta and gamma releases. So what constitutes failure? Several thing come to mind: Industry statistics show that >60% of ERP implementation starts historically fail. Does this mean that you are doomed from the start? Of course not, if you learn from the mistakes of others. So the pertinent question is what are the main causes of ERP failure and what can be done to prevent this from happening to you? The 12 Cardinal Sins of ERP Implementation There are twelve major reasons for why companies get bogged down or fail in implementing ERP. (1) Lack of Top Management Commitment (2) Inadequate Requirements Definition (3) Poor ERP Package Selection Another reason we have found is executives, familiar with an ERP system from a last job they held, implement the same system in their new company without defining functional requirements. We have also encountered companies who made major gaffes by selecting a package at the top levels of a company without intimately knowing its characteristics. What often results from this is the ERP package doesn't fit the organizational needs, or that the package selected takes longer to process daily work tasks. We have also seen executives select a distribution package for a manufacturing environment, or a manufacturing package for a distribution environment, for obscure reason, such as liking one salesman over another. (4) Inadequate Resources (5) Resistance to Change/Lack of Buy-in (6) Miscalculation of Time and Effort (7) Misfit of Application Software with Business Processes The Ultimate Instant Research Tool way of a transactional approach, and were highly unfriendly to a user. With the advent of the personal computers, the development of Microsoft's Windows NT, and the mid-range IBM AS/400 computer, client-server systems began to emerge. Windows, used as the base operating system, allowed software packages to become more and more user-friendly.You may have heard recently about Google's new product Trends. I read about it in various blogs and feeds so I checked it out. For the first five seconds I just sort of stared at it. "Ok, this is neat, but so what?" I thought. Then it hit me in a huge way.Research, or at least campaign measurement, is vital to understanding the successes and shortcomings in any marketing effort. While sales are the ultimate measure of a campaigns success, Google has developed one heck of an awareness research tool. Let's try this.The all-new Toyota Camry just launched and is big news in perhaps the most competitive automotive segment. It's especially big news if you're Honda, where they rely on the Accord for a good chunk of profits. So, with a $175 million launch behind the Camry, does Honda have anything to worry about? In the old days of 2005, it would have either taken some very deep digging online, or Honda and Toyota would have to wait for the newest Allison-Fisher consumer awareness data. Now in futuristic 2006, awareness can reasonably be tied to search activity. Not all search activity is good for a brand (think automotive recalls), but very telling nonetheless. Let's take a look at how Camry and Accord are performing here.**The results may not be horrifying for Honda, but they're certainly worth watching. Throughout 2004 and 2005, the Accord held a stellar lead over the Camry, but that gap has closed in the last few months. Something at Toyota is working.To be sure, there are other factors. Honda likel Today, ERP systems have proliferated extensively, and have reached a stage where development has become industry specific. Thus it is plausible to search for an ERP package developed for one's specific industry idiosyncracies. The Issues The biggest single issue in ERP is the failure of a successful implementation. It is mind-boggling to continually encounter companies who make major ERP gaffes in this day and age, especially since most of the trials and tribulations of MRPII implementation were suffered and learned from in the early 1980's with alpha, beta and gamma releases. So what constitutes failure? Several thing come to mind: Industry statistics show that >60% of ERP implementation starts historically fail. Does this mean that you are doomed from the start? Of course not, if you learn from the mistakes of others. So the pertinent question is what are the main causes of ERP failure and what can be done to prevent this from happening to you? The 12 Cardinal Sins of ERP Implementation There are twelve major reasons for why companies get bogged down or fail in implementing ERP. (1) Lack of Top Management Commitment (2) Inadequate Requirements Definition (3) Poor ERP Package Selection Another reason we have found is executives, familiar with an ERP system from a last job they held, implement the same system in their new company without defining functional requirements. We have also encountered companies who made major gaffes by selecting a package at the top levels of a company without intimately knowing its characteristics. What often results from this is the ERP package doesn't fit the organizational needs, or that the package selected takes longer to process daily work tasks. We have also seen executives select a distribution package for a manufacturing environment, or a manufacturing package for a distribution environment, for obscure reason, such as liking one salesman over another. (4) Inadequate Resources (5) Resistance to Change/Lack of Buy-in (6) Miscalculation of Time and Effort (7) Misfit of Application Software with Business Processes How A Small Organization Can Develop It's Own Scorecard show that >60% of ERP implementation starts historically fail. Does this mean that you are doomed from the start? Of course not, if you learn from the mistakes of others. So the pertinent question is what are the main causes of ERP failure and what can be done to prevent this from happening to you?What Is A Scorecard?A scorecard is a tool that helps businesses, organizations, and governments monitor progress and track measurable outputs against their set goals, and objectives. It is a snapshot of where an organization stands at a given point in time against the overall goals.Fiscal responsibility requires sound stewardship, not just making promises, but ensuring delivery, completion, performance and results. Scorecard encourages a result-oriented workforce, where programs, projects, and initiatives are managed professionally, and efficiently to achieve the expected results. When employees know that the progress of the projects and tasks they are working on is being tracked and measured, it encourages productivity.The United States Government, for instance, employs a 'President’s Management Agenda (PMA)' to measure the Government’s progress toward its goals. It uses the Executive Branch Management Scorecard to track how well US departments and agencies are executing their initiatives towards that agenda.Scorecard As An Essential Management Tool:Scorecard is a useful management report because:•It aligns the work program of an organization, ensuring that resources and efforts are not wasted on activities and initiatives that are not related to the organization’s goals, and strategies.•It presents a summary of where the organization stands on implementing its programs and projects, where either too-little efforts or too many efforts are currently expended.•It provides useful feed The 12 Cardinal Sins of ERP Implementation There are twelve major reasons for why companies get bogged down or fail in implementing ERP. (1) Lack of Top Management Commitment (2) Inadequate Requirements Definition (3) Poor ERP Package Selection Another reason we have found is executives, familiar with an ERP system from a last job they held, implement the same system in their new company without defining functional requirements. We have also encountered companies who made major gaffes by selecting a package at the top levels of a company without intimately knowing its characteristics. What often results from this is the ERP package doesn't fit the organizational needs, or that the package selected takes longer to process daily work tasks. We have also seen executives select a distribution package for a manufacturing environment, or a manufacturing package for a distribution environment, for obscure reason, such as liking one salesman over another. (4) Inadequate Resources (5) Resistance to Change/Lack of Buy-in (6) Miscalculation of Time and Effort (7) Misfit of Application Software with Business Processes Rummage Sale Church Fundraising r package selection occurs when a company has inadequately developed functional requirements definitions. It also occurs when staff members assigned to ERP projects do not take the time to run the screens of the new system, as they would during their daily work tasks, to find out if the software package features are adequate for their needs.It is a simple concept lets have a garage sale. An average family can raise as much as one – two hundred dollars with a weekend garage sale. Now let’s take that idea and apply it to a church with an average attendance of 100 people. How much money do you think this sale would raise?A church with an average attendance of 100 people can easily raise two – three thousand dollars with a two day fundraising rummage sale.The planning is simple. Set up dates for your fundraising rummage sale and reserve space to hold the sale. Next ask for donations from your congregation. You will be amazed at how much will be donated. People are always happy to un-load there unused items and especially thrilled when the profits go to support your ministry.It is key to your success to have a good sized list of volunteers. You will need them when the donations start pouring in. Plan for at least two days of prep time to set up your fundraising rummage sale. You will want to group like items together; this will make it easier for shoppers to find what they are looking for. If you plan on having a significant amount of children’s clothing you can plan to sell all children’s items for under $1.00.By advertising children’s clothes and toys for nothing over $1.00 you can draw in a larger number of buyers. This also will give you an opportunity to advertise for any youth or family events you have coming up.After the sale plan to have a clean up day, if you are lucky you will have only a handful of items left after the sa Another reason we have found is executives, familiar with an ERP system from a last job they held, implement the same system in their new company without defining functional requirements. We have also encountered companies who made major gaffes by selecting a package at the top levels of a company without intimately knowing its characteristics. What often results from this is the ERP package doesn't fit the organizational needs, or that the package selected takes longer to process daily work tasks. We have also seen executives select a distribution package for a manufacturing environment, or a manufacturing package for a distribution environment, for obscure reason, such as liking one salesman over another. (4) Inadequate Resources (5) Resistance to Change/Lack of Buy-in (6) Miscalculation of Time and Effort (7) Misfit of Application Software with Business Processes Branding is About Imagination, Not Millions an be a "kiss of death" for the program. Time and time again we run across this mistake in ERP implementations. The financial and emotional drain of what seems sometimes to be perpetual extensions, reschedules and delays of implementations takes its toll. People burn out after having put in extensive hours over a long period of time.So you want to build a brand, huh?Well, you’re in luck. Because there’s good news, and REALLY good news!THE GOOD NEWS: it doesn’t take much money.Don’t be fooled by headlines like, “Coca-Cola spends 10 million dollars on new 30 second spot!” or “Nike takes out front page ad for $20,000!”You’re an entrepreneur. That stuff doesn’t apply to you.Because, in the words of best-selling author Harry Beckwith, “Branding doesn’t take millions, it takes IMAGINATION.”SO, THE REALLY GOOD NEWS: you can get started building your brand TODAY!Even if you’re new to the industry. Even if you just started your company. Even if you don’t know much about marketing. Even if you don’t want to spend a dime on advertising, direct mail or any of that other paper-wasting, money-draining junk.There’s ONE question I want you to consider:“If everybody did exactly what you said, what would the world look like?"My mentor, William Jenkins first taught me this question a few years ago. He told me to ask it to myself on a regular basis.Because it clarifies your values. Because it helps you articulate your personal and professional philosophies. And because it builds a framework around which you can keep your actions accountable.HERE’S THE CHALLENGE: sit down with your team (or, if you work alone, your dog) and come up with 5-7 bullet point answers to that question. “If everybody did EXACTLY what you said, what would the world look like?”On (5) Resistance to Change/Lack of Buy-in (6) Miscalculation of Time and Effort (7) Misfit of Application Software with Business Processes (8) Unrealistic Expectation of Benefits and ROI (9) Inadequate Training and Education (10) Poor Project Design and Management (11) Poor Communications (12) Ill-advised Cost Cutting Pragmatic Applications The first corollary of ERP or information systems implementation is: Information systems are part of a company infrastructure, and therefore are strategic to the company's survival and success. If a company does not consider IS as one of its critical success factors, chances are, the competition does. The second corollary of ERP or information systems implementation is: ERP and information systems are there to support business functions and increase productivity, not the reverse. The driver for an ERP implementation should be to increase a company's competitiveness, not the adoption of a new religion that bends or distorts how a company conducts its business. The third corollary of ERP or information systems implementation is: Learn from the successes and failures of others and don't attempt to reinvent the wheel of ERP implementation practice. There are time-proven approaches that can enhance the success of the ERP implementation. Here are a few: High Employee Involvement Get as many employees to participate heavily as practicable in accomplishing the functional requirements definition. The workers know their work and what they need to compress time. If they do not, use an outsider who does. Use a knowledgeable team to review and select packages. Get as many employees as practicable involved in the implementation phase. This will foster ownership and buy-in. A Comprehensive and Systematic Approach Use a comprehensive and systematic master plan that addresses all parts of an ERP systems implementation: development of IT strategy, requirements definition, review/selection of software, hardware, communications, unit testing, systems testing, conversion, resources, education/training, resistance to change, etc. Adequate Resources Provide adequate technical and administrative resources to allow employees breathing room. Perform cost/benefit analyses so that you know how much the entire implementation is going to cost and identify the results that will be achieved. Extensive Education & Training at all Levels Provide adequate training for most employees, including upper and middle management.
HTTP = HTML link (for blogs, profiles,phorums):
Related Articles:Engineering Jobs - Distribution Engineer Wal-Mart Online Job Application Spot Coolers - Advantages of Using Portable AC Units in Data Centers
|