Many organizations have already moved to Enterprise Solutions. They will tell you that it was not easy, and they don’t look forward to doing it again. But there will be an “again” as each new release of software comes down the pike.  Each ERP implementation should be considered a Red Zone … it really will be a major change.   

It’s a Jungle in Here

A discussion similar to this could be taking place at a location near you in Corporate America.

CFO to CIO: OK, Bert, with R/3 as our ERP, what’s our TCO over the next five years?

CIO to CFO: Well, Ernie, It depends. You gotta think beyond this first financial system module. We need to examine our whole supply chain. There are some new APS bolt-ons which are a lot more user friendly than SAP. And Ernie, we’re surely gonna want full-blown EC capabilities, for both B2B and B2C, but I’m not sure about running an e-biz on our current ISP’s platform, you know, the guys who manage our website. If we brought it all in-house, we could run it off the new client-server platform we’ll be buying anyway. Just need a little boost in processing power and more disk drives with redundant arrays. Let’s see, we’d need a good DBMS, OLTP/OLAP architecture for mining, and some XML programmers too. On the other hand, there are ASPs with some really hot apps, like CRM, if we could get the right QoS and SLAs in place. They could totally change our support structure and learning curve. That answer your question, Ernie?

A Definition of ERP Implementation

The notion behind an ERP system is to integrate departments and functions across a company onto a single computer system that serves the particular needs of each department while offering direct connection between departments (connectivity). For instance, the finance department typically has its own software as does human resources, sales, manufacturing and other functional areas, each optimized for the way work is processed in the department. They may also be running their software on their own computer network, which may or may not talk to another network. Producing monthly business reports might take days of accounting time to access, translate and reconcile records stored in each separate database, and their accuracy would still be suspect.

ERP combines these disparate systems into a single, integrated software program that runs off a single database, enabling the various departments to more easily share information and company leaders to more quickly see and react to the company’s key business indicators. Just as MRP (Materials Requirement Planning) systems had a revolutionary impact on manufacturing operations, ERP can have a tremendous payback if companies install the software correctly – technically and strategically.

Click to continue reading about:

  Implementing Enterprise Solutions

  10 step Red Zone Game Plan for Implementing Enterprise Solutions

  Executive Roles for Implementing Enterprise Solutions

Or Just go to Amazon.com and order Red Zone Management by Dutch Holland

Holland & Davis is a "Best In Class" Resource for companies in all phases of ERP decision and implementation. Holland & Davis has more than 30 years of expertise in helping user organizations deal with the Business Readiness and Utilization problems that go with technology insertion. HDI has a proven track record as a best-in-breed change management partner for Fortune 1000 firms going through ERP implementation. Our first project to prepare users for business systems use was in 1972 ... with our solution set being the first to be published ... in Journal of Systems Management in 1974!

Holland & Davis assists the client in seeing the whole picture and ensuring that all the critical actions are taken for a successful ERP implementation. The diagram below identifies four key actions areas that must be effectively handled in order to achieve business results:

© 2004 Holland & Davis

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The problem is that we make assumptions like the following:

• That an ERP system once implemented can be quickly utilized to realize real business results in the form of dollars and cents.

The truth of the matter is that huge obstacles must be overcome before any ERP can be fully utilized.

• The Implementation Obstacle
  ERP Implementation has been described by the Wall Street Journal as the corporate equivalent of a root canal. It takes tough, disciplined Project Management on the client side to ensure that all the moving parts get properly implemented ...on target, on time, and on budget.

• The User Preparation Obstacle
  The typical deficiency in user preparation must be overcome to realize business results. It's one thing to communicate to the users that an ERP is coming, or even to train them on how to use the new screens. It's entirely another thing to prepare every user organization to fully utilize the ERP for business results. Full utilization takes industrial strength PROJECT/CHANGE MANAGEMENT to lead to organizational re-alignment. Ask the companies who have already implemented an ERP about how well prepared their users were to utilize the ERP to realize dollars and cents results!!

Click here for a blindingly stupid example of change management

What does HDI have to offer in the way of ERP Business Readiness and Utilization support?

Project/Change Management Training... (hyperlink to project management workshops)

1. In Requirements of Business Readiness for Full Utilization
2. In Requirements for Effective Program/Project Management in the ERP Implementation environment
3. Holland & Davis is a "Registered Education Provider" of the Project Management Institute
4. All training done from textbooks written by Holland & Davis authors

On-the-Ground Leadership and Guidance at the client facility...

1. Been there, done that experienced professionals on the ground at client sites ... working arm-in-arm and side-by-side to get the business ready for full utilization
2. Experienced communication and training professionals working to develop and execute User Preparation Plans and materials
3. Program and Project Management professionals, many certified as "Project Management Professionals" to assist in, or lead, the management of Business Readiness User Preparation Projects and/or the entire ERP Implementation Program

Project/Change Management Products...

1. "ERP System Utilization - User Checklist and Toolkit" (a comprehensive guide for the User Manager who must ready his/her organization for a coming ERP)
2. "Are you Managing Risks in Big System Implementation" (overview of Risk Management)
3. "Where are you in Managing the Risks of Big System Implementation" (an assessment of your risk management posture)

How We Can Work Together

Holland & Davis is very flexible in the way we work with clients. We've outlined several kinds of engagements that might meet your needs for support of an ERP implementation.

1. Initial Conversation – Holland & Davis is readily available to engage in a one to two hour phone conference to talk through your company’s situation, what you might do about that situation, and how Holland & Davis could be of assistance.
   
   
2. Webinar on Implementation of Enterprise Solutions – We offer an introductory webinar with an overview of ERP Implementation, what the issues are, and what kinds of solutions are being used as best practices. We then answer your questions in real time. Have as many in your room as you want… it's OK with us. We will have to talk about the length and purposes of the webinar to make sure we have met your needs.
   
   
3. Implementation Assessment – Holland and Davis is willing to travel to your location, use some of our structured tools, make an ERP implementation assessment, develop some high level recommended actions … and then present the work to you for your consideration. One big twist, we would recommend that you name two or three of your folks to be with us every minute and to take an active role in the assessment, development of recommendations, and play a leadership role in the summary presentation.  
   
   
4. Peer Review of Your ERP Implementation – We are available to take a look at any of your specific ERP implementation initiatives and give a value-added opinion about what is working and what might be done to add strength and acceleration to your initiative.  What initiatives might we add value to? … peer review of work process training or of your User Acceptance Testing plan. Again, one big twist, we would recommend that you name two or three of your folks to be with us every minute and to take an active role in peer review, development of recommendations, and play a leadership role in the summary presentation.  
   
   
5. Leadership / Participation in Your ERP Implementation – We can play a role in your ongoing ERP implementation projects, adding leadership, methodologies, tools and/or project personnel. We only have mature players… with 20+ years of business experience, knowledge of our methodologies, and cool heads.  Or we can just work with you during the scoping and planning of your culture project … just let us know what meets your needs best.
   

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To engage in an initial conversation about your ERP Implementation needs, please call Gary Skarke at 713.800.3663. I am confident we will learn something from you and hopefully you will learn from us too!