CHAPTER 7

Operational and
Postimplementation
Opening Case
More than 20 years old Compiere
• Stand-alone system • open-source ERP system
• Out of date with the • the software was installed
needs and implemented in very
• Decided to implement short period of time.
an integrated ERP

01 03
02 04
Selection process Software work
• midsized ERPs • The IT staff made most
• selected Compiere of the decisions on how
• The company chose the software was to
the package based work.
on : • No documentation was
✓ its needs created on the
✓ cost of the implementation
software.
 Opening Case
User training solution
• User training was minimal • A consulting company,
at best ✓ implementation experience with Compiere
• a true understanding of the ✓ used a well-documented project methodology,
system was not achieved by Two dedicated IT staff,
“Go-live”—a recipe for ✓ and the inclusion of users in the process
disaster.

05 07
06 08
Users problems performance
• Data entry was slow and • improved the system
incorrect, which resulted in performance
orders and customer
information that made no
sense.
• IT staff left after the
implantation.
 Timeline
Go-Live Readiness
01

02 ERP Training

Stabilization
03
04 Postproduction Support

Knowledge Transfer 05
 Preview
01. In assessing an ERP project’s 02. Readiness process needs 03. Much of the success of an
readiness for Go–live, planned tasks to include as many team implementation lies with the
and activities must be completed to members, appropriate users, stabilization and post-production
allow project management to address support processes.
and managers as possible.
any outstanding issues that may
jeopardize the Go-live date.

04. All resources should be 05. Continual monitoring of 06. Training also gears up
focused on ensuring users implementation issues will provide during the readiness process
understand how to use the system a basis for moving from and continues through
and that issues and problems are stabilization to postproduction stabilization and post-
resolved as quickly as possible. support. production support.
Figure 7-1 Sample Project
Methodology
 ERP Training Stabilization Postproduction Knowledge
Go-Live Support Transfer
Readiness
 An elaborate readiness checkpoint should be in place for Go-live
1 to make sure steps are not missed . The first readiness checkpoint
gives management and the project team a very good idea of what
remains to be done before going live. Assessing the level of
readiness should start several months before the actual Go-live
date

Infrastructure, development, configuration, conversion, testing, training,

2 communications, operations, command central, reporting, and users
must be assessed in the readiness process.(implementation areas)

Go-Live Input from the project teams, users, and team leaders needs to be
28%
Readiness 3 gathered and summarized for Review .Readiness reviews need to
be documented and communicated to the project team and the
company.

4 A detailed report needs to be available, along with an

executive summary for senior management.
 The Go-Live Readiness Review and Status Report is often a table
5 that shows the status of each area at a glance, with the key
activities that need to be completed agreed to before going live.

The process for determining readiness consists of a series of

6 meetin gs an d discussion s on th e status of each area’s tasks
an d activities. The meeting will be with each of the team leads,
team members, and the subject matter experts (SMEs).

Go-Live 7 If the PMO sees a lot of RED items the first time
28%
Readiness through, it will help to focus the project teams on what
needs to be accomplished in the time period between
the assessment and Go-live .
Go-Live Readiness ERP Training Stabilization Postproduction Knowledge
Support Transfer
 ERP Training
Training must be provided to ERP training personnel could
everyone that will be using the include trainers who work for the
software vendor, in-house staff,
system, and should use real
third-party trainers that have
data and examples.
1 specific experience in ERP 3
systems.

If done correctly training will Developing a variety of ways to train will

better ensure the effectiveness of training.
capture about 90 percent of (e.g., Web-based virtual classrooms,
what users will see on a daily computer-based training, knowledge
basis. warehouses, video courses, self-study
2 books, and pop-up help screens) 4
 ERP Training
Training needs to be endorsed
by senior management early to
ensure adequate funding.
5
Go-Live Readiness ERP Training Stabilization Postproduction Knowledge
Support Transfer

$2500 $3500 $5500 $6500

 The stabilization process After the ERP system goes
begins when the ERP system live, the organization will
software is in production, need to shift to stabilization
initial training is complete, process—60 to 90 days. ,
and conversion of critical depending on the number of
data is done. issues

Stabilization

IT staff will be monitoring the Subject matter experts

infrastructure for response should be prepared to help
times and ensure that back- many users from their
ups are taken appropriately. departments operate the
system in the correct way.
 Customizations add to the complexity if not documented and
1 communicated well.

Not being able to perform ad hoc activities, not because the

2 system is unable, but more about learning how to accomplish
the activity.

business process reengineering. Business processes are new to

3 users, and they make mistakes as they use the new process for
Issues Arising
the first time.
During
Stabilization In a parallel implementation approach, the ERP system
28% 4 is operated concurrently with the old legacy system,
which is labor-intensive, confusing, and frustrating.

Reconciliation has to be done between the new ERP

5 system and the old legacy system to validate the
inputs and outputs.
Go-Live Readiness ERP Training Stabilization Postproduction Knowledge
Support Transfer

$2500 $3500 $6500

Postproduction Support
01. Managing the daily system operations and ensuring that the
system is doing what it needs to do is really the purpose of post-
production support.

02. If the post-production process is inadequate, then the

implementation may be considered a failure.

03. Many of the risks associated with cutting over to the new
ERP can be reduced by appropriate pre–Go-live and end-user
training.

04. Subject matter experts and core project team members should be
used to provide general support to answer simple process and system
questions.
 The support process is divided into tiers:

2
1 3
Tier 2
Tier 1 • is where the subject matter experts are Tier 3
• is considered triage and is usually used. The subject matter experts must be
• can be a combination of
the help desk or call center. available to answer system process
technical staff along with
• This group will attempt to address questions or provide resolution on how to
vendor or implementation
very straightforward problems or maneuver through the system to complete
partner support. These
questions. processes.
are often complex
• The calls are often related to • If Tier 2 subject matter experts cannot
problems that will require
password problems or resets or resolve the issue or problem within a
the technician to research
general access issues. short period of time, then the issue should
and fix.
be bumped to Tier 3
 Postimplementation support is generally divided into the following points:
1
➢ Training: Usually addressed before the Go-live and will continue at varying rates after Go-live,
depending on the training strategy to be used.
➢ Go-Live Support: This is a day-to-day process when the users require assistance in using the
system, or related to any mistakes and defects in the new system. The help desk plays a key
role in this area. The tracking and resolution of day-to-day issues is the job of the help desk.
➢ Data Validation: This must be conducted periodically to ensure that the system is being used
correctly and that data entry processes are being followed
➢ Data Correction: The system is sometimes implemented, but the data are not converted
correctly or automated interfaces update the system incorrectly. The ability to identify bad data
Postproduction and correct it will be a part of the stabilization process
Support ➢ Patched and Fixes: All during the implementation process and even while in production,
software errors/bugs will be encountered and reported to the vendor for a solution.
28% ➢ New Features: No system is ever complete: Businesses change or grow, and with that the
system must keep pace to remain current. The change control process must be managed and
addressed with the implementation.

By clearly defining and communicating Go-live and the on goin g support processes,
2 overall expectations will be better set to realize measurable business benefits and
ROI from the ERP project
Go-Live Readiness ERP Training Stabilization Postproduction Knowledge
Support
Transfer

$2500 $3500
 Knowledge Transfer
❑ Some problems related to knowledge management are loss of
know ledge due to an em ployee who leaves the com pany, high
learning curve for new users, forgetting system features, and misuse
of the system
❑ There must be a well-defined process in place to transfer knowledge
and skill to new or existing staff or team members during and after the
implementation process.

❑ Multiple aspects of the implementation process must be documented

during the Definition and Build phases:
• project management perspective: project monitoring and
tracking, collaboration and communication, subject matter
expertise, and lesson-learned repository should be documented.
• operational perspective: business processes and how they are
mapped to the ERP software
• IT perspective: hardware and software architecture, network
configuration
 A knowledge management plan should be in place to monitor the
1 transition from one phase of the implementation to the other,
which enables a smooth transfer of knowledge.

A knowledge management plan will:

2
➢ Ensure knowledge is retained.
Knowledge ➢ Reduce the cost of support due to lower number of support calls.
Transfer ➢ Facilitate faster learning.
➢ Better maximize the capabilities of the system.
28% ➢
➢
Cut time in troubleshooting problems.
Ensure a correct use of the system.

One centralized data repository can then be used to store

3 documents which will eliminate confusion, duplication, and
losing data.
 Implications for Management

The closer an ERP implementation To ensure a successful and sustainable

gets to its Go-live date the more ERP implementation, there must be a well
project management must focus on thought-out and understood knowledge
the issues, tasks, and activities to transfer process when consultants,
identify the issues and help focus implementation partner staff, full-time and
resources and efforts. part-time staff, and even end-users leave.
THANKS