Best Practices for ERP Upgrades

1/23/2019

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Best Practices for ERP Upgrades

To Receive CPE Credit› Individuals

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› If all eligibility requirements are met, each participant will be emailed their CPE certificate within 15 business days of webinar

1/23/2019

2

Presenter

Chad BackPartnerBKD [email protected]

Signs It Might be Time to Upgrade Your ERP System

Your desktop looks like this …

Or your reports get

delivered in a truck …

› No mobile functionality

› No web functionality

› Lack of standard features

› No vendor support

› Poor/manual integration

› Compliance

• SOX, GPDR, PCI

› Paper, paper, paper

› Lack of visibility

• KPIs, metrics

› IT costs excessive

• IT backlog never-ending

› Spaghetti systems

› No cloud strategy

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› Project key components

• People

• Process

• Technology

• Data

› Maximum value & lowest risk by paying attention to all components

› Future state focuses in all these areas on improving the business, this is not just a technology upgrade

End State: Key Components Working Together

TECHNOLO

GY

DATA

PERFORMANCE

RESOURCES

STRATEGY

PEO

PLE

PROCESS

Common Limitations Faced on Projects› Limitations

• Complexity of structure

• Processes rarely challenged

• Cultural belief that we can’t change

• Design by exception

• Change management

› Results of limitations

• Adversity to change

• A series of fire drills

• Results not consistent/timely

• Reactive decision making

• Increased costs

• Limits on market value

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Project Risks Mitigated By

› 55%+ of ERP projects fail (Source: Gartner)

› Lack of internal process knowledge

› Fragmented silos

› Unrealistic expectations

› Duplicating what we have

› Not keeping it simple

› Need for enhancements

› Losing sight of goals• Not having goals

› Budget & timeline

› Weak IT process history

› Internal resource availability

› Scope creep

› Fee fatigue

Critical Success Factors› Project ownership by the client, this is not the consultant’s project

› Best people on the project, not best “available”

› Change acceptance by all employees

› Strong support from all levels of management

› Realistic end goal (too much oversell in ERP space)

› Realistic budget & time frame

› Managed expectations & scope to meet client needs

› Rapid response to decision making

› Address both operational & management needs

› Adhere to the ERP implementation life cycle

Design

Develop

Test

Cutover

Support

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End State: Design Early, Review Often

“Good design is good business”

– Thomas J. Watson Jr.

› Early design allows scope control

• Scope control protects against scope creep

• Scope creep #1 cause of cost overruns

Recommended Project Tracking/Reporting› Requirements (third party, consultant or customer)

› Scope document (consultant)

› Billing plan

› Communication plan (joint)

› Roles & responsibilities (joint)

› Data migration plan (joint)

› Process documents (consultant)

› Budget vs. actual (joint)

› Training plan (joint)

› Test plan(s) (consultant)

› Test scripts (consultant)

› Cutover sign-offs (consultant)

› Mock go-live validation (Joint)

› Go-live validation (Joint)

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Walk-Through – SampleImplementation Approach

Design Develop Test Cutover Support

Core Team Build

Data Conv Scope

Mod Dev Scope

Blueprint Process Design

Report Catalog

Baseline Scenarios

Operations Reports

Shadow Systems

Security Tested

Security Enforced

Compile Training

Critical Reports

Go or No Go

Support Plan

Final Training

Data Conv.

Validation

Go Live Execution

Preliminary Support

Transition to Help Desk

Prioritize Future

Project Debrief

Updated Issues Log

POC Setup

Create

EUD

SIM 1POC

POC Data Conv

Scenario

Creation

SIM 2

Update EUD

External

Reports

1st

Pass Data

Scenario

Scoping

Iterative

Update EUDUAT

Full Data

SIM 3

Live

Assess

Update EUD

Process

Adjust

Full Data ConvRole

Defined

Typical Project TimelineNew Implementation

› Phase I (30%) – consultant-heavy• Kickoff project

• Project plan

• Budget & cost approval

• Gather requirements

• Module setup/configuration

› Phase II (40%) – balanced• Data migration (initial)

• Training

• Module exploration

• Test plans

› Phase III (30%) – client-heavy• Testing

• Data migration (Final)

• Validation

• Go live

Upgrade› Phase I (60%) – consultant-heavy

• Kickoff project

• Project plan

• Budget & cost approval

• Gather requirements

• Module setup/configuration

• Code/data upgrade

› Phase II (20%) – balanced• Training

• Test Plans

› Phase III (20%) – client-heavy• Testing

• Upgrade (final)

• Validation

• Go live

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Ownership vs. Facilitation

Client Consultant Client Consultant

VS.

› Since this solution will ultimately be your solution, the role of the consultant should be facilitation, not execution

› Consultants are resources with knowledge that can help answer questions on how the application behaves under different circumstances as well as share industry best practices

› Client core team members must be responsible for the design because they will need to own the solution after the preliminary support phase

Data Matters› Data conversion

• Business – is the data in the source system ready for conversion?

• IT – develop applications to convert the data

• IT – business mapping

• Business – validate data in the new system is correct

› Ongoing operation

• Business – is data getting into the system in a timely manner?

• IT – assist with program &/or process changes to help ensure timely input

• IT – business update mapping

• Business – validate changes worked as planned

› Recommend an early start on data conversion plan

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Why ERP Projects Fail

› Lack of internal process knowledge

› Fragmented silos

› Unrealistic expectations (oversell)

› Duplicating what we have

› Not keeping it simple

› Need for enhancements

› Losing sight of goals• Not having goals

› Budget & timeline

› Weak IT process history

› Internal resource availability

› Scope creep

› Fee fatigue

› Other risks

• Competing initiatives

• Time dedication

• Insufficient testing

• Data conversion

1/23/2019

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Continuing Professional Education (CPE) Credit

BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered

CPE Credit

› CPE credit may be awarded upon verification of participant attendance

› For questions, concerns or comments regarding CPE credit, please email the BKD Learning & Development Department at [email protected]

1/23/2019

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bkd.com | @BKDLLP

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered

Documents

Best Practices for ERP Upgrades