ERPs360 - Mission and Overview
ERPs360 Mission:
Bring the best action research tools and practices to support change management, individual and group performance indicators for successful complex system implementations. Ensure a solid ROI for implementation firms, their corporate clients and affiliated professionals. Promote pride, excellence, energy and shared success in the work place.
ERPs360 Overview and team:
ERPs360 team first focused in building the only ERP implementations skills assessment profile on the market. The profiling tools have been based on five years of action research in the industrial - manufacturing sector, and over twenty years’ experience from the founder, an active industrial psychologist implementing change in many organizations.
Through these years, significant factors and behaviors generating success or failure have been observed and reviewed by a senior system developer, under the guidance of a medical doctor. These observed factors combined with a strong theoretical background has given birth to a unique profiling tool that can assess the risks of a ERP implementation based on strengths , weaknesses, business-technical skills, energy levels of new candidates or current implementation professionals. .
The following is a brief overview of why you would consider an ERP implementation skills assessment, what are the risks involved, and why use ERPs360's profiling tools to ensure optimal success of your implementations or organizational changes.
- Enterprise Resource Planning
–Managing financial, material and human resources
–Inventory management
–Sales management
–Customer relationship management
–Management of various follow ups.
- Reduction in costs
-of inventory,
-of production,
-of shipping,
-of work,
-of IT maintenance
- Speaking only ERP’s
-ERP implementations have a 75% failure rate (GARTNER 2014),
-In 2014, approximately 68% of large companies used an ERP system
(Deltour, Farajallah, & Lethiais, 2014),
-In 1999, 11 dimensions of failure were reviewed from all scientific literature for the first time
(Bingi et al, 1999 in Andersson & Gustavson, 2014),
- 75% represents a colossal ERP implementation failure rate! (Gartner)
-58% of organizations seem satisfied with their ERP implementation.
-58% of organizations exceed their implementation budget.
-In post implementation, 53% of companies will obtain 50% of their ROI.
(Panorama Consulting Solutions, 2015)
- A bad hiring or assignment will generate :
-Costs for rehiring and retraining.
-Cost of lost time in integrating a new team member
-Conservative estimated cost in the recruitment of two new employees: 20,000$
-Conservative estimated cost of a bad super-user : 50,000$
- Lack of planning and project management,
- A weak analysis from the vendor,
- A weak understanding of the functionalities of the new system,
- A bad estimate of time and resources required,
- Having the wrong person or the wrong team,
- Bad priority management,
- Neglect to invest in change management and thorough training,
- Underestimate the importance of the database integrity,
- Thinking the new system will solve everything on it’s own,
- Continue to operate with old procedures,
- Neglect integrated system testing for each release,
- Ignore the feedback between project team and operations,
- Having no maintenance strategy for the entire platform.
- Focus on 7 important elements, levers for maintenance and long term success (McKensey).
- Strategy
- Structure
- Systems
- Skills
- Style
- Staff
- Shared values
- Implementation strategy,
- Upper management support,
- The current state of the platform,
- Software maintenance,
- Proper database management,
- Proper project management
- Follow ups on the project,
- The selection process of the ERP software,
- Change management,
- The skill level of the implementation team,
- The corporate ability for major projects,
- Monitoring the acceptance,
- Ongoing training and skill upgrades,
- The business knowledge of the vendor,
- The work environment,
- The implication level of the end users.
- Information and technology tools lean on a business strategy.
- Computer systems accompany individuals and help them make optimal use of their skill set.
- They never replace business strategies or operational processes.
- There are individuals, and there are skills, we have to keep that in mind.
- When faced with a technological implementation many human problems can arise
- Lack of motivation/mobilisation
- Lack of personal resources and energy
- Fear of being inadequate
- You have to consider the maturity of the people and of the processes
- A technological implementation impacts people in many ways and in all levels of an organization.
- 41% of American companies use 25% or less of their budget on ERP training and related change management.
- Fear of losing your status
- Fear of losing your performance level
- Fear of losing control over your work
- Fear of new work methods and skills
-This causes resistance to change.
- Allow involvement and participation
- Offer support and promote commitment
- Offer technical and management training
- Offer opportunities and promotions
- Ensure constant feedback
- Promote change management as a current practice
- All this comes back directly to the ERP success factors
- A profiling tool developed from research – action (25 years of work experience) and from McKinsey’s 7S, adapted specifically for pre-implementation evaluations. During the last five years, testimonials on projects in progress and team skills review.
- Also evaluating :
- Mobilisation and teamwork
- Personal and team energy levels
- Knowledge of ERP components
- Comprehension of corporate skills, processes, and understanding of the external and competitive environments.
- Reduce costs and ensure success:
- Easier to know where to go, when you know where you are.
- Find the right people to keep the project going on all levels.
- Know where and who to train
- Getter faster and better implementations and obtain a 388% on return on investment
- Under 35%: red, failure
- Between 35% and 75% : yellow, targeted areas of improvement
- 75% and above: green, a super-user or implementer
1-Pre evaluation:
ERPs360 professional version$300
ERPs360 team version (group of 4)$300
Pre evaluation total $600
2-Propulsion 360: (4.0 coaching and simulation)
A block of consultation hours required to raise the individual/group
to a score of 75% on the ERPs360 team evaluation.
3-Final evaluation:
ERPs360 professional version$300
ERPs360 team version (group of 4)$300
Final evaluation total $600
Example of a simulation:
On a 4.0 implementation budget of $250,000, a team with a result of 50% or less on the ERPs360 team evaluation will cost on average $62,500 of overages to complete the project. The cost of 4 test packages ($1200X4 = $4800) represents 2% of the project's budget, for teams that could eliminate their red zones (weakness in zones of competence before the start of the project).
When factoring in a block of hours worth $11000 for Propulsion 360, our complete intervention package including 1-Pre evaluation ($4800), 2-Propulsion 360($11000), 3-Final evaluation, gives a return on investment of 388%, saving $62,500 and assuring the completion of an all module implementation.
- On top of a 388% ROI ,avoid the embarrassment of exceeding the budget due to a weak super-user or a mismatched implementation workgroup.
- Ensure delivery of projects with full functionalities, on time, on budget and in accordance with the client’s expectations.
- Ability to predict the extra resources that will be required from the start, according to the implementation skills of the project workgroup. (if no other allocation is possible)
- There will be a trend and a correlation between the workgroup score and the required financial resources to complete the project. For example, an implementation team with a global score of 50% will require 25% more budget than a team with a score of 75%
- Capacity to predict the implementation success of each ERP module based on the strength of super-users and implementers.
- Generate early implementation success based on ERP modules familiar to the implementation team. (measured by ERPs360 skills profile)
- From the start of the project, supply immediate specific training in order to fill the gaps and avoid costly delays due to missing skills and knowledge
- In the context of an audit of an ongoing project, use the profiler to estimate the level of resources necessary to complete the job.
- Use the profiler result to ensure that your firm will get qualified super-users. Profile the complimentary skill set of your implementation team for a measured success and benchmark from the start.
- 1 finance and accounting super-user;
- 1 production/operations super-user;
- 1 programming consultant and 1 analyst consultant).
Conclusion : no red zones in the combined group profiles and you will have optimal conditions for success.