Question: Response to two discussion post's : There have been more than a few newsworthy failures relating to the implementation of ERP systems that resulted in

Response to two discussion post's : There have been more than a few newsworthy failures relating to the implementation of ERP systems that resulted in lawsuits between companies and contracted solution providers. Large-scale roll-outs of ERP systems are notoriously difficult to pull off seamlessly and are fraught with cost overruns. Inadequate training, employee groups' buy-in or failure to embrace the change of new technology utilization, and poorly designed or incompatible software with legacy systems are often stated to be the source of the difficult transitions when implementing ERP systems, among other factors.

Assume you are the CIO of a large enterprise researching ERP systems.The implementation of an ERP system is going badly. Now consider the following questions:

  • How and where would you begin to determine the cause of the difficulties the project encounters?
  • Would you bring in an outside consultant or rely on in-house talent? Why?

1.)Hi class, I will bring in an outside consultant. We will begin to determine the cause of the difficulties with a comprehensive diagnostic review of the project. This involves analyzing key project documentation such as the original scope, timeline, budget and vendor agreements to assess whether expectations align with current outcomes. I would also conduct structured interviews and feedback sessions with key stakeholders, including project managers, department heads, end-users, and IT staff. These insights are vital in identifying specific pain points, whether they relate to system usability, workflow inefficiencies or resistance to change.

Simultaneously, I would initiate a technical audit to evaluate the system's configuration, data migration processes and integration with legacy systems. This audit would help uncover whether the issues are rooted in software incompatibility, data integrity problems, or performance bottlenecks. I would also examine user adoption metrics and training outcomes to understand how well the system is being utilized and whether poor uptake is contributing to the project's challenges.

Given the critical nature and complexity of ERP implementations, I would bring in an outside consultant to support this evaluation. An external consultant brings specialized expertise and objectivity that in-house teams may lack, especially if this is the organization's first large-scale ERP rollout. These professionals have seen similar challenges across various industries and can apply proven methodologies to quickly identify underlying issues. Their outside perspective allows them to navigate internal politics and cultural barriers, which often obscure honest assessments and slow down decision-making.

Furthermore, consultants typically come equipped with benchmarking tools, diagnostic frameworks and deep familiarity with the ERP platform in question, allowing for a faster, more focused recovery plan. At a time when the organization risks significant cost overruns and operational disruption, relying on external experts provides the fastest and most effective path to course correction and long-term project success.

2.) Hi Class,

As the CIO of a large enterprise researching ERP systems, I will rely on in-house talent. A consultant is likely to recommend an ERP system that meets the general needs of most businesses rather than one explicitly tailored to our unique operational requirements. I prefer using in-house talent because they know firsthand the organization's daily challenges and operational needs.

My approach would involve meeting with the ERP provider and including key department representatives. During this meeting, we would detail our business operations, allowing the ERP company to understand our specific requirements. I would then request a demo tailored to our business processes to assess how well their system aligns with our operational goals. After the demo is presented, I will provide the ERP vendor with feedback on the practical aspects and identify any missing features or gaps. This process would continue until the system addresses most of our business needs. I understand that no ERP system is perfect, so I categorize requirements into high and low priorities to meet the most critical needs.

Another critical factor is ensuring that the ERP system is tailored to my line of business, Aviation. This helps guarantee that the system meets industry-specific requirements and standards. Additionally, I would verify references to confirm that other companies in the industry are satisfied with the ERP solution.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!