Everything Software Implementation: Planning, Readiness, Early Signs of Trouble and Red Flags
Dec 13, 2023
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Kyler Cheatham, AV 'AV' Verekar, and Nate Stroeher discuss key topics like implementation planning, early warning signs of trouble, and red flags in software implementations. They emphasize the importance of organizational change management and aligning technology with business processes for successful digital transformations.
Thorough cost-benefit analysis is crucial to identify potential savings and track benefits realization.
Cultural assessments are essential to understand organizational readiness for digital transformation.
Understanding existing business processes prevents missed optimization opportunities in technology implementations.
Lack of software industry familiarity is a red flag; engaging experts ensures successful technology navigation.
Recognize warning signs like slipping schedules and budget overruns early to prevent project failure.
Clear vision, stakeholder involvement, and planning are key for successful project outcomes and ROI.
Deep dives
Assessing Current Systems and Defining Scope and Goals
An essential step in preparing for an ERP implementation is assessing the current systems and defining the scope and goals of the project. This involves understanding the existing processes, infrastructure, and requirements to determine what changes are needed and setting clear objectives for the implementation.
Change Management
Change management is a critical aspect of any ERP implementation to ensure successful adoption and transition. It involves engaging with end users from the beginning, understanding their concerns, and facilitating a smooth transition by addressing resistance to change and ensuring user buy-in.
Trends in Enterprise Technology Solutions
A trend in enterprise technology solutions is the increasing adoption of cloud technologies and SaaS offerings, with providers like Workday, Oracle, and NetSuite expanding their focus to mid-tier markets. AI adoption and advancements, particularly in natural language reporting, are expected to play a significant role in enhancing system capabilities.
Cost-Benefit Analysis and Benefits Realization Plan
When considering an investment in a new ERP system, organizations need to conduct a thorough cost-benefit analysis to quantify the value and potential savings. It's vital to identify where the efficiencies and cost savings will come from and track the benefits realization plan to ensure the projected savings are achieved in a tangible manner.
Identifying Organizational Culture Red Flags
Assessing an organization's culture is crucial when embarking on a digital transformation. Even if a company touts a culture of innovation, organizational change management strategies are still necessary. Conducting cultural assessments, surveys, and seeking third-party insights can help uncover potential risks related to the organization's culture and its readiness for change.
Understanding Business Process Shortcomings
A lack of understanding of business processes can pose a significant red flag for technology implementations or digital transformations. Without a thorough grasp of existing processes, from inception to completion, organizations may miss optimization or automation opportunities. It is essential to assess and document processes across departments to ensure technology investments align with business requirements.
Lack of Software Industry Insight
Insufficient familiarity with the software industry can be a significant red flag during technology implementations. Relying solely on sales and marketing jargon from vendors or system integrators can lead to misaligned business processes and insufficient technology optimization. Engaging independent consultants or internal experts in ERP and technology implementations can provide critical insights and ensure successful navigation of software evaluations and contracts.
Effective Project Rescoping Strategies
When faced with projects needing correction, one effective strategy involves stepping back, conducting a thorough evaluation, and developing a new plan. This was demonstrated in a case where an ERP implementation exceeded budget and had not progressed past configuration. The solution required a complete rescoping of the project, starting with choosing a new implementation provider and meticulously re-implementing the ERP project. Emphasizing the importance of project stages like requirements gathering and system configuration.
Identifying Warning Signs for Project Failure
Key warning signs of a project heading towards failure include slipping on schedule milestones, budget overruns, and falling behind on deliverables. Addressing these signs early is crucial, but organizations often fail to investigate the underlying causes deep enough. Recognizing the significance of timely reactions to critical project indicators.
Essential Steps for Project Success
Before embarking on an implementation or transformation, organizations should establish a clear vision of their future and assess how technology aligns with these goals. Involving the right stakeholders, ensuring leadership buy-in, and creating a detailed roadmap are crucial steps. Leadership commitment and a well-defined roadmap play significant roles in achieving successful project outcomes.
Maximizing ROI through Effective Planning
Planning for a project, particularly in terms of organizational change management, plays a crucial role in realizing ROI. Understanding the costs associated with technology changes and planning for internal and external resources are critical. By aligning project decisions with business value and emphasizing governance, organizations can optimize their project outcomes, ensuring long-term success.
The Transformation Ground Control podcast covers a number of topics important to digital and business transformation. This episode covers the following topics and interviews:
Implementation Related Q&A & Hot Topics (Kyler Cheatham, Third Stage Consulting)
Implementation Red Flags (Kyler Cheatham, Third Stage Consulting)
Early Warning Signs of Trouble in an Implementation (Nate Stroeher, Third Stage Consulting)
Implementation Readiness (Greg Benton, Third Stage Consulting)
We also cover a number of other relevant topics related to digital and business transformation throughout the show.
This weekly podcast series premiers live on YouTube every Wednesday at 8am New York/1pm London/9pm Hong Kong. You can also subscribe to the podcast on Apple, Google, Spotify, Pandora, or your favorite podcast platform.
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