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Enterprise Resource Problems at the CSU

Enterprise Resource Problems at the CSU. A Case Study into the Problematic ERP Implementation of the CSU System Doug Mason Phara Noun Brian Soon. Outline. Introduction Timeline Issues Management Failures Cost Overruns Conclusion. Introduction.

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Enterprise Resource Problems at the CSU

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  1. Enterprise Resource Problems at the CSU A Case Study into the Problematic ERP Implementation of the CSU System Doug Mason Phara Noun Brian Soon

  2. Outline Introduction Timeline Issues Management Failures Cost Overruns Conclusion

  3. Introduction CSU is the largest university system in the country. Fundamental flaws in implementation of ERP. Not a comprehensive analysis of the topic but rather a general analysis with widest possible implications.

  4. Intro (cont) The Basics of ERP ERP and the CSU system Silos A-Plenty Expected Returns

  5. Timeline Problems Voluntary Acceptance “Collaborative” vs. “Common” Implementation Phases “Self-selected” campuses Penalizing Early Adopters

  6. Timeline Problems Planning for Upgrades Stress and Frustration Roll-out prolonged thru Feb 2008

  7. Management Problems . The University lacked of attentions on CSU business process in early process planning before procurements of software products . The University did not buy in the each campus to implement on share database

  8. Management Problems . The university did not share project risk with vendor and consultant for the contract . The university did not select best consultants and vendors stating clearly the best value for the project

  9. Solutions . Top management support . Strategic Planning . Assign a project team . Examine current business process and information flow . Set up objectives and business plan

  10. Solutions Cont. . Training Program . Change Culture . Project ownership

  11. Cost Management 1998 Projected Cost $332-$400 Million 1999 Projected Cost $440 million 2002 Projected Cost $662 million Additional $63 million Implementation cost $177 maintenance and operations cost

  12. Cost Management 2002 Projected Cost $662 million Previous Estimates did not include: Additional Implementation Cost Integration Cost In-Kind Cost Upgrade Cost Additional Maintenance & Operating Cost

  13. Cost Management Reasons for Over Budgeted ERP Implementation. Failure to plan thoroughly Investigate and plan for all relevant cost Underestimated the magnitude and complexity of project. Failed to regularly monitor budget vs. actual cost.

  14. Cost Management Other Problematic ERP Projects The University of Wisconsin Asyst Technologies Common Mistakes Poor Planning Failure to understand all relevant cost and complexity of project Underestimated the importance of cost planning

  15. Cost Management Successful ERP Projects British Petroleum (BP) Understood the complexity of Project Strong Disciplined and centralized management Team Centralized Decision making Regularly monitored Budget Cost vs. Actual Cost

  16. BP’s ERP Project - Team Structure

  17. Conclusion ERP Implementation is a very complex project Planning the most crucial element of ERP Implementation Proper Planning increases probability of Smooth, Cost Efficient, and Timely ERP Rollout

  18. Conclusion Key to Successful ERP Implementation Project. Indentifying a need Understanding the complexity of project. Top down management support. Enforcing employee buy-in. Instituting proper consultants and employee training. Centralizing management and decision making Regularly Monitor Progress and Cost

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