Learnings From Failed ERP Implementation

Group 12
Arjun

Nagaraju Manisha

Avishek Vivek
Agenda
 Overview
 Why ERP?
 Project Timelines
 Issues
 Reasons for failure
 Suggestions
ERP application details
 GE Sensing (currently GE MCS) is part of GE Energy Services

 Project Helix – an Oracle Apps ERP project during 09-10

 Integration
of various legacy data systems into a single Oracle
ERP system for Financials, order management and service

 Legacy systems included MFG/Pro, Steeb application, and the

VIC( Variable Incentive Compensation) Tool

 Across the AMER, APAC and MEA.

Reasons for ERP implementation
 Integration of all legacy systems across various departments
 Single stop reporting tool
 To automate some of the manual and time consuming order
entry processes
 Customized web front end
 Faster financial report generation during quarter and year end.
Timelines
 Project kick-off: Feb’ 09
 Design: May’ 09
 Implementation: Oct’ 09
 SIT1: Nov’ 09
 SIT2: Jan’ 10
 UAT: Feb’ 10
 Go-live: Mar’ 10
 Post Production Support: May’10
Issues
 During implementation:
◦ Schedule slippage

◦ Customer escalations for communication issues

 After implementation:
◦ Less use of the application by end users due to slow performance
and inaccurate/ old data

◦ Business process gaps identified by end users

Contd…
 (Enhancement/Total Defects) ratio was very high
 (No of defects / quarter) increased every month
 TCS required technical assistance from Oracle team for
customizations
Pre Implementation Reasons
Lack of Balanced Team
 Development team was spread across US, India, China and
Mexico.
 Reasons to have diverse teams:

◦ - Implementing GNDM model

◦ - US Visa rejections
◦ - Low realization value

US Mexico India China

$ 60 $ 40(Expat) $ 18 $14
$ 25(local)
Contd…
 No team member had prior consulting experience in
manufacturing service sector
 Also team could not provide suggestions in case of any
discrepancy in the functionality or process
 Attrition during project implementation from both GE and
TCS teams
 Lack of understanding of corporate needs and culture
Post Implementation Reasons
 Data migrated from old data systems was not cleaned properly
by data stewards
 Data provided by business was not updated (e.g county list)
 Development was not of the highest quality
◦ TCS used latest technologies in which they had less expertise
 Training provided was more focussed on how to bypass the
current shortcomings in the application
 Lack of commitment to adapt to changes
Suggestions
 Data cleaning should be of highest priority
 Analyze existing problems in old legacy systems
 Long term focused training
 Ownership of functionalities to certain end users
 Management should have proper back up plans to face
uncertainties (e.g. financial report generation during quarter
end)
 Expat to local team ratio should be high
 Expertise based task distribution
 Realization value(cost) should not affect the team balance
 IncorporateERP consultant with prior knowledge of
implementation across geographies
 IT team should have used proven technology in which they
have expertise.
 CSF Metrics like transaction processing time and customer
complaint response time should be tracked regularly and
acted upon
THANK YOU !