RAPID Implementation in ERP implentaion methodology

Rapid Implementation

Earlier, ERP implementations used to frighten the clients due to the time and cost of an implementation…

When ERP first came on the scene, most implementations were complex affairs with consulting costs that often ran three to five times the cost of the applications. Scope creep was extensive before a bit of benefit could be measured.  As ERP evolved, consulting costs began to fall more into line and implementation times were reduced. These accelerations (Rapid Implementations), when accomplished with the right strategy and tools can be of tremendous benefit, including a reduction of costs and reduced time-to-benefit. However, without the right strategy and tools, implementation acceleration carries the risk of abbreviated end user training and change management, a lack of post implementation planning, over-engineering of business processes, and other problems that in fact lead to higher over-all cost of ownership and the wearing out of business benefit.

 Earlier ERP Implementation Methodologies

Prior to 1997, methodologies relied heavily on the As-Is and To-Be phases. In the As-Is phase, a company’s current business processes were inventoried, charted, and scripted. In the To-Be phase, a company’s future business processes were designed, charted, and scripted. Ideally, these steps went as follows:

As-Is described the status quo of business processes

To-Be described the direct transfer of the as-is process into a to-be process that eliminates the weak points and achieves the intended benefit.

The key weakness of these methodologies was attention to the As-Is phase in which lower-level business processes were charted and scripted at an inflated cost to clients and with little or no benefit for the To-Be phase. This aspect was one of the key drivers to highly-publicized cost over-runs in the mid 1990’s.

From 1997 onwards, new methodologies started emerging that more directly addressed enterprise software implementations and all stressed speed through a more direct approach, the use of conference room pilots, the deployment of templates, and greater leverage of best practices (i.e. the re-use of business processes that had demonstrably done the job).

In order to address client concerns about the high cost of implementations, many of these methodologies were branded as rapid. For example, Deloitte’s “Fast Track”, Oracle’s “Fast Forward”, and KPMG’s “Rapid Return on Investment” (also labeled R2i).

Fundamentals of Rapid Implementation

The most crucial element of acceleration is the re-use of existing and proven assets. As the business flows, or processes, of firms within an industry are nearly identical, pre-configured processes can be easily implemented. For example, an order to cash business process that has already proven viable for hundreds of consumer packaged goods firms will probably be a good fit for another consumer packaged goods firm. In similar fashion, how much will sales order entry differ for a firm that sells automotive parts from a firm that sells aircraft parts?

Re-usability depends upon a client willingness to adapt itself to new business processes rather than bending the software to adapt to custom processes. This is one of the key drivers why almost all the consulting firms are focusing more and more on Knowledge Management initiatives. These assets play a very important part in Rapid implementation. The closer a client adheres to this principle, the faster the implementation due to:

1. A major reduction in the business process design and software configuration phases, which normally comprise more than half of the consulting effort expended
2. Higher level of re-usability of scripts, templates, set-up tools, reports, and user documentation
3. A reduction in scope management.

The rise of industry-focused solutions has resulted from the thousands of ERP implementations that have occurred over the past fifteen years and is a major step in the evolution of enterprise applications.

Fig 1: Elements of Acceleration

1. Industry specific Processes - For example an order to cash cycle will be almost similar across all the manufacturing industries. Industry specific processes for industries like Pharmaceuticals, Textile, Manufacturing, Automobile, Aerospace, Industrial etc. can be a very powerful asset for any consulting firm
2. Proven Methodology – Another major asset that plays a crucial role in rapid implementation. Well-proven methodology used in one implementation can definitely be a benefit for the future implementations
3. Test Scripts, User Training/Documentation – Training documentation/user-manuals are an example of another re-usable component which is an essential component of every implementation
4. Re-usable tools, reports and Templates – Industry specific templates can be utilized across same industries. Certain re-usable reports and tools can certainly speed-up implementations
5. Best-Practices -  Best practices are the most efficient and effective way of accomplishing a task, based on repeatable procedures that have proven themselves over time for large number of similar implementations

The Benefits of Rapid Implementation

Having a look at the concept of Rapid implementation, what it is all about and what are the basic elements that play an important role in accelerations, let’s have a look why enterprises should go for Rapid implementation.

Key benefits that can be derived from a rapid implementation:

1. Reduced time and cost
2. Minimal interference to customer’s existing operations
3. Reduced probability of over-engineering
4. Accelerated time to benefit

Key Decision Factors

Is rapid implementation a right choice? Key question for almost everyone is “to go” or “not to go”?

Here are five factors to consider when deciding which approach to take:

1. Necessity: Companies with an immediate need threatening their viability or an issue that relates to customer responsiveness and competitive pressures should consider rapid ERP.
2. Cost: Fast implementations by definition should cost less. The time needed to gain benefits is also reduced and the resulting efficiencies mean lower cost.
3. Scope: The best candidates for an enterprise keeping an implementation well within the scope of the project are willing to align their expectations with industry best practices, are not expecting to fix everything at once, and are looking for flexibility for future expansion. Such enterprises know exactly what issues they are seeking to address to drive their business forward.
4. Internal Readiness: Enterprises must be well aware of how much training will be needed by the implementation. They must be willing to commit high-quality internal resources to the project and should be aiming at not interrupting operational resources.
5. Expertise of Consulting Firm: Enterprises should be looking for vendors and partners with deep industry segment and geographic knowledge, as well as expertise with mature and proven tools and methodologies.

How does Rapid Implementation works for JD Edwards?

After getting a feel of what is rapid implementation, its benefits and key decision factors, now the questions that come to my mind are – Does it work for JD Edwards? Do we have some Business accelerators for rapidly implementing JD Edwards? Do we have some success stories for the same?
And the answer to all of the above mentioned questions is “Yes”. Rapid implementation does work well for JD Edwards. Many consulting firms have come up with Rapid implementation methodologies and Business accelerators including Deloitte, Oracle and KPMG.  
Business Accelerators for JD Edwards EnterpriseOne
Oracle Business Accelerator solutions are available for five major modules: customer relationship management, distribution, financials, human capital management, and manufacturing.
Oracle Business Accelerators for JD Edwards EnterpriseOne include:

1. Configured JD Edwards EnterpriseOne application software, including business processes, user roles, technical set-up, and a rapid installation.

2.      Questionnaire wizards that capture your process requirements and configure the JD Edwards EnterpriseOne environment to your business needs.

3.      Engineered hardware configurations.

4.      A complete package of open standards infrastructure software, including application server, portal, database, and security and technology tools.

5.      Implementation services from Oracle Consulting or an authorized Oracle partner.

6.      Training to get users up-to-speed and productive as quickly as possible.

Success stories…

 At Levy/Latham Global, J.D. Edwards OneWorld financials and distribution was implemented in forty-five days, On-time and on-budget. As per the implementers’, some of the key success factors for the same include:

1.      Correct selection of Hardware and Infrastructure - is the hardware and infrastructure up to the job?  If you are re-using existing hardware, is it sufficient for the task at hand?  Did you buy enough horsepower at both the client and server ends?

2.      Strong leadership – You should have very strong leadership and a capable Project Manager with a strong vision towards the goal – Leader and the team must be very single-minded during the project.  Everyone in the team should know exactly what the goal is and that the deadline is not optional.

3.      Application training - How much is enough?  Or, how much should you spend?  As per the implementers’ one should budget somewhere between $1 to $2 for training for every $1 one spend on user licenses.  And this has to happen during your implementation, particularly on a rapid deployment