Getting it right the first time in ERP

Poorna BANDARA

Increasing complexities of globalized business boils down to increasingly complex ERP systems. IFS has a solution to this trend by constantly exploring new and innovative ways of designing a system that allows intuitive and efficient navigation and information search. IFS is a public company (XSTO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications", a component-based extended ERP suite built on SOA technology. IFS focus on agile businesses where any of four core processes are strategic: Service & asset management, manufacturing, supply chain and project. The company has 2,000 customers and is present in more than 50 countries with 2,700 employees in total. Net revenue in 2009 was SKr 2.6 billion.

Below are excerpts of an interview with IFS General Manager and Director Consulting Services South Asia Poorna Bandara speaking in-depth on what it takes to get it right the first time.

Q: How is ERP different from any other software?

A: In the market, there are different categories of software such as bespoke software, accounting packages and ERPs. It is absolutely important for the industry to clearly understand the difference since each of them serves completely different segments.

Bespoke Software is for one-off computerizations and is generally a result of a software development project. The objective of Accounting Software is simply to handle accounting function of a company.

ERP Software is developed over a long period of time encompassing best business practices of multiple industries providing an end to end computerization for applicable industries.

Q: What does it take to get it right the first time in an IT project for a company like IFS?

A: IFS being a global company with roots into Sweden with almost 2000 customers worldwide, we focus on having the right product and right implementation methodology. What we have done from the beginning is that we use the same product and methodology used for our global clients like Absolute Spirit, Pepsi, Dupont, BMW, Toyota, Singer, Babcock, France Telecom for all local projects.

This is one big step in getting things right the first time. The IFS product and the implementation methodology are refined, proven and continuously mature through the application in large number of worldwide projects.

Getting it right the first time requires a holistic approach. Having a proven product and an implementation methodology is only one aspect. It requires a readily available trained resource pool, continuous monitoring and maintaining a steadfast focus in building trust and relationship with the customer. Having a customer centric mind set is a key.

Getting it right does not end once the project is made Live; it in fact is the beginning. The most important aspect is how much focus, support and attention customer is given after the go-live. It is well known in the industry that the most ERP implementations have failed after going live.

Q: What is the contribution of talent to this process?

A: ERP is a knowledge based business. Hence, having a talent pool is a key contributing factor.

IFS base in Sri Lanka has more than 700 employees comprising ERP Consultants, Project Managers, Business Consultants, Software and Technical Engineers, which is the biggest advantage we have. The local employees work hand in hand with their counterparts in rest of the world in collaborative work which synergizes the overall delivery capability. Sri Lanka has the largest resource base of consultants in the region and our talented Sri Lankan consultants work in various global projects on day-to-day basis. Leveraging on such wide exposure and experience is a critical success factor for local implementations.

Q: How do you execute when it comes to projects?

A: Prior to the start of the real project, we invest substantial amount of time to set the right stage for the implementation.

In Sri Lanka, in most cases, it could be the first time the users are introduced to ERP. Hence we start with an education process to the key users and management and prepare the customer for the transformation while setting the right level of momentum and expectation for all stakeholders.

Depending on the need, there would be a business process refinement process prior to start of the ERP mapping to ensure that the processes mapped to the ERP application are refined best business practices.

Once the processes are agreed upon, the consultants make sure that a prototype is shown to the customer in a conference room pilot; again a brainstorming session, where the client experiences the product; Having the configured prototype, customer could then test-run their business processes and verify the system behaviour in various business scenarios.

Q: How important is customer training for an ERP project?

A: Right training and grooming is absolutely important. We get the customers to sit with us on the entire process helping them to run the process, in parallel with the consultants. A significant attention is given to ensure that the users are competent in running the system on their own.

The Programme Monitoring office continues to monitor and pilots the project, throughout the whole project lifecycle.

Q: What happens after project completion?

A: Our journey with the customer doesn't end with the project completion; this is where the real work starts. Once the customer's business is made to run live in ERP, we perform an adequate period of hand holding to ensure that the users are capable of running the system and a proper customer team structure is established for continuity.

IFS understands that customer needs significant attention for a certain period after the project completion to ensure sustainability and to experience the true success of ERP.

IFS runs a dedicated support center for Sri Lankan customers which caters to local support calls. As a value added service, the support service includes periodic customer visits to monitor how well customers use the ERP Application. We continuously advise the clients in terms of how they could further improve the processes.

Q: What's in store in Sri Lanka?

A: In Sri Lanka we have launched a special campaign targeted towards enhancing long-term customer relationship and support through which the local customers are expected to benefit considerably and capitalize further on their current investments on ERP.

Powered by 700 plus talent pool in Sri Lanka collaborating with equal number of global talents, we are the leader in terms of bringing in new technology to ERP arena. The capability to bring loads of changes swiftly is an unparallel advantage we inherit thanks to continuous investment in Research and Development. Similar to our global customers, Sri Lankan customers too would benefit from the upcoming state of the art new versions.

The writer heads the South Asia, Project Management Office as the Director Consulting and is the General Manager supervising operations, client interaction and general administration. He is also a member of the Director Board strategizing, policy planning for the company.