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150 Chapter 5 • Implementation Strategies

Selecting the Database
Large ERP system implementations require a robust relational database system. There are only a
few vendors today that can support a large ERP system. Oracle, DB2, and Sybase are predomi-
nant in the market, with Microsoft SQL gaining more and more support. There is more variety
with a medium-size system, with approximately 8–10 database systems.
In selecting a relational database a number of factors need to be considered, including
taking into account the availability of software applications using the relational database, the
availability of skilled and trained technical staff to implement and maintain the database envi-
ronment, and the overall functionality of the database itself. If a business is purchasing an ERP
system, it is best to work with the selected vendor to address this issue. As a general rule, the
ERP vendor will not commit totally to one database or the other, but they can convey how many
businesses have chosen a specific relational database, which ones they develop system func-
tions for first, and which ones get early releases. This is all good information to consider, but
the ultimate decision resides with the IT staff and how a relational database will best fit with the
overall IT infrastructure.

Staffing and Database Administration
It is a steep learning curve for staff to develop the expertise to maintain a relational database.
Over the years skilled consultants in relational database technology have made a lot of money by
helping companies install and maintain a relational database. There is not enough database
expertise in the industry today, and developing organizational expertise requires a significant
amount of training and hands-on use to maintain the ERP database environment effectively. If
they do not have expertise in-house, businesses should be prepared to hire from the outside the
organization or to develop a database group from within the existing IT staff. The hiring of con-
sultants for long-term engagements is usually very costly. It brings in immediate expertise, but it
also has the potential for not developing the knowledge base within the business.

ERP IMPLEMENTATION ORGANIZATION AND APPROACHES

To successfully implement an ERP, a temporary organization needs to be defined and staffed and
an overall implementation strategy decided and communicated. The temporary organization
must have rules of engagement or governance. This governance will provide a framework for
decisions, escalation of issues, and involvement of company staff at all levels of the organization.
Implementation strategy is how the temporary organization will accomplish the implementation.
Two key aspects include an implementation methodology or the process steps from the begin-
ning of the implementation to the end (Go-live). And the second aspect is the guiding principles
for the implementation, often called the implementation approach. A decision on whether or not
to modify the system needs to be made from the beginning and used as a guiding principle
throughout the implementation. Where there are gaps in the ERP functionality, a decision will
need to be made on the business process or the system modified to fill the gap in functionality.

Governance
Governance is critical in any project that transforms an organization. In an ERP system implementa-
tion, governance should outline and define committees and workgroups that are responsible
for the different components of the implementation, how the different groups interact, and the