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Chapter 1 • Introduction to Enterprise Systems for Management 21

Operations and Post-Implementation
Going live (“Go-live”) is one of the most critical points in a project’s success. A lot of time and
resources have been spent to get to this point. In assessing an ERP project’s readiness for Go-live,
it is vital to focus the efforts of the teams to ensure that task and activities are completed before
going live. This allows project management to address any outstanding issues that may jeopar-
dize the Go-live date. This involves a readiness process that needs to include as many team
members and appropriate users and managers as possible because it helps the overall organiza-
tion understand that the implementation is near and that changes will be taking place. During a
project it seems like the system will never be implemented. An effective readiness process lets
the teams and organization know that going live is close.
Many ERP implementations have turned into disastrous endeavors during or after the
Go-live stage. For instance, FoxMeyer Drug actually collapsed during the stabilization stage,
following SAP implementation, in late 1990s, and filed a $500 million lawsuit against SAP/R3.
Much of the success of the implementation, therefore, is in the stabilization and postproduction
support processes. Stabilization is the time from Go-live to about 90 days after, or until the
number of issues and problems has been reduced. An effective response to stabilization issues
will determine how well the system is accepted by the end users and management. Five areas of
stabilization are important:

1. Training for end users
2. Reactive support (i.e., help desk for troubleshooting)
3. Auditing support to make sure data quality is not compromised by new system
4. Data fix to resolve data migration and errors that are revealed by audits
5. New features and functionalities to support the evolving needs of the organization
Daily and continual monitoring of the implementation issues will provide an appropriate
time to move to the postproduction support phase. This phase also addresses the backlog of
development issues, evaluates new business processes, and provides more updated training, all
of which are a part of the continued implementation.

PEOPLE AND ORGANIZATION
Project Management

For an ERP system to be implemented successfully, project management must provide strong
leadership, a clear and understood implementation plan, and close monitoring of the budget.
Project management is the glue that holds the project together. Project management must also
follow a process that leads to sound decision making and creates a high level of trust and
accountability with all involved in the implementation.
Figure 1-12 depicts the fundamental balance of project management. Any change to one
side of the triangle will require a change to one or more sides.
The role of the project manager is one of the most exciting yet risky jobs in an implemen-
tation. A successful project manager must be process driven and understand the value of an
implementation methodology. The project manager role is the single most important role in an
ERP system implementation. To be successful one must be prepared to work long hours in a
highly charged environment.
A key component to project management is to understand and communicate the ERP system
application management life cycle. The system, whether purchased or “homegrown,” has the cycle