Objectives
A global implementation aims to have a structured, streamlined process that seamlessly incorporates local requirements across lines of business. Companies usually create a global template that is rolled out at every site.
Business Process re-engineering must be done across all sites to standardize the processes per the global template and identify local variations. People must be convinced to work globally and cooperate in implementing a standard business application set. This requires total commitment and continuous encouragement from the top management.
Critical success factors include standardized business process flows, structured communication plans and procedures across time zones, common discussion forums for global teams, and a continuous robust control and change management process incorporating various global feedback streams. In addition, it is advisable to have a phased sequential implementation where the company allows the new system to stabilize, adequate training plans to educate users on the new system, and cater to any issues about local regulations.
Defining a work plan for the implementation with milestones for every global site is essential. Therefore, it pays to select a dedicated, knowledgeable, and resourceful team that can understand the organization’s needs and maintain focus on achieving planned benefits. This core central team will have to travel across global sites to introduce the global template.
Roles
A vital role in any global implementation is the implementation Sponsor. The implementation Sponsor (sometimes referred to as the Champion) is an executive who has a stake in the success of the performance and sits on the Steering Committee. In addition, critical global stakeholders are represented on the implementation Steering Committee. The Steering Committee makes final decisions and provides guidance and communication to the implementation team.
The implementation team needs to be structured so that key stakeholders across the enterprise are represented and have a say in the decision-making process. Global Process Owners (GPOs) are local representatives who report to the Steering Committee. GPOs provide direction to the Process Lead from their division or area. Process Leads collaborate and are empowered to make process change decisions that conform to the global template. Process Leads work with the Technical Team to implement the new processes.
The GPOs provide regular updates to the Steering Committee on the overall progress of the work plan and identify any issues that need to be resolved. The Sponsor has the final say if the Steering Committee cannot reach a consensus on an unresolved issue.
Data and Costs
It is essential to harmonize the data to generate global economies of scale and provide a degree of freedom to customize it for local requirements. There should be standardization of interfaces across sites and a uniform data management strategy. If a company is too large, then a single central server and network fail to handle the massive volume of transactions. So the company needs to ensure that the communication and data management systems are in line to meet the future flow of data as dictated by the global template. A proper data backup and maintenance system needs to be in place.
Some key global ERP implementation costs must be considered while structuring the implementation. For example, some key cost heads are travel, training, documentation translations, advanced telecommunication system, robust data storage mechanisms with high availability systems, and consultancy fees.
Conclusion
Structuring a global implementation involves defining your objectives and getting the right resources to deliver on those objectives without negatively impacting your data or overrunning costs. Well-run implementations consider all of these factors at the earliest planning stages to avoid those ‘surprises’ that can take the performance off track.
