On styles for implementing large ERP projects

This post is a response to a recent Joshua post .
At first, a separate comment was planned, but in the end I realized that it was too big.
I worked for more than 6 years in a company that develops and implements a proprietary PDM system. This is a slightly different class of systems for other purposes, but the meaning and rake are the same: we have a large corporate system that allows us to automate / informatize something. At first, I myself was very amazed at the fact that was voiced in the article completely and completely, namely:





So I can explain this article from my belfry. Recently, I was in an open lesson at the ANE with a friend widely known in narrow circles -Ananyin Vladimir Igorevich . And there they talked about different types of projects. The issues listed by Joshua are actually features of this type of project.

This note is a very brief squeeze from what he teaches in his classes. That is to say, a cursory top view of the existing problem. At the end of the article are links to sources.

In general, it does not matter whether they are large or not, and even IT or not. The principles are approximately the same in systems of different scales. Their features, depending on the scale and industry, of course, are present, but they can not be considered so as not to overload the article. Consider the basic principles.

There are 4 types of projects for the implementation of information systems:
• political;
• typical;
• professional;
• innovative.



Each of them has its own specifics of relationships, implementation strategies, leadership, financial component, features of contracts, etc.

Briefly for each of them

Political project

Implementation Features

• Implementation strategy - “The system is pulled over an existing business”
• Requirements - customer's wishes (uncertain and variable)
• Large amount of improvements
• Architecture - “Patchwork” - a mirror of relations

Organizational structure

• One leader and everyone works on his direct instructions
• Generalized planning and poor cost control
• A close-knit team of friends with a full load on the project, loyalty
• Informal personal communications and fragmented documentation

Communications

• Customer dictatorship
• The contract is simple and opaque (everything is on personal relationships)
• Costs + ext. expenses
• Orientation to continuity of relations and cash flow

Brief Summary

Implementation is the optimization of a business by solving existing problems. The customer is the king. A lot of headache for performers. Individual approach to the customer. But the easiest option in terms of entering the market, implementing the first project, etc. All young companies go through this stage. This very thing is what the author of the previous article usually works with. And I worked until I ran away :).

Model project

Implementation Features

• Implementation strategy - Conveyor: standard settings and training
• Requirements are predetermined by the system
• Detailed implementation technology
• Architecture - Standard boxed local business application

Organizational structure

• Work on clear procedures
• Detailed planning and good cost control
• Project team - machine, narrow specialization, part-time work
• Formal communications, documentation is strictly formalized

Communications

• Intense competition, customer dictatorship
• A contract is a detailed work and supply plan
• A fixed price and deadlines
• Profiting from a stream of standard projects

Brief Summary

Implementation is the solution to typical business problems. In principle, the customer does not care who will be the service provider, and the manufacturer will have to bother with competitors. But if he gets to the body, then everything will be according to the standard, and the screwing of additional Wishlist is not provided in principle, even for a lot of money. Standard office applications with basic functionality.

Professional project

Implementation Features

• Implementation strategy - “Business pulls on the proposed system”
• Requirements are predetermined by “Best Practices” wired into the system
• Implementation technology is focused on the library of “Best Practices” models
• Architecture - Strongly integrated large-scale business application

Organizational structure

• Coordination of very highly qualified professionals
• Strict planning and good cost control
• Project team of professionals, wide specialization, full
• employment, professional individualism
• Formal external and informal internal communications, documentation of results

Communications

• Dictate of the contractor
• The contract is the hiring of a team or service
• Payment of the time of specialists in tariffs
• Profiting from the brand and qualifications of specialists

Brief Summary

Implementation is an attempt to catch up with leaders and introduce the latest technologies. The performer is the king. A lot of headache at the customer. A team of high-class professionals works. But there is a lot of bureaucracy in an atypical situation - since everyone values ​​reputation. A typical example is a certain company came to a consulting office and asks for help to optimize its activities. Sometimes it can reach insanity in the format "customers read the contract and cried a lot, but could not do anything."

Innovation project

Implementation Features

• Strategy - “Implementation of the system - the locomotive of business transformation”
• Requirements management
• Implementation technology is focused on transformation and business outcome
• Architecture - Infrastructure for business transformation

Organizational structure

• Search for technical and organizational solutions in conditions of severe
• uncertainty
• Project planning in the context of business strategy
• Project team pioneer team, universal qualifications, full-time, team spirit

Communications

• Informal communications, documentation of results
• The customer and the contractor are equal partners
• The contract is a framework agreement with a series of add. agreements
• Sharing risks
• Profit from the project as a joint venture

Brief Summary

Implementation is an attempt to make a breakthrough, become leaders, and gain unique competitive advantages. Neither the customer nor the contractor may know what to do. But they know exactly what needs to be decided, there is a clearly set goal. A typical example is any office that has made a breakthrough in its field. This is the most difficult and risky to implement style. But at the same time, possible success can cover orders of magnitude all risks.

Summary summary

This is a very brief and superficial account that simply gives an idea of ​​the real options for the development of events. In fact, there may be a mixture of styles with all the consequences. In our practice, each of us comes into contact with all styles, both inside and out. Personally, I like the most innovative. Joshua, as I once worked on a project that “optimizes the business processes” of the customer. It’s not a fact that everything that is being done is actually necessary, but everyone is happy with everything, since even the small part that is actually needed greatly facilitates the work of other employees. Well, the rest of the headache is just a consequence of the type of project within which the work is carried out. In this case, it is most likely a project with a large share of political signs.

Sources:

mipt.ru/science/NIU/results/umm/uk/3/34/f_fy4m
www.pmi.ru/articles/files/20052008_Ananiin.pdf
bntu.org/articles/management/129-erp-style.html
www .itsmforum.ru / reference / publication / article_13

UPD. As advised in PM, he added a small mini-question.