Convergences

Both the case study and literature review found strong evidence to suggest IT Governance is a critical success factor in ERP deployments. Per the case study, where there was ineffectiveness and gaps in ITG, the programs suffered in missed KPIs. The literature overwhelming suggested ITG voids are direct contributor to ERP deployment failures. The risks that came in fruition and materialized during the xPharma ERP deployments are common risks that other companies grapple with. For example, in both the case study and literature review, selecting the wrong technology, not fully

understanding legacy and ERP processes and technologies, resources moving off the projects before closure, etc. are some of the top challenges ERP programs face that are often not overcome by many companies. In addition to the parallels between xPharma’s ERP risks and those found in the literature review, is the commonality of how xPharma defined ERP success

5.4 Divergences

There were several articles that made very closely aligned inferences to that of my own (effective ITG is key to ERP success), while others listed ITG as one of many

hypothesis, but rather there were articles that put equal emphasis on disciplines like project management best practices, building strong relationships with the vendors, etc. Another common nuance between this study and what has been found in the literature review is several journal articles and websites generically suggest effective “IT leadership” is a critical success factor in ERP programs, which is implicit of IT Governance in this study.

6. Discussion

6.1 Significance

The results from both the case study and literature demonstrate a strong

correlation between ITG effectiveness and ERP deployment successes. The case study and literature review converge/share several of the same conclusions surrounding the criticality ITG plays in ERP deployment outcomes, and they diverge infrequently and subtly. Readers of this study whom are embarking on an ERP deployment will at a minimum find practical examples of some of the challenges ERP programs pose and how effective ITG responses can affect outcomes.

6.2 Limitations

There are limitations to the case study in that most of the measures and

conclusions shared are qualitative in that xPharma defined the success criteria and self evaluated whether the ITGB responses were “effective” or “ineffective. Another potential limitation is I was more intimately engaged on the HR ERP deployment where I was accountable for the ITG through the entire lifecycle vs. only being a contributor on two of the phases on the Finance program. This may introduce some bias in that I am evaluating many of my own decisions on the HR ERP deployment, vs. my reflections on the Finance ERP are potentially more objective as I was one of many decision makers on the ITGB. Another limitation is there were few examples found in the literature review that

novel undertaking that could not be substantiated as a sound methodology since other researchers and analysts have not attempted this.

Furthermore, the Finance program has not completed their benefits realization analysis yet, because there is still another 6 months until the program is expected to realize its benefits. This means there is a subset of the data that is partial and cannot be used in this study. This was viewed as minor limitation to the study since metrics were available for the other six KPIs.

6.3 Future Works

I will be leading another ERP program in the fall of 2015 where xPharma will replace their legacy accounting systems with an enterprise solution. This will provide a third set of ERP data points to help further test my hypothesis. Moreover, by the end of 2015 we will also have full metrics on the business realization KPIs from the Finance program, so the data set will be more inclusive, which will enhance the case study.

7. Conclusion

The goal of this paper was to provide both a deep-dive assessment of 2 real world ERP implementations and to also assess what the leading IT industry key opinion leaders (consultants, researchers, etc.) feel are the keys to successful ERP deployments. Both the case study and literature review converge on the concepts of strong IT Governance devotion through the life of an ERP program exponentially increases the odds an ERP deployment will succeed. The next evolution of such a study is to dig deeper into how we as IT industry quantify the benefits of ITG (we see it work and feel its affects but how do we calculate these qualitative findings?) and share specific examples of where effective ITG helped resolve a significant risk, seize an opportunity, and be that true

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Appendix I

Glossary of Terms

IT governance (ITG): is defined as the processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals.

http://www.gartner.com/it-glossary/it-governance/

Software as a Service (SaaS): software that is owned, delivered and managed remotely by one or more providers. The provider delivers software based on one set of common code and data definitions that is consumed in a one-to-many model by all contracted customers at anytime on a pay-for-use basis or as a subscription based on use metrics. http://www.gartner.com/it-glossary/software-as-a-service-saas/

Enterprise Resource Planning (ERP): is defined as the ability to deliver an integrated suite of business applications. ERP tools share a common process and data model, covering broad and deep operational end-to-end processes, such as those found in finance, HR, distribution, manufacturing, service and the supply chain.

http://www.gartner.com/it-glossary/enterprise-resource-planning-erp/

Bespoke: The term "bespoke" comes from England where it originally referred to custom or tailor-made clothing. In recent years, however, the term has been applied to information technology (IT), and refers to custom services or products.

http://techterms.com/definition/bespoke

Program: a program is a group of related projects managed in a coordinated way to obtain benefits not available from managing the projects individually. A project, on the

other hand, has a defined start and end point and specific objectives that, when attained, signify completion.

Program Management vs. Project Management: Project managers manage and coordinate tasks and activities. They are team players who may contribute to deliverables and motivate through use of knowledge and skills. Program managers provide leadership and vision. They play the role of facilitators and coaches who can inspire and guide project managers and their teams to achieve the strategic goals of the programs. http://www.pmi.org/eNews/Post/2008_08-

08/NextLevelUp_RoleOfPogramManVsProjectMan.html

Business Processes: A series of related business activities aimed at achieving one or more business objectives in a measurable manner.

http://www.knowledgetransfer.net/dictionary/ITIL/en/Business_Process.htm

Total Cost of Ownership (TCO): a comprehensive assessment of information technology (IT) or other costs across enterprise boundaries over time. For IT, TCO includes hardware and software acquisition, management and support, communications, end-user expenses and the opportunity cost of downtime, training and other productivity losses.

Commercial off-the-shelf (COTS): an adjective that describes software or hardware products that are ready-made and available for sale to the general public. http://www.techopedia.com/definition/1444/commercial-off-the-shelf-cots

Scope Creep: refers to a project that has seen its original goals expand while it's in progress. As the term suggests, scope creep is a subtle process that starts with small adjustments and ends up resulting in projects that take far longer to complete or even fail

before they are finished. Even if the project is completed, scope creep can result in final deliverables that look nothing like what was originally envisioned.

http://www.techopedia.com/definition/24779/scope-creep

Legacy system: in the context of computing, refers to outdated computer systems, programming languages or application software that are used instead of

available upgraded versions. Legacy systems also may be associated with terminology or processes that are no longer applicable to current contexts or content.

http://www.techopedia.com/definition/635/legacy-system

Key Performance Indicators (KPIs): A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. http://www.investopedia.com/terms/k/kpi.asp Stage Gate: used to describe a point in a project or plan at which development can be examined and any important changes or decisions relating to costs, resources, profits, etc. can be made. http://dictionary.cambridge.org/us/dictionary/business-english/stage- gate