Enterprise Resource Planning
Organizational Readiness & Risk Assessment
Prepared for: _______________
Copyright S.S. Inc. 1986 – 2009
Enterprise Resource Planning
Organizational Readiness & Risk Assessment
Workbook
Prepared for: _______________
Copyright S.S. Inc. 1989 – 2009
Table of Contents
OVERVIEW ...
SECTION A: EXECUTIVE MANAGEMENT’S GOALS & COMMITMENT SECTION B: USER ENVIRONMENT ...
SECTION C: TECHNICAL ENVIRONMENT SECTION D: ALIGNMENT OF GOALS SECTION E: ORGANIZATIONAL CULTURE
SECTION F: EXISTING CONTROLS & PROCESSES SECTION G: TRAINING ... SECTION H: PROJECT TEAM ... SECTION I: PROJECT TIMING ... SECTION J: FEASIBILITY ...
Page 1 of 19 ERP Readiness Assessment Workbook ... EXECUTIVE MANAGEMENT’S GOALS & COMMITMENT ...
... TECHNICAL ENVIRONMENT ...
ALIGNMENT OF GOALS ... ORGANIZATIONAL CULTURE ...
EXISTING CONTROLS & PROCESSES ... ...
... ... ...
Readiness Assessment Workbook
... 2 ... 3 ... 6 ... 8 ... 11 ... 12 ... 13 ... 14 ... 16 ... 17 ... 18
Copyright S.S. Inc. 1989 – 2009
OVERVIEW
I.B.I.S. Inc’s Readiness Assessment Workbook
project leaders who want to determine their company’s “readiness” for an ERP project. A Readiness Assessment should be completed prior to investing time and money analyzing your internal business processes and evaluating commercial software applications.
This workbook contains a series of “tough” questions that should be asked of senior management, anticipated user groups, IT and project leaders prior to embarking on a challenging Enterprise Resource Planning path. These responses will not only assist the project leader assess their organizational readiness, it will also provide critical inputs into follow
selection phases of your project.
Accompanying the Readiness Assessment Workbook is a
answers to the questions posed in the Workbook will enable you to measure your organization’s readiness on a series of established success criteria.
highlight risk factors that will need to be addressed prior to (or in concert with) moving forward with the ERP project.
Most of the questions in the Workbook should be asked of multiple stakeholders. It is critical that all relevant members of the management
user groups participate in the Readiness Assessment exercise. In many cases the degree of consistency (or inconsistency) across responses is more illuminating than the responses themselves. Proj
leaders should never assume they know the answers to these questions before consulting others.
Page 2 of 19 ERP Readiness Assessment Workbook
Readiness Assessment Workbook is a guide for Enterprise Resource Planning (ERP) project leaders who want to determine their company’s “readiness” for an ERP project. A Readiness Assessment should be completed prior to investing time and money analyzing your internal business
s and evaluating commercial software applications.
This workbook contains a series of “tough” questions that should be asked of senior management, anticipated user groups, IT and project leaders prior to embarking on a challenging Enterprise
nning path. These responses will not only assist the project leader assess their
organizational readiness, it will also provide critical inputs into follow-on analysis, design and software
ssessment Workbook is a Readiness Assessment Scorecard
answers to the questions posed in the Workbook will enable you to measure your organization’s
readiness on a series of established success criteria. Most importantly, this exercise will
t risk factors that will need to be addressed prior to (or in concert with) moving
Most of the questions in the Workbook should be asked of multiple stakeholders. It is critical that all relevant members of the management team and IT, as well as a good cross section of the impacted user groups participate in the Readiness Assessment exercise. In many cases the degree of consistency (or inconsistency) across responses is more illuminating than the responses themselves. Proj
leaders should never assume they know the answers to these questions before consulting others.
Readiness Assessment Workbook is a guide for Enterprise Resource Planning (ERP) project leaders who want to determine their company’s “readiness” for an ERP project. A Readiness Assessment should be completed prior to investing time and money analyzing your internal business
This workbook contains a series of “tough” questions that should be asked of senior management, anticipated user groups, IT and project leaders prior to embarking on a challenging Enterprise
nning path. These responses will not only assist the project leader assess their
on analysis, design and software
Readiness Assessment Scorecard. The answers to the questions posed in the Workbook will enable you to measure your organization’s
Most importantly, this exercise will t risk factors that will need to be addressed prior to (or in concert with) moving
Most of the questions in the Workbook should be asked of multiple stakeholders. It is critical that all team and IT, as well as a good cross section of the impacted user groups participate in the Readiness Assessment exercise. In many cases the degree of consistency (or inconsistency) across responses is more illuminating than the responses themselves. Project
Copyright S.S. Inc. 1989 – 2009
SECTION A:
EXECUTIVE MANAGEMENT’S GOALS & COMMITMENT
Objective:
• Assess the degree to which executive management’s ERP project goals are defined and
measurable.
• Determine the degree of executive management commitment to the ERP initiative.
Methodology:
Interviews with each of the following Senior Managers:
• CEO
• CFO
• VP or Director of Operations
• VP Manufacturing
• Controller
• Outside CPA Partner/Financial Consultant
Scoring:
This section requires you to make an overall assessment of the executive management team’s goals and commitment to the project and to assign one sc
4 different answers to a question then a high score cannot be given (e.g. the project scope is poorly defined if various members of the executive management team hold differing views on business priorities and project objectives). Low scores should be given if interviewees have difficulty answering questions.
Sample Interview Questions
1. Scope of Project• What is the proposed scope of the ERP project?
• User communities to be included?
Page 3 of 19 ERP Readiness Assessment Workbook
EXECUTIVE MANAGEMENT’S GOALS & COMMITMENT
Assess the degree to which executive management’s ERP project goals are defined and Determine the degree of executive management commitment to the ERP initiative.
of the following Senior Managers:
Outside CPA Partner/Financial Consultant
This section requires you to make an overall assessment of the executive management team’s goals and commitment to the project and to assign one score for each item on the scorecard. If you receive 4 different answers to a question then a high score cannot be given (e.g. the project scope is poorly defined if various members of the executive management team hold differing views on business
s and project objectives). Low scores should be given if interviewees have difficulty answering
Sample Interview Questions:
What is the proposed scope of the ERP project?
User communities to be included?
Readiness Assessment Workbook
EXECUTIVE MANAGEMENT’S GOALS & COMMITMENT
Assess the degree to which executive management’s ERP project goals are defined and Determine the degree of executive management commitment to the ERP initiative.
This section requires you to make an overall assessment of the executive management team’s goals ore for each item on the scorecard. If you receive 4 different answers to a question then a high score cannot be given (e.g. the project scope is poorly defined if various members of the executive management team hold differing views on business
Copyright S.S. Inc. 1989 – 2009
• Functional areas to be included?
• Total number of users involved by functional group?
2. Project Goals
• Describe the four primary Enterprise Resource Planning project goals?
• Can you quantify (in terms of strategic advantage, increased revenue, reduced operating
expense, cash-flow improvements, etc) the anticipated project benefit?
• Has a business case, payback analysis or ROI criteria been established for the project?
3. Project Priority
• How urgent is the requirement for a new/improved ERP business system?
• What are the implications of not funding or proceeding with this initiative?
• Are there other business or capital projects that should be funded in advance
Page 4 of 19 ERP Readiness Assessment Workbook Functional areas to be included?
Total number of users involved by functional group?
Describe the four primary Enterprise Resource Planning project goals?
Can you quantify (in terms of strategic advantage, increased revenue, reduced operating flow improvements, etc) the anticipated project benefit?
business case, payback analysis or ROI criteria been established for the project?
How urgent is the requirement for a new/improved ERP business system?
What are the implications of not funding or proceeding with this initiative?
Are there other business or capital projects that should be funded in advance
Readiness Assessment Workbook Can you quantify (in terms of strategic advantage, increased revenue, reduced operating
business case, payback analysis or ROI criteria been established for the project?
Copyright S.S. Inc. 1989 – 2009 4. Commitment & Sponsorship
• Has an executive sponsor been identified for this project? Who is it? Will they benefit directly
from its successful completion?
• Will the executive sponsor or other senior
• Is there a Budget for this project? How much has been budgeted? Is this budget consistent
with previous business projects with similar requirements?
• Who controls this capital budget?
Page 5 of 19 ERP Readiness Assessment Workbook Has an executive sponsor been identified for this project? Who is it? Will they benefit directly from its successful completion?
the executive sponsor or other senior manager be an active user of the system?
Is there a Budget for this project? How much has been budgeted? Is this budget consistent with previous business projects with similar requirements?
Who controls this capital budget?
Readiness Assessment Workbook Has an executive sponsor been identified for this project? Who is it? Will they benefit directly
an active user of the system?
Copyright S.S. Inc. 1989 – 2009
SECTION B:
USER ENVIRONMENT
Objective:
The objective of this section is to determine how prepared the user community is to accept and/or embrace the proposed ERP system.
Methodology:
Interview a representative cross section
ERP project. These often include (but are not limited to):
• Controller and Administrative group
• Payables & Receivables
• Order Processing
• Inventory and Warehouse
• Manufacturing
Scoring:
Each Department should be scored individually based on the responses of the individuals from that department.
Sample Interview Questions
1. Experience Level• What is the average work experience and competence level of your department staff?
• Have the work descriptions or responsibilities within your department changed recently?
• Does this happen frequently?
Page 6 of 19 ERP Readiness Assessment Workbook
USER ENVIRONMENT
The objective of this section is to determine how prepared the user community is to accept and/or embrace the proposed ERP system.
cross section of functional users in each of the departments impact ERP project. These often include (but are not limited to):
Controller and Administrative group
Each Department should be scored individually based on the responses of the individuals from that
Sample Interview Questions
What is the average work experience and competence level of your department staff?
Have the work descriptions or responsibilities within your department changed recently?
Does this happen frequently?
Readiness Assessment Workbook The objective of this section is to determine how prepared the user community is to accept and/or
the departments impacted by the
Each Department should be scored individually based on the responses of the individuals from that
What is the average work experience and competence level of your department staff?
Copyright S.S. Inc. 1989 – 2009 2. Perceived Benefit of the System
• What are the top three features or benefits you anticipate receiving from the proposed ERP
system?
1. ____________________________
2. __________________________
3. __________________________________
• Do you believe the proposed system is a good idea?
3. Aptitude for Technology
• Do you use a computer now? How often?
• What software programs do you currently use?
• Have you used ERP software in the past?
Page 7 of 19 ERP Readiness Assessment Workbook Perceived Benefit of the System
What are the top three features or benefits you anticipate receiving from the proposed ERP ______________________________________________
__________________________________________________ ________________________________________
Do you believe the proposed system is a good idea?
Do you use a computer now? How often?
What software programs do you currently use?
Have you used ERP software in the past?
Readiness Assessment Workbook What are the top three features or benefits you anticipate receiving from the proposed ERP
Copyright S.S. Inc. 1989 – 2009
SECTION C:
TECHNICAL ENVIRONMENT
Objective:
The objective of this section is to determine an organization’s technical
department’s attitude towards, the Enterprise Resource Planning initiative. Further questions pertaining to the technical environment will be addressed in later sections.
Methodology:
Interview the Chief Information Officer technology group within the company.
Sample Interview Questions
1. Commitment• Does the IT department believe in the value of implementing an ERP system at this time?
• Are there other projects you believe should precede the ERP project from an impact or value
perspective?
• Does the IT department have the available and necessary resources to support this initiative?
• Have you, or anyone within the IT department participated in
Page 8 of 19 ERP Readiness Assessment Workbook
TECHNICAL ENVIRONMENT
The objective of this section is to determine an organization’s technical readiness for, as well as the IT department’s attitude towards, the Enterprise Resource Planning initiative. Further questions
pertaining to the technical environment will be addressed in later sections.
cer, IT manager or other individual responsible for the internal technology group within the company.
Sample Interview Questions:
Does the IT department believe in the value of implementing an ERP system at this time?
jects you believe should precede the ERP project from an impact or value
Does the IT department have the available and necessary resources to support this initiative?
Have you, or anyone within the IT department participated in an ERP project before?
Readiness Assessment Workbook readiness for, as well as the IT department’s attitude towards, the Enterprise Resource Planning initiative. Further questions
, IT manager or other individual responsible for the internal
Does the IT department believe in the value of implementing an ERP system at this time?
jects you believe should precede the ERP project from an impact or value
Does the IT department have the available and necessary resources to support this initiative?
Copyright S.S. Inc. 1989 – 2009 2. Technology
• Please describe the current technical environment.
• Described the desktop hardware currently used by the proposed ERP system’s user community?
• Is the desktop hardware owned or leased?
• Which e-mail/communications systems are deployed for the proposed user community?
• What is the primary network operating system?
• Which databases are currently supported?
• Are there any significant technology initiatives currently in process? Please des
• Are there any other major technology projects planned in the near future? Please describe.
• Are you planning a significant technical environment/infrastructure change in the foreseeable
future? If yes, please describe.
Page 9 of 19 ERP Readiness Assessment Workbook Please describe the current technical environment.
esktop hardware currently used by the proposed ERP system’s user community?
Is the desktop hardware owned or leased?
mail/communications systems are deployed for the proposed user community?
What is the primary network operating system?
Which databases are currently supported?
Are there any significant technology initiatives currently in process? Please des
Are there any other major technology projects planned in the near future? Please describe.
Are you planning a significant technical environment/infrastructure change in the foreseeable future? If yes, please describe.
Readiness Assessment Workbook esktop hardware currently used by the proposed ERP system’s user community?
mail/communications systems are deployed for the proposed user community?
Are there any significant technology initiatives currently in process? Please describe.
Are there any other major technology projects planned in the near future? Please describe.
Copyright S.S. Inc. 1989 – 2009 3. Data
• In your opinion, is your organization’s financial and customer data sufficiently clean (i.e.: well
organized, current, minimal duplicates)? Would the data require scrubbing prior to conversion into a new system?
• Who is currently responsible for your orga
Page 10 of 19 ERP Readiness Assessment Workbook In your opinion, is your organization’s financial and customer data sufficiently clean (i.e.: well organized, current, minimal duplicates)? Would the data require scrubbing prior to conversion
Who is currently responsible for your organization’s financial and customer data?
Readiness Assessment Workbook In your opinion, is your organization’s financial and customer data sufficiently clean (i.e.: well organized, current, minimal duplicates)? Would the data require scrubbing prior to conversion
Copyright S.S. Inc. 1989 – 2009
SECTION D:
ALIGNMENT OF GOALS
Objective:
The objective of this section is to determine the extent to which Executive Management goals are aligned with each other, the user community, and with IT.
Methodology:
Analyze the responses from the interviews in Sections A, B and C to determine if all parties have similar or compatible project goals.
Page 11 of 19 ERP Readiness Assessment Workbook
ALIGNMENT OF GOALS
The objective of this section is to determine the extent to which Executive Management goals are aligned with each other, the user community, and with IT.
Analyze the responses from the interviews in Sections A, B and C to determine if all parties have similar
Readiness Assessment Workbook The objective of this section is to determine the extent to which Executive Management goals are
Copyright S.S. Inc. 1989 – 2009
SECTION E:
ORGANIZATIONAL CULTURE
Objective:
To assess an organizations adaptability and appetite for risk and c are any upcoming events which could adversely ERP project’s success.
Methodology:
Interview the Executive Sponsor and Project Leader
Sample Interview Questions
• Is your industry known for rapid change?
• Does your organization have a history of taking risks?
• Is your organization recognized as an industry leader?
• Has your organization historically grown organically or through acquisition?
• Are you anticipating the acquisition of another company within the nex
• Does your organization engage in frequent reorganizations?
• Is your organization likely to restructure in the next year?
Page 12 of 19 ERP Readiness Assessment Workbook
ORGANIZATIONAL CULTURE
To assess an organizations adaptability and appetite for risk and change, as well as determine if there are any upcoming events which could adversely ERP project’s success.
Interview the Executive Sponsor and Project Leader
Sample Interview Questions:
Is your industry known for rapid change?
organization have a history of taking risks?
Is your organization recognized as an industry leader?
Has your organization historically grown organically or through acquisition?
Are you anticipating the acquisition of another company within the next year?
Does your organization engage in frequent reorganizations?
Is your organization likely to restructure in the next year?
Readiness Assessment Workbook hange, as well as determine if there
Copyright S.S. Inc. 1989 – 2009
SECTION F:
EXISTING CONTROLS & PROCESSES
Objective:
To determine the degree of standardization and effectiveness of existing controls and processes.
Methodology:
Interview the Chief Financial Officer
Sample Interview Questions
• Does the organization have well
• Do you believe they are widely followed?
• Should controls and processes be improved prior to implementing a new ERP system?
• Do you believe the proposed ERP initiative will support and enhance existing controls &
processes?
• Have you consulted with your CPA on the controls and processes? What were their comments?
Page 13 of 19 ERP Readiness Assessment Workbook
EXISTING CONTROLS & PROCESSES
standardization and effectiveness of existing controls and processes.
and Controller
Sample Interview Questions:
Does the organization have well-documented controls and processes? Please describe.
Do you believe they are widely followed?
Should controls and processes be improved prior to implementing a new ERP system?
Do you believe the proposed ERP initiative will support and enhance existing controls &
with your CPA on the controls and processes? What were their comments?
Readiness Assessment Workbook standardization and effectiveness of existing controls and processes.
documented controls and processes? Please describe.
Should controls and processes be improved prior to implementing a new ERP system?
Do you believe the proposed ERP initiative will support and enhance existing controls &
Copyright S.S. Inc. 1989 – 2009
SECTION G:
TRAINING
Objectives:
• To assess the organization’s overall commitment to training.
• To determine the ERP project’s training requirements.
Methodology:
Interview the Project Leader and/or internal technology training department.
Sample Interview Questions
1. Commitment• On average, how many training hours per year do individuals in the sales department receive
for:
o Finance application training
o Technology training
• Which department within your organization is responsible for training?
• In general, what is the organization’s overall commitment to training?
Page 14 of 19 ERP Readiness Assessment Workbook
TRAINING
To assess the organization’s overall commitment to training. To determine the ERP project’s training requirements.
Interview the Project Leader and/or internal technology training department.
Sample Interview Questions:
On average, how many training hours per year do individuals in the sales department receive
Finance application training
Which department within your organization is responsible for training?
In general, what is the organization’s overall commitment to training?
Readiness Assessment Workbook On average, how many training hours per year do individuals in the sales department receive
Copyright S.S. Inc. 1989 – 2009 2. Training Plans
• Does your IT department have a training plan and budget for this
describe.
• Does your organization’s Help Desk have a training plan and budget for this project? If yes,
please describe.
• Do the finance and manufacturing departments have training plans and budget for this
initiative? If yes, please describe.
Page 15 of 19 ERP Readiness Assessment Workbook Does your IT department have a training plan and budget for this project? If yes, please
Does your organization’s Help Desk have a training plan and budget for this project? If yes,
Do the finance and manufacturing departments have training plans and budget for this , please describe.
Readiness Assessment Workbook project? If yes, please
Does your organization’s Help Desk have a training plan and budget for this project? If yes,
Copyright S.S. Inc. 1989 – 2009
SECTION H:
PROJECT TEAM
Objective:
• To determine project team readiness.
• To determine if the proposed project team represents all stakeholder departments.
Methodology:
Interview the Executive Sponsor and Project Leader.
Sample Interview Questions
• Has a Project Team been selected?
• Who is on the Project Team?
• How much of the Project Team members’ time will be allocated to the project?
• Has anyone on the Project Team participated in an ERP project before?
Page 16 of 19 ERP Readiness Assessment Workbook
PROJECT TEAM
To determine project team readiness.
To determine if the proposed project team represents all stakeholder departments.
Interview the Executive Sponsor and Project Leader.
Sample Interview Questions:
Has a Project Team been selected?Who is on the Project Team?
How much of the Project Team members’ time will be allocated to the project?
Has anyone on the Project Team participated in an ERP project before?
Readiness Assessment Workbook To determine if the proposed project team represents all stakeholder departments.
Copyright S.S. Inc. 1989 – 2009
SECTION I:
PROJECT TIMING
Objective:
• To understand project timing and scheduling expectations.
• To uncover potential project timing challenges.
Methodology:
Interview the Executive Sponsor and Project Leader.
Sample Interview Questions
• When is fiscal year end?
• When will the Enterprise Resource Planning project commence?
• How confident are you in this date?
• When do you anticipate launching the Enterprise Resource Planning pilot project?
• When do you anticipate deploying the ERP
• How critical is this deployment date, and why?
Page 17 of 19 ERP Readiness Assessment Workbook
PROJECT TIMING
To understand project timing and scheduling expectations. To uncover potential project timing challenges.
Interview the Executive Sponsor and Project Leader.
Sample Interview Questions:
When will the Enterprise Resource Planning project commence?
How confident are you in this date?
When do you anticipate launching the Enterprise Resource Planning pilot project?
When do you anticipate deploying the ERP system to the balance of the user community?
How critical is this deployment date, and why?
Readiness Assessment Workbook When do you anticipate launching the Enterprise Resource Planning pilot project?
Copyright S.S. Inc. 1989 – 2009
SECTION J: FEASIBILITY
Objective:
To assess the likelihood the project goals will be achieved given the organization’s current technical platform, allocated budget, available resources and desired deployment date.
Methodology:
This section requires some analysis. Extensive experience w
vendor options must be applied to determine which software systems will best meet the Executive Management team, User Community and IT goals and objectives. System costs can be secured based on current technical platform and anticipated
estimated. This combined cost can then be measured against the allocated budget, if defined at this point. The time to deploy can also be estimated given the complexity of the project and the software vendors likely to be considered. This can be measur
desired project schedule is realistic.
Page 18 of 19 ERP Readiness Assessment Workbook
FEASIBILITY
To assess the likelihood the project goals will be achieved given the organization’s current technical platform, allocated budget, available resources and desired deployment date.
This section requires some analysis. Extensive experience with Enterprise Resource Planning software vendor options must be applied to determine which software systems will best meet the Executive Management team, User Community and IT goals and objectives. System costs can be secured based
atform and anticipated user’s counts, but implementation costs
estimated. This combined cost can then be measured against the allocated budget, if defined at this point. The time to deploy can also be estimated given the complexity of the project and the software vendors likely to be considered. This can be measured against desired timelines to determine if the desired project schedule is realistic.
Readiness Assessment Workbook To assess the likelihood the project goals will be achieved given the organization’s current technical
ith Enterprise Resource Planning software vendor options must be applied to determine which software systems will best meet the Executive Management team, User Community and IT goals and objectives. System costs can be secured based
counts, but implementation costs can only be estimated. This combined cost can then be measured against the allocated budget, if defined at this point. The time to deploy can also be estimated given the complexity of the project and the software