1. Info-Tech Research Group1 Implement a Multi-site ERP Deployment Cultivate a multi-site ERP system that breeds business efficiency.

2. Info-Tech Research Group2 Multi-site Enterprise Resource Planning (ERP) is always a challenge. IT leaders must balance innovation with the jumble of technologies, standards, and integrations already in place. Introduction IT administrators considering extending their ERP to multiple geographic sites. CIOs judging the viability of their ERP system as a multi-site system. Organizations looking to understand the potential problems associated with extending their ERP system. Define the criteria for choosing your deployment strategy. Understand the critical issues related to extending or adding ERP function across multiple geographic locations. Build a strategy to mitigate key roadblocks to enterprise wide adoption of ERP. This Research Is Designed For:This Research Will Help You:

3. Info-Tech Research Group3 Executive Summary Keep the final goal in sight. It’s about maximized efficiency, not complete centralization. The expansion of ERP systems from a single site to multiple sites requires careful choices at the beginning of the project. There are three potential technological solutions: Extending a single instance, implementing multiple instances of the same ERP at each site, or employing a best of breed approach for each site. Multi-site ERP, regardless of the technical solution, has similar process and people challenges that must be dealt with to bring value to the implementation and operation of a multi-site ERP. Data integration across sites is the top issue for any type of multi-site implementations. Consolidation of business processes should involve the existing processes at each site. Multi-site ERP requires input from IT to ensure that infrastructure and security needs of the system are met. Most ERP systems have implementation challenges that are not easily recognized due to the unique manifestation at each phase of the ERP lifecycle.

4. Info-Tech Research Group4 Multi-site ERP requires time to achieve full function It took cells over one billion years to build a tool to move around. Movement seems easy but it requires advanced capability. It took cells time to acquire and integrate other cells that had the parts. The process was complicated and required time at each stage to optimize the unforeseen problems. The advantage of directed movement (the flagellum) required cells to lose some flexibility in which direction they moved. Multi-site ERP has a similar problem. Each site has unique processes that are core to their productivity. IT administrators need a clear plan for integrating processes and people into a single ERP solution. Balance flexibility with efficiency or you will reach an evolutionary dead end. Fusing individual units is never a simple thing. ERP systems automate processes that have grown organically as each site has grown. The business processes represent the best practices for each site. These may not be the most technically efficient methods but represent a shared knowledge of power users at each site. It is expensive to fix poorly planned ERP systems so the evolution from one site to multiple sites requires careful choices at the beginning. Evolution at work. Primal cells, like companies, initially succeeded by specializing in a single function. As resources changed, larger cells evolved by combing the best features and creating new ones like the flagellum.

5. Info-Tech Research Group5 Multi-site ERP implementation will fail without consideration of these other IT elements Single Site ERP Selection ERP Operation Multi- Site Security Applications Data Center Cloud Data integration A Change management Infrastructure strategy Infrastructure security Multi-instance Security Data management Infrastructure

6. Info-Tech Research Group6 Ensure that you can recognize the key challenges and have a plan for overcoming them throughout the ERP delivery Understand the common but often not recognized challenges in extending your ERP across multiple sites. See the obstacles for enterprise-wide ERP implementations and how to avoid them. Determine the best way to build the system that meets the enterprise’s goals. Avoid the errors that occur during implementation that block long-term success. Avoid the hidden challenges of both implementation and operation through understanding how issues are brought to IT’s attention and how to address them. Have a specific problem with operating your multi-site ERP? See the last section “Propagate the changes throughout the enterprise” section for specific scenarios and how to address the root causes.Propagate the changes throughout the enterprise Most ERP systems have the same implementation challenges but are often overlooked due to unique manifestation at each phase of the ERP lifecycle. This solution set is divided according to the phases of the implementation and operation. Each section will provide guidance on common challenges and specific obstacles to each deployment type. Each section has key metrics and information to communicate to each stakeholder group. Read this set to develop a plan for success.

7. Info-Tech Research Group7 What’s in this Section:Sections: Common problems for implementing a multi-site ERP system Common problems for implementing multi-site ERP systems. Decide the level of consolidation Shape the core ERP processes Refine the ERP to serve long term needs Propagate the changes throughout the enterprise. All multi-site ERPs have a recurring lifecycle Bring in senior leadership to guide the team Continually meet to review each phase of the implementation Recognize that local processes are important

8. Info-Tech Research Group8 All multi-site ERPs have a recurring lifecycle Long term success requires an implementation plan that gives each site the appropriate amount of flexibility. Consolidate Shape Refine Propagate The four-phase ERP lifecycle mirrors that of many species: They consolidate their resources to make efficient use of their environment. The organism then adopts a shape that is continuously refined to meet local conditions. The refined changes are then propagated throughout the species. Each phase has its own cycles. An ERP application represents the core processes that an enterprise uses to conduct business. Processes change over time; some will be altered and some will be made obsolete by new technology. The data and processes that will be consolidated need to be evaluated based on the long-term goals for the ERP and changes that will inevitably occur within the organization. The business owners and IT must be willing to re-evaluate the ERP processes and make targeted changes. Look for this to guide you through the process

9. Info-Tech Research Group9 During each phase of the ERP lifecycle, critical objectives need to be met for success. Meet critical goals at each phase to ensure the success of the next phase ERP success requires moving data, processes, and people through each phase together. Align data formats and map business processes. Involve all sites in data format and processes to define global versus local processes. Demonstrate value and engage users to shape the changes to come. Shape the overall goals based on the key stakeholder’s vision. Ensure that users at all sites are given due process for changes. Map the required ERP deployment accommodating the flexibility required to meet this vision. Refine the goals of the ERP now that the core modules are installed. Refine the system through user training. Start implementing any customizations. Define key personnel at each site to serve as advocates. Provide advanced training for power users. Continue to meet regularly with key managers and staff. Go live across multiple sites Consolidate Shape Refine Propagate Info-Tech’s ERP Site Expansion Checklist provides links to additional guidance on how to effectively execute each step..

10. Info-Tech Research Group10 The Integration Steering Committee (ISC) should include senior management outside IT and end users from all sites. Form an Integration Steering Committee to help guide the ERP implementation team Involve senior management through the ISC as early participation by management is key to ERP success: 1. Scope control. ERP implementation takes a long time. The ISC should provide the ERP team with clear goals that align with long term goals that only senior management may be aware of in the enterprise. In dynamic enterprises, the business goals may change during the course of the implementation. 2. ERP user issues. Many sites and business units will push back on IT’s changes to their work habits. The ISC should provide the arena to have these non-IT conversations. These often combative issues may require senior management to step in and resolve. 3. Synchronize timelines. The inclusion of both corporate and site levels will provide a forum to align site-specific HR decisions with the corporate long-term vision. The implementation team should use the ISC to define their needs outside IT to meet the goals at each phase of the ERP extension. This also provides a forum for other departments to voice non- IT concerns surrounding the implementation. The ISC can be used by IT to ease project management headaches from surprise changes by business units. Look at Info-Tech’s “Focus on Project Management Essentials” for information and tools for successfully managing IT projects.Focus on Project Management Essentials Info-Tech’s ERP Steering Committee Charter provides guidance on how to bring executive oversight into the process.

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