The Core concept of CoE for Greenfield ERP Implementations

Greenfield Implementations, The Core concept of DIY CoE

Over the course of my involvement into several Greenfield implementations across continents, Quite many items which i started noticing which led to the success or not so success of ERP implementations is the way these programs are executed. Since we are talking about Greenfield implementation which are commonly understood that new, Fresh ERP implementation is the focus.

Such decision can be mostly the outcome of extensive internal or externally supported thought process, mostly the case with larger size organizations.I will dare not to touch how this topic be addressed as it is a whole rethinking of strategic and operative model of a business to meet the future needs and scalability as business often fails to see it clearly.

Now when the decision of Greenfield ERP implementation is made and it comes to start the program, The dilemma comes in, How do we start with it ?

1. Do we go for complete outside support which will make sense in most part due to the complexity and lack of knowledge into new ERP system(s).

This approach comes with its own set of issue, Ranging from Cost to timeline and quality as external partner aka System integrator may have the multiple industry implementation experiences but still lack the internal process knowledge, company/Industry specifics. Another big issue comes with this approach is that depending on the contract conditions, Meter is running while no tangible results may be achieved or at least not clearly understood. This is usually the case when the Customer do not have technical know how on how these System integrators functions or SI fails to clearly communicate the added value generated through them to the RIGHT stakeholders in business.

2. Second approach is When the organization choose to do the implementation as Do It Yourself style, Acquiring the skills, Resources needed to do all or most of the implementation by itself. This approach is usually adopted when organization either have a very strong individual (s) who have prior ERP implementation experience and make a good case for it or when Customer has already been burnt by SI with full or part failed implementation, costing $$$$$ in money, Money and effort spent by all stakeholders from top management to key users.

This Centre of Excellence approach is actually well supported and recommended by SAP itself as well, Not many organization uses the opportunity which SAP actually provide so much support, Training guidelines towards it.E-Learnings, Expert Guided sessions and list is extensive.

There are definitely pros and cons to this approach as well and will try to list some of them from my own experience of building up CoE teams few times in different countries.

1. Strategic alignment within business, What will be the potential role of such department during the implementation ? Will these experience consultant (s) be part of strategic IT structure or they will be classic example of Hire to Retire scenario.
2. This strategic alignment will decide which experience level and Role you are looking at. If the aim is just to support the process managers with requirement gathering, Validation and documenting it in a manner which is later to be shared with System integrators, You are looking at business process experts roles rather then classic SAP consultants.Ofc this terms are used interchangeably but there are clear distinctions among these two roles.( my honest opinion )
3. With such expectations, Ideally you are looking at person with 2-4 ish years of ERP implementation and Business process support experience. The more you go above this experience level comes with its own benefits but additionally with challenges.
4. Another important factor is the Hidden cost of DIY implementation. Lot of time companies think they will save lot of money and time by managing the implementation in-House to most part but fail to understand what could be to misunderstood TCO and time implication of DIY.From my experience this is something very factual as since it is greenfield, Organization may not even have experience of hiring the Right person for the Right role, ending up acquiring services of SAP recruitment firms which is another cost layer and def does not guarantee the right fit. Though these firms do their level best in finding best match.
5. Another aspect to this approach is that it is not all or nothing style. Customer will def need an outside support during the implementation as not all skills can/Should be brought in internally. Some roles and skills are very specific to program timeline which are only needed for short period of time during implementation. Take example of interfaces to Tax/Govt dept,Localization specifics, Banking channels,B2G etc. Failing to clearly understanding this may result in having idle resources for quite some time while ending up burning out other areas which are under resourced.
6. Timeline: Since this CoE team may not always be rightfully skilled or in some cases these resources may get assigned to other side projects resulting in increased timeline rather then faster implementation. Remember the good old Cost, Quality and Timeline triangle of SAP program management.
7. Hiring the Right Resource : Chances are that organization deciding on greenfield does not have the right people who have done multiple ERP implementations which may result in hiring not correct resource or hiring them at wrong time during the implementation which of course is another layer of cost during and post implementations.
8. Right training for CoE Team : Just because you hired an experienced SAP consultant/BPA will still need on going training into current As-Is and more into how to guide organization into To-Be world. Not everyone will be equipped with needed skills and that will need to be managed. Managing this training while going through live implementation is another layer of complexity which needs to be professionally managed.OpenSAP, SAP Learning hub, More focused trainings/Hands on, On the job training are few examples.
9. Outside Support of SI: Once the heavy lifting of process alignment is done internally and some outside support is needed, Data migration,Interfaces,Complex custom development etc then comes the part where the implication T&M or agreed scope implementation comes into play. How to manage time sheets, How to manage which activity is performed by who and when and the list goes on.

Final thought of mine is to identify when to ask for outside help when things changes along the way agile implementation is progressing but most importantly is such individual or department who Have someone in place already prior making any such decisions as it will have very strategic impact down the road of digital transformation.

Having someone such as a Program director or whatever role name you may will be very key player doing all these heavy lifting while keeping the implementation project on track, on budget and with quality outcomes while getting the most out of ERP implementation. Such team of internal consultants led by a professional lead brings lot of benefits in terms of speed,Agility,ownership within company.

Having a setup of CoE can result in getting the things done right from the beginning so future expensive reengineering is avoided, over reliance on externals and keeping skilled people to support the operation after Go-Live is the best decision and investment organization can make when it is done/Managed professionally.