Effecve project monitoring for ERP implementaon success: A case study in a S&M company in Vietnam*Le Duc Dao and Tran Xuan KhanhHo Chi Minh City University of Technology (HCMUT), VNU-HCM, Ho Chi Minh City, VietnamABSTRACTThis research paper shed a light on the challenges faced during the implementaon of an Enterprise Resource Planning (ERP) system in an organizaon, with a specific focus on project management and project monitoring. This paper also presents a case study of a company in Vietnam that experienced difficules during the go-live phase of their ERP implementaon due to poor project monitoring. The objecve of the research is to idenfy these challenges and propose a soluon to resolve the ineffecve project monitoring. By doing that, the paper highlights the importance of effecve project monitoring in ensuring the success of ERP implementaon projects. The results of implemenng the proposed soluon are promising, as demonstrated by a reducon in compleon me, eliminaon of late delivery days, and effecve management of resource deviaon. These outcomes illustrate the potenal for improving project efficiency, reducing costs, and ensuring successful ERP system implementaon. Overall, this research provides valuable insights and best pracces for organizaons embarking on ERP system implementaons, offering guidance on overcoming challenges and achieving a smooth and successful go-live phase.Keywords: project management, ERP implementaon, project monitoringEnterprise Resource Planning (ERP) is an integrated system implemented by businesses to improve internal business processes in various departments in order to provide greater efficiency, increased automaon to its processes, and improved communicaon across the business [1]. The enterprise resource planning (ERP) market in Vietnam has seen significant growth in recent years, driven by the country's expanding economy and increased adopon of digital technologies. According to a report by Technavio, the ERP market in Vietnam is expected to grow at a CAGR of over 9% during the period 2018-2022 [2]. This growth is being driven by a number of factors, including the increasing demand for ERP soluons from small and medium-sized businesses (SMBs), the growing need for integraon and automaon in business processes, and the government's focus on promong the adopon of digital technologies. In terms of the S&M business segment, Vietnam's SMBs are increasingly recognizing the benefits of implemenng ERP systems to streamline their operaons and improve efficiency. Enterprise resource planning (ERP) is soware designed for organizing and managing business processes (core and administrave) by sharing informaon across funconal areas. Core processes include producon planning and control, inventory management, purchasing, and distribuon; administrave processes include accounng (cost control, account payable and receivable, ect.), and human resource management [3]. This can help SMBs make beer-informed decisions, reduce costs, and improve their overall compeveness. Overall, the ERP market in Vietnam has strong potenal for growth, especially in the S&M business segment. As Vietnam's economy connues to expand and the adopon of digital technologies increases, more and more SMBs are expected to turn to ERP soluons to help them manage and grow their businesses.Most mulnaonal firms are using ERP and that more small and midsize companies have begun to adopt ERP. Despite ERP's promises to benefit companies and a substanal capital investment, not all ERP implementaons have successful outcomes. ERP implementaons commonly have 19Hong Bang Internaonal University Journal of ScienceISSN: 2615 - 9686Hong Bang Internaonal University Journal of Science - Vol.4 - June 2023: 19-26DOI: hps://doi.org/10.59294/HIUJS.VOL.4.2023.382Corresponding Author: Dr. Le Duc DaoEmail: lddao@hcmut.edu.vn1. INTRODUCTION
20Hong Bang Internaonal University Journal of ScienceISSN: 2615 - 9686Hong Bang Internaonal University Journal of Science - Vol.4 - June 2023: 19-26delayed an esmated schedule and overrun an inial budget [4]. With no specific plan or detailed procedure, the company may spend a great deal of resources, and me on ERP implementaon but may not enjoy a bit of the benefit the ERP system should have brought out. ERP is a management mode or techniques. Many companies regard ERP system implementaon as a project management [5]. Effecve project management is crucial for the success of any ERP implementaon, as it helps ensure that the project stays on track, on budget, and on schedule. Poor project monitoring can have serious consequences for an enterprise resource planning (ERP) implementaon, as it can lead to delays, cost overruns, and a failure to achieve the desired benefits. A typical successful ERP implementaon project has the advantages of cost and me reducon and high system quality. But besides the technical perspecve, the management part of the implementaon process is also a vital part contribung to the general success of the ERP system provider. In this research paper, we present a case study of an organizaon that was facing a number of challenges during the implementaon process, mainly arise from poor monitoring. These issues contributed to delays in the project and increased costs. To address these challenges and cut down the project me, we propose a soluon that focuses on improving project monitoring.2. THEORETICAL BASIS AND METHODOLOGY2.1. Theorecal Basis2.1.1. Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP) systems are a type of integrated soware soluon designed to manage and automate various business processes across an organizaon. These systems provide a centralized plaorm for managing and coordinang key business funcons such as accounng, inventory management, human resources, customer relaonship management, and supply chain management. The primary objecve of ERP systems is to improve organizaonal efficiency and decision-making capabilies by providing real-me access to accurate and comprehensive business informaon.ERP systems integrate with an organizaon's exisng systems and databases and can be customized to meet the specific needs of the organizaon. They are widely adopted by medium to large businesses and organizaons across various industries, including manufacturing, retail, healthcare, and government. ERP implementaon is a complex and challenging task, requiring significant resources and careful planning. The success of an ERP implementaon project depends on several factors, including the alignment of the ERP system with the organizaon's business processes, the level of user acceptance and training, and the effecve management of the implementaon project. A modern ERP system connects all business processes across accounng and finance, risk management, enterprise performance management (EPM), and more, providing a single source of truth for data [6]. However, ERP implementaon projects can also encounter significant challenges, including resistance to change, insufficient resources, and poor project management. Therefore, it's essenal for organizaons to carefully plan and execute ERP implementaon projects to maximize the chances of success.2.1.2. Project Management Project management is the use of specific knowledge, skills, tools and techniques to deliver something of value to people [7]. It is a muldisciplinary field that draws on theories and best pracces from various disciplines, including management, engineering, and computer science.ERP implementaon project management refers to the process of planning, execung, monitoring, controlling, and closing an ERP implementaon project in order to achieve specific goals and meet specific success criteria. It involves a wide range of acvies, including project planning, project execuon, project monitoring and controlling, and project closing. One of the key theories in ERP implementaon project management is the project life cycle, which describes the stages an ERP implementaon project goes through from iniaon to closure. The project life cycle typically includes the following stages: iniaon, planning, execuon, monitoring and controlling, and closing. Another important theory in ERP implementaon project management is the ERP implementaon methodology. ERP implementaon methodology is where the company declares their strategic decisions regarding how to conduct the
21Hong Bang Internaonal University Journal of ScienceISSN: 2615 - 9686Hong Bang Internaonal University Journal of Science - Vol.4 - June 2023: 19-26implementaon, and selects a focused path for ERP deployment [8]. There are several ERP implementaon methodologies available, such as the tradional Waterfall model, the Agile model and the Hybrid model. Each has its own advantages and disadvantages, and the choice of methodology depends on the specific needs and constraints of the project.2.2. MethodologyThe methodology employed in this study is outlined in the diagram below, providing a comprehensive overview of the research design, data collecon, and analysis methods ulized.Identify the ProblemBuild the SolutionEvaluate the ResultApproach the ObjectAnalyze the ProblemPropose the SolutionEstablish the Project PlanConduct the ProjectControl/Monitor the ProjectEvaluate the ResultGoal: Learning about the Object Method: Observe and Collect the Date Output: Object’ s informationGoal: Identifying the current situationMethod: Collect the Data, using Fish Bone DiagramOutput: Object’ s ProblemGoal: Finding the Solution for the defined ProblemsMethod: Study about the existed case-studies, other research.Output: Specific implementation stepsGoal: Setting Project s Goals, Allocate the tasksMethod: WBS, RAM Output: RAM (Responsibility Assignment Matrix)Goal: Allocating Project s ResourcesMethod: Gannt Chart, Pert/CPM, AON network.Output: Project Scheduling ResultGoal: Controlling and Monitoring the Project s ProgressMethod: PERT MethodologyOutput: Project’ s Probability of Completion timeGoal: Evaluating the Result Method: Comparing, BenchmarkingOutput: Evaluation ResultFigure 1. Approach Methodology
22Hong Bang Internaonal University Journal of ScienceISSN: 2615 - 9686Hong Bang Internaonal University Journal of Science - Vol.4 - June 2023: 19-263. CASE-STUDYThe implementaon of an ERP system is a significant undertaking for any organizaon, requiring careful planning and execuon to ensure a successful outcome. The go-live phase (which in this company's situaon belongs to the “Evaluate the result” phase”) is parcularly crical, as it marks the transion from tesng and development to live operaon, and any issues that arise during this phase can have a significant impact on the overall success of the project. This case study endeavors to analyze the experiences of a firm that recently integrated an Enterprise Resource Planning (ERP) system. Similar to numerous other organizaons in Vietnam, this company encountered difficules with monitoring during the implementaon phase, leading to an increase in costs and me. The objecve of this study is to examine the project management challenges encountered during the go-live phase and provide recommendaons for effecve monitoring steps to overcome these obstacles. The aim of this case study is to impart valuable insights to organizaons embarking on an ERP system implementaon, highlighng potenal challenges and offering best pracces for ensuring a successful go-live phase.3.1. Problems IdenficaonIn this case study, the term "delaying in the go-live phase" refers to any deviaon from the project meline that results in a compleon me longer than the allocated 5 days, or any deviaon from the expected quality of the final product that does not meet the specified requirements. This could include issues such as system downme, data migraon errors, or user training difficules that impede the smooth transion from tesng and development to live operaon. "The data collected from recent ERP implementaon projects at our company indicates that a staggering 70% of our customers have experienced delays during the go-live phase. This is a concerning trend, as it suggests that a significant proporon of our ERP implementaon projects are not meeng their expected melines or quality standards. A fishbone chart will be used to idenfy and analyze the main factors that led to deviaon in the compleon me of an ERP implementaon project at an agricultural company. The chart will focus on four main factors: Manpower, Method, Risk Management, and Milieu.In case of this company, one of the main challenges encountered during ERP implementaon is the presence of poor project management methods. This leads to a range of issues that hinder the successful deployment of ERP systems. Insufficient planning, ineffecve execuon, and inadequate monitoring and control of the implementaon project result in delays, cost overruns, and a failure to meet desired outcomes. In this research, we will address these challenges by focusing on a specific case study where a company poorly planned their
Project Fall Behind Schedule
ManMethodMilieuLack of effective comunicationRisk ManagementLack of Scenarios PlanningChanges in Customer’
s DataLack of valid/proper processLack of dataLate responses to changesHighly Customization in ProductIneffective resources allocatingShortage in HRAmbiguous contractLack of experience
Figure 2. Facts that may affect the ERP project's performance
23Hong Bang Internaonal University Journal of ScienceISSN: 2615 - 9686Hong Bang Internaonal University Journal of Science - Vol.4 - June 2023: 19-26ERP implementaon. By analyzing this case, we aim to idenfy the root causes of the problems stemming from poor project management and propose effecve soluons. Through this research, we will provide valuable insights and recommendaons to help SMBs avoid or overcome similar challenges and improve the success rate of their ERP implementaon projects.3.2. Soluon ProposingThis part will focus on the implementaon of a typical monitoring method for an ERP implementaon project at a company. The method being introduced is designed to improve the efficiency and effecveness of the monitoring process which will lead to solve the problems of delay in go-live phase. 3.2.1. Project PlanningThis part will outline the inial stage of the project, including the determinaon of project goals, the construcon of a work breakdown structure, and the creaon of a task deployment matrix for each team of personnel. This project comprises several stages in the implementaon process, including the creaon of key deliverables represented by a work breakdown structure (WBS). Here is the WBS of this project. 3.2.2. Project Scheduling In this secon, we will present the inial plan to implement the project. All of the specific informaon related to each task will be provided in the form of an aachment in the appendix 2. Ulizing this informaon, we will construct an Acvity-On-Node (AON) network diagram in order to graphically depict the project schedule and subsequently calculate the esmated project compleon me. This method allows for clear visualizaon of the project's interdependencies and dependencies between tasks, enabling effecve project planning and scheduling.
No
WBS
Task name
1
1.1
Project Preparation
2
1.2
Planning
3
1.3
Analyzing and Solution Designing
4
1.4
System Configuring
5
1.5
Testing
6
1.6
Transition
7
1.7
Operating
Table 1. Project's Work Breakdown Structure
Feasibility Analysis101010010Project Preparation7207310Project Kick-Off2310121012As is Process4412161216516211621Project Director Approval5621262126Project Kick-Off1726272627Project Personnel Preparation7827342734Architecture Design101141514151To-be Blueprint71034413441
Project Schedule7927342734(x)(y)