How To Turn Around A Failed Microsoft Dynamics AX Implementation

Failed implementation does not mean end of road of implementation for your company. It is very important to move on to recognized a failed implementation and apply effective measures so that you can turn the tables on the success side.

Now a day's more than 70 % AX implementations failed to achieve their core objectives which was defined at the beginning of the project. Many companies faced significant issues leading to unforeseen impact on the profit and loss of the company. Many implementations were over customized resulting in high cost of ownership and upgrade complexities with future releases. Inadequate business process documentation and no formal mechanism for on-going monitoring of system utilization and process controls contribute to failure of the project. Training to user from an AX perspective rather than from a business process perspective create adverse impact on the utilization of the system which leads to failure. Poor data migration causes reporting and transactional issues due to not enough focus early on in the project. There are few parameters listed below in regards to failed AX implementation:

• Over-customized system (Focus more on customizing the process in their own way than using standard functionalities)
• Improper and inadequate report generation
• Inadequate post implementation support
• Independent modules implementation without integration
• Insufficient training and testing
• Lack of proper knowledge on tools and improper guidelines on the usage.
• Inaccurate/Duplicate production, inventory, and other business data

There is one example mentioned below of failed implementation.

There was one company which had failed implementation. This company had many issues with the system. There were not able to work efficiently due to poor system performance due insufficient infrastructure which leads to increase in operating cost of the company, there were duplication of master & transactional data in the system due to unwanted customizations, Improper inventory information, They were not able to communication to their customer the exact state of their placed orders and timing of delivery and this was impacting their business badly. Finance team had no visibility into payable and receivable. This and many other issues that particular company was facing and they had no clue on what to do next as they had invested their time, money, material & man power and all seems to be wasted. It did not improve the operational efficiency and profitability for them but worsen the situation. This is one of the best example of failed implementation.

Thesekinds of failed implementations can occur not only from new partners implementing AX but from various established partners as well. There are various reasons which could lead to failed implementation.

1. Companies focus more on larger client and often ignore medium and small client due to greater revenue generation from the larger client as a result often less experience consultant are allocated to projects with medium and small clients. They often been neglected and will be given low quality service.
2. A disconnect between sales and implementation team leads to over promising and underpricing in the bidding. Sales team often make false promises and bid for low cost to closed the deal at any cost.
3. Lack of vision from the customer side leads to wrong requirement gathering which impacts the project implantation and their by failure of the project.
4. Efficient project plan often lead to overbudgeting of the project which results into failure.

When you look for failed implementation they are various questions arises like how can we regain control over this failed ERP? Which option you choose to rescue implementation from the failure trap? Do we have sufficient expertise to turn around this failed implementation? These and all other questions often come in mind.

When you've already made the decision to implement an ERP, selected the right product, and even potentially chose a vendor, it seems as though the most important steps are over. However, if you find that you are in the midst of your Microsoft Dynamics AX implementation but remain suffering by poor operating software, incomplete requirements, cost overruns, and, worryingly negative business impact then it is a time to choose best options to suit your requirement. These options are:

Choose other ERP system: For this we will have to start from scratch, right from choosing new ERP system to choosing right partner to implement it. This is certainly a time consuming tasks and choosing brand new ERP has its own cost (In million). Starting everything from scratch means all that is done with existing ERP will scrap and again starting the implementation cycle from the scratch will certainly put cost burden on the company. This will also have negative impact on the end users who were part of earlier implementation as they often create resistance to again accept new ERP and starting implementation again. This is certainly not the option we should go for unless we are ready compromise on the huge cost and end user confrontation. A tough choice if you did not have budget. Management has to think carefully for this option.

Go back to Old system: Going back to old legacy system certainly give familiar feeling to end user but will take them backward, not forward (and doesn't solve the problem they originally set out to address). Going back to the old system will revive problems that prompted to choose new AX system. There could be many issues with the legacy system such as limited functionalities, Auditing issues, less control over financial activities and large number of false customizations. This and other issue will resurfaced which are not good for the company. This is not a good option, certainly not after coming this long with AX implementation.

Re-Implement existing AX system: Reimplementation has its own challenges but it is worth going for considering the strength AX system has in terms of richness in business processes and its ability to turn any business into profitable one. Before the reimplementation it is really important to boost the morale and win support from end user team but this is certainly a good option to go for which will certainly save time & money and chances of success is more as they learn from past mistakes. Following measures we can take as a part of reimplementation:

1. Diagnostic study: It is important to performed diagnostic study to suggest the roadmap for implementation of new version. Diagnosis includes understanding the pain areas, Analysis of functionalities gap, extensive user discussion to know the true picture on the current status. A budget analysis for the project to give better visibility to the customer in terms of investments. License optimization analysis to allow the company to adhere to Microsoft compliance and allow the maximum number of employees of the organization to take advantage of the Microsoft dynamics AX system. Detail scoping assessment to identify goals and expectation.
2. Project stabilization: after the diagnostic study it is the time to work for project's stabilization. This will start from setting up the formal communication plan, risk management plan, escalation matrix, and sign-off mechanismas this will provide formal structure to the project. Setting up the Client Steering Committee for transparency and stakeholder acceptance add more stability and better control over project.
3. Implementation: This will start with addressing immediate problem areas/issues. Goal of implementation should be to focus on functionalities over customization in order to utilize Microsoft dynamics AX to full extent. Deployment of strong team of consultant's onsite and offsite to work around the user to address issues faster and to keep up with project pace. Focus on detail documentation to gather every details of the project so not to miss out on any part during implementation. Prepare data migration plan and monitor it carefully in order to avoid any data issue /reporting issues in future which might cause failure.
4. Testing and Training: Thorough testing needs to perform in order toget fewer issue and maximum success. Detailed test plan needs to put in place well in advanced and allocate sufficient time for overall testing of the implemented solution from user as well as from the implementation consultant's end. User acceptance testing needs to carry out with utmost care and rapid action needs to be taken to address any issue during UAT.                                                                                                             Multi stage and multi-level training plan including business workshop need to arrange to make the user familiar with the new system. This will help them to regain their confidence which was lost earlier during failed implementation.
5. End user Support: It is important to constitute a support team before go-live so they can get familiar with the project. Proper knowledge transfer is required for support members from project team. Transition plan is required to be created in detail manner by considering every important details of the project such as number of customization and person responsible for knowledge transfer for those customizations, number of integrations and responsible person for knowledge transfer to support team. Also the list of resources responsible for specific customization or integration from support team. Support ticket management system implemented for better SLA and implement periodic review process to monitor the performance of the team.

A "failed state" is clearly the result of many different factors, both internal and external, but understanding what is in your control and approaching decisions with that lens may help in rescuing the Microsoft Dynamics AX implementation.