Bombardier: Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation Pre and Post-Presentation Notes

To: Richard Peterson

From: Anna Szperlak

July 13, 2014

Problem/Issue Statement

Through acquisitions and expansion, Bombardier inherited data processes and specific systems to replace their legacy system. Unfortunately, the first attempt of Enterprise Resource System ERP implementation failed with inefficiencies especially in inventory, through the purchasing and procurement department. The individual systems did not communicate with each other efficiently because of the large, complex system was made difficult to share data between all of the facilities. Also, employees were not ready for a such big of a change and were hesitant about starting a new implementation. The second round of implementation was more successful due to the additional resources of consultants and senior management support.  Even though the migration went well it seems like there is still a problem; disconnection between the businesses and project team. The lack of communication in regards to the training for all employees using the new ERP system is affecting the roll out and the further development.

•       The following are the symptoms that have been identified:

• Lack of communication between business and project team
• Poor time management / intense- ineffective training
• Specialized knowledge concentrated in a few individuals, not all potentials ERP users
• New system was not seen as a priority within the business members, no understanding of importance of the new system
• Employees still utilizing legacy systems to complete functions of their jobs
• Lack of protocol to measure success of implementation

The scope of the problem involves the rest of the divisions/ locations to be fully functional. This includes over 27,130 employees and 13 facilities worldwide. It is crucial to establish best practices to ensure a smooth transition for the employees and the project team, before moving further with the implementation process. To address the main problem, the company needs to prepare a “Best Practices” framework to follow and establish an alternative to become a better-centralized system and find a solution to the lack of integration of their legacy systems.

Situation Assessment

The context of the problem is primarily coming from not having a consistent plan for rolling out the ERP system, which causes issues with the project team, employees and management.  The lack of best practices causes disorganization and distress among trainers and employees.

The decision criteria to consider include:

• Set clear goals and objectives
• Stronger communication between management, employees, and project team
• Ensure proper project management and resource commitment
• Better time management
• Training issue

List of Plausible Alternative Courses of Action and Evaluations

The alternative course of action would be to implement the ERP which would get Bombardier closer to their vision of becoming a “One Company” organization. Employees would have the ability to share common data across divisions and products what leads to achieve an ultimate goal.

I would recommend that Bombardier adopt/continue to strengthen the following best practices:

The communication must be maintained throughout the implementation process in an efficient manner. – it is very important to communicate the importance of the implementation. A complete knowledge of the business processes is essential for implementing an ERP system as well as having a common goal, as a company will help the process to be more effective.  Stuff should be aware of what the final outcome will be and what it takes to get there.  Also, the benefits the company expects from the implementing the ERP should be define. By holding department meetings, follow up emails, or just having weekly updates, employees will see the importance of ERP implementation.

For this project to be successful it is essential to dedicate a project manager who will be involved in both planning and ongoing management reporting.  Also, the resources from the financial support, management support and user support, and quality will be necessary. In order for the goals and objectives to be clearly communicated to the organization, the executive management should endorse the ERP project and remain active throughout the implementation. In addition, this will foster a positive attitude towards changing to an ERP system since people are naturally adverse to change.

Training and support are also essential and should concentrate on business workflows and how these changes affect job roles and the people who do the work. Training should be scheduled closer to implementation with a more generalized theme and then have some refresh courses. In addition, highly qualified trainers/consultants should be available to train and support users on the daily use of the system addressing issues that may occur during and after the system update.

Recommendation

After reviewing the issues Bombardier experienced at the first two locations, the logical recommendation is to allow the ERP process to take place once more and finish what was once started. As my recommendation, the company should apply all of the above alternatives. By using the best practice framework, Bombardier will not only improve their technical implementation but it will also address the tension held by employees.  As mentioned above, prior to any further steps, Bombardier needs to set clear goals and objectives and communicate them to the entire business.  This will help the employees to understand why the BMIS is being implemented and would allow the firm’s vision to become “One Company” come true. Also, it will let all of their divisions share the vision and become centralized as a whole.