Page 311 - Untitled-1

TEAMFLY290 INTEGRATING PM AND ERP

Tip In many cases, the implementation of an ERP system rep-
resents more than just a new tool or system, but rather the op-
portunity to reengineer key business practices and to benefit
from the adoption of recognized best business practices.

Why Integrate?

Let’s get back to the basic recognition that the management of projects and the
management of operations are essentially different. They are different in both the
way that performance and success are measured and in the type of personnel and
skills involved in the measurements and management. As noted previously, we
rarely see the operations people, with their emphasis on period-by-period business
operations and financial measurements, involved in the analysis of project perfor-
mance. On the other hand, how often do we see project managers evaluating the
effect of their projects on the current and future success of the enterprise?

Yet the raw truth is that the two are inseparable. Enterprise-level planning,
analysis of results, and decisions for the future require that the total picture be
available. The data supporting this total picture must be current, integrated, and
able to be analyzed from several perspectives.

Once we recognize the need for such data integration, we can also realize the
benefits of single entry of data and consistency of such data. Without this integra-
tion, we not only lose efficiency by necessitating redundant data entry, but also
face the risk of conflicting data.

Trap Many operations people, and software providers sup-
porting business operations, have been attempting to bridge
this gap with so-called project accounting systems. However,
for the most part, these tools address little, if any, of the needs
of project management. They tend to emphasize historical
performance and financial controls, at a summary level, ignor-
ing forecasting and performance analysis, and limiting the
ability to apply the data to project details.

Examples of Projects/ERP Integration

I decided to take a closer look at some of the ERP-based solutions, starting with
the one offered by Oracle. It appears to deliver the capabilities advertised in their