BilkentMBA2010, Lessons learned, week 4, Rostislav Smolin

Three big considerations must be taken into account in ERP implementation:
- Big Bang or Phased Implementation: Big Bang (all at once) minimizes risks of integration issues at a higher cost. Phased Implementation (one by one) allows real options on each stage, allowing managers to “pull the plug” if the project goes the wrong way and minimize losses, but at increased integration risks.
- Outsource / In-house: Outsourcing may lower need for internal resources but increase dependency on outside consultants. In-house may increase dependency on key personnel if, for example, no succession plans are in place or knowledge management is not facilitated.
- Customization Level: Higher customization mean higher implementation and maintenance costs. If possible, customization must be kept to the minimum, while satisfying business needs and retaining sponsor support.

All three considerations are in continuous. For example, in one company big bang may be used for financial module, but production is implemented factory by factory.

One of popular SAP implementation methodologies meant to minimize costs and risks is ASAP. It contains 5 stages: project preparation, business blueprint, realization, final preparation and go live & support. Continuous improvement can be considered as 6th phase.

Leadership behaviors exist in real as well as virtual teams. Leaders manifest themselves in communication (babble hypothesis) as well as activity (activity hypothesis). To be perceived as leaders, participants must exhibit communication and work activity. Temporal lag exists in the process, and perceived leaders exhibit leadership behavior over a period of time. However, perceived leaders exhibit less than half of all leadership activity in the team, because the whole team participates in the process.