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Introduction Implementation of ERP (Enterprise Resource Planning) system can help to organize a working process and reporting more effectively. The health department of the state of Queensland in Australia experienced the failure. The IS implementation undertaken at Queensland Health was a large scale, complex, contemporary project with complexity stemming from: multiple reporting hierarchies; multiple subprojects; parallel implementations; and the nature of payroll structures in the healthcare industry. This case highlights that whilst the prescriptive project management methodologies were not followed current project management methodologies may also be inadequate for projects of this nature. Executive Support Encompassing lack of top management support was also the reason of the failure Sound Governance The roles, responsibilities and ownership of each of the three key stakeholder groups weren’t clearly defined as an adequate governance structure was not established until June 2009, which was 10 months after the planned go-live date: and business requirements were poorly defined, which subsequently negatively impacted the user testing phase. Furthermore, the complexity of the client-consultant relationship encompasses the interactions between the client, consultant, and vendor, as well as the need for project governance and effective communication. This resulted in unclear roles, responsibilities and objectives of the overall project, emphasizing the need for project management and governance strategies. As a consequence of Queensland Health’s disastrous payroll implementation project, the Queensland Government radically improved their ICT strategy and governance procedures. Ultimately these reforms, whilst necessary also add multiple layers to the governance process, increasing the number of bureaucratic decisions and increasing the degree of red tape.

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