Critical competencies and skills as a driver for enterprise resource planning implementation projects' success

Abstract

Through the substantial expansion of digitalization in the economy in recent years, Enterprise Resource Planning (ERP) systems have lately drawn significant attention and become more and more popular among various types of organizations. However, practical evidence has shown that many ERP implementation projects still do not achieve their planned objectives and end up failing. In that context, KPMG Luxembourg noticed a real market opportunity locally which has led the firm to focus on the development of its ERP consultancy services. By highlighting the required competencies and skills of external consultants to favor success in such implementation projects, this report aims at providing valuable information and human resources-based tools for the progression of KPMG’s business activities in this realm. First, an extensive literature review focused on the roots and consequences of ERP implementation failures put forward numerous critical failure factors. These factors were classified into eight categories: “organizational”; “project management”; “human resources”; “managerial”; “vendor and consultant”; “processes”; “technical” and “culture and environment”. From then on, three of the most significant factors linked to external consultants were selected for in-depth analysis. To be the basis for relevant best practices and actions for KPMG Luxembourg, these three factors were studied from the perspective of key/critical success factors, i.e. “formal project management”, “effective education and training” and “successful ERP (software package) selection”. The results underlined suitable methodologies, models and advice. Following this theoretical research, a connection with the concept of “skills management” was made and the detailed methodology pursued during the internship was presented. This methodology resulted in the production of three HR tools (i.e. a competency framework; a skills matrix and a responsibility assignment matrix) for the SAP Advisory practice at KPMG Luxembourg. Recommendations were also formulated in the form of an action plan regarding the proper implementation of these frameworks.