Edinburgh University’s ambitious attempt to overhaul its financial and human resources systems with Oracle ERP software resulted in a series of significant failures, impacting students, staff, and suppliers.
Today, we’ll explore the key issues faced during the ERP implementation and the lessons learned from this high-profile software implementation failure.
An Overview of Edinburgh University’s Oracle ERP Implementation
In June 2019, Edinburgh University embarked on the transition to Oracle ERP Cloud and Oracle HCM Cloud, aiming to modernize its financial management and HR processes. The project, internally branded as “People and Money” (P&M), promised streamlined operations and improved efficiency. The rollout, however, was fraught with issues from the beginning.
The financial management system was scheduled to go live in August 2022, following the launch of HR and payroll modules in 2020 and 2022, respectively.
Unfortunately, the go-live date was delayed due to incomplete tasks and an overall lack of preparedness, leading to a backlog in payment processing and widespread operational disruptions.
A Failed Payroll System Implementation
Panorama’s Expert Witness team was retained to provide a forensic analysis and written report to the court regarding the failed implementation of a major software developer’s ERP/payroll system.
Key Issues Encountered During the ERP Implementation
Let’s dig into the specific problems the University encountered that signaled it was time to change course:
- Operational Disruptions – The new system’s launch caused severe delays in stipend payments to postgraduate students, and late payments to suppliers, which led some vendors to refuse further service. This financial chaos disrupted day-to-day operations and burdened staff with additional work to manage financial tasks manually using spreadsheets.
- Mis-coded Transactions – Over two years post-implementation, certain departments were still struggling with thousands of mis-coded transactions, amounting to over £300,000 in misallocated funds. This necessitated labor-intensive manual corrections and undermined the system’s credibility.
- Cost Overruns and Contract Adjustments – The financial mismanagement extended to the project’s budget as well. Originally contracted at £25 million, the cost ballooned to £37 million due to “changes in requirements and additional work.” These unexpected expenses reflected the project’s ongoing challenges and missteps in planning and execution.
Our software expert witnesses saw similar issues when analyzing a state government’s ERP implementation. Inadequate staffing, gaps in project management, and lack of business process definition led to cost overruns and a nearly two-year delay.
Lessons Learned From Edinburgh’s Failed Oracle Implementation
From this debacle, several critical lessons emerge for avoiding similar failures in your ERP project:
1. Conduct Rigorous Planning and Risk Management
The implementation highlighted the necessity of comprehensive planning and proactive risk management.
Identifying potential issues early and addressing them before proceeding is crucial. Detailed project scoping, risk identification, and regular reviews can help mitigate risks and ensure readiness for go-live.
2. Ensure Effective Communication and Stakeholder Engagement
A significant factor in the failure was the breakdown in communication between the project team and senior management.
Establishing clear communication channels and regular stakeholder meetings can ensure issues are identified and addressed promptly. Transparency in reporting progress and risks is essential to maintain oversight and accountability.
3. Focus on Change Management
Senior managers ignored early warnings about the system’s readiness. Many processes were flagged as “red” due to immaturity, yet the project proceeded without addressing these concerns. This lack of proper change management and risk mitigation was a significant contributor to the project’s failure.
Implementing a robust change management plan helps staff adapt to new processes and ensures that changes are smoothly integrated into daily operations.
4. Ensure Adequate Training and Support
The system’s structure and terminology were tailored for users with financial training, making it difficult for most staff to use. Tasks that should have taken minutes were taking hours, causing frustration and inefficiency. The lack of intuitive design and inadequate training exacerbated these issues, further diminishing user confidence in the system.
Ensuring that users receive thorough training while verifying that the system is user-friendly can significantly impact the success of an ERP implementation.
In addition, providing ongoing support and addressing usability issues can enhance user adoption and reduce operational disruptions.
5. Ensure Strong Governance and Leadership
Clear governance structures and consistent leadership are critical for project success. Senior leaders should be actively involved and informed, ensuring decisions are based on comprehensive impact assessments rather than just timelines and budgets.
Avoid ERP Implementation Challenges
Edinburgh University’s Oracle ERP implementation serves as a cautionary tale of how large-scale IT projects can go awry without proper planning, risk management, and communication. By learning from these mistakes, organizations can better navigate the complexities of ERP implementations.
For more insights on avoiding ERP failures and achieving successful project outcomes, contact one of our ERP implementation consultants today.
