In Chapter 3, Project Management, we discuss the difference between the waterfall approach to controlling projects versus the agile style of management. With the first, waterfall, well-defined projects have changes small enough to be managed without substantially revising plans. The projects progress smoothly in a step-by-step manner through each phase. But many projects, like software development, are ill-defined and need an agile approach with constant feedback and adjustments. Such projects are tackled incrementally and small chunks meet limited objectives.
John Deere had invested heavily in a traditional ERP upgrade in Australia, with poor results. Dealers complained that the new system was too hard to use and unintuitive. For example, one process that had been 5 steps turned into 27. Data was inconsistent and often inaccurate, and the system crashed often. After numerous expensive attempts with ‘off the shelf’ ERP software developed by the waterfall approach, John Deere decided to take an agile approach as it upgrades its U.S. Enterprise Resource Planning System (the topic of Chapter 14), says Industry Week (Aug. 11, 2022).
The old non-customized “off the shelf” ERP systems were just not able to keep up with John Deere’s innovations. For instance, Deere sales teams will be using tablets with video demos and financial data in the field to present new products to customers. Similarly, management wanted current data with product availability and payment data immediately available via a tablet.
Management also recognized the advantages of agile project management. These include faster delivery of new functionality, better alignment between users and developers, and giving users more ownership of new processes. Deere found that another distinct advantage of the agile approach is that as incremental improvements are made in the system both user and customer satisfaction improved. And improved morale supports even more changes. This closer connection between users and developers is expected to bode well for enhanced responsiveness to future changes in Deere’s business processes.
Classroom discussion questions:
1. The use of an in-house agile approach to ERP development will require changes in the John Deere organization. What are some of these changes?
2. The growing digitalization of business suggests what other changes may be coming Deere’s way?