erp implementation boot camp - metalforming · pdf fileerp implementation boot camp ... erp...

ERP IMPLEMENTATION BOOT CAMP

Christopher Devault Manager, Vendor Relations

Panorama Consulting Solutions www.Panorama-Consulting.com

Phone: 720-515-1377

The Manufacturing ERP Experience Sponsored by MetalForming Magazine October 8 - 9, 2013

About Panorama Consulting Solutions ●  Niche consulting firm with focus on the ERP market ●  Our service offerings include:

●  ERP Software Evaluation and Selection ●  ERP Implementation Project Management ●  Organizational Change Management and Benefits Realization ●  Business Process Management ●  IT Strategy

●  Experience with 150+ ERP packages ●  Depth in targeted industries including:

●  Manufacturing and Distribution ●  Financial and Professional Services ●  Government and Public Sector

●  ERP vendor independent and neutral

Some of our Clients

Broad and Deep ERP Experience Some of the 150+ different ERP software packages we

have evaluated and implemented for our clients

Agenda – Basic Training

● Purpose of this Session ● Basic Training: Keys to ERP Success ● Questions

Purpose of this Session

● Provide an introduction to ERP best practices

● Summarize some of the general keys to ERP implementation success

● Provide a foundation for these concepts

1. ERP is about your business, not the technology.

ERP: Business vs. Technology

Technical Approach Business Approach Implementation Approach

Slam in the system; “Just get it done”

Implement quickly, but take the time to get it right

Designing the System Define technical requirements Define business process requirements

Training System transaction training Process and workflow training; emphasizing ERP system as

an enabler of those processes

Measures of Success Minimize technical bugs Minimize disruptions to business & maximize business

results

Organizational Change Management

Train to use the system Build a variety of employee buy-in, communications, and

learning tools

2. ERP initiatives are very challenging.

ERP Implementations Don’t Deliver as Expected

ERP Project Statistics

ERP Business Benefits Can Be Elusive

Implementation Budget/Cost

3. Business process reengineering should start before implementation begins . . . and continue throughout the project and beyond!

Business Process Reengineering Is an Iterative Process

Selection: Business Requirements

Blueprint: Business Process Reengineering

Implementation: Transactional Processes

Go-live: Process and System Training

Current State

Processes

Future State

Processes

4. ERP software best practices and pre-configured solutions do not solve all the challenges of ERP.

Three Levels of ERP Best Practices

Competitive Advantage • Advanced ERP modules and solutions • Customization and Integration to other systems • Typically focused on market-facing enhancements • Examples: CRM, social marketing, eCommerce, forecasting

Industry Differentiators • Unique to industry • Source of competitive advantage • Typically focused on managing internal costs • Examples: Supply chain management, procurement

Basic Functionality • Non-differentiators, common across industries • Not a source of competitive advantage • Typically related to overhead functions • Examples: accounting, GL, order entry

Little use of best practices

50-60% use of best practices

60-75% use of best practices

Accounts for most of the unpredictability and risk of ERP implementations

5. Your project will struggle without adequate organizational change management.

Change is Never Easy…

Selection and Implementation Life Cycle Life Cycle

Technical Support

Training Strategy Training Design Develop Training Materials and Plan

Post Implementation Support

KPI Validation

Business Case

Benefits Realization Development

Performance Mgmt / Benefit Realization Audit

Implementation Services Software Selection

Stakeholder Analysis and Executive Alignment

Marketing and Communication

Organizational Readiness

Risk Assessment

PCS Activity Technical Activity

Business Process Management

Organizational Change Management

Organizational Design

Roles and Responsibilities Matrix, Sourcing, Transition Planning

ERP Configuration

Reports, Interface, Extension and Conversion

Development

Cutover

Data Conversion

Blueprinting

Benchmark Assessment

Contract Negotiations

Vendor Evaluation

IT Strategy

Blueprinting

6. If your operations and ERP system are misaligned, it’s probably not the software’s fault.

Misalignment of ERP Systems

Initial Requirements Misalignment

between ERP system and

business requirements

Initial Implementation

7. Expectations are high, but many organizations don’t properly define the “ERP finish line.”

Companies’ ERP Expectations

Companies’ ERP Results

Three Phases of ERP Competitive Advantage & ROI

Phase 0: Legacy System

• Broken business processes

• Misalignment with business requirements

• Technological obsolescence

ERP Phase 1: “Go-Live”

• Core functionality • Embedded “best

practices” • Industry pre-configuration

• Limited alignment with competitive edge

ERP Phase 2: Competitive

Edge • Advanced modules &

functionality • Third party bolt-ons

• Reporting & analytics • Business process

improvements • Customization

ERP Phase 3: Results & ROI

• Fine-tuned business processes

• Fully leveraged functionality

• Superior ability to analyze and execute

28% of ERP implementations* Business process re-engineering and

organizational change management focus

72% of ERP implementations* Software focus

8. Nearly all organizations strive for “no customization,” but 90% end up customizing.

ERP Customization Level

9. Executive buy-in and support is critical to ERP success.

What Does Executive Buy-in Mean?

●  Approve project budget ●  Assemble steering committee ●  Key business decisions ●  Project status ●  Approve changes to scope ●  Approve software customization

How Frequently is it Achieved?

10. If you don’t measure it, you won’t achieve it.

Cascading KPIs Through Your Organization

• Sales and profit by region • Sourcing costs • Number of product introductions

per year

Business Unit KPIs

Departmental KPIs

Individual KPIs Individual KPIs

Departmental KPIs

• Average inventory cost by location • Number of new designs per employee

Corporate KPIs Tied directly to corporate-level goals

Sample KPIs • Wholesale sales

and profit • Retail sales and profit • Product development time to market

• Average inventory costs • Number of new product designs completed per

year •  Inventory accuracy

Downstream Importance of KPIs

Key Performance

Indicators

Business Case

Justification Data

Requirements Reporting

Requirements Business Results

Questions? Chris Devault

Manager, Vendor Relations Panorama Consulting Solutions

Chris.Devault@Panorama-Consulting.com 720-515-1377

erp implementation boot camp - metalforming · pdf fileerp implementation boot camp ... erp...

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