enterprise resource planning (erp) from a to z defined erp ‐enterprise resource planning...

EnterpriseResourcePlanning(ERP)fromAtoZCSMFO2016Pre‐ConferenceWorkshop3/1/2016– 9AM– 4PM

Agenda• 9:00AM– 9:15AM IntroductionsandCourseOverview(Phil)

• 9:15AM– 9:30AM ERPDefined(Phil)

• 9:30AM– 10:30AM ERPProcurement(Terry)

• 10:30AM– 10:45AM Break

• 10:45AM– 11:15AM ERPProcurement(Terry)

• 11:15AM– 12:00PM ERPBusinessIssues(Terry)

• 12:00PM– 1:15PM Lunch

• 1:15PM– 1:45PM ERPBusinessIssues(Terry)

• 1:45PM– 3:30PM TechnicalIssuesandProcesses(Phil)

• 3:30PM– 4:00PM ERPProjectWrapUp(Phil)

CSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

March1,2016 2

IntroductionsandCourseOverview

March1,2016


WhoAreWe?

PhilBertoliniDeputyCountyExecutive/CIO,OaklandCounty,Michigan

TerryHackelmanManagingPrincipal/Founder,NexLevelIT,Inc.


March1,2016 4

WhyAreWeHere?

ImplementinganERPsystemisoneofthemostdifficultprojectstobecompletedbygovernment

InvestinginanERPcanbeadifficultandexpensivedecision

MostgovernmentstakeholdershavelittleornoexperienceinimplementingERPsystems


March1,2016 5

ERPDefined“WhatexactlyisanERP?”

March1,2016


AcronymsDefined

ERP‐ EnterpriseResourcePlanning Integratedpre‐definedapplicationthatfacilitatestheflowofinformationtomultiplefinancialandoperationalfunctions

Commonuserlookandfeelacrossallmodules COTS‐ Commercial‐off‐the‐shelf

Commerciallyavailablesoftwaredesignedforaspecificpurposethatcanbeusewithlittleornomodifications

Customerconfigurationsallowedwithindefinedparameters Common“code”sharedacrossmost,ifnotall,customers VendorsupportsongoingmaintenanceandR&D


March1,2016 7

PotentialERPScope

Scopecanvarysignificantlydependinguponneeds

Corefunctionsarecriticalandprovidethefoundationforallothermodules

Shouldbeconsideredfromanenterpriseperspective

Evaluatetrade‐offs

Recognizedepartmentneeds

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©2015NexLevelInformationTechnology,Inc.Allrightsreserved

ERPBenefits Promotesasinglesourceoftruth– reducesdataduplication Encouragesintegratedbusinessprocessesacrosstheorganizationtocreateefficiencyanddataintegrity

Breaksdown“informationsilos”– encouragessharingofcommoninformation

Simplifiestrainingandpositionsorganizationforimprovedsuccessionplanning

Promotesincreasedvisibilityandtransparency– bothinternalandexternal Increasesdataprotectionthroughcentralizedsecuritypolicies Improveddisasterrecoveryandbusinesscontinuity Enablesimprovedreporting

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ERPSolutionTrends

Focusonextendingoraddingvaluethroughenhancementsorre‐procurements• Workflow• DocumentManagement• Integration• Dashboards• BusinessIntelligence

SingleERPvs.Best‐of‐Breed• Manykeepingfinance,payroll,andHRinasinglesystem• Allowingdepartmentstochoosethebestfit– thenintegrate

o LandManagement,UtilityBilling,WorkOrder/AssetManagement/CMMS,etc.


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Questions?

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ERPProcurementOverviewAneffectiveprocurementsetsthestageforasuccessfulimplementation!

March1,2016


Precept#1‐ ERPProcurementsarerisky

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Proceedcarefully,becauseyouwilllivewithawrongdecisionforyears!

Precept#2– Therearenoshortcuts!

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Precept#3– Bepreparedtomaketoughdecisions!

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IttakesthousandsofsmalldecisionstomaketheoneBIGdecision.

Precept#4– Obtaining“DecisionQualityInformation”isaprocess

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QuestionsthatmustbeansweredtocompleteanERPprocurement

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Wheredoweneedtobe?

Wherearewenow? Howdowegetthere?

ProcurementFramework

Importanttorecognizeprocurementphases

Specificactivitiesassignedtoeach

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Implementation

Negotiation

Selection

RFP

Requirements

Initiation

Initiation

KeyActivities IdentifyProjectSponsor(projectleaderonstaff)

Developaprojectcharter– authorizingdocument

Formalizeaprojectmanagementplan Considerresourceavailability Beginchangemanagement

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Implementation

Negotiation

Selection

RFP

Requirements

Initiation

“If you don’t have time to do it right the first time, how do you have time to do it again”

Requirements

KeyActivities Getstaffinvolved

o Youneedtheirexpertise,itpromotesbuy‐in,andpreparesstaffforlong‐termsupportrequirements

Focuson“highpriority”and“unique”processes Clearlydefineintegrationandinterfacerequirements

Revisitprojectcharterscope– isitstillaccurate?

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Implementation

Negotiation

Selection

RFP

Requirements

Initiation

RFP

KeyActivities Ensureaccurateandcomplete

documentation Createawarenessinthevendor

community Developevaluationcriteria RecognizetheRFPprovidesthe

foundationforthefinalagreements

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Implementation

Negotiation

Selection

RFP

Requirements

Initiation

“Efficiency is doing things right; effectiveness is doing the right things.” - Peter Drucker

Selection

KeyActivities Scorevendorproposals(technical

requirements) Validatecompanystabilityandcommitmentto

market ExecuteProof‐of‐Capabilities(POC) Carefullyconsidertotalcostofownership

(TCO) Conductreferencechecksandon‐sitevisits Re‐visitProjectCharterandRisks

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Implementation

Negotiation

Selection

RFP

Requirements

Initiation

“Perfect is the enemy of good”

Negotiation

KeyActivities Bepreparedformultipleagreements Clearlydefine“acceptance”criteriaper

phase Insiston“holdback”basedon

acceptance Incorporatebyreferencepriorwork

(i.e.– RFPs;specifications)

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Implementation

Negotiation

Selection

RFP

Requirements

Initiation

“Follow effective action with quiet reflection. From the quiet reflection will come even more effective action”

– Peter Drucker

Implementation

TransitionActivities Formalizetransitionfromvendor“sales

team”to“implementationteam”– andensureongoingaccesstoreconcileissues

Re‐evaluaterisks,budget,resources,schedule– startimplementationwithaccurateprojectmanagementplan

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Implementation

Negotiation

Selection

RFP

Requirements

Initiation

“You’vegottobeverycarefulifyoudon'tknowwhereyou'regoing,becauseyoumightnotgetthere.”‐ YogiBerra,baseballcatcher

ProcurementTimeline

Thereisno“typical”timeline– thescheduleisdependentonstaffavailability,vendoractivity,organizationpriority,complexity,andotherfactors

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KeyProcurementThemes

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ExpectationManagement

Transparency

Momentum

Collaboration

Questions?

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ERPBusinessConsiderationsIttakesavillagetoimplementanERP!

March1,2016


UnderstandingtheCapabilityGap

March1,2016


29Time

Demand

High

Low

Technology Gap


Technology

People

ProcessCapability Gap

ChallengesofImplementinganERPSystem

Planningandcoordination Scopemanagement Expectationmanagement Integration Processanddataknowledge

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PlanningChallenges

Projectteamcommitmentandtimelyavailability Definitionofrolesandresponsibilities Executivebuy‐inandcommitment Agreementonimplementationmethods

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ScopeChallenges

ConfirmProjectScope– Often!o UserRequirementsandNeedso IntegrationRequirementso DataConversionRequirementso StaffandBusinessProcessImpactso BudgetConstraints

ManagingProjectScopeo Constantcommunicationandconfirmation

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ExpectationChallenges

Minimizethe“vendor”or“conference”hypeo Ensurerealisticexpectations– atalllevelsoftheorganization

o Monitorexpectations

Changeimpactsmanylevelso Knowstaffandbusinessimpact

RiskManagemento Changeequatesto“risk”

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IntegrationChallenges

Businessapplicationintegrationso ERP,permitting,businesslicense,utilitybilling/CIS,

class/facilityreservation,cashier,etc.

Enterprisetechnologyintegrationso Documentmanagement,GIS,Intranet,

Internet,etc.

Externalentityinterfaceso Conversion

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ProcessandDataChallenges

Availabilityofsubjectmatterexperts Realisticunderstandingofdataquality Accurateunderstandingofbusinessprocessesandworkflows

Willingnesstoacceptchange

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StrategiesforSuccess

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EstablishtheReasonandEnlistSupport

Don’tassumethateveryoneunderstandswhyyouaredoingthisproject!

ERPprojectshaveanenterprise‐wideimpacto Executivesponsorshipisessentialo Benefitsmaynotbereadilyapparenttostaff‐ expectstaffresistanceifsponsorship,purpose,andbenefitsarenotunderstood

Strategieso Documentandcommunicate“whyarewedoingthisproject?”o Statebenefitsintermsstaffunderstands– “whatisinitforme?”o Communicateearlyandofteno Setandcommunicatescopeearly

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EmpowerStafftoMakeDecisions

Don’tassumethatstaffwillmaketimelydecisions!

Ittakesthousandsofsmalldecisionstomaketheone“big”decision

Decisionswillhavetobemadeonlessthanperfectinformation– resistparalysisbyanalysis

Establishenvironmentwherestaffisempoweredtomakedecisions…andmistakes

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RequirementsGatheringisaCollaborativeProcess

Don’tassumethatthemostexperiencedstaffknowtherequirementsandcanprovidethem!

Requirementsprovidethebasisforselectionofthebestfitsolution

Strategieso Takeadvantageofinvolvinglessseniorstaffo Considerinvolvingstaffthathaveexperienceoutsidetheagency

o Involvedepartmentmanagementandstaffo Useyournetwork– askothersoutsideoftheagency

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EnsureAdequateTechnologyFoundationExistsDon’tassumethatyourexistingtechnologyenvironmentispreparedtosupportallthenewERPsystemfunctionalitythatwillbeavailable!

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ExpectationManagementStartsattheBeginning

Don’tassumethatstaffandmanagementunderstandsthescope,orthatexpectationswillnotchangeduringthecourseoftheprocurementandimplementation!

Knowledgeisgainedthroughouttheprocess,butoftenstaffexpectationschange,aswell

Strategieso “Signoff”ontheprojectcharterandplanwhichclearlyarticulatesscopeo Implement“RiskManagementPlan”fromtheoutseto Holdregularlyscheduledleadershipandstaffmeetingstoreview;o Projectcharter,RiskManagementPlano Trackandreportscopechangestotheleadershipteam

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“Yougottobecarefulifyoudon'tknowwhereyou'regoing,becauseyoumightnotgetthere.”‐ YogiBerra,baseballcatcher(1925‐present)

CommunicateConstantly

Don’tassumethatallstaffwillrememberwhytheprojectwasinitiatedandisawareofwhatisgoingon!

Projecttransparencyiscriticaltothesuccess Strategies

o Formalizeacommunicationplanandsticktoit– evenifitisinformal Useemail,Intranet,meetings(departmentandleadership)

o Ageoldwisdomforcommunicating Tellyouraudiencewhatyou'regoingtotellthem.Tellthem.Thentellthemwhatyoutoldthem.

o Establishfeedbackmechanismstoensureunderstanding Surveys,informalmeetingsarevariouslevelsoftheorganization

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SuccessRequiresMaintainingMomentum

Don’tassumethatstaffwillremainengagedandenergizedthroughout– orthatnewstaffwillbeonboardwiththeproject

ERPProjectmustbeamongthetopprioritiesfromanenterpriseperspective

Delaysoftenresultinlossofmomentum– whichcanbedifficulttorecapture

Strategieso Don’tlet“perfect”getinthewayofgoodo Don’tletdifficultdecisionsdelayprogresso Resistnaturaltemptationtodelaycriticalmilestoneso Celebratesuccessesearlyandoften– peopleneedstobeoccasionallyre‐energized

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StafftheProjectforSuccessDon’tassignstaffmemberstotheproject

forthewrongreasons

Tendencyistostaffprojectbasedonpositionandknowledge “Experience”shouldnotbetheonlyfactor Strategy

o Identifystaffwiththerightcharacteristics(i.e.abilitytoadapttochange,enthusiastic,persistence,resilience,teamplayer,energetic,abilitytodealwithstress

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Agency‐sideProjectManagementisnotOptional

Don’tassumethevendorwillprovideenoughprojectmanagementservicestoensuresuccess.

Vendorprojectmanagementisnecessary;however,understandthelimitationsandconstraints

Projectmanagementismorethanimplementingsoftware– includesOCM,riskmanagement,andissuemanagement

Strategieso Committodedicatedagency‐sidePMo SelectanexperiencedandempoweredPMo EnsurePMreports

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PlanandUseBackfill

Don’tassumethatjustbecauseyoubudgetedforstaffbackfill,itwillbedone

Backfillstrategiesaredifficulttoexecuteandoftentimesarenotused

Strategieso Includebackfillaspartoforiginalbusinesscaseandprojectbudgeto Beginexecutingbackfillstrategybeforeactualneedo Don’tallowstaffexcusesnottousebackfillo Consider“waterfall”approach

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PlanadequatetimetocreateChartofAccounts

Don’tassumethatthevendorwillhavealltheanswersforwhatyourchartofaccountswilllooklike.Whyisitimportant?

o Criticaltoensuretheabilitytoextractdatafromfinancialsystemo Criticalformanagementoffinancialdataandaccountingforexpensesassociatedwithspecificactivities(ex: projects;specialevents;capitalexpenses;departmentprograms);organization‐wideexpensetypes(iecityattorneyexpensescitywideacrossalldepts)

Whyisitsodifficult?o Organizationalresistancetochangeo Mappinghistoricalexpensesbetweenoldandnewchartofaccounts

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PlanadequatetimetocreateChartofAccounts

Continued… Stepstore‐design?

o Determinewhattheorganizationneedsintermsofreportingoutandexpensetracking‐ gapsincurrentdesign,i.e.wherethedesigndoesnotsupporttheorganization’sfinancial/operationalmanagementobjectives

o Gatherinputfromtheorganizationaboutwhattheyneedoutofthefinancialdata

o Layoutthedesigninalogicalmannersoenduserscanadapttoandrecognizethepatternandmoreeasilyidentifyaccountstringstobeused

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Questions


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ERPTechnicalIssues

March1,2016


ERPTechnicalIssuesandProcesses

Presented by, Phil Bertolini, Deputy County Executive & CIOOakland County, MI

March 2016


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WhereDoesaProjectStart? JointDecisionMaking

Worktogetherwithfunctionalpartners

InvolvementofTopDecisionMakers Involvetheentire“c”suite

StandardEvaluationMethod Sharedunderstandingofhowtheprojectwillbejudged

ScreenforTechnicalConsiderations

IT Budgeting and Decision Making, Chapter 6


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WhereDoesaProjectStart(cont.)

FormalBusinessCaseMadeMustunderstandthetangibleandintangiblebenefits

PartnershipwithFinanceOfficeWorkingtogethertounderstandthefinancialimpact

ITStrategicPlanMulti‐yearplanfortechnology



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StrategicPlans

DoyouhaveanITStrategicPlan?DefinethemissionoftheentireorganizationPlantodevelopenablingtechnologiesthatsolvetheproblems2to3yearsinlengthOverarchingdocumenttoguideITforward ItisalivingdocumentthattakescareandfeedingEnsureeveryprojectundertakentiesbacktoplan



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ITBusinessCasesTheEssentialsAReturnonInvestmentAnalysis(ROI)AStandardSetofEvaluationCriteriaAlignmentandIntegrationwithBudgetingProcess Intra‐organizationalCooperationAccountabilityforResults



March1,2016 55

DevelopingITBusinessCases

1. ClearlyUnderstandVisionandGoals

2. EvaluateExistingSystems

3. IdentifyAlternatives

4. RuntheNumbers

5. EstablishPerformanceMeasures



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OaklandCountyProcess

1. DevelopaScopeandApproachDocument/ROI

2. ClearlyidentifytheTangibleandIntangibleBenefits

3. GainLeadershipGroup(LG)approvaltodoaprojectsizing

4. GainLGapprovaltoincludetheprojectintheITMasterPlan

5. FundingmustbedeterminedpriortoLGapproval


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pay for it ONCE“Build it ONCE,

benefits.”EVERYBODY&


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ROIAnalysisofVirtualizationProject

Description Year1

Benefits/SavingsTangibleBenefitsSubtotal $1,287.390

CostAvoidanceSubtotal 0

CostsDevelopmentServiceSubtotal: $267,340

HardwareSubtotal: $679,642

SoftwareSubtotal: $269,680

InfrastructureSubtotal: $33,638

AnnualStatisticsAnnualTotalSavings $1,287,390

AnnualTotalCosts: $1,250,300

AnnualReturnonInvestment: $37,090

AnnualCosts/SavingsRatio: 97.12%

YearPositivePaybackAchieved Year1


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ITPlanningProcess

Planningfortechnologyprojectsisa“longdistance”raceandnota“sprint”

CarefulplanningandstrongprojectmanagementwillhelpITbesuccessful

Running the Government Race, 2010


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ITPlanningProcess

Mustinvolvepartnerstoensurebuy‐in2yearplanningtimeframeDevelopcommittees/leadershipgroupsconsistingofpartnercommunity

DevelopstrongprocessesandstandardsLedbyProjectManagementOffice(PMO)Developmentorshipandguidance



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March1,2016

ProjectManagement

DoyouknowwhatProjectManagementmeanstoyourorganization?

DoyouhavestrongProjectManagementinyourorganization?WhyshouldanorganizationinvestinProjectManagement?


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ProjectandPortfolioManagement(PPM)

CreationofaProjectManagementOffice(PMO)maybenecessarytoleadtheeffort

Mustmeetwithkeystakeholderstounderstandtheirbusinessandtheirneeds

MustunderstandtheoverallneedsoftheorganizationApprovetheprojectcharterandmanageresourcesAssessandmitigaterisks



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PPMCriticalSuccessFactors Securetopmanagementcommitment

Understandthatimplementationisabusinesschangeeffort

Devotethenecessaryresources

TheProjectManagerrules

Setcleargoals,scopeandexpectations

Trackprojectprogress,resultsandscope

Communicateeffectivelyandoften

Understandandaddressrisks

Controlprojectscopeandminimizedisruptionsbymanagingchange

Testeverywayyoucan



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March1,2016

BuildversusBuy Build?

StrategicDirection Whatresourcesexist Dowewanttobuild?

Costs Software,Hardware,Licensing,Labor OngoingMaintenance TotalCostofOwnership

Buy? StrategicDirection

Dopackageofferingsexist? Dowehavetheskillstoimplement?

Costs Software,Hardware,Licensing,Labor OngoingMaintenance TotalCostofOwnership


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March1,2016

InsourceversusOutsource Insourcing&OutsourcingarepotentiallyvaluabletoolsforITservicedelivery RightsourcingwillbenefittheITorganization

Mustrationallyevaluatetheoutsourcingopportunities

Drivedowncosts Effectivelyleveragehumanresources

Sourcingcanrangefromlittleornoeffectivepoliciestobeinganintegralpartofanorganizationssuccess

Completeoutsourcingisnotrecommended



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March1,2016

SystemsIntegrations

ERPSystemstouchnumerousoperationalsystems Integrationsmustbecarefullythoughtoutduetocosts

DevelopmentCostsMaintenanceCosts VersioningCosts

ShadowSystemsmustbereplacedorminimizedWhatoperationalunitsNEEDandnotwhattheyWANTSteeringCommitteemusthavefinaldecisiononintegrations


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March1,2016

SoftwareLicensingandMaintenance

LicensingModelsvarydependinguponhostingmodelTermsandConditionsmustbecarefullynegotiatedCloudProcurementTs&CsareidentifiedintheCenterforDigitalGovernment’spapertitled“CloudandAs‐A‐ServiceProcurements”

LongTermsupportmodelmaychangeovertime


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March1,2016

InfrastructureNeeds

Infrastructureneedsdependonhostingmodel InternallyHosted ExternallyHosted CloudHosted

Buyfortomorrowandnotjustfortoday CapacityPlanning FutureGrowth

DisasterRecoveryandBusinessContinuityRecoveryplanningimportant

Engagethirdpartyexperts


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March1,2016

OnPremiseversusCloud

Costsvarygreatlyforonpremiseversusthecloud Upfrontstartupcosts Ongoingmaintenancecosts

CapitalExpensesversusOperatingExpensesRedundancyOnpremiseandsecondarylocation

Cloudlocationsacrossnation

Connectivity Lackofspeedkills


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March1,2016

Training

Technicaltrainingshouldstartearlyintheprocess Technicalandprojectmanagementtraining

Trainingofoperationalunitstaffshouldcommenceshortlyafterinitialpurchase Nationalconferences Onsightandoffsighttraining Ongoingrefreshercourses

Trainingneverstops TechnologyandBusinessProcesseschangeovertime


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VisionaryLeadershipDoingMorewithLessUsingTechnologytoImproveBusinessProcesses

DrivingChangeThroughouttheOrganization

OaklandCountyVision

L.BrooksPattersonOaklandCountyExecutive


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E‐FinancialSystemImplementationProjectCostSavings/AvoidanceStreamlinedOperationsEarlyPay‐BackBusinessProcessRe‐engineering

ERPVisionCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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PeopleSoftEnterpriseHumanResourcesandPayrollsoftware– usedfor5yearssuccessfully

PeopleSoftfinancial,supplychain,andself‐servicesolutionsimplemented2004‐2006

Wm.ArtHoldsworth,DeputyDirectorDepartmentofManagementandBudget

PeopleSoftFinancials:Planning,Approval&Implementation

UseCaseCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

March1,2016 74March1,2016

Phase1: HRupgrade,withnew‐service/eApplications,TimeandLabor,End‐UserProductivityKit,andPortal

Phase2: PeopleSoftEnterpriseFinancialManagement,SupplyChainManagement,andAnalytics

ProjectScopeCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

March1,2016 75March1,2016

Limitationstoexistingtechnology(aging)

Risk(existingwasunsupported)

Costofownershiprisingwithexisting

Changeinaccountingstandardrequirements

Softwareadherencetobestbusinesspractices

ExistingTechnologyvsNewTechnologyDecisionPoint


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GAP&ROIAnalysis

DefineAnticipatedBenefits&Measurements

FromInstallationtoImplementation

TotalCostofOwnershipCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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TimelineDiscovery– DocumentusageandidentifyneedsGoal– IdentifycostsavingsopportunitiesMetrics– Timetocompletetask(Oldprocessvs.Newprocess)

Result– 500GAPs

Gap&ROIAnalysisCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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“Self‐service”accesstoinformationbystaffandconstituentsviaportal

EliminationofKPMGPerformanceSeriesadministrationandsupportcosts

Reductioninhardcopyreportinganddistributioncosts

Increaseinusageofself‐serviceportal

Expenditurereductionforsupportservices

Reductioninprintedreports IncreaseindownloadsofreportsfromtheportalandPeopleSoftsystems

AnticipatedBenefits&MeasurementsCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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Eliminationofstandaloneandshadow(duplicative)systemstoreallocatestafftime

Eliminationofcustomsystems Reallocationofstafftimefromportaluse

Checklistofsystemsto“turn‐off” Checklistofsystemsto“turn‐off” Reductioninsecurityadministrationdatabases

ReductioninSupportCentercalls


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Enhanced,proactivesupplychainmanagement

Increasednumberofbidders Increased%ofpurchasesviaWeb EnhancedturnaroundtimeforRFP/bidprocess

E‐catalogpurchasingbydepartmentswithpre‐approved,negotiatedpricing

Statisticalanalysis‐basedreductioninpoorperformingvendors

Enhanceearlypaymentdiscountrealization

Optimizationofpurchasequantities


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Support Training Knowledgebase Enhancements Cost

FromInstallationtoImplementationCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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Goal: Seekprojectapprovalandlevel‐setexpectations

Why?CriticalsystemforrunningCountybusinessEveryfinancialtransactionaffectedPeople‐intensiveprocessSignificantrisk

CommunicationsPlanCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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Channels: SteeringCommitteeCross‐functionalprojectmanagementteam Stakeholdersparticipation

ApprovalProcess: StakeholdersExecutiveStaff LegislativeBranchEmployees

CommunicationsPlanCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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ImplementationTeam&ProjectManagement– hybridoffunctionalandpyramidapproach

“HotSkills”PayBusinessProcessRe‐engineering(BPR)– datacollectionanddataprocessing

VanillaImplementation– accommodationsandcustomizationsSelectiveOutsourcing– RFPrequirements,certifications,references,etc.

ImplementationCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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Successes:Managedexpectationsthroughestablishedcommunicationchannelsandtraining

Trackingbenefitsafterimplementation/measuringresultsovertime Quantifyefficiencies ROI

RealizingBusinessValueCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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ROIAnalysisCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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ROIAnalysisofERPProjectDescription Year1through6

Benefits/SavingsTangibleBenefitsSubtotal $0

CostAvoidanceSubtotal $20,644,543

CostsUser&ITDevelopment/LaborSubtotal: $12,242,779

HardwareSubtotal: $1,985,333

Software/LicensingSubtotal: $2,686,076

ContingencySubtotal: $1,534,892

Benefits vsCostsTotalBenefits/Savings $20,644,543

TotalCosts: $18,449,080

TotalReturnonInvestment: $2,195,463

Costs/SavingsRatio: 89.37%

YearPositivePaybackAchieved Year6


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Costs:Year1:$4,789,238Year2:$6,474,928Year3:$5,656,528Year4:$468,838Year5:$516,853Year6:$542,696

TOTAL:$18,449,080

Benefits/Savings:Year1:$1,253,200Year2:$339,335Year3:$2,799,857Year4:$4,116,684Year5:$5,270,008Year6:$6,865,459

TOTAL:$20,644,543


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CostandBenefit/Savings(6‐years):

TotalCostofOwnership: $18,449,080TotalBenefit/Savings: $20,644,543CumulativeROI: $2,195,463

CumulativeCost/SavingsRatio:89.37%

Paybackoccurs:Year6IntangibleBenefit: Customerserviceresponsivenessimprovement


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LessonsLearned:Adoption/pushback(passive/aggressive)Aggressivetimeline/stressedoperationsKnowledgetransfer(business/technological)Ongoingcosts/fundingmethodologyDependencyonimplementer


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1. Leveragetechnologydollarsacrossentireenterprise

2. Focusonbusinessre‐engineering,nottechnologyimplementation

3. Businessdrivestechnology,technologydoesNOTdrivebusiness

Technologyistheeasypart!

ThreeKeyElementsofTechnologyCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ

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TAKEAWAYS

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1.WhathaveIlearned?

ManyhavenoideawhatanERP is.

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2.WhathaveIlearned?

Youwilllivewiththisdecision foryearstocome.

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3.WhathaveIlearned?

Communicationiseverything!

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4.WhathaveIlearned?

EducatedStakeholderswillmakeorbreaktheproject.

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5.WhathaveIlearned?

Technologyistheeasypart

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6.WhathaveIlearned?

Theoperationalunitswillsufferduringthechange

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7.WhathaveIlearned?

Thescopeofthebusinesschangesmaybemassive

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8.WhathaveIlearned?

TheROImaynotbeinharddollars

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9.WhathaveIlearned?

TherearenoshortcutstoERPsuccess

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10.WhathaveIlearned?

It’sallaboutthePEOPLE!

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WrapUp

March1,2016 104


Thanksforyourtimetoday!PhilBertolini,CIO/DeputyCountyExecutiveOaklandCounty,[email protected]

TerryHackelman,ManagingPrincipalNexLevelInformationTechnology,[email protected]


enterprise resource planning (erp) from a to z defined erp ‐enterprise resource planning...

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