sap coe doane
DESCRIPTION
COETRANSCRIPT
-
5/20/2018 Sap Coe Doane
1/24
Hosted by
Enterprise ApplicationsCenter of Excellence
A Maturity Model
Michael DoaneMETA Group
-
5/20/2018 Sap Coe Doane
2/24
Hosted by
Why an ERP Center ofExcellence?
An optimization of business
processes that drive business
benefit continually
An optimization of end user
competency and employee
fulfillment of business processes
Continued coherence and
integration of functionality and
data through all process chains
-
5/20/2018 Sap Coe Doane
3/24
Hosted by
Parameters: Business Applications Span (ERP is the backbone)
Maintenance and supportof ERP and related
functions (ERP/CRM/SCM)
Optimization of current
system usage
Continuous
business improvement
Prepare the company for
transformational change
(all the time)
As Is
To Be
Center of Excellence Functions
Business
IT
-
5/20/2018 Sap Coe Doane
4/24
Hosted by
The Enterprise Applications Value Chain
It is imperative to linkend users to profit & loss
Without measurement,
you cannot begin
Business processimprovement is the
source of measurable
business improvement
IT also has its business
processes: reduction of
IT costs applies to this
value chain
Order Fulfillment
Process
Sample Business Performance KPIs
Return on sales
Return on assets
Net sales per employee
Ratio of Assets/Liabilities
Procurement
Process
Production
Process
Sample Major Business Processes
Business Process Drivers
Key Performance Indicators
Profit & Loss
SAP User Competency
Software
-
5/20/2018 Sap Coe Doane
5/24
Hosted by
Foundation of Organization Planning
Two aspects of IT
Business-specific activities = the Center of Excellence
Infrastructure/support ~ Foundation Services
Architecture
Infrastruc
ture/
Operations
ITR
esource/
Governance
Center of Excellence
-
5/20/2018 Sap Coe Doane
6/24
Hosted by
Continuous Education
Multi-site Virtual CoE
Finance Sales Logistics
Enterprise Program Management
Production
Users
Continuous Education
Users Users Users
Integration Management(Functional, Cross-Application)
Custom Applications
Software Configuration & Support
Help Desk
Production Control/Change Management
Integration Management (Technical)
Process Owners
Users Users Users Users
Functional Oversight
Remote
Custom Applications
Process Oversight
-
5/20/2018 Sap Coe Doane
7/24
Hosted by
META Group Maturity Modeling
Levels 1-5
Elements or best practices (weighted)Up to 10 per maturity level
Categories
METAmap (META Group Maturity Assessment Program)
-
5/20/2018 Sap Coe Doane
8/24
Hosted by
Center of Excellence Maturity Model
Business/ Enterprise End
IT Alignment Applications Users Infrastructure
1Core ERP
There is a link between
business and IT for
configuration updates.
ERP is not overly
customized; core
implementation is complete
Basic end user training is
complete.
ERP infrastructure is
adequate.
2Stable ERPThe role of business in ERP
evolution is defined.
ERP is the backbone of
enterprise applications.
Applications interfacing is
complete.
End users fulfill ERP
functions without excessive
help desk or support.
ERP infrastructure is stable.
3CoE Defined
Business has active
ownership of business
processes. Current KPI is
measured.
The applications portfolio is
inventoried.
End users receive periodic
refresher training
ERP infrastructure is flexible.
Apps data is generally
synchronized.
4CoE Managed
KPI measures and targets are
in the system. EPMO directs
business process
transformation.
The applications portfolio has
been rationalized.
End users are trained to
business processes and
continuous training is in
place.
Enterprise applications
infrastructure is flexible.
5CoE Evolving
Business process change is
guided by KPI performance
and configuration is in the
hands of business.
The applications portfolio has
been optimized.
End user job performance is
linked to business process
performance
Enterprise applications
infrastructure is adaptive to
applications changes.
Level
-
5/20/2018 Sap Coe Doane
9/24
Hosted by
The Consequences of ImplementationConcerns Pre Implementation Mistakes Noted After Implementation
Source: The State of ERP Services Multi-Client Study, META Group 2003
Scale 1=Unimportant, 5=Very Important
-
5/20/2018 Sap Coe Doane
10/24
Hosted by
2
1%
1
1%
Do you have some form of a CoE?
1.Yes
2.No
-
5/20/2018 Sap Coe Doane
11/24
Hosted by
Level 1 Core ERP
ERP is at the center of an applications portfolio
The elements for this level are generally identical tothose of a successfully completed implementation
It is imperative to keep the project team intact and
ready for transfer to the Center of Excellence
-
5/20/2018 Sap Coe Doane
12/24
Hosted by
Level 2 Stable ERP
Most new ERP installations take 3 to 4 months to
achieve a state of stability
In this period, project staff transitions to the Center
of Excellence
-
5/20/2018 Sap Coe Doane
13/24
Hosted by
Level 3 CoE Defined
After stabilization of ERP, the Center of Excellence is
functional
Attention turns to measures & benefits
-
5/20/2018 Sap Coe Doane
14/24
Hosted by
Level 4 CoE Managed
-
5/20/2018 Sap Coe Doane
15/24
Hosted by
Level 5 Evolving CoE
-
5/20/2018 Sap Coe Doane
16/24
Hosted by
End Users
-
5/20/2018 Sap Coe Doane
17/24
Hosted by
Business/IT Alignment
-
5/20/2018 Sap Coe Doane
18/24
Hosted by
Infrastructure
-
5/20/2018 Sap Coe Doane
19/24
Hosted by
Enterprise Applications
-
5/20/2018 Sap Coe Doane
20/24
Hosted by
Results by Maturity Elements
Results by Category
-
5/20/2018 Sap Coe Doane
21/24
Hosted by
Overall Results
METAmap (META Group Maturity Assessment Program)
-
5/20/2018 Sap Coe Doane
22/24
Hosted by
0% 0% 0% 0% 0%
1 2 3 4 5
Of those who have a CoE, whichlevel have you attained?
1. Core ERP
2. Stable ERP
3. Defined CoE
4. Managed CoE
5. Evolving CoE
-
5/20/2018 Sap Coe Doane
23/24
Hosted by
Keys to CoE headcount control:1. Support given to Business Process Owners2. Direct software configuration by CoE (business-led)3. Active competency management/continuing knowledge transfer
-
5/20/2018 Sap Coe Doane
24/24
Hosted by
Conclusion/Recommendations The CoE must be led by business staff
and business concerns (measurable)
A CoE will be sustained if measurementand business benefit are at the
foundation
People/processes tend to decaythrough time
Maturity is accelerated when benefits are
achieved