EVERWIN ... ERP implementation is a significant change: conduct a SWOT
analysis ... live stabilization, the ERP implementation will « conflict » with a
number ...
SJK Conseil 2012
Market Trends So Far: ERP Market
Value delivered
Enterprise Solution
Global Information
Data Centralization
Process Harmonization SCM Best Practice (*)
© SJK Conseil, 2012
Market Trends Outlook: ERP Market Mobile Technology Solution as a Service Complex Information Management
Value delivered Strategic Management Reduced Time to Market Increased Customer Focus
© SJK Conseil, 2012
ERP Installation Level (Source: Markess International – 2011)
2011 level
2013 level
Large/International Organizations
81 %
82 %
Midsize Companies
57 %
60 %
Small Businesses (< 50 persons)
25 %
29 %
© SJK Conseil, 2012
ERP Scenarios
Value at Stake
Reporting
Back Office
Front Office
Harmonization Scope
IT Strategy Consolidation System + Local Applications Midrange ERP + BoB (front)
Investment
Corporate Strategy
Top Tear ERP
IT Efficiency Drivers
© SJK Conseil, 2012
Frequent Drivers 1st option: Consolidation of Front office processes Customer expectations (same Customer across Markets) Unique Commercial Strategy across Markets & SBUs Similar Manufacturing and Distribution processes across SBUs ERP delivers Best practices 2nd option: Consolidation of Back office + Best of Breed Specific front processes deliver competitive advantages, Shared Service Centers still achieve shareholder benefits 3rd option: Consolidate reports only Lack of Business levers for IT integration Growth thru frequent acquisitions / cessions
© SJK Conseil, 2012
ERP solutions
(non exhaustive)
Editor
ERP Solution
CDC
ROSS ERP
CEGID
CEGID BUSINESS PLACE
DIVALTO
DIVALTO
EVERWIN
EVERWIN
EXACT SOFTWARE
EXACT GLOBE
IFS
IFS APPLICATIONS-ERP
INFOR
INFOR 10
JEEVES
JEEVES UNIVERSAL
LAWSON
M3
MICROSOFT
Dynamics AX
MICROSOFT
Dynamics NAV
OpenERP
OpenERP 6
ORACLE
ORACLE E-BUSINESS SUITE
ORACLE
JD Edwards EnterpriseOne
ORDIROPE
MINOS EAS
PRISME
PRISME-ERP
PROGINOV
PROGINOV
QAD
QAD EA
QUALIAC
QUALIAC ERP
SAGE
SAGE X3
SAP
SAP ERP
SYLOB
SYLOB
UNIT4
AGRESSO BUSINESS WORLD
Versions for Cloud SMB Versions
© SJK Conseil, 2012
Beyond the ERP Content Management
Business Intelligence
Function Expert Solution (BoB)
Mobility Application
Cloud Services SaaS DaaS IaaS
ERP BP Management
Collaboration Solution
Enterprise Interface & Output
Geolocaliz. Application
© SJK Conseil, 2012
ERP Selection Process Strategic Planning
Considering the significant focus required from evaluation to post go live stabilization, the ERP implementation will « conflict » with a number other Business key projects/priorities
Evaluate Readiness
ERP implementation is a significant change: conduct a SWOT analysis of the current organization will be a KEY success factor
Prepare assessment
Weighted requirements (Bus & IT) to represent how the Business will run after the implementation. Specific skills will be necessary to conduct the evaluation. A well planed internal communication will be another KEY factor
Select Vendor
The ERP vendor will be a long term Business partner. Besides the selection of the right business and IT solution for the long term, this partnership will facilitate (or not) the realization of expected benefits over a number of years
Plan Installation
On the top of the platform implementation project toolkit, 4 critical subjects must be cleared at this stage: Communication, Resources, Scope control, Business performance measurement © SJK Conseil, 2012
Step 1: Strategic Planning
Tactic
Strategic
Business ROI will take Time
Bcase with high Benefits
Major Impact on daily Work
Executive Commitment
Subcontract Implementation
Organizational Impact is THE Risk
Bcase generates low Benefits Main Driver: Technology
Never Occurs!
Conflicts many adhoc Projects Tactic
Strategic
IT © SJK Conseil, 2012
Step 2: Evaluate Readiness Manageable Scope Social & Org. Stability Human Resources Adherence Data & Information Availability Commercial Stability
Action Plan (Alignment) S(trength) W(eakness) O(portunity) T(hreat) Analysis
Comm. Plan
NO GO
Assessment Team
GO
Risk Mitigation Sheet © SJK Conseil, 2012
Step 3: Prepare Assessment Strategy
Alignment with Business Development, Ability over a long period: to support realization of synergies, to create Business advantages v. Competitors, to manage compliance
Commercial
ERP Provider governance, history & strategy within IT market, long term vision, Licensing, Support structure , Cultural fit, industry partnership
Functions (*)
Identification of critical / non critical functions & processes: Critical (Best Practice, Compet. Advantages)=“must have” Non Critical=the ERP likely to bring improvement with possible organizational impact to manage
Methodology
ERP Life Cycle Coverage, Compatibility, Certification, QM, Proven Performance
Archicture
Usability, Web Services, Security, Organizational Structure, 3rd Party Product Integration, Process Repository, Data Management, Upgrades, Scalability, Availability
Infrastructure
Area
Criteria
Weight
Score
(Assessment Criteria Examples provided In Appendix Section)
Operating System, Data Base, Communication, Network requirements, Traffic trends, Disaster Recovery
(*) SJK criteria catalog contains 1800 functional check points (HR, Finance, Sales, Supply Chain, Manufacturing, Purchasing, R&D)
© SJK Conseil, 2012
Step 4: Select Vendor 1!
Select
•Prepare Business Cases to be prototyped and demonstrated by vendor •Setup Executive meetings •Organize & attend customer site visits (same industry, same culture, …) •Engage Purchasing & Legal Dept •Contract
2 or 3 Process Answers to RFI, Run Demos & Eliminate
•Process answers and complete evaluation sheets •Attend initial (commercial) demos •Ask questions specific to your organization •Attend Company specific demos •Confirm TCO scenarios •Materialize intangible criteria (culture, human, …) •Select 3 candidates max
5 to 8 Create initial Vendor List & Issue RFI
•Mobilize & Train Assessment Project Team (methodology, communication) •Select Initial vendor list based on critical criteria (language, technology, industry knowledge, …) •Finalize Selection timeline and Comm. strategy •Prepare and Issue Request for Information
© SJK Conseil, 2012
Step 5: Plan Installation Assessment Projet Team
Roadmap
Gouvernance
Business Case
Performance Measure
• •Scope •Assistance Strategy •Resourcing Strategy • Benefits • Costs • Project Cash Flow • Risks • Business Constraints •Organization Changes
•Sponsorship • Steering Group • Critical Path • Deliverables • Milestones • Project KPIs • Solution KPIs •QA Framework •Assistance RFQ & Selection • Project Infrastructure Plan
Comm. Plan Risks
• Comm. Strategy • Milestones • Comm. Toolkit • Resource Selection • Risk assessment Process • Issue Management Process
Delivery Project Team
Project Team Assistance • Resource Onboarding • Assistance Onboarding • Roles & Responsibilities • Project Charter • Project Plan • Project Toolkit Training • Project Financial Control
Transition Plan
• Cutover Strategy • Organization Impacts • Transition Plans (HR, Legal, … ) •Risk Assessment Sheet • Decomiss. Strategy • Security Strategy
Infrastructure Data Migration Strategy
• Infrastructure transition kickoff • Application Mgt Team Setup • Data Collection Strategy •Data Management Team Setup
© SJK Conseil, 2012
Data Source: Prescott LLC (NYC based Investment Bank) www.prescott-group.com Scope: 600+ Companies (USA, Europe)
ERP Selection
100 80 Yes (82 %)
60
No (18 %) 40 20 0 Selection Satisfaction
© SJK Conseil, 2012
Area of Satisfaction 70 60 50 40 30 20 10 0
Yes No Unchanged
© SJK Conseil, 2012
Business Process Impact
40 Business Process Changed
35 30
ERP Customized
25 20
No Impact
15 Process had to be changed anyway
10 5 0 Process Impact
© SJK Conseil, 2012
Business Change Complexity
50 45 40 35 30 25 20 15 10 5 0
Very High High Low Very Low
No impact
Complexity (Process or Organisation) © SJK Conseil, 2012
ERP Benefits Information availability 80 70
Internal Process integration
60
Reduced Process Time
50
Customer Process integration
40
Lower Operation Costs
30 Lower IT Costs 20 10
Supplier Process Integration
0
No Actual Benefit
Type of Benefits © SJK Conseil, 2012
ERP Bcase Realized Benefits
35 30
> 80 %
25
50 - 80 %
20
30-50 %
0 - 30 %
15
No Benefit
10
No Bcase
5
0 Catégorie 1 © SJK Conseil, 2012
ERP ROI Time
25 1 Year or Less
20
2 Years 15
3 Years
4 Years
10
5 Years > 5 Years
5 0 Time
© SJK Conseil, 2012
ERP Costs vs Budget
40 35 30
> 50 % Over
25
25 - 50 % Over
20
0 - 25 % Over On Budget
15
Under Budget
10 5 0 Variance v Budget
© SJK Conseil, 2012
ERP Customizing
35 30 No Custom.
25
0 - 10 %
20
10 - 25 %
15
25 - 50 %
10
> 50 %
5 0 % of Core Customization © SJK Conseil, 2012
Contact SJK Conseil Email : Tel:
www.sjkconseil.com
[email protected] +33 (0) 442 927 620
