Fail to prepare, prepare to fail: implementing ERP and CRM systems

Fail to prepare, prepare to fail October 2011

Introduction to Sage

What Sage does
Sage is a leading supplier of business management software and services to over 6 million customers worldwide. From small start-ups to larger organisations, we make it easier for companies to manage their business processes
Our vision is to be the most admired and respected business software and services provider in the world

Sage - Global Vendor, Local Strategy
Sage is a leading supplier of business management software and services to over 6 m customers worldwide.
From small start-ups to larger organisations, we make it easier for companies to manage their business processes
3 rd business management software vendor (Total ERP Software Revenue Market Share by Vendor, 2008 (Source: Gartner June 2009)
Global £1.439Bn revenue 6 m customers world-wide 13,100 employees in 26 countries 27,000 resellers, 40,000 accountants

What we offer

What we supply: Business management solutions …

What are business management solutions? Software and services that help companies manage their business processes and relationships. Your business Customers People Finances Operations Suppliers Advisors Customers Improve service Meet their needs Build loyalty Multiple payment options Multiple channels Operations Manufacturing Distribution Services People Pay correctly & on time Record sickness & absence File legal documents Manage performance Develop potential Suppliers Get what you need on time Manage costs Finances Manage debtors & creditors Manage cash flow Improve revenue and profit Forecasting & Planning Electronic payment processing Advisors File accounts Statutory reporting Forecasting & business planning Advice & help from Sage

Not just small business. All business

Our view on the market

Market Trends on our radar
e-commerce maturity
IT impact on enterprise productivity
Web users and web clients explosive growth
5.5M new users every week
3.2+B mobile devices vs 980+M PC
From Web 1.0 to Web 2.0
The participation age – next generation users
User generated content prevails
From Desktop to Webtop: The user centric UI on the net
Social Networking is centre stage to Web 2.0
Enterprise 2.0: Web 2.0 technologies enter the enterprise space
“ Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers.” Andrew McAfee
Modernisation and development will be user centric

Trends and needs into 2012 - Top Drivers for Strategies
Reduce Time & Cost
Streamline & accelerate business processes
Optimise the use of current capacity
Interoperate across locations
Standardise business processes
Provide visibility across functions & departments
Cope with increasing complexity
Improve Customer Experience
Link global operations for better collaboration
Increase agility & responsiveness
360° visibility

Benefits Realisation

Benefits Realisation - Why it matters

Benefits Realisation - Overview Common Challenges A recent survey revealed that 27% of clients either have not been able or did not attempt to measure business benefits…an additional 64% have only measured ‘some’ benefits. Determining benefits, along with lack of a repeatable ‘benefits process’ were the top two obstacles to justifying investments.” Source: Gartner Group “ Less than 25% of IT projects will deliver hard, monetary benefits that exceed the cost of the implementation” Source: Information Week

Benefits Realisation - Overview Common Challenges: Why Projects Fail
Unclear business rationale for implementing ERP/CRM
Lack of adequate executive buy-in
Failure to consider key business requirements during vendor selection process
Poor project management and project cost controls
Lack of focus on organisational change management, communications, and training
Failure to measure performance / ROI and to conduct post-implementation audit

Benefits Realisation - Overview Purpose of Benefits Realisation
A comprehensive project approach that focuses on identifying, measuring, and ensuring the business benefits achievable through applying technology
Enables alignment between mid-level managers and project benefits
Holistic approach with a focus on Performance Measurement, Organisational Change Management (OCM), Program Management support, and process improvement

Performance Management
Business Case / ROI Definition
Operational Measures
Benchmarks and Perf. Targets
Manage Measures to Bus. Case
Business Processes
Process Improvement & Design
Process Measures & Value-Add
Staff / FTE Optimisation
Six-Sigma & Quality
Organisational Change
Organisational Readiness
Organisation Design
Job and Work Design
Training & Communications
IT / Architecture
Vendor Selection
Project / Program Management
Solution Architecture
Reporting and Business Analytics
Business Strategy Alignment
Strategy Definition / Articulation
Performance Measure Alignment with Strategy
Applies To:
ERP / CRM Projects
Merger and Acquisition Integration
Operational, Process, and Supply Chain Improvement
Global Operations Standardisation and Integration
Shared Services and Outsourcing
Benefits Realisation - Overview Key Components of Benefits Realisation
Business Optimisation
Benefits Realisation

Benefits Realisation - The approach

ERP Benefits Realisation - Approach The Business Benefits Pyramid Business Process Improvement And Business Requirements Technology Development Organisational Design and Change Management Performance Measurement For projects to be successful, business processes should serve as a foundation , with IT and organisational change management enabling those processes. The end result is optimised business benefits and a strong project ROI. ROI Program Management Support

Corporate Metrics Tied directly to corporate-level goals
Sample Metrics:
Wholesale sales and profit
Retail sales and profit
Product development time to market
Sales and profit by region
Sourcing costs
Number of product introductions per year
Business Unit Metrics Business Unit Metrics
Average inventory costs
Number of new product designs completed per year
Inventory accuracy
Departmental Metrics Individual Metrics Individual Metrics Departmental Metrics ££s Savings Measured Results ROI Benefits Realisation - Approach High-level Measures Should Be Cascaded to Lower Levels of the Organisation to Drive Business Results
Average inventory cost by location
Number of new designs per employee

Benefits Realisation - In practice

Business Case, Measures,
and ROI
Process Benefits
Improved process cycle times
Lower labour costs
Higher efficiency
Capital and Infrastructure Benefits
Reduced inventory ££s
Lower IT infrastructure costs
Decreased A/R levels
Increased A/P levels
Process Improvement Average cycle times, average labor costs Org. Design Individual job roles, MBOs, performance evaluations, individual scorecards Executive Alignment MBOs, compensation structure, project sponsorship IT Configuration Process workflow modification, report designs, analytics Benefits Realisation - Approach Focus on Measurement Enables Other Change Initiatives

Benefits Realisation - Implementing Focus is on Integrated Set of Value-Add Activities
Business Process Improvement / Optimisation and ERP/CRM Business Requirements
Performance Measurement and Management
Organisational Change Management, Training, and Communications
Post Go-live Audit and Root Cause Analysis
Program Management Support and Project Quality Assurance

Benefits Realisation - Implementing Sample Project Tools
Business Case and Performance Metrics
Organisational Readiness Assessments
Job Impact Analyses
Process Designs
Process and Organisational Change Implementation Plans
Benefits Realisation Scorecards
Root Cause Analysis workshops and results
Post-Implementation Corrective Action Plans
Communications Plan
Project QA Review and Assessment

Benefits Realisation - Implementing Can Begin Implementation in Multiple Phases of Lifecycle
During Vendor Selection and Project Planning
Establish Benefits Realisation framework early in process
Establish baseline metrics and align to business case before project begins
During Implementation
Can refine implementation process to emphasise process improvement and performance measures
“ Project clean-up” to redirect troubled or over-budget projects to refocus on business value
After Go-Live
Continuously improve and streamline business processes
Establish operational performance measures and targets to improve business performance

Benefits Realisation - The outcome

System Go Live Benefits Measurement Balanced scorecards, reports Root Cause Analysis of Benefit Gaps Fishbone diagrams, activity based costing, process analysis Implement Corrective Action Process improvement plans, Org. realignment, job redesign Benefits Realisation Benefits Realisation - Results Focuses on Improving Post-Go-Live Results

Benefits Realisation - Results Creates Measurable ROI and Business Value
Reduces project risk
Closely aligns business and technical activities
Proactively identifies and addresses potential obstacles to realising project benefits
Provides more thorough understanding of underperformance and lessons learned
Improves justification for future IT project approvals
Provides quality and continuity through ERP project lifecycle

Fail to prepare, prepare to fail October 2011

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Fail to prepare, prepare to fail: implementing ERP and CRM systems

by Sageukofficial on Oct 20, 2011

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Fail to prepare, prepare to fail: implementing ERP and CRM systems — Presentation Transcript