50 Ways To Drive ERP Systems To Success - Presentation Transcript
50 Ways To Drive ERP Systems To Success
50 Ways To Drive ERP Systems To Success
John McGrann MBA ACMA AIMC
CEO
50 Ways To Drive ERP Systems To Success
John McGrann MBA ACMA AIMC
CEO
15 years Oracle Applications Manager experience
Projects / Support / Change Management
Chartered Management Accountant
MBA Financial Management
Public sector clients: MoD / Rent Service / Network Rail
Private include: General Electric / Canon / TUI /Saudi Telecom
Owner: www.DriveERP.com
Owner: LinkedIN group - Drive ERP
6 Subgroups
50 Ways To Drive ERP Systems To Success
AGENDA
BACKGROUND
CURRENT PERCEPTION OF ERP SYSTEMS PERFORMANCE
PEOPLE DRIVE ERP PERFORMANCE SUCCESS
THE DRIVERS OF ERP PERFORMANCE SUCCESS
ERP TOP TOOLS
ERP SELECTION
DRIVE ERP SERVICES
50 Ways To Drive ERP Systems To Success
Recent LinkedIN.com poll :
32% - Real Cash Benefit / Cannot Live Without It
68% - Too Complex / Little Value / In Learning Mode
50 Ways To Drive ERP Systems To Success
Quotes:
« Our Accounting Reporting System is in Excel »
« I asked the same question using 3 Oracle reporting tools and got 3 different answers »
« We put Oracle Financials in before…and took it out again»
« We have 3 Access databases for every employee »
50 Ways To Drive ERP Systems To Success
BACKGROUND OF ERP PERFORMANCE
Enterprise Resource Planning (ERP)
Manage resources, information, and functions ideally from a single database
Vendors include best practices
Technical performance is good
Business performance is variable
Circa. 40% of claim that their ERP systems add real value to their bottom line
50 Ways To Drive ERP Systems To Success
KEY OBJECTIVES FOR ERP SYSTEMS
Automating processes - cost savings, streamlining and standardising
Informing stakeholders (reporting) - effective information for competitive advantage
Educating users and managers – utilise the full potential of ERP
Transforming the way business is done – use ERP to change for the better
50 Ways To Drive ERP Systems To Success
CURRENT PERCEPTION OF ERP SYSTEMS PERFORMANCE
Technology vs. Business View
Divide between the IT and business teams
IT deliver the system and subsequently support it
Business settles for Go Live functionality
Job gets done albeit in an inefficient manner and frustration sets in
Ownership and management of the enterprise system is unclear
Capabilities of the system unknown & slow progress
ERP vendor is likely to be blamed for the lack of success
50 Ways To Drive ERP Systems To Success
CURRENT PERCEPTION OF ERP SYSTEMS PERFORMANCE
Reasons For Performance Shortfall - Signs
Heavy customizations
Lack of planning and management
Disgruntled users
Ad hoc ancillary systems in MS Excel and MS Access
Array of reporting tools
Problematic interfaces
IT driven
50 Ways To Drive ERP Systems To Success
CURRENT PERCEPTION OF ERP SYSTEMS PERFORMANCE
Reasons For Performance Shortfall
Independent business units and politics
Lack of management or leadership
Business process issues
ERP evaluation failure
Lack of effective change management
Not measuring success
Poor data
Poor role definition
Lack of an effective reporting strategy
Lack of empowerment
Ineffective change control
50 Ways To Drive ERP Systems To Success
PEOPLE DRIVE ERP PERFORMANCE SUCCESS
Why do people who ostensibly have the same start in the career race perform at different levels?
Why are so many organizations failing to perform to a high level in automating processes, informing stakeholders (reporting), educating users and managers, and positively transforming the way business is done?
Surely these are the key objectives for all ERP systems?
PEOPLE DRIVE ERP PERFORMANCE SUCCESS
Individual performance
20% contribution of performance is trained and learned skills - basics
80% our personal skills - the drivers – including:
Decision making ability and judgement
Leadership
Assertiveness
Coping with stress
Enthusiasm and energy (Passion)
Motivation
Team building
Self-confidence
Initiative
50 Ways To Drive ERP Systems To Success
50 Ways To Drive ERP Systems To Success
PEOPLE DRIVE ERP PERFORMANCE SUCCESS
Organisation ERP Performance
Share the same basics including
Technical infrastructure
Qualified IT and applications staff
Competent users
Project methodology
Systems integrator
Same ERP application
What are the drivers for ERP performance success?
50 Ways To Drive ERP Systems To Success
PEOPLE DRIVE ERP PERFORMANCE SUCCESS
Organisation ERP Performance - the drivers
Actually Managing ERP Applications - as an investment
Successful Change Management - people are key
Leading a Support Team - proactive not reactive
Measuring Success and Value for Money - monitoring performance
Data and Information - planning and managing
Customers and Collaboration - working together for the benefit of all
Reporting and Business Intelligence - the right tools for the job
Empowerment and Super Users - unleash skills and passion
Change Control and Value for Money - cost benefit analysis
Project Management Kept Simple - a few tips
Process Improvement - continuous and alignment with applications
Management Information Systems - efficient and effective systems
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Actually Managing ERP Systems
Who owns your ERP applications? IT or the Business?
Who manages your ERP applications?
What is the Strategy for ERP applications?
How much will you spend on your ERP applications over 10 years?
Who are your customers?
What is your customisations policy?
Is your ERP Applications strategy aligned to business / corporate plans?
Is your support team purely reactive?
What % of the potential of ERP are you utiliisng?
How does your OERPperformance compare against prior years? Other orgs?
Budgeting and MI reports?
Do you implement change successfully?
Is your user community empowered?
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Successful Change Management
Traditionally change management around ERP applications projects means:
Communicating features and benefits of the new system
Training, education, and external information programmes
New organisational structures, policies, and procedures
Monitoring and evaluating the organisation's performance
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Successful Change Management - Winning the Change Game
Firing up The Team! - Create a sense of urgency and crisis. You need targets and accountabilities
Leaders on and off the pitch! - Create from the powerful and influential and make it visible
A Vision of Glory! - Make the vision feasible, desirable, focused and flexible
Roaring on the Team! - A simple message using many channels with leaders setting an example
Battling and Dominating! – Align systems and organisation to the vision, and deal with troublesome managers
Goals! – Celebrate and communicate short term wins
More pressure! More goals! – Create more change, success and leaders
The Winning Mentality! – Make successful change part of the culture
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Leading a Support Team
IT function?
IT or Business background for Support Team analysts?
Reactive or proactive?
Efficiency of the support function
Measure solutions and financial benefits - Celebrate and communicate
Cost benefit analysis & Customisations - undertake for all changes
Flexible staff - multiple modules and be trained in the drivers
Cost or profit centre - for benchmarking and efficiency analysis
Consider using spare capacity as a service provider externally
Outsource – counter it on the basis of cost, continuity, communications, loyalty
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Measuring Success & Value for Money
Measure effectiveness and efficiency of your support team
Analysis of customers and users costs and efficiency savings
Analysis of Service Requests (internal and external)
Benchmarking internally and externally
KPIs
Aligned with business goals and success
Quantifiable
Key customer metrics
Satisfaction
Retention
Profitability
SLA compliance
Call resolution
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
KPIs examples
Return on Investment
Service Requests Analysis & SLAs
Efficiency Analysis
Support Hour Cost
Development Hour Cost
Efficiency Savings
Production Change Request Analysis
Customer / User Analysis
Training Provision Analysis
Benchmarking - Oracle Service Requests (Metalinlnk)
Benchmarking - Aberdeen Group
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Data and Information
Management information is data processed to make informed decisions
Much of MI is useless for that purpose
The repetitive production of data should be vigorously questioned
Data and technology are not ends in themselves
Data Migration - significant amount of planning
Identifying the data to be migrated
Determining the timing of data migration
Generating the data templates
Freezing the tools for data migration
Deciding on migration related setups
Deciding on data archiving and purging
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Data and Information
Data Quality
Ensure data quality is maintained in your ERP system
Get it right first time and keep it right
Invest in a data quality audit tool and report back to users
Archiving and purging policy that works
Ensure users have regular and effective housekeeping routines
Database performance
DBAs do a fine job but make sure they are being proactive in optimising database performance.
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Data and Information - Oracle 11g database
11g Data Masking
Oracle Database Partitioning
Information Lifecycle management
11g Compression
Oracle Database Vault
Oracle Transparent Data Encryption
Data Profiling and Anomaly Detection
11g Database Replay
SQL performance analyser: Real Application Testing
11g Active Data Guard
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Process Improvement
ERP vendors have standard business processes - best practise
Organisations may choose to adopt standardised processes or customise
Customisations are expensive to develop and support long term
Customisations are a risk during upgrades
Neglecting to map current business processes main reason for failure
Thorough business process analysis before selecting an ERP vendor
Link each current organizational process to the organization's strategy
Analyse the effectiveness of each process
Understand the automated solutions available
Integrate the business and application process for training and support
Continuous review of key processes by business and applications team
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Customers and Collaboration
Big impact on systems performance as they consume your resources
Traditional view of a customer (external):
Consumer of your goods and services
Pay for your goods or services
Able to choose other suppliers
Unprofitable or troublesome you can end the relationship
There is a legal agreement
Internal Customers
Executive level managers are customers for ERP systems
If you are not a customer - then you are a user
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Customers and Collaboration
Define Customers vs. Users (esp. Internal services)
Set up an Engagement Model - right ERP project and/or support team members meet the right business users at the right levels
Report back on customer MI - discuss ERP management information
Manage Reporting Strategy jointly
Set up a Custodianship Model
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Customers and Collaboration - Set up a Custodianship Model
Defines roles, responsibilities, duties, and relationships
Without it - chaos reigns
Business Partners own business processes and controls
ERP teams implement and maintain them
Business Partners authorise access to their modules - ERP teams grant
Business Partners own application data - ERP teams monitor data
ERP teams are custodians & managers for live ERP applications.
ERP team authority is delegated from the IT Senior Leadership Team
All actions are aimed at benefiting the whole of the organisation
Manage Reporting Strategy – constant agenda item
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Reporting and Business Intelligence
Defined by the business – the WHAT
Delivered by IT apps team – the HOW
Partnership: Align with the company Reporting Strategy
Top down…bottom up approach
Utilise best practice
Deploy appropriate reporting tools
Baseline current reporting
Change request raised and fully scrutinised for value for money
Detailed analysis
Agreed solution - effective and efficient
Controlled development
Fully tested
Deployed in production
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Empowerment and Super Users 1
Super Users
Skilled end users developed to maximise benefits from ERP
Are users too reliant on IT support staff?
Subject Matter Experts and passionate ERP users
Users > Super Users > Support Team > Vendor Support
Role of the Super User
Selection of Super User
Training and Development
Super User Groups
Custodian of module including set up
Resolves process vs. Systems issues
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESS
Empowerment and Super Users 2
Super User Groups (SUGs)
A Vision - To be acknowledged as the user experts in the organisation
Big Picture - Fit in the ERP space in the organisation
Objectives - it must pay for itself with effective solutions
Benefits - Voice of the users, process improvements, efficiencies, best practise
Ownership - By the business
Structure - Relationships with other groups and stakeholders
Processes - Change requests, support calls analysis, review
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