SPEER program - Jan Vos


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Presentation about SPEER program by Jan Vos at Overheidscongres 2010: Implementation of ERP in the logistic and financial domain of the Dutch Armed Forces

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  • 17 september 2010 18 mei 2009
  • 17 september 2010 17 september 2010
  • 17 september 2010
  • 17 september 2010 18 mei 2009
  • 17 september 2010 Integration & standardization: Processes are standardized and integrated across the four services (Army, Navy, Air force, MP), not only in a business blueprint but also in a ‘ready to use’ ERP-system. Implementation: ERP / Finance implemented across the entire armed forces and MoD. First migrations in logistics conducted successfully. From 2011 tot 2014 rollout on large scale in logistics.
  • 17 september 2010 - Too complex
  • SPEER program - Jan Vos

    1. 1. The SPEER programme Implementation of ERP in the logistic and financial domain of the Dutch Armed Forces
    2. 2. Content <ul><li>Programme overview: Business Case, Scope, goals </li></ul><ul><li>Programme characteristics </li></ul><ul><li>Programme approach </li></ul><ul><li>Programme results </li></ul><ul><li>Experiences / Lessons learned </li></ul><ul><li>Conclusions </li></ul><ul><li>SPEER: S TRATEGIC P ROCESS E RP- E NABLED R E-ENGINEERING </li></ul>
    3. 3. Like most of the world’s defense forces, the Dutch saw a major change over the past 15 years New focus: world wide missions for international peace and stability The SPEER Programme context Wider mission spectrum, flexible expeditionary capabilities, cooperation between services, use of common assets Joint operations
    4. 4. Restructured NL Defence Organization BEFORE 2005 To MODNL Defence Material Organisation Defence Services Navy Army Air Force OPERATIONAL COMMANDS SERVICE CENTERS MP MINDEF Navy ARMY Air Force
    5. 5. Why is change inevitable ? JOINT LOGISTIC SUPPORT FOR JOINT OPERATIONS Improve efficiency (phase 1 668 FTE / 20 M€/yr) Support new business model (costs visibility, shared service centres) Phase out legacy, Improve IT management Improve asset management & financial control structurally The world changes … Policies are changing … The Dutch Mod is changing … Technology is changing … Program goals
    6. 6. SPEER Programme: Scope, facts and figures <ul><li>Program scope: </li></ul><ul><li>All Logistical & Financial Processes </li></ul><ul><li>Entire defence organization </li></ul><ul><li>Ca. 8000-9.000 users (first phase) </li></ul><ul><li>Investment budget M€ 268 (first phase) </li></ul><ul><li>Timeframe: 2005 -2014 </li></ul><ul><li>Programme organization: 200 - 300 Def. Employees </li></ul><ul><li>Strategic partners </li></ul><ul><li>ERP: SAP </li></ul><ul><li>Programme control & kernel design & custimization </li></ul><ul><li>Cap geminiLogica </li></ul><ul><li>Implementation partners: Atos Origin, IBM, Ordina, PA Consulting, PWC </li></ul><ul><li>Auditing & Second Opinion: HEC / SAP </li></ul>
    8. 8. Joint missions require joint support: Possible scenario Depot AGB Depot ODC APOE 42 Tankbat 301 SQN 130 CL-CIE Marns-bat Ops Theatre VC APACHE DET VC-DET MARNS- DET TKPEL HRSTGP TKPEL APACHE OHDGP Foreign Unit Local Supplier 933 SQN Formation TF & NSE SPOD/ APOD SPOE
    9. 9. Programma characteristics (1): Best practice processes or defence specific <ul><li>Identical to other businesses / government </li></ul><ul><ul><li>Basic processes on procurement, supply, maintenance, configuration management, ILS </li></ul></ul><ul><ul><li>Finance (cash/committments) </li></ul></ul><ul><li>Specific for military </li></ul><ul><ul><li>Flexible organizational structure (mission structure) </li></ul></ul><ul><ul><li>Non-static / flexible supply chains </li></ul></ul><ul><ul><li>Mobile units /deployed technology in remote area’s </li></ul></ul><ul><li>Good news: </li></ul><ul><ul><li>Defence uses many common components </li></ul></ul><ul><ul><li>Additional SAP components are available for specific military processes </li></ul></ul><ul><li>The bad news: </li></ul><ul><ul><li>Diversity in processes leads to a complex cocktail of SAP-solutions </li></ul></ul><ul><ul><li>Most individual SAP-components are proven technology, however an integrated cocktail of all these components has never been implemented </li></ul></ul>
    10. 10. Programme characteristics (2): Best practice migration or defence specific <ul><li>What makes up the challenge: </li></ul><ul><ul><li>quantity and diversity of processes </li></ul></ul><ul><ul><li>number of organizational units </li></ul></ul><ul><ul><li>a defence wide standardization and integration </li></ul></ul><ul><ul><li>unclear ownership process chains </li></ul></ul><ul><ul><li>unclear ownership business benefits </li></ul></ul><ul><li>Consequences: </li></ul><ul><ul><li>The system too big to customize in one step(?) </li></ul></ul><ul><ul><li>A big-bang roll out impossible -> multiple migration steps </li></ul></ul><ul><ul><li>Long timeframes (!) </li></ul></ul>Rough ride expected, escorts are needed, minefields to be avoided ..
    11. 11. Programme Characteristics (3) SPEER as a bridge between two worlds Transparency: sharing information Government Checks & balances Focus on efficiency & conformance Security: protecting information Operations Focus on effectivity Defence Modern business processes: supply, logistics, ILS, maintenance, procurement, finance Public governance Military Command and control
    12. 12. Key elements in approach <ul><li>One ‘standard’ SAP kernel fits all: </li></ul><ul><li>One standardized proces design </li></ul><ul><li>One overarching architecture derived from Defence IT architecture </li></ul><ul><li>One kernel to be customized </li></ul><ul><li>Control costs and enforce proces standardization </li></ul><ul><li>Implemented in two phases (basic processes first, proces chain optimization second) </li></ul><ul><li>Combination of proces standardization over ‘business units’ and integration over functional domains </li></ul><ul><li>Combines benefits of standaardization and integration in one migration step </li></ul><ul><li>Maximizes change management riscs </li></ul><ul><li>Think big, act small </li></ul><ul><li>No big bang implementation: trial, learn and expand </li></ul><ul><li>Large timeframe </li></ul><ul><li>Takes longer time before legacy systems are taken out of service </li></ul><ul><li>Parallel implementation projects </li></ul>
    13. 13. To be Current Practices Standardized Processes One Standardized Information system Standardized Data Migration Migration Proces Standardization as a key element: It symbolizes both change and joint operations Processes Info Systems Data Finance Processes Information systems Data Processes Information systems Data Processes Information systems Data Navy Airforce Army
    14. 14. SPEER Programme results p r o c u r e m e n t Service centers Operational Commands Depots MaintenanceDepots Finance, Integrated Logistic Support VSPK JUN 2009 NH 90 MAR 2010 MATLOG 320 NOV 2010 JUNI 2008 Transport Supply chain management
    15. 15. What problems to expect? Insights from NL national audit office (& others) <ul><li>Projects are often too complex </li></ul><ul><ul><li>Grand designs </li></ul></ul><ul><ul><li>(political) fantasy deadlines </li></ul></ul><ul><ul><li>Winners curse. </li></ul></ul><ul><li>Evaluation and redirection are neccessary </li></ul><ul><li>Strong governance needed </li></ul><ul><li>ICT is no quick fix </li></ul><ul><li>Business – IT alignment is poor </li></ul><ul><li>Business – IT architecture = basis of IT governance </li></ul><ul><li>Demand and supply of ICT need to be better organized </li></ul>
    16. 16. SPEER experience: Lessons identified, measures taken <ul><li>Measures to complexity: </li></ul><ul><ul><li>Stepwise improvement of kernel (High Level Design !). </li></ul></ul><ul><ul><li>Stepwise migration approach. </li></ul></ul><ul><ul><li>Periodic programme evaluation. </li></ul></ul><ul><ul><li>Ambitions & ability to change need to be balanced. </li></ul></ul><ul><li>Governance: </li></ul><ul><ul><li>Strategic: SG & CDS primary sponsors </li></ul></ul><ul><ul><li>Tactical: SPEER supervisor with direct mandate </li></ul></ul><ul><li>Change management: </li></ul><ul><ul><li>ICT is just an enabler </li></ul></ul><ul><ul><li>Importance of Business benefits </li></ul></ul><ul><ul><li>Ownership of business benefits never passes form line to programme organization. </li></ul></ul>
    17. 17. SPEER experience: L essons identified, measures taken <ul><li>Risks, cost and benefits of simultaneous standardization and integration. </li></ul><ul><li>Don’t shoot at a moving target: </li></ul><ul><li>Simultaneous Reorganization & implementation of ERP. </li></ul><ul><li>Establish / organize procesownership and its tasks and responsibilities. </li></ul><ul><li>Integral business process management required Architecture: From ‘surplus of abstract documents’ to ‘tight fit harnass’. </li></ul><ul><li>A vision is not enough to guide proces design and business re-engineering. </li></ul><ul><li>Don’t forget the IT-complexity (SAP cocktail, interim landscapes, interfaces, data). </li></ul><ul><li>Knowledge management and competence management </li></ul><ul><li>Reorganize internal ICT service provider </li></ul><ul><li>Speed of implementation: Changes can be too slow. </li></ul>
    18. 18. Conclusions <ul><li>1. The programme is vital for the Dutch MOD. </li></ul><ul><li>2. The size of the SPEER programme is unique for (MOD)NL </li></ul><ul><li>3. … Thus, SPEER faced many common problems </li></ul><ul><li>………… . And SPEER learned many ordinary lessons </li></ul><ul><li>But the unique size causes also some new problems </li></ul><ul><li>……… And SPEER gained some additional insights and produced secondary results </li></ul>
    19. 19. QUESTIONS ?