The document discusses implementing an enterprise resource planning (ERP) system and realizing business benefits. It outlines challenges in measuring ERP benefits and introduces an approach called benefits realization. This approach focuses on identifying, measuring, and ensuring business benefits through aligning business processes, technology, organizational change management, and performance measurement. The benefits realization process involves activities like optimizing business processes, defining metrics, managing organizational change, and conducting post-implementation audits and corrective actions to maximize ERP benefits.

1. Enterprise Resource Planning By: Ravi Jangra Business Consultant +91 9811811231

3. ERP Benefits Realization Overview Common ERP 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 “ 80% of Metric Systems Fail or Are Discontinued within 2 Years.” Source: Gartner Group

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

14. Implementing Benefits Realization High-level Project Activities to Ensure ROI ERP Build Go - live OCM/cultural assessment Bus. Process Design and ERP Requirements Org. / job design planning Job design implementation End - user training and support Benefits measurement Root cause analysis of benefits gaps Business case/Corporate metrics Operational metrics/benchmarking Individual/department metrics Program Management and Communications Corrective action Reward design/implementation ERP Selection

17. 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 Realization Results of Benefits Realization Focuses on Improving Post-Go-Live Results

18. Root Cause Analysis of Benefit Gaps

19. Implement Corrective Action