Leonard Munyua                            CIO – Simba CorporationLegacy modernisation and adequate ERP Implementation
Agenda• Simba Corp• Legacy Modernisation• ERP Implementation  – The Simba Story
Who we are  •   Simba Corporation, is a major player in Kenya’s motor industry, has for over four      decades been known ...
Legacy Modernisation• Why?• Fact:  – Most organizations with mainframe-based systems    spend about 75 percent of their de...
Legacy Modernisation - The CIO’s Dilemma• As Mike Gilbert describes it―The CIOs Dilemma, the  challenge is in achieving th...
Source: Gartner Executive Programs (January 2012)          Gartner Executive Programs Worldwide Survey - 2012    Top 10 Bu...
Key choices• The key choices in legacy modernization are:   –   Application extension   –   Migration   –   Redevelopment ...
Modernisation strategy framework
Modernisation strategy framework• Even though there is the option to ―Do Nothing,‖ invariably this option  only delays a p...
Modernization Roadmap (Strategy)• The above strategies can be applied to each application or  even to application componen...
Application Portfolio Analysis, Assessment, and                        Discovery• This initial phase is perhaps the most i...
Assessment• A key part of the application portfolio analysis  is the process of mainframe portfolio  assessment.• This pro...
The Discovery Process• The discovery process is designed to assess findings and to  perform a detailed analysis of one or ...
Partner Selection and Validation• When selecting a partner solution provider,  consider the size and resource focus of the...
Implementation• Develop a joint plan that puts you, and not the partner,  in control.• Create milestones and proof points ...
The Simba Story• 5 businesses running different applications• 1 goal – to consolidate all operations• Quite typically, dev...
The Simba Story• Our Modernisation Strategy =  – application replacement & application integration• Some of the businesses...
ERP Implementation• Business Solution Mapping• Evaluated ERP solutions from two vendors for one year• Each had it’s own de...
Conclusion•   Organizations today understand that if they are not evolving to more modern    infrastructures they are fall...
What do we want the business to feel          on the business applications
Technology in support of Re-alignment• CIO’s unique position within the company allows  them to understand the company val...
Questions…..Thank You.
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Leonard Munyua, CIO at Simba Corporation - Legacy modernisation and adequate ERP implementation

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Leonard Munyua, CIO at Simba Corporation spoke at the CIO Africa Event 2013

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Leonard Munyua, CIO at Simba Corporation - Legacy modernisation and adequate ERP implementation

  1. 1. Leonard Munyua CIO – Simba CorporationLegacy modernisation and adequate ERP Implementation
  2. 2. Agenda• Simba Corp• Legacy Modernisation• ERP Implementation – The Simba Story
  3. 3. Who we are • Simba Corporation, is a major player in Kenya’s motor industry, has for over four decades been known for sales, spares and service of Mitsubishi and Fuso brands under Simba Colt Motors. • It also represents the BMW brand in East Africa under the Bavaria Auto Ltd. and the Mahindra brand under the Xylon Motors Ltd. • The company also offers leasing solutions, vehicle rental solutions (under Simba Vehicle Rental Ltd., the sole Avis Rent-a-Car franchise holder in E.A) and innovative fleet management solutions (under Africa Fleet Management Solutions Ltd.) • The corporation has also diversified into the hospitality and real estate sectors inter alia.aaa
  4. 4. Legacy Modernisation• Why?• Fact: – Most organizations with mainframe-based systems spend about 75 percent of their development resources simply to maintain existing applications, which leaves only 25 percent of their development resources for innovation. Effecting a 25-percent reduction in maintenance costs means that investment in innovation will be doubled.
  5. 5. Legacy Modernisation - The CIO’s Dilemma• As Mike Gilbert describes it―The CIOs Dilemma, the challenge is in achieving the right balance between managing the short-term issues of cost and complexity while at the same time investing in the future. Which legacy systems should be replaced and which should be extended? How do we get the right balance between cost pressures and strategic business needs?
  6. 6. Source: Gartner Executive Programs (January 2012) Gartner Executive Programs Worldwide Survey - 2012 Top 10 Business Priorities Ranking Top 10 Technology Priorities Ranking Increasing enterprise growth 1 Analytics and business intelligence 1 Attracting and retaining new customers 2 Mobile technologies 2 Reducing enterprise costs 3 Cloud computing (SaaS, IaaS, PaaS) 3 Creating new products and services (innovation) 4 Collaboration technologies (workflow) 4 Delivering operational results 5 Virtualization 5 Improving efficiency 6 Legacy Modernization 6 Improving profitability (margins) 7 IT Management 7 Attracting and retaining the workforce 8 CRM 8 Improving marketing and sales effectiveness 9 ERP Applications 9 Expanding into new markets and geographies 10 Security 10
  7. 7. Key choices• The key choices in legacy modernization are: – Application extension – Migration – Redevelopment – Replacement• Fundamentally, business has four choices when considering application modernization: – Ability of the application to meet current and (-) future business needs – Ability of the application to offer a business differential – Total cost of ownership of the application.
  8. 8. Modernisation strategy framework
  9. 9. Modernisation strategy framework• Even though there is the option to ―Do Nothing,‖ invariably this option only delays a project because the pressure to modernize builds over time. Most often the choice is between:• Application migration—run existing applications on a lower-cost platform.• Application replacement—substitute an off-the-shelf package for existing functionality.• Application redevelopment—redevelop applications that offer high business value but that cannot be extended easily to meet new business needs.
  10. 10. Modernization Roadmap (Strategy)• The above strategies can be applied to each application or even to application components.• Legacy modernization is not a one-size-fits-all strategy. It is quite possible to employ one strategy or a combination of strategies. There are essentially three steps in determining the right approach for your organization and application portfolio:• Application portfolio analysis• Partner selection and validation• Implementation
  11. 11. Application Portfolio Analysis, Assessment, and Discovery• This initial phase is perhaps the most important, and spending time in this early phase can save much time later on.• It is important to understand the value of existing assets to the business, the need for strategic investment, and the current total cost of ownership of the system before a clear strategy can be envisioned. Without clear direction at this phase, a modernization strategy may founder.
  12. 12. Assessment• A key part of the application portfolio analysis is the process of mainframe portfolio assessment.• This process builds a picture of the data, applications, and operational flow on the mainframe that can be used to determine modernization candidates.
  13. 13. The Discovery Process• The discovery process is designed to assess findings and to perform a detailed analysis of one or more mainframe applications identified during the assessment as candidates for extension, migration, replacement, or redevelopment.• Many of the major systems integrators have established practices to help you perform this analysis. In addition, many smaller organizations have a specialist focus in this area.• Evaluating what’s right for your application portfolio is the starting point for your legacy modernization road map.
  14. 14. Partner Selection and Validation• When selecting a partner solution provider, consider the size and resource focus of the organization you are considering. That is not to say that the biggest is necessarily best.• What is crucial is proven success. Choose a partner that has already achieved success for an organization similar to yours.
  15. 15. Implementation• Develop a joint plan that puts you, and not the partner, in control.• Create milestones and proof points that let you evaluate early on whether you are on the right track.• Ensure that the individuals assigned to manage the project have the appropriate experience. Outline clear criteria and timing for a ―go‖ or "no go‖ decision.
  16. 16. The Simba Story• 5 businesses running different applications• 1 goal – to consolidate all operations• Quite typically, developed a diverse computer environment over many years. Custom business applications ran different platforms. The company supported 5 major applications each with its database.• We needed to reduce complexity in order to reduce operational costs—the redundant costs of maintaining so many environments.• The diversification business strategy
  17. 17. The Simba Story• Our Modernisation Strategy = – application replacement & application integration• Some of the businesses required a total replacement due to the operational limitations the legacy applications had.• Some of the businesses still had some areas where some of the legacy systems were performing as expected.
  18. 18. ERP Implementation• Business Solution Mapping• Evaluated ERP solutions from two vendors for one year• Each had it’s own demo program with the individual business units on the offerings of the ERP• We then did an evaluation Matrix across all the business lines and units and scored each accordingly.• Obtained references from the Principles for their partners
  19. 19. Conclusion• Organizations today understand that if they are not evolving to more modern infrastructures they are falling behind. A legacy modernization strategy is crucial for maximizing the value of your existing investment in applications, reducing the total cost of ownership of those applications, and developing the agility to bring IT investments into alignment with business imperatives.• Legacy modernization provides many choices and can take several forms, including application integration, application replacement, application migration, and application redevelopment.• Finally, selecting the right platform and the right partner solution provider are crucial to a successful outcome.
  20. 20. What do we want the business to feel on the business applications
  21. 21. Technology in support of Re-alignment• CIO’s unique position within the company allows them to understand the company values and business drivers hence anticipate and respond to its requirements. It is with this in mind that they should strive to rapidly exploit innovative technologies to make their customers and their clients working lives easier and more efficient.
  22. 22. Questions…..Thank You.
  23. 23. VideoVideo

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