Leveraging the erp and strategy nexus 2013 slideshare
Leveraging the BusinessStrategy and ERP NexusPresented by: Chris CattoDirectorPutney Breeze Advisors
About Me- Author of Premiership BusinessThe Premiership Business Equationfor Business owners &Entrepreneurs- Planning & PerformanceManagement in Leading GlobalCorporations- Director of Putney BreezeAdvisors- Associate of Betacodex Network
StrategicDelivery &ERPERPParadoxStrategy &StrategicOutcomesERP &transform- ation ofDataDecisionMaking –How wecomputeCase –Data,Decisions,StrategicDeliveryAgenda - Leveraging the BusinessStrategy and ERP Nexus18.104.22.168.5.
ERP Paradox> More streamlined, flatter,more flexible and democratic data> Centralization of Control overinformation and the standardization ofprocess
> Strategy– The science or art of combining and employing themeans of war in planning and directing large militarymovements,- Skill full management in getting the better of anadversary> Plan (Planning)– a scheme of action, a design or scheme ofarrangement, a project or definite purposeMacquarie Dictionary 4th Edition
What is ERP?> 1960s Inventory Management & Control> 1970s Material Requirements Planning> 1980s Manufacturing Resource Planning> 1990s Enterprise Resource PlanningInventory, Order management, Accounting, HR, CRM, Business IntelligenceERP software that integrates various functions into one complete system tostreamline information and process across the entire business“DATA”
Value of ERPProcess & Functional> Gives real-time global view of information that allows proactive business decision makingfacilitating improvements> Lower information handling and overall cost of doing business> Enhances compliance with regulatory standards and reduces financial risk> Automates core business operations and processes such as order-to-fulfilment, and procurementprocesses> Eliminates redundant processes> Improves customer service by centralising customer information and collationStrategic Delivery► Decision making
TimelinessEnable Strategic DecisionsMaster DataProducts, Customers,Employees, SuppliersTransactional DataOrders, Invoices, Payments,DeliveriesHistorical DataComparability, MeasurabilityAccuracy ConsistencyCompletenessData QualityIntrinsic, Accessibility, Usefulness> Quality> Dimension> TypeAdapted from: The Cost of Poor Data Quality; Huag,Zachariassen, Liempd, Journal of Industrial Engineering& Management doi:10.3926/jiem.2011.v4n2.p168-193
Sharp End – Business IntelligenceIn what circumstance does data turned into information, decisiontrees, software and performance management tools fail?
Where does this lead us?Right DataRightToolsRightContextRightDecisionStrategicOutcomes
Handelsbanken Focus - CustomerSatisfaction at Low costHow?► Greater Branch & RegionalAuthority► Flat Structure► Customer focus v Product► Value Based Culture► Transparent PerformanceData► No Budgets► Strategy driven by internaltransparent Benchmarkingbetween Regions and Branchoffices► Freedom and responsibility to act– do what is right to fit localperformance► Common Bonus scheme notindividual bonus scheme –Measure how the bank performscompared to other banks
ERP Critical Success Factors> Align ERP systems with Strategy – Not just copy ofdysfunctional systems> Business Process driven not systems driven> Eliminate Redundant processes> Involve the right people> Invest in Education and training> One technology platform and data consistency> One Company wide database> Embed disaster recovery procedures> Look to the futureHope & Player, Beyond Performance Management
Leveraging ERP the Critical successFactors> Ensure Data Quality> Understand the Context of Data> Responsibility & Accountability at right Level> Agile decision making by presenting data in right element> Incorporate Relative Measures of Success•Accuracy•Completeness•Timely•ConsistencyRight Data•BSC & StrategicMapping•ABM•KaizenRight Tools•Executive•Business Unit Leaders•Functional ManagerRight Audience•Competitors•PESTLE•Five Forces•Market conditionRight Context•Actions•Initiatives•InvestmentsRight Decisions•Strategic OutcomesStrategicDeliveryEnterprise Resource Planning
StrategicDelivery &ERPERPParadoxStrategy &StrategicOutcomesERP &transform- ation ofDataDecisionMaking –How wecomputeCase –Data,Decisions,StrategicDelivery22.214.171.124.5.How well do you leverage your tools?
DisclaimerThis presentation represents the opinion of the author(s) and not necessarily thoseof the Institute of Chartered Accountants in Australia (The Institute) or its members.The contents are for general information only. They are not intended as professional advice – for that youshould consult a Chartered Accountant or other suitably qualified professional.The Institute expressly disclaims all liability for any loss or damage arising from reliance upon anyinformation in these papers/presentation.