Isabel white paper


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A white paper in Implementing Worldwide ERP systems.

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Isabel white paper

  1. 1. Project Isabel A case of study on Global ERP systems implementationProject Isabel IntroductionThis document introduces the project that will change the business model that TripleX Corporation currently follows. It aims to truly leverage business knowledge,technical expertise, commercial expertise and resources on a global scale.The principle that is followed originates from the desire of senior management to alignsystems across the corporation, and reduce the multitude of platforms that wecurrently have. Leveraging infrastructure, knowledge and IT skills on a global scale,and through that reduction of cost is clearly an underlying objective.This challenge has been taken up by Senior IT management, as systems alignmentappeared to be the driving force. While considering this strategic direction, they cameto the conclusion that the leverage opportunities appear to be far greater when TripleX Corporation would not only align on systems (infrastructure), but increase focus onthe alignment of the business processes that are supported by the systems. Thiswould enable the implementation of one global instance of Order management andERP.While alignment on systems only brings leverage opportunities on hardwareinfrastructure, licenses and to some extend knowledge, the alignment of businessprocesses would allow us to react to changes in the market quicker and on a globalscale. As an example, the business processes and systems support for a new serviceinitiative could be developed in one region, and effortlessly implemented across theglobal, even with local implementation preferences.This ability to execute would not be reached in case business processes would not bealigned. In that case, the continents would have implemented distinct instances of thesoftware, supporting their own –unique- business processes. When in this scenarionew initiatives would be developed, a translation to the other regions would always benecessary, delaying or even preventing the implementation. No only the time toimplement, but also the cost to implement would be a multiple.Senior IT management instructed a team of user representatives, businessconsultants and software suppliers to develop the concept of one global instance forERP, including a global business process alignment further and to define an approachto this project. The boundaries sketched to the group were the tools to be used, andthe requirement of a feasible, phased implementation approach.This document provides a feasible approach to develop an aligned business modeland outlines the implementation path to come to one global instance for Ordermanagement and ERP.In the project described there is a split between the Phase 0 Planning/Exploration Phase,and the Overall Project, which is multi-phased. This project seeks to align businessprocesses between North America, Europe and Asia, which will enable replacement ofmultiple legacy systems with a common platform, suitable for rollout to “one” businessesworldwide. The complexity of what is proposed demands a dedicated planning effort up-front,
  2. 2. Project Isabel A case of study on Global ERP systems implementationusing our most talented people. Heavy planning up-front ensures that the team is designingprocesses and supporting systems for a Six Sigma company, minimizing rework at a laterdate. It also demands recognition that benefits may not be fully realized until all phases areseen to completion.Project Isabel ObjectivePlanning/Exploration: Phase 0 - ObjectivePhase 0 of this project seeks to align and redesign business processes between Europe,Roll North America & Asia. It will confirm the scope of the overall project including theorder/sequence of next phases. It will work out the details required to implement Phase 1. Itwill confirm that the technology and tools selected can indeed support the business. Goals / Objectives Benefits Create complete description of the “to-be” business Completely documented blueprint of the future processes. This includes a complete alignment of business processes. processes across units, with the purpose of getting one common practice worldwide. Well thought through design of the future business processes, aligned with philosophy and capabilities of packages Leverage software tool utilization, system development and IT infrastructure Map the “to-be” business processes on the packages, Full understanding of the way the tools support the designing clear cut-off points between the system business processes applications Increase confidence level on capabilities of selected tools and supporting infrastructure Design and prepare implementation strategy as well Sturdy implementation approach and up front as required interfacing during the implementation resolution of critical interfacing issues, like the phase interfacing to the current data warehouse Create AFE and detailed project charter for the Order Full Insight in approach and cost for the Order management phase and a forecast for cost / timeline management phase . of the next phases Prepare for IT standardization of tools and Cost reduction or increase in flexibility infrastructure Leverage IT Expertise
  3. 3. Project Isabel A case of study on Global ERP systems implementationOverall Project - ObjectiveOnce these business processes are aligned, the team will implement the software solution tosupport the processes. Business Processes Mega Major 1.1 1.2 1.3 1.4 1.5 1. Procure to Pay Data Strategy & Pre- PO Inventory Management Reporting Purchasing Management Management 2.1 2.2 2.3 2.4 2.5 2.6 Strategic Tactical Operational Supply Resource 2. Plan to Produce Supply Chain Supply Chain Supply Chain Chain Distribution Data Planning Planning Planning Execution Planning Management 3.1 3.2 3.3 3.4 Sales 3. Order to Cash Sales Order Inventory Fulfillment Administration Management 4.1 4.2 4.3 4. Sales & Mktg In Scope Partial Scope Marketing Sales Customer CareApproachPlanning/Exploration: Phase 0 - ObjectiveThe Exploration / planning phase will be executed in the following main project steps: o Project Initiation and Team Mobilization o Project management and planning activities required to kick-off the project with the US and European core team o Business Process Redesign o A most complex step where the core team will have to agree on a common approach across the continents and divisions, for all business processes. o Impact Analysis o Analysis of the people, process and system changes required. o Conclusions, recommendations, reporting and AFE generation o A full plan will be produced for implementing the next stage of the project, the Order Management phase
  4. 4. Project Isabel A case of study on Global ERP systems implementationOverall Project - ApproachA multi-phased approach with heavy planning and analysis up-front, with “best of the best”business and IT resources will ensure success and mitigate risk.Phase: Description: 0. Planning/Exploration Overall project plan with detailed project charter for Phase 1. 1. Order Management Order Entry and Management – all customer channels. 2. Order to Cash Completion Shipping and fulfillment. 3. Graphics Europe – Warehouse Warehouse Management System. 4. Order to Cash Rollout Rollout of shipping and fulfillment. 5. Plan to Produce Supply Chain Planning. 6. Plan to Produce Rollout Rollout Planning. 7. Procure to Pay Raw Material Procurement.TimeframePlanning/Exploration: Phase 0 - TimeframeCompletion of Phase 0 will help validate overall project timeline. In addition, learningfrom the execution of each successive phase will bring more validation of the overallproject timeline. 2004 Jun Jul Aug Sep Oct Nov Dec Phase 0 – Planning/Exploration Create AFE for this Phase AFE Approved Project Initiation Team Mobilization Kick-off Meeting Team Training Business Process Redesign Technical Feasibility/Interface Design Change Management/Impact Analysis Application Mapping & Fit Analysis Master Data Strategy Infrastructure Requirements Definition Technical Staff Training Project Charter & AFE for Phase 1Overall Project - Timeframe
  5. 5. Project Isabel A case of study on Global ERP systems implementation 2004 2005 2006 2007 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 o n d j f m a m j j a s o n d j f m a m j j a s o n d j f m a m j j a s ARTEMIS - All phases AFE - Phase 0 Team mobilisation / preparation 0. Planning / exploration / design 1. Order management 2. Order to cash completion 3. Order to Cash roll-out 4. Plan to Produce 5. Plan to proceduce roll-out 6. Procure to payCost / BenefitsPlanning/Exploration: Phase 0 – BenefitsBenefits:Worldwide Business: • Agreed and aligned definition of business processes across the US, Asia and Europe • Combined platform for joint system development and implementation • Sharing of best practices on both sides of the ocean • Establishment of a global core team, with the capabilities to move Materials into the direction of a global organizationUnits individually • Definition of business processes • Mapping on future tools and current organization • Full change management plan (systems and processes), including gap definition • Well founded plan to migrate from current legacy systems towards new systemsOverall Project - BenefitsBenefits:
  6. 6. Project Isabel A case of study on Global ERP systems implementationIt is expected that these benefits can be quantified during the Phase 0 Planning/Explorationproject.Customer: • Single face to worldwide customers • Buy anywhere, fulfill anywhere • Online promising • Improved overall reliability, due to better/faster information accessibility • Improved internet capabilities, more self-service, more information visibility • Reduced administrative claims, due to correct/consistent order processing • Ability to process credit card payments • Enable customization and flexibility of information exchangeMaterials Worldwide Business: • Enable growth through quicker integration of new products & services • Enable faster development and sharing of service programs • Greater flexibility to change • Cost reduction through business process alignment • Ability to consolidate business functions • Greater ability to leverage best practices • Consistent business rules • Integrated data architecture • Business continuity • Greater ability to measure operational success • Reduced DSO’s (credit card processing) • Inventory Reduction through improved planning tools • Full support of all sales channels • More supply chain integration – suppliers • Enable more/improved customer segmentation • Enable support of worldwide operations (material alignment)Corporate: • Total lower IT cost • Improved leverage over software suppliers • Infrastructure consolidation • Reduced diversity/complexity of systems • Alignment to IT strategy • Leadership development opportunitiesIT: • Improved ability to respond to the business • Lower cost • Lower complexity (architecture / software) • Enable off-shoring • Leverage development capacityBenefits of this phased approach: • Phase 1 offers immediate online benefits to customers • Less risk, business continuity is guaranteed
  7. 7. Project Isabel A case of study on Global ERP systems implementation• Avoids high risk of “big bang” implementations – more frequent deliverables to the business with greater opportunity to make adjustments along the way• Improved control/management of change management activities• Fewer resources required at implementation time• Better audit-ability• Introduce new technology without touching the entire IT environment.• Allows for phased migration from current legacy systems to a modern platform