Erp Implementation In Government


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  • Erp Implementation In Government

    1. 1. ERP Implementation in Government IPMA Executive Conference September 13, 2000 Marty Chakoian, CTO, City of Seattle Mike Herrin, Summit Project Director, City of Seattle Barbara Read, Principal, IBM
    2. 2. Agenda <ul><li>Introductions </li></ul><ul><li>Trends in ERP Marketplace </li></ul><ul><li>Implementation Considerations </li></ul><ul><li>Critical Success Factors </li></ul><ul><li>Government ERP Projects </li></ul><ul><li>City of Seattle Summit Project Case Study </li></ul>
    3. 3. ERP Defined <ul><li>Enterprise resource planning (ERP) software is a set of applications that automate finance and human resources departments as well as handle jobs such as order processing and production scheduling. ERP vendors have expanded into applications such as supply-chain management, customer relationship management, and industry verticals. </li></ul>
    4. 4. ERP Functionality Finance -General Ledger -Accounts Receivable -Accounts Payable -Procurement -Fixed Assets -Treasury Mgmt -Cost Control -Grant Management Human Resources -HR/Benefits Administration -Payroll -Self-service HR e-Business -eProcurement - Employee Self Service - e-Recruiting/e-Hiring - e-Filing - Citizen Access - Web-enabled transactions - e-Commerce Transaction Engine Core software that manages transaction flow among applications and handles tasks like security and data integrity Customer Relationship Mgt -Consistent user experience - Personalization of services - Realtime access- enterprise info Supply Chain Mgmt Planning, scheduling and fulfillment applications that address all procurement requirements across the enterprise Data Analysis Decision support software that lets senior executives and other users analyze transaction data to track business performance
    5. 5. Characteristics of an ERP System <ul><li>Includes business management software that enables finance and human resources in a completely integrated fashion </li></ul><ul><li>Enables high levels of integration across business functions and units </li></ul><ul><li>Provides for widespread sharing of data from a single information repository </li></ul><ul><li>Drives extensive business transformation and change management efforts </li></ul><ul><li>Requires high levels of implementation effort and support </li></ul>
    6. 6. ERP Solution Components
    7. 7. ERP Implementation Benefits <ul><li>Streamlines or eliminates inefficient manual processes </li></ul><ul><li>Eliminates disparate stand-alone systems </li></ul><ul><li>Provides integrated, enterprise-wide common tools, processes and systems </li></ul><ul><li>Establishes a backbone structure that can be leveraged to handle all operational processes </li></ul><ul><li>Integrates and increases control of budgeting, planning and financial management processes </li></ul>
    8. 8. ERP Implementation Benefits (continued) <ul><li>Provides enterprise-wide reporting and decision support </li></ul><ul><li>Presents opportunity for re-engineering with industry best practices and templates </li></ul><ul><li>Presents opportunity to lever vendors’ future investment in enhanced functionality </li></ul><ul><li>Incorporates new functionality and technology - provides a springboard to e-Business </li></ul>
    9. 9. ERP Implementation Challenges <ul><li>Focus on applications rather than business processes </li></ul><ul><li>Turf battles over ownership </li></ul><ul><li>ERP project management expertise </li></ul><ul><li>Issue resolution bottlenecks </li></ul><ul><li>Scope and change management </li></ul><ul><li>Sub-optimization of system capabilities </li></ul><ul><li>Staffing and retaining full time project resources </li></ul><ul><li>Experienced implementation partners </li></ul><ul><li>Product maturity and limitations </li></ul><ul><li>Nature of government funding cycles </li></ul>
    10. 10. Trends in the ERP Marketplace <ul><li>Speed, Speed, Speed </li></ul><ul><ul><li>Templates </li></ul></ul><ul><ul><li>Rapid Implementation Methodologies </li></ul></ul><ul><li>Cost Effective Implementations for Large Enterprises </li></ul><ul><li>Product expansion (tax collections, fleet management) </li></ul><ul><li>Internet/Intranet and Electronic Commerce </li></ul><ul><li>Outsourcing and Application System Providers </li></ul><ul><li>Application Management Services </li></ul>
    11. 11. An ERP Start-up Roadmap <ul><li>Functional Requirements Analysis </li></ul><ul><li>Procurement Strategy </li></ul><ul><li>Proposal Evaluation Plan </li></ul><ul><li>Analysis of Software / Implementation Resources </li></ul><ul><li>Comparative Cost Analysis </li></ul><ul><li>Software Demonstrations </li></ul><ul><li>Site Visits </li></ul><ul><li>Discovery </li></ul><ul><li>Contract Negotiations </li></ul><ul><li>Evaluation of Final Vendor </li></ul><ul><li>Final Contract </li></ul>
    12. 12. ERP Implementation Activities <ul><li>Package Integration (SAP,PeopleSoft, JDE, Oracle...) </li></ul><ul><li>Software Environment Builds </li></ul><ul><li>Enterprise-wide Infrastructure Planning/Design & Roll-out </li></ul><ul><li>Interfaces and Conversions </li></ul><ul><li>Data Warehouse Integration </li></ul><ul><li>E-Business </li></ul><ul><li>Business Intelligence </li></ul><ul><li>Networking </li></ul><ul><ul><li>Design </li></ul></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>Tuning </li></ul></ul>Manage It... Change It... Implement It.. Operate It... Service It... Teach It... <ul><li>Change Mgment </li></ul><ul><ul><li>Business Vision and Goals </li></ul></ul><ul><ul><li>Process Analysis </li></ul></ul><ul><ul><li>Package Select . </li></ul></ul><ul><ul><li>Business Case </li></ul></ul><ul><ul><li>Bus. Process Reengineering </li></ul></ul><ul><ul><li>Industry Best Practices </li></ul></ul><ul><ul><li>As Is /To Be Process Modeling </li></ul></ul><ul><ul><li>Fit-Gap Analysis </li></ul></ul><ul><ul><li>Policy Design and Procedure Dev. </li></ul></ul><ul><ul><li>Readiness Assessment </li></ul></ul><ul><ul><li>Organizational Design </li></ul></ul><ul><ul><li>Communications Plan </li></ul></ul><ul><li>Data Center Operations </li></ul><ul><li>Application Development & Maintenance </li></ul><ul><li>Network Station Management </li></ul><ul><li>Network Operations & Support </li></ul><ul><li>Platforms & Technology Services </li></ul><ul><ul><li>Installation/ Customization & Maintenance </li></ul></ul><ul><ul><li>Performance and Tuning </li></ul></ul><ul><li>Software Services </li></ul><ul><ul><li>Planning/Design/ Install </li></ul></ul><ul><ul><li>Migration Management </li></ul></ul><ul><ul><li>Problem Mgmt. </li></ul></ul><ul><li>Systems Mgmt. </li></ul><ul><li>Internet Enablement </li></ul><ul><ul><li>Web Site Design </li></ul></ul><ul><li>Help Desk </li></ul><ul><li>Disaster Recovery </li></ul><ul><li>Business Resumption Services </li></ul><ul><li>Training Needs Assessment </li></ul><ul><li>Custom Curriculum and Material Development </li></ul><ul><li>CBT Development </li></ul><ul><li>End User Training Classes </li></ul><ul><ul><li>Train-the-Trainers </li></ul></ul><ul><ul><li>Roll-out of Training </li></ul></ul><ul><li>Prime Contractor Project Management </li></ul><ul><ul><li>Detailed Project planning and Tracking </li></ul></ul><ul><ul><li>Communications Plan </li></ul></ul><ul><ul><li>Subcontractor management </li></ul></ul><ul><ul><li>Project Scope Control </li></ul></ul><ul><ul><li>Financial Control </li></ul></ul><ul><li>Project Oversight and Quality Assurance Reviews </li></ul>
    13. 13. ERP Software Considerations <ul><li>Support for Government Functionality </li></ul><ul><ul><li>JDEdwards </li></ul></ul><ul><ul><li>Lawson </li></ul></ul><ul><ul><li>Oracle </li></ul></ul><ul><ul><li>PeopleSoft </li></ul></ul><ul><ul><li>SAP </li></ul></ul><ul><li>Platform and Database </li></ul><ul><li>Technical Architecture </li></ul><ul><li>Functionality Relative to Unique Processes and Scope of Project </li></ul><ul><li>References </li></ul>
    14. 14. ERP Systems Integrator Considerations <ul><ul><li>Successful government ERP implementation track record </li></ul></ul><ul><ul><li>Established relationships and implementation practices with major gov't ERP software vendors </li></ul></ul><ul><ul><li>Full range of ERP implementation skills from software selection to post-production support </li></ul></ul><ul><ul><li>Use of structured ERP implementation methodology and project management tools and techniques </li></ul></ul><ul><ul><li>Ability to address unique government terms and conditions </li></ul></ul>
    15. 15. Project Critical Success Factors <ul><li>Leadership commitment </li></ul><ul><li>Communication </li></ul><ul><li>Full-time staff </li></ul><ul><li>Professional project management </li></ul><ul><li>Phased implementation approach </li></ul><ul><li>Scope management </li></ul><ul><li>Business transformation and change management </li></ul><ul><li>Job-specific end-user training </li></ul><ul><li>Focused issue resolution </li></ul><ul><li>Post implementation support </li></ul>
    16. 16. Avoiding the “Train Wreck” <ul><li>Pick the right system </li></ul><ul><li>Build a strong cross-disciplinary team at project start-up and foster them through project completion </li></ul><ul><li>Deal with organizational resistance quickly </li></ul><ul><li>Make decisions and manage change effectively </li></ul>
    17. 17. Current ERP Projects in Government (States) <ul><li>State of Arkansas - SAP - Financials, HR/PR currently implementing </li></ul><ul><li>State of California - HR/PR sw and implementer selection </li></ul><ul><li>State of Colorado - Financials/HR/PR procurement </li></ul><ul><li>State of Connecticut - Requirements analysis in progress </li></ul><ul><li>State of Florida - Financials/HR/PR/implementer procurement </li></ul><ul><li>State of Hawaii - PeopleSoft - Financials, HR/PR currently implementing </li></ul><ul><li>State of Indiana - PeopleSoft rollout to agencies </li></ul><ul><li>State of Iowa - ERP Assessment/Case for Change out to bid </li></ul><ul><li>State of Kentucky - AMS - Financials currently implementing </li></ul><ul><li>State of Louisiana - SAP - HR/PR currently implementing </li></ul><ul><li>State of Maryland - HR sw procurement </li></ul><ul><li>State of Michigan - Lawson - HR/PR currently implementing </li></ul><ul><li>State of Montana - PeopleSoft - Financials, HR/PR in production </li></ul><ul><li>State of Nebraska - Finl/HR/PR business case and RFP development </li></ul><ul><li>State of Pennsylvania - SAP Financials/HR/PR , implementer procurement </li></ul>
    18. 18. Current ERP Projects in Government (Counties/Cities) <ul><li>Anchorage, AK - PeopleSoft - Financials,HR/PR - in production </li></ul><ul><li>Anne Arundel County, MD - JDEdwards - Financials - in production </li></ul><ul><li>Chicago, IL - Oracle - Financials - currently implementing </li></ul><ul><li>Cook County, IL - JDEdwards - Financials, HR/PR in production </li></ul><ul><li>City and County of Denver - PeopleSoft - Financials currently implementing </li></ul><ul><li>Detroit, MI - Oracle - Financials - in production, HR/PR currently implementing </li></ul><ul><li>Multnomah County, OR - SAP - Financials currently implementing </li></ul><ul><li>Los Angeles, CA - PeopleSoft - Financials currently implementing </li></ul><ul><li>Los Angeles County, CA - Finls/HR/PR - in procurement </li></ul><ul><li>New York, NY - AMS Financials in production; P/S procurement for HR </li></ul><ul><li>San Diego County, CA - Oracle Finls, P/S HR/PR - currently implementing </li></ul><ul><li>Seattle, WA - PeopleSoft - HR/PR and Financials - in production </li></ul>
    19. 19. City of Seattle Case Study <ul><li>Large, complicated, loose knit organization </li></ul><ul><li>30 Departments - Several Utilities </li></ul><ul><li>14,000 Employees </li></ul><ul><li>10,000 Retirees </li></ul><ul><li>50 Unions represented </li></ul><ul><li>$2 Billion annual budget </li></ul>
    20. 20. City of Seattle Summit Project <ul><li>High visibility project </li></ul><ul><li>Y2K solution </li></ul><ul><li>25,000 vendors </li></ul><ul><li>Complicated business rules </li></ul><ul><li>1000 users </li></ul><ul><li>$25 million dollar project budget </li></ul><ul><li>PeopleSoft 6.2 GL/AP/PC/PO </li></ul><ul><li>AIX/Oracle Platform </li></ul>
    21. 21. Keys to success <ul><li>Roles and Responsibilities </li></ul><ul><li>Money </li></ul><ul><li>Staff </li></ul><ul><li>System Integrator and Consultants </li></ul><ul><li>User Expectations </li></ul><ul><li>Scope Management </li></ul><ul><li>Methodologies </li></ul><ul><li>Readiness Assessment </li></ul>
    22. 22. Roles and Responsibilities <ul><li>Business </li></ul><ul><li>Right idea seeded in a ready organization </li></ul><ul><li>Project Ownership </li></ul><ul><li>Provide business resources </li></ul><ul><li>IT </li></ul><ul><li>Quality product on-time and on-budget </li></ul><ul><li>Infrastructure </li></ul><ul><li>Keeping things running </li></ul><ul><li>Provide technical resources </li></ul><ul><li>Manage the project </li></ul><ul><li>Technical implementation </li></ul>Marriage of IT and Business:
    23. 23. Money Money Money <ul><li>Money - get lots of it, you will need it ! </li></ul>
    24. 24. Project Manager’s Fiscal Responsibilities <ul><li>Project manager responsible for: </li></ul><ul><ul><li>Identifying cost categories </li></ul></ul><ul><ul><li>Estimating costs </li></ul></ul><ul><ul><li>Managing expenditures </li></ul></ul><ul><li>Not responsible for: </li></ul><ul><ul><li>Doing a $20M project for $10M </li></ul></ul>
    25. 25. What are the Costs? <ul><li>Organization staff </li></ul><ul><li>Consultants </li></ul><ul><li>Hardware </li></ul><ul><li>Space and space planning </li></ul><ul><li>Phones </li></ul><ul><li>Operating supplies </li></ul><ul><li>Copier/Fax machines </li></ul><ul><li>Software </li></ul><ul><ul><li>applications/software </li></ul></ul><ul><ul><li>utilities/software </li></ul></ul><ul><ul><li>other software </li></ul></ul><ul><li>Miscellaneous </li></ul><ul><li>Contingency </li></ul><ul><li>Training and travel </li></ul>
    26. 26. Project Budget <ul><li>Pad everything </li></ul><ul><li>Round up </li></ul><ul><ul><li>$10,875 = $50,000 </li></ul></ul><ul><li>Use miscellaneous expenditures </li></ul><ul><li>Include money for budget cuts and contingency </li></ul><ul><li>Include a 10% - 20% contingency </li></ul><ul><li>Protect it with your life </li></ul>
    27. 27. People Factors to Consider <ul><li>Full-time staff </li></ul><ul><ul><li>Pay for backfilling </li></ul></ul><ul><li>Right skills </li></ul><ul><li>Co-location very important </li></ul><ul><li>Willing to sacrifice </li></ul><ul><li>Project oriented </li></ul>
    28. 28. Full-time Staff Is Key <ul><li>Project Management </li></ul><ul><li>Business Experts </li></ul><ul><li>Development </li></ul><ul><li>Infrastructure </li></ul><ul><li>Training </li></ul><ul><li>Public Relations and Communication </li></ul><ul><li>Quality Assurance </li></ul>
    29. 29. Attracting and Keeping Staff <ul><li>Broadband pay range </li></ul><ul><li>Performance bonuses </li></ul><ul><li>Reversion rights </li></ul><ul><li>Training and opportunities </li></ul><ul><li>Empower them </li></ul><ul><li>Nice facilities </li></ul>
    30. 30. Roles of Consultants <ul><li>Necessary for ERP implementations </li></ul><ul><li>Expensive but indispensable </li></ul><ul><li>Systems Integration - the whole thing </li></ul><ul><li>Project Management </li></ul><ul><li>Product Functional Specialists </li></ul><ul><li>Developers </li></ul><ul><li>Trainers </li></ul><ul><li>Wear the dark hat </li></ul>
    31. 31. User Expectations <ul><li>Systems shouldn’t be designed around idiosyncrasies </li></ul><ul><li>ERP systems are common denominator based, not exception based </li></ul><ul><li>Set realistic (or even lower) expectations </li></ul><ul><li>Communicate constantly </li></ul><ul><li>Communicate to many forums </li></ul>
    32. 32. Scope Management <ul><li>Define it carefully </li></ul><ul><li>Be explicit </li></ul><ul><li>Secure top management buy-off </li></ul><ul><li>“Scope Creep” will kill the project </li></ul><ul><li>Just say “NO” </li></ul>
    33. 33. The Vanilla Dilemma <ul><li>Vanilla is good </li></ul><ul><li>Reduces implementation risk and cost </li></ul><ul><li>Facilitates upgrades </li></ul><ul><li>But, be realistic </li></ul><ul><ul><li>adding chocolate chips is okay (but no rocky road) </li></ul></ul>
    34. 34. Modifications <ul><li>You will do some </li></ul><ul><li>Tools are powerful </li></ul><ul><li>Set-up modification review process </li></ul><ul><ul><li>Critical, must have for production </li></ul></ul><ul><ul><li>Lower priority/cosmetic </li></ul></ul><ul><ul><li>Enhancements </li></ul></ul><ul><li>Bare bones implementation </li></ul><ul><li>Lay a foundation and build from there </li></ul>
    35. 35. Methodologies <ul><li>Implementation is highly structured </li></ul><ul><li>The Integrator brings the tools of the trade, and there are a lot of them </li></ul><ul><ul><li>Project management & production schedule </li></ul></ul><ul><ul><li>Fit analysis & prototyping </li></ul></ul><ul><ul><li>Functional & technical specification standards </li></ul></ul><ul><ul><li>Testing (SIT/UAT) strategies </li></ul></ul><ul><ul><li>Development standards </li></ul></ul><ul><ul><li>Deliverable review process </li></ul></ul><ul><ul><li>Cutover techniques </li></ul></ul><ul><ul><li>Training strategies </li></ul></ul><ul><ul><li>Readiness Assessment </li></ul></ul>
    36. 36. Schedule <ul><li>Be realistic </li></ul><ul><ul><li>Based on scope & resources </li></ul></ul><ul><li>Publish it </li></ul><ul><li>Allow for testing time </li></ul><ul><li>Fit with user community </li></ul><ul><ul><li>Example, Summit scheduled around year-end activities </li></ul></ul><ul><li>Adhere to it: Keep your eye on the critical path </li></ul><ul><li>Build in downtime: Holidays </li></ul><ul><li>Include contingency </li></ul>
    37. 37. Save time <ul><li>No RFP for software </li></ul><ul><li>Use scripts and demos </li></ul>
    38. 38. End User Readiness <ul><li>The core project is just half of the story </li></ul><ul><li>The other half are the user departments who have lots to do </li></ul><ul><li>But they need help: </li></ul><ul><ul><li>Guide them </li></ul></ul><ul><ul><li>Assess readiness by department and for the project overall </li></ul></ul><ul><ul><li>Implement a go/no go strategy and contingency plan </li></ul></ul>
    39. 39. Summit Project Success Departmental Responsibilities Summit Project Responsibilities
    40. 40. Summit Departmental Readiness Summit Team Interface Coordinator Training Coordinator Business Practices Coordinator Reports Coordinator Infrastructure Coordinator Data Clean-Up Coordinator Security Coordinator
    41. 41. Remember: It’s all about risk <ul><li>Get all the resources you need </li></ul><ul><li>Manage scope aggressively </li></ul><ul><li>Keep realistic expectations </li></ul><ul><li>Implement on time and on budget </li></ul><ul><li>Lay a foundation and build </li></ul><ul><li>Be in the top 10% who succeed </li></ul><ul><li>It can be done </li></ul>
    42. 42. Questions?