Enterprise Resource Planning By: Ravi Jangra Business Consultant +91 9811811231
ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach ...
ERP Benefits Realization Overview Common ERP Challenges A recent survey revealed that 27% of clients either have not been ...
ERP Benefits Realization Overview Common ERP Challenges: Why Projects Fail <ul><li>Unclear business rationale for implemen...
ERP Benefits Realization Overview Purpose of Benefits Realization <ul><li>A comprehensive project approach that focuses on...
ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach ...
ERP Benefits Realization Approach The Business Benefits Pyramid Business Process Improvement And Business Requirements Tec...
ERP Benefits Realization Approach Focus on Measurable Post-Implementation Results <ul><li>Organizations typically see an i...
Core Process View <ul><li>Develop high-level, global, and integrated business processes based on strategic / operational n...
Corporate Metrics   Tied directly to corporate-level goals <ul><li>Sample Metrics: </li></ul><ul><li>Wholesale sales and p...
<ul><li>Business Case, Measures,  </li></ul><ul><li>and ROI </li></ul><ul><li>Process Benefits </li></ul><ul><li>Improved ...
ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach ...
Implementing Benefits Realization Focus is on Integrated Set of Value-Add Activities <ul><li>Business Process Improvement ...
Implementing Benefits Realization High-level Project Activities to Ensure ROI ERP  Build Go - live OCM/cultural assessment...
Implementing Benefits Realization Sample Project Tools <ul><li>Business Case and Performance Metrics </li></ul><ul><li>Org...
ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach ...
System  Go Live Benefits Measurement Balanced scorecards,  reports Root Cause Analysis  of Benefit Gaps Fishbone diagrams,...
Root Cause Analysis  of Benefit Gaps
Implement Corrective Action
Results of Benefits Realization  Creates Measurable ROI and Business Value <ul><li>Reduces project risk </li></ul><ul><li>...
ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach ...
<ul><li>Contact Us to Find Out More </li></ul><ul><li>Contact Information: </li></ul><ul><li>Ravi Jangra </li></ul><ul><li...
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Enterprise Resources Planning Conceptual

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Enterprise Resources Planning Conceptual

  1. 1. Enterprise Resource Planning By: Ravi Jangra Business Consultant +91 9811811231
  2. 2. ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach </li></ul><ul><li>Implementing Benefits Realization </li></ul><ul><li>Results of Benefits Realization </li></ul><ul><li>Next Steps </li></ul>
  3. 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
  4. 4. ERP Benefits Realization Overview Common ERP Challenges: Why Projects Fail <ul><li>Unclear business rationale for implementing ERP </li></ul><ul><li>Lack of adequate executive buy-in </li></ul><ul><li>Failure to consider key business requirements during vendor selection process </li></ul><ul><li>Too little focus on optimizing business processes </li></ul><ul><li>Poor project management and project cost controls </li></ul><ul><li>Lack of focus on organizational change management, communications, and training </li></ul><ul><li>Failure to measure performance / ROI and to conduct post-implementation audit </li></ul>
  5. 5. ERP Benefits Realization Overview Purpose of Benefits Realization <ul><li>A comprehensive project approach that focuses on identifying, measuring, and ensuring the business benefits achievable through technology </li></ul><ul><li>Enables alignment between mid-level managers and project benefits </li></ul><ul><li>Holistic approach with a focus on Performance Measurement, Organizational Change Management (OCM), Program Management support, and process improvement </li></ul><ul><li>Supplements technical aspects of an implementation with the business side of the equation to ensure that potential benefits come to fruition </li></ul>
  6. 6. ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach </li></ul><ul><li>Implementing Benefits Realization </li></ul><ul><li>Results of Benefits Realization </li></ul><ul><li>Next Steps </li></ul>
  7. 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
  8. 8. ERP Benefits Realization Approach Focus on Measurable Post-Implementation Results <ul><li>Organizations typically see an initial drop in productivity after a major IT implementation </li></ul><ul><li>The goals of Benefits Realization are to: </li></ul><ul><ul><li>Minimize the drop in productivity immediately after go-live </li></ul></ul><ul><ul><li>Maximize the increase in productivity after users get through the learning curve of the new technology </li></ul></ul>
  9. 9. Core Process View <ul><li>Develop high-level, global, and integrated business processes based on strategic / operational needs </li></ul><ul><li>Focus on touchpoints and handoffs between business units and departments </li></ul><ul><li>Identify high-level corporate measures and target levels of performance </li></ul><ul><li>Develop detailed process flows by function </li></ul><ul><li>Identify operational performance measures and linkages to higher-level corporate measures </li></ul><ul><li>Assign ownership of processes and measures </li></ul><ul><li>Document business “blueprint” to guide ERP technical development </li></ul>ERP Benefits Realization Approach Strong Focus on Business Processes and Measures Breakdown of Key Process Measures Core Process Measures “ Level 1” Input Measures Deliver Products/ Services (order to cash) Output Measures In - Process Measures Input Measures Deliver Products/ Services (order to cash) Distribution Ops Output Measures In - Process Measures I I P P O O Macro Process Measures “ Level 2” I I P I O P P O O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O I O P P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O I O P Sub - process Measures “ Level 3” P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O I O P P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O P I O I O P Strategic Planning & Alignment Product Development Sales Delivery Human Capital Management Information Capital Management Organizational Capital Management Supply Chain Manufacturing Distribution
  10. 10. Corporate Metrics Tied directly to corporate-level goals <ul><li>Sample Metrics: </li></ul><ul><li>Wholesale sales and profit </li></ul><ul><li>Retail sales and profit </li></ul><ul><li>Product development time to market </li></ul><ul><li>Sales and profit by region </li></ul><ul><li>Sourcing costs </li></ul><ul><li>Number of product introductions per year </li></ul>Business Unit Metrics Business Unit Metrics Departmental Metrics <ul><li>Average inventory costs </li></ul><ul><li>Number of new product designs completed per year </li></ul><ul><li>Inventory accuracy </li></ul>Departmental Metrics Individual Metrics Individual Metrics Departmental Metrics $ Savings Measured Results ROI ERP Benefits Realization Approach High-level Measures Should Be Cascaded to Lower Levels of the Organization to Drive Business Results <ul><li>Average inventory cost by location </li></ul><ul><li>Number of new designs per employee </li></ul>
  11. 11. <ul><li>Business Case, Measures, </li></ul><ul><li>and ROI </li></ul><ul><li>Process Benefits </li></ul><ul><li>Improved process cycle times </li></ul><ul><li>Lower labor costs </li></ul><ul><li>Higher efficiency </li></ul><ul><li>SOX Compliance </li></ul><ul><li>Capital and Infrastructure Benefits </li></ul><ul><li>Reduced inventory $ </li></ul><ul><li>Lower IT infrastructure costs </li></ul><ul><li>Decreased A/R levels </li></ul><ul><li>Increased A/P levels </li></ul>Process Improvement Average cycle times, average labor costs Org. Design Individual job roles, MBOs, performance evaluations, individual scorecards Executive Alignment MBOs, compensation structure, project sponsorship IT Configuration Process workflow modification, report designs, analytics ERP Benefits Realization Approach Focus on Measurement Enables Other Change Initiatives
  12. 12. ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach </li></ul><ul><li>Implementing Benefits Realization </li></ul><ul><li>Results of Benefits Realization </li></ul><ul><li>Next Steps </li></ul>
  13. 13. Implementing Benefits Realization Focus is on Integrated Set of Value-Add Activities <ul><li>Business Process Improvement / Optimization and ERP Business Requirements </li></ul><ul><li>Performance Measurement and Management </li></ul><ul><li>Organizational Change Management, Training, and Communications </li></ul><ul><li>Post Go-live Audit and Root Cause Analysis </li></ul><ul><li>Program Management Support and Project Quality Assurance </li></ul>
  14. 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
  15. 15. Implementing Benefits Realization Sample Project Tools <ul><li>Business Case and Performance Metrics </li></ul><ul><li>Organizational Readiness Assessments </li></ul><ul><li>Job Impact Analyses </li></ul><ul><li>Process Designs </li></ul><ul><li>Process and Organizational Change Implementation Plans </li></ul><ul><li>Benefits Realization Scorecards </li></ul><ul><li>Root Cause Analysis workshops and results </li></ul><ul><li>Post-Implementation Corrective Action Plans </li></ul><ul><li>Communications Plan </li></ul><ul><li>Project QA Review and Assessment </li></ul>
  16. 16. ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach </li></ul><ul><li>Implementing Benefits Realization </li></ul><ul><li>Results of Benefits Realization </li></ul><ul><li>Next Steps </li></ul>
  17. 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. 18. Root Cause Analysis of Benefit Gaps
  19. 19. Implement Corrective Action
  20. 20. Results of Benefits Realization Creates Measurable ROI and Business Value <ul><li>Reduces project risk </li></ul><ul><li>Closely aligns business and technical activities </li></ul><ul><li>Proactively identifies and addresses potential obstacles to realizing project benefits </li></ul><ul><li>Provides more thorough understanding of underperformance and lessons learned </li></ul><ul><li>Improves justification for future IT project approvals </li></ul><ul><li>Provides quality and continuity through ERP project lifecycle </li></ul>
  21. 21. ERP Benefits Realization Agenda <ul><li>ERP Benefits Realization Overview </li></ul><ul><li>Benefits Realization Approach </li></ul><ul><li>Implementing Benefits Realization </li></ul><ul><li>Results of Benefits Realization </li></ul><ul><li>Next Steps </li></ul>
  22. 22. <ul><li>Contact Us to Find Out More </li></ul><ul><li>Contact Information: </li></ul><ul><li>Ravi Jangra </li></ul><ul><li>Business Consultant </li></ul><ul><li>+91 9811811231 </li></ul>Next Steps Contact Us to Help Implement Benefits Realization in Your Company

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