This document outlines a structured methodology for managing an ERP system through its entire lifecycle including selection, implementation, optimization, and maintenance. It discusses setting up an ERP governance program, selecting the right ERP through a multi-step process focusing on criteria and evaluation, launching the system in a phased approach starting with a pilot, optimizing processes on the new ERP, and establishing an ERP competency center for ongoing maintenance.

1. CONFIDENTIAL AND PROPRIETARY
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ERP Governance
Methodology & Case Studies
By

2. ERP Governance
Reasons behind the choice of a new ERP system
2

3. ERP Governance
Moving to a new ERP requires awareness and a structured approach
3

4. ERP Governance
How to manage the entire ERP Life Cycle
4

5. How to select and deploy the new ERP
Our Methodological Framework (1/2)
5

6. How to select and deploy the new ERP
Our Methodological Framework (2/2)
6

7. Process and IS Review
Focus on Process Model and Scope
7
Mapping the
company
processes,
designing the
reference template
and deciding the
scope for the ERP
introduction
is a key preliminary
activity for the new
ERP introduction
1

8. ERP Selection
Structured Approach
8
2
STEP 1
«THINK»
Design the ERP Selection process, by defining:
• The process scope for each implementation phase
• The Selection Criteria to drive the choice of the best ERP SW
• The initial SW list
• The company Business and IT team to be involved in the selection
• The work plan
STEP 2
«PREPARE»
• Define and weight the «functional requirements»
• Reduce the ERP vendor list, by applying filtering criteria
• Prepare the RFP document to be sent to the SW Bidders
• Engage the vendors and manage the internal communication
• Review the work plan
STEP 3
«EXECUTE»
• Manage the interaction with the SW vendors, by receiving their
responses and organizing the SW demos
• Coordinate the scoring activity to be executed by the project team
• Proceed with the ERP selection in two steps (Down Selection and
Final Selection)
• Finalize the contract with the selected vendor

9. ERP Selection
Focus on the Selection Criteria and the Evaluation Scorecard
9
2
ERP
“Quality”
 Which ERP fit better the “core business” process?
Total Cost of
Ownership
 Compare the costs to buy the licenses, to implement and to maintain each ERP
in the selection process
Business
Risks
 Assess the risks related to each ERP in the selection process
Business
Benefits
 How much each ERP can improve the performance compared with the «As Is»
situation (also considering the business evolution strategy)?
Vendor
Profile
 Which vendor is the most reliable and referred ERP supplier?
 This Criteria is typically preliminary to include the vendor in the Short List

10. ERP Launch
Structured Approach
3
10
Organization
1
 Program
Organization
 Process
Framework
 Roles &
Responsibilities
 Program
Governance
 Maintenance &
Support
Staffing
 Communication
and Knowledge
Sharing
 Cost and
Resource
Management
 Training
 Testing
 Solution
Management
2
Methodology
 Template
Methodology
and Standards
 Deployment
Methodology
and Standards
 PMO
Methodology
and Standards
3
Partners*
 Sourcing Strategy
 RFP Templates
 Vendor
Engagement
Model
 Vendor
Management
Model
4
Tools
 Job Role
Definition
 Demand
Planning, Gap
Analysis and
Staffing Plan
 Staffing
Execution
5
 WW Executive Alignment
 Regional Orientation
Orientation and Mobilization
6
 Core Team Set-Up
 BBP/Pilot Preparation
 Vendor Selection
Execution
Program Strategy
0
* Only in case of multiple vendor sourcing
strategy

11. ERP Implementation
Structured Approach
4
11
Program
Set-Up
Conceptual
Design (BBP)
Pilot
Implementation Roll-Out
Waves
Roll-Out
Waves
Roll-Out
Waves
• Select the system
integrator
• Share the
methodology
• Confirm the Program
roadmap and the
detailed budget
• Anticipate the most
urgent technical and
infrastructure
requirement for the
ERP Installation)
• Kick off the program
• Define the ERP core
solution, discuss in
detail with the
process owner in a
designated series of
workshop
• Seek the solution
formal approval
• Design the TO BE
environment
architecture
(technology and
infrastructure)
• Realize a functional
prototype of the core
solution
• Implement the core
solution in the pilot
site
• Build a kernel to be
use in the
subsequent program
phases
• Stabilize the system
before activating the
roll-out
• Roll-out the template
to the other Sites,
with focus on the
standardization and
limiting the
localization to the
mandatory
requirements
• Setup the application
maintenance
Objectives
Comments
• The roll-out steps
should consider the
complexity of the AS-
IS and the business
evolution plan
• Key factor is to have
a strong business
sponsorship and a
group of accountable
Process Owners
• The template should
cover the core
processes and
involve all regions
and countries
• The right pilot site
should cover the
majority of the
processes but with
limited complexity

12. ERP Optimization
Structured Approach
5
12

13. ERP Maintenance
Structured Approach
6
13
ERP
Competency
Center Design
Maintenance
Processes
Design
Service
Provider
Selection
AMS
Ramp-Up
• Mission and span of
responsibility
• Organization: by
process areas /
regions / activity
(projects vs.
maintenance)
• Roles and
Responsibilities
• Skillset map and gap
• Demand planning
and resource sizing
• Staffing and Training
Plan
• Tickets Management
(Incidents, Service
Requests)
• Operational
Maintenance
• Change Request
Management
• Project Management
• Governance
• Service Management
• Resource
Management
• Cost Management
• Sourcing Strategy
• Service Provider Role
and Responsibility
Definition
• Service Provider List
• RFP Document
Preparation and Issue
• Service Provider
Selection and Award
• Service Provider
Engagement and
Management
• Service Control
Processes
• Internal Staffing
(Recruiting,
Conversion, Training)
Execution and
Monitoring
• Maintenance
Organization Start-Up
• Post Audit and
Improvement
Management
Objectives
Comments
• The transition requires
a detailed plan and a
dedicated Transition
Manager
• The SAP CC set-up
be activated before
reaching a significant
number of live
countries
• The AM activities
must be carefully
designed to be
compliant to Audit
requirements
• SP selection and
engagement is key
for the future
performance