By Nick Van Maele on 19th of December 2012

1. Click to edit Master title style
ERP in practice
Within ICT & Finance context
19 December 2012
Nick Van Maele

2. Agenda
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Introduction – TriFinance
Introduction – knowing IT to know Finance
Overview of roles in Finance
Introduction to ERP
Aspects of ERP Projects
Capita selecta in ERP Project Management
Conclusion
p. 2

3. TriFinance offering Master title style
Click to edit to customers
Temporary workers High-level strategic
with added value consulting
and experience
Intelligent Advisory
capacity
Beyond Advisory
Initiated by a
Strong
BaseCamp
Recruitment & Implementation
Selection
Finding & selecting your Transformation &
future employees Implementation projects
p. 3

4. Agenda
Click to edit Master title style
Introduction – TriFinance
Introduction – knowing IT to know Finance
Overview of roles in Finance
Introduction to ERP
Aspects of ERP Projects
Capita selecta in ERP Project Management
Conclusion
p. 4

5. Career Click to edit Master title style
considerations
• Some skills needed in Finance (Controlling)
– understand the business
– system & process understanding
– accounting knowledge
– understand myself & others
• Why IT as a base for Controllers?
– Data are the basic material for Finance to work with
– Master your systems & data  master your Finance fate
p. 5

6. Agenda
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Introduction – TriFinance
Introduction – knowing IT to know Finance
Overview of roles in Finance
Introduction to ERP
Aspects of ERP Projects
Capita selecta in ERP Project Management
Conclusion
p. 6

7. Roles inClick to edit Master title style
Finance
• Controlling
• Accounting
• Treasury
• Risk & Audit
• (ICT)
p. 7

8. Different people for different jobs
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Finance area Typical job focus
Controlling • Looking ahead (forecasts)
• Finding order in chaos
• Business aspects & problems
• Challenging / steering the business
Accounting • Looking back (registering)
• Correctly classifying what has happened
• Deep insight in legal aspects & rules
Treasury • Cash management / cash forecasting
• Interaction with banks (cash pools / connectivity / …)
• Hedging risks (currencies / raw materials / …)
Risk & Audit • Checking systemic risks / making fail-safe procedures
• Assuring accuracy of financial statements
ICT • Business processes / project management
• Technological translation
p. 8

9. Agenda
Click to edit Master title style
Introduction – TriFinance
Introduction – knowing IT to know Finance
Overview of roles in Finance
Introduction to ERP
Aspects of ERP Projects
Capita selecta in ERP Project Management
Conclusion
p. 9

10. Definition of to edit Master title style
Click ERP
• ERP = Enterprise Resource Planning
• Goal of ERP = support for company process integration
• Historical origin = back office
– Finance, HR, Production, Logistics, Projects, Sales back-office, ...
• Other systems :
– SCM = Supply Chain Management
– CRM = Customer Relationship Management = Sales & Marketing
– Field Sales System = used by Field Sales people on the road
– WMS = Warehouse Management System = warehouse management
– Datawarehouse = large database for data integration and reporting
– ECM = Enterprise Content Management = unstructured text, video, ...
– etc.
p. 10

11. Aim of ERP to edit Master title style
Click
Before ERP : disparate applications and data sources After ERP : integrated application and data
• hard to integrate (daily interfaces, errors, incompatible data) source
• difficult to upgrade
• diffcult to report (different versions of the numbers)
Business HR Finance ... HR
Functions
Finance
...
Applications
& Interfaces
= application
= database
p. 11

12. Integration via edit Master title style
Click to Processes
• ERP uses processes for smooth and logical information flow between people
• A process is a given set of steps which have a desired and predictable outcome
• Example:
Process - Vendor Master Data Creation
Create Vendor
Vendor exists? No Logistic Data
(status “New”)
Purchasing
Place orders
Yes
Use existing
vendor
Finance
Create Vendor Put Vendor Status Put Vendor Status
Financial Data “Block” “OK”
No
Legal
Background check Check OK? Yes Authorise for use
p. 12

13. From Process to ERP system style
Click to edit Master title
• ERP design follows from Process design
Sequence of business actions is translated into ERP transactions
Information required per action is translated into data fields per
transaction screen. Also input to the overall ERP data design.
Process - Vendor Master Data Creation
Different swimlanes Vendor exists? No
Create Vendor
Logistic Data
(status “New”)
Purchasing
Place orders
translate into Yes
different roles, user Use existing
vendor
profiles and
authorisations for
Finance
Create Vendor Put Vendor Status Put Vendor Status
Financial Data “Block” “OK”
executing ERP
transactions No
Legal
Background check Check OK? Yes Authorise for use Some process steps
reveal which data will
be needed
Process diagrams are re-used in initial training to teach process
understanding and give a high-level overview of the business
p. 13

14. ERP proClick to edit Master title style
and con
Advantages of ERP Disadvantages of ERP
• Better business processes • Some functionality compromise
• Effective • Best-of-breeds can be better
• Efficient • Users can perceive “step back”
• Integrated processes & information •Expensive to start up
• Avoids interfaces • Large upfront investment
• Easier to report • Lower running costs later
• Authoritative data source • Risky to implement
• One version of the truth • Failure rate = 60%
• Data input once, re-use elsewhere • High stress in organisation
p. 14

15. Agenda
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Introduction – TriFinance
Introduction – knowing IT to know Finance
Overview of roles in Finance
Introduction to ERP
Aspects of ERP Projects
Capita selecta in ERP Project Management
Conclusion
p. 15

16. ERP Projects to edit Master title style
Click
• Very expensive to do
• Much potential efficiency & information gains
• Many different business aspects to tackle
• Stressful for organisation
• Risky (high failure rate)
p. 16

17. Typical Click to edit Master title style
mistakes
• Not tackle business issues directly
• Believe software will solve problem
• Have no IT strategy
• Select software without Proof of Concept
• Insufficient business input in design
• Assume operational people will be available
p. 17

18. Agenda
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Introduction – TriFinance
Introduction – knowing IT to know Finance
Overview of roles in Finance
Introduction to ERP
Aspects of ERP Projects
Capita selecta in ERP Project Management
Conclusion
p. 18

19. Project Click to edit Master title style
Management (1/2)
Generic methodologies : Prince2
Project
Directing the Project
Board
Advice Advice Advice Advice Advice
Authorisation Authorisation
Project Brief Project Initiation End Stage Report Highlights Report End Project Report
Project Approach Document Exception Plan Exception Report Lessons learned
Project Organisation Stage Plan Follow-up actions
Initiation Stage Plan
Manage
Project Starting Initiating Controlling Closing Project
Mandate Stage Manager
Project Project Stage Project
Boundaries
Checkpoint Report
Work Package Work Package
Quality Log
Initiation Stage Plan Project Plan Stage Plan
Exception Plan Manage
Team
Product Managers
Delivery
Team Plan
Project
Planning Manager
p. 19

20. Project Click to edit Master title style
Management (2/2)
TriFinance ERP methodology – overview
Phases
(time) Initiate Analyse Build Operate
Implement Hypercare
Workstreams & Plan & Design & Test & Close
(teams)
Project Management – Plan / budget / resources / issues / status / project mechanisms
Change Management – Key aspect! Involve impacted people / dialogue / prioritise
Training – Requires much effort to prepare and give.
Functional teams – Appropriate set-up (per region or process or role or knowledge area or ...)
Reporting – Management reporting & KPI needs
Systems – IT specialists for hardware, installation, programming, performance, backup/restore, ...
Support Organisation – Absorb peak of problems at go-live. Prepare well in advance
p. 20

21. Change management – why?
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• Good ERP projects bring much change
– since most value is in reforming processes…
• Change is hard for people
• Different people react in different ways
• Project  change management
p. 21

22. Change Management title style
Click to edit Master
• Insights © colour model = more simple & easier to remember
p. 22

23. Change Management
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Belbin® Team Roles ©
Team Role Contribution Allowable Weakness
Planter Creative, imaginative, unorthodox. Solves difficult Ignores incidentals. Too pre-occupied to
problems. communicate effectively.
Resource Extrovert, enthusiastic, communicative. Explores Over-optimistic. Loses interest once initial
Investigator opportunities. Develops contacts. enthusiasm has passed.
Co-ordinator Mature, confident, a good chairperson. Clarifies Can be seen as manipulative. Offloads
goals, promotes decision-making, delegates well. personal work.
Shaper Challenges, dynamic, thrives on pressure. The Prone to provocation. Offends people’s
drive and courage to overcome obstacles. feelings.
Monitor Sober, strategic and discerning. Sees all options. Lacks drive and ability to inspire others.
Evaluator Judges accurately.
Implementer Co-operative, mild, perceptive and diplomatic. Indecisive in crunch situations.
Listens, builds, averts friction.
Teamworker Disciplined, reliable, conservative and efficient. Somewhat inflexible. Slow to respond to new
Turns ideas into practical actions. possibilities.
Completer Painstaking, conscientious, anxious. Searches Inclines to worry unduly. Reluctant to
Finisher out errors and omissions. Delivers on time. delegate.
Specialist Single-minded, self-starting, dedicated. Provides Contributes on only a narrow front. Dwells on
knowledge and skills in rare supply. technicalities.
p. 23

24. TrainingClick to edit Master title style
• Assess current skills of end-users
– Training not only system but also business knowledge!
• Difficult logistics
– 50 users x 7 days = 350 training days  max 8 people per trainer …
– dedicated training system, rooms, beamers, PC's
– availability of trainers   last minute cancellations
• Very short time frame to develop & give training
– Wait until system design is stable   training done before go-live
p. 24

25. ProcessClick to edit Master title style
& Data Design
• Functional experts  design good processes
– Adapt organisation to new processes where it adds value
• Data design follows process design
– Data definitions ("what is a product?")
– New ERP data structure ≠ old data structure
• Data conversion = key go-live issue
– Data cleansing effort nearly always underestimated
– Use data analysis to measure the As-Is reality
p. 25

26. SystemsClick to edit Master title style
• Business strategy
– leading edge / cost effective / customer intimacy
• IT strategy
– identify key business support areas
• ICT architecture
– which system for what
– operational interfaces (WMS, production, ...)
– reporting
• Hardware budget
– servers / message queues / back-ups / data storage / …
p. 26

27. SupportClick to edit Master title style
• Go-live causes a peak in problems / user tickets
• Existing helpdesk needs to be trained / equipped
• Project team stays on in Hypercare mode
– Become support level 2 and 3
p. 27

28. Conclusion for edit Master title style
Click to ERP projects
• First simplify in the business
• First make a strategy
• ERP projects are not (just) IT projects
– change management, processes, organisation
• High risk  experienced cross-functional team
• Enormous effort  realistic budget
– training, data quality, ... are often underestimated
p. 28

29. Future trends edit Master title style
Click to
• User friendliness
– intuitive and "modern" interfaces
• Accessibility
– mobile access
• Flexibility
– Changing the systems as fast as the world around it
• Data integration
– linking to suppliers, customers, banks, government (via web service?)
– ERP  datawarehouses  legacy systems
– internal  external data
• Unstructured data (?)
– text, video, partner website, social media...
p. 29

30. Big data
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Source: Harvard Business Review – Oct 2012
• Larger quantities of data being processed
– 2.5 exabytes = 2.5 billion GB of new data per day
– Walmart collects 2.5 petabytes per hour = 2.5 million GB per hour
• equivalent to 20 million filing cabinets
• Higher speed of processing: real-time or near-real-time
– Combination of real-time weather sensors, radar & historical flight data
queries make computer predictions of landing times better than those of
pilots  more efficient planning of ground crew  savings of up to 2 mio
$ per year for large airports
• Larger variation of data formats
– SMS, GPS, sensors, smart meters, social media, websites, flash, YouTube, …
– GSM signal detection on parking lot of supermarket predict daily sales of
supermarkt earlier than internal systems
p. 30

31. Agenda
Click to edit Master title style
Introduction – TriFinance
Introduction – knowing IT to know Finance
Overview of roles in Finance
Introduction to ERP
Aspects of ERP Projects
Capita selecta in ERP Project Management
Conclusion
p. 31

32. Conclusion to edit Master title style
Click
• Finance is a strategic area for companies
• Finance depends on good data
• To get good data, you need good systems
• Business applications are the core internal data providers
– combine with external data (market research, Dun & Bradstreet, …)
• ERP is the internal backbone of larger companies
– Sales, Finance, HR, Logistics, Production
• Master “IT” to master Finance
p. 32