This is a presentation given in 2008 to CPA Congress in Adelaide. It sumarises the drivers for change - and the threats.

1. Integrated Business Systems:
Success through Change
Laz Davila
Director
Davtec IT Pty Ltd
davtec
exceptional technology solutions

2. davtec
exceptional technology solutions
Laz Davila: About Me

IT / Software Industry since 1985:




Corporations: 15 years
Small Business: 3 years
Consulting (to both): last 5 years
Anecdotal evidence:

Common sense

3. davtec
exceptional technology solutions
Fresh Thinking. Real Success.
Take an old idea
 Niche / Renew
 Do it better

(Technology)

4. davtec
exceptional technology solutions
ERP – Business Nirvana

Enterprise resource planning (ERP):
“an enterprise-wide information
system designed to coordinate all the
resources, information, and activities
needed to complete business
processes such as order fulfillment or
billing.”
Source: Wikipedia.org

5. davtec
exceptional technology solutions
In English?
Integrating business processes
“end to end” can:



Save costs (improve efficiency)
Accelerate production (more revenue)
Improve quality and consistency of results
(more happy clients = more revenue)
---

Bottom Line: More Profit

6. davtec
exceptional technology solutions
What can you integrate?








Financials
Supply Chain Management
Decision Support
Human Resources
Manufacturing
Projects
Customer Relationship Management
Etc, Etc...
Any two qualifies a product as an ERP

7. davtec
exceptional technology solutions
Example ERP Systems
Source:
http://hosteddocs.ittoolbox.com/corioerp_survey.pdf

8. davtec
exceptional technology solutions
It’s a long way to the top

9. davtec
exceptional technology solutions
Why is this a big deal?

10. davtec
exceptional technology solutions
And why is it so hard?

11. davtec
exceptional technology solutions
No, really, why is it so hard?

Complexity


Software
Business
Changes to
work practices
 Migration
of Data
 Timing “Go Live”
 Long Projects - Months to Years


12. davtec
exceptional technology solutions
It’s not about the IT
Source:
http://hosteddocs.ittoolbox.com/corioerp_survey.pdf

13. davtec
exceptional technology solutions
Let’s tackle the issues: Requirements
Source: Lego
TM

14. davtec
exceptional technology solutions
More on Requirements

Balance how ERP system has been
designed to work against how the
business works



And how does the business work?
Standardising to ERP processes can lead
to loss of competitive advantage
Compromise – edit/develop modules
or interface to existing methods

15. davtec
exceptional technology solutions
Resistance to change
Senior staff less happy to change
 Beware separate, independent
divisions with their own processes
 Stovepipes and niche tools (e.g. Excel)


16. davtec
exceptional technology solutions
Inadequate Resources / Time / Budget

Design and implementation needs
key business resources


So who does their day job?
Guideline cost of customisation:


Medium: 2 x User Licence fees
Large/Multiple Sites: 3 to 5 x User Licence
fees

17. davtec
exceptional technology solutions
Inadequate Training

18. davtec
exceptional technology solutions
Lack of Top Management Support

19. davtec
exceptional technology solutions
Poor Communications

20. davtec
exceptional technology solutions
Well, maybe it *is* the IT




Incompatible software with business
processes
Poor project design / management
Poor ERP Package selection
Use of Consultants

Can do it better
in house...

21. davtec
exceptional technology solutions
Knowing everything we know...

Cost and Schedule Overruns happen


Half pregnant
Eli Lilly SAP
implementation
example:



From:
4 year x 70 people
To:
6 year x 100 people
[A success story]

22. davtec
exceptional technology solutions
Surviving ERP Shock
Insufficient Training
 Poor system performance
 Inadequate support


23. davtec
exceptional technology solutions
And we live happily ever after

Dirty Data building up over time

Garbage in / Garbage out

Blurring
accountability /
lines of responsibility
and morale

No time to rest...

24. davtec
exceptional technology solutions
Questions?

25. davtec
exceptional technology solutions
Bibliography / Credits
2004 ITtoolbox ERP Implementation Survey
Sponsored by Corio
http://hosteddocs.ittoolbox.com/corioerp_survey.pdf
Eli Lilly: Leveraging SAP XI in Your Landscape: Costs, Benefits, Lessons Learned
Timothy S Yates, Scott A Sanneman
2007 ASUG National Conference
Why Erp? a Primer on SAP Implementation
F Robert Jacobs, David Clay Whybark
McGraw-Hill/Irwin, 2001
Changing the Way We Manage Change
Ronald R. Sims
Greenwood Publishing Group, 2002
Photos: http://www.sxc.hu

26. davtec
exceptional technology solutions
For further information, please contact:
Laz Davila
davtec
321 Portrush Road
Toorak Gardens SA 5065
Ph: (08) 8333 3440
Mob: 0402 452 529
ldavila@davtec.com.au
http://www.davtec.com.au/