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Leveraging the Business
Strategy and ERP Nexus
Presented by: Chris Catto
Director
Putney Breeze Advisors
About Me
- Author of Premiership Business
The Premiership Business Equation
for Business owners &
Entrepreneurs
- Planning & Performance
Management in Leading Global
Corporations
- Director of Putney Breeze
Advisors
- Associate of Betacodex Network
Strategic
Delivery &
ERP
ERP
Paradox
Strategy &
Strategic
Outcomes
ERP &
transform
- ation of
Data
Decision
Making –
How we
compute
Case –
Data,
Decisions,
Strategic
Delivery
Agenda - Leveraging the Business
Strategy and ERP Nexus
1.
4.
3.
2.
5.
ERP Paradox
> More streamlined, flatter,
more flexible and democratic data
> Centralization of Control over
information and the standardization of
process
> Strategy
– The science or art of combining and employing the
means of war in planning and directing large military
movements,
- Skill full management in getting the better of an
adversary
> Plan (Planning)
– a scheme of action, a design or scheme of
arrangement, a project or definite purpose
Macquarie Dictionary 4th Edition
Corporate
Vertical Integration,
Alliances,
Diversification
Operational Effectiveness
Innovation, Marketing efficiencies, Information
Systems , processes, Total Quality Management,
Customer Responsiveness
Business Level Strategies
Cost Leadership,
Differentiation, Quality , Focus
Executive
Business Unit
Leader
Functional
Area
Manager
Strategic Choices
Progress…..
Strategic
Delivery &
ERP
ERP
Paradox
Strategy &
Strategic
Outcomes
ERP &
transform
- ation of
Data
Decision
Making –
How we
compute
Case –
Data,
Decisions,
Strategic
Delivery
1.
4.
3.
2.
5.
What is ERP?
> 1960s Inventory Management & Control
> 1970s Material Requirements Planning
> 1980s Manufacturing Resource Planning
> 1990s Enterprise Resource Planning
Inventory, Order management, Accounting, HR, CRM, Business Intelligence
ERP software that integrates various functions into one complete system to
streamline information and process across the entire business
“DATA”
Value of ERP
Process & Functional
> Gives real-time global view of information that allows proactive business decision making
facilitating improvements
> Lower information handling and overall cost of doing business
> Enhances compliance with regulatory standards and reduces financial risk
> Automates core business operations and processes such as order-to-fulfilment, and procurement
processes
> Eliminates redundant processes
> Improves customer service by centralising customer information and collation
Strategic Delivery
► Decision making
Timeliness
Enable Strategic Decisions
Master Data
Products, Customers,
Employees, Suppliers
Transactional Data
Orders, Invoices, Payments,
Deliveries
Historical Data
Comparability, Measurability
Accuracy Consistency
Completeness
Data Quality
Intrinsic, Accessibility, Usefulness
> Quality
> Dimension
> Type
Adapted from: The Cost of Poor Data Quality; Huag,
Zachariassen, Liempd, Journal of Industrial Engineering
& Management doi:10.3926/jiem.2011.v4n2.p168-193
Sharp End – Business Intelligence
In what circumstance does data turned into information, decision
trees, software and performance management tools fail?
Understand the Context of Decision
Making
Right
Open
Vigilant
Alertness
Iain McGilchrist
Psychiatrist
Author: The Master
and his Emissary
Left
Narrow
Detail
Attention
ContextFocus
But what makes Humans Different?
Humans are different?
> Frontal Lobe
> Separation from current
world
> Manipulate
> Machiavellian
Strategic Tools
Porters Five Forces
SWOT
Business Process
Reengineering
Lean Manufacturing/Services
Six Sigma
BSC and Strategic Mapping
Hoshin
Kaizen
Kanban
ABM
Progress Take 2…..
Strategic
Delivery &
ERP
ERP
Paradox
Strategy &
Strategic
Outcomes
ERP &
transform
- ation of
Data
Decision
Making –
How we
compute
Case –
Data,
Decisions,
Strategic
Delivery
1.
4.
3.
2.
5.
Where does this lead us?
Right Data
Right
Tools
Right
Context
Right
Decision
Strategic
Outcomes
Handelsbanken Focus - Customer
Satisfaction at Low cost
How?
► Greater Branch & Regional
Authority
► Flat Structure
► Customer focus v Product
► Value Based Culture
► Transparent Performance
Data
► No Budgets
► Strategy driven by internal
transparent Benchmarking
between Regions and Branch
offices
► Freedom and responsibility to act
– do what is right to fit local
performance
► Common Bonus scheme not
individual bonus scheme –
Measure how the bank performs
compared to other banks
Handelsbanken – Performance Outcome
ERP Critical Success Factors
> Align ERP systems with Strategy – Not just copy of
dysfunctional systems
> Business Process driven not systems driven
> Eliminate Redundant processes
> Involve the right people
> Invest in Education and training
> One technology platform and data consistency
> One Company wide database
> Embed disaster recovery procedures
> Look to the future
Hope & Player, Beyond Performance Management
Leveraging ERP the Critical success
Factors
> Ensure Data Quality
> Understand the Context of Data
> Responsibility & Accountability at right Level
> Agile decision making by presenting data in right element
> Incorporate Relative Measures of Success
•Accuracy
•Completeness
•Timely
•Consistency
Right Data
•BSC & Strategic
Mapping
•ABM
•Kaizen
Right Tools
•Executive
•Business Unit Leaders
•Functional Manager
Right Audience
•Competitors
•PESTLE
•Five Forces
•Market condition
Right Context
•Actions
•Initiatives
•Investments
Right Decisions
•Strategic Outcomes
Strategic
Delivery
Enterprise Resource Planning
Strategic
Delivery &
ERP
ERP
Paradox
Strategy &
Strategic
Outcomes
ERP &
transform
- ation of
Data
Decision
Making –
How we
compute
Case –
Data,
Decisions,
Strategic
Delivery
1.
4.
3.
2.
5.
How well do you leverage your tools?
Don’t Be A……
………..
Understand the
Context
Disclaimer
This presentation represents the opinion of the author(s) and not necessarily those
of the Institute of Chartered Accountants in Australia (The Institute) or its members.
The contents are for general information only. They are not intended as professional advice – for that you
should consult a Chartered Accountant or other suitably qualified professional.
The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any
information in these papers/presentation.

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Leveraging the erp and strategy nexus 2013 slideshare

  • 1. Leveraging the Business Strategy and ERP Nexus Presented by: Chris Catto Director Putney Breeze Advisors
  • 2. About Me - Author of Premiership Business The Premiership Business Equation for Business owners & Entrepreneurs - Planning & Performance Management in Leading Global Corporations - Director of Putney Breeze Advisors - Associate of Betacodex Network
  • 3. Strategic Delivery & ERP ERP Paradox Strategy & Strategic Outcomes ERP & transform - ation of Data Decision Making – How we compute Case – Data, Decisions, Strategic Delivery Agenda - Leveraging the Business Strategy and ERP Nexus 1. 4. 3. 2. 5.
  • 4. ERP Paradox > More streamlined, flatter, more flexible and democratic data > Centralization of Control over information and the standardization of process
  • 5. > Strategy – The science or art of combining and employing the means of war in planning and directing large military movements, - Skill full management in getting the better of an adversary > Plan (Planning) – a scheme of action, a design or scheme of arrangement, a project or definite purpose Macquarie Dictionary 4th Edition
  • 6. Corporate Vertical Integration, Alliances, Diversification Operational Effectiveness Innovation, Marketing efficiencies, Information Systems , processes, Total Quality Management, Customer Responsiveness Business Level Strategies Cost Leadership, Differentiation, Quality , Focus Executive Business Unit Leader Functional Area Manager Strategic Choices
  • 7. Progress….. Strategic Delivery & ERP ERP Paradox Strategy & Strategic Outcomes ERP & transform - ation of Data Decision Making – How we compute Case – Data, Decisions, Strategic Delivery 1. 4. 3. 2. 5.
  • 8. What is ERP? > 1960s Inventory Management & Control > 1970s Material Requirements Planning > 1980s Manufacturing Resource Planning > 1990s Enterprise Resource Planning Inventory, Order management, Accounting, HR, CRM, Business Intelligence ERP software that integrates various functions into one complete system to streamline information and process across the entire business “DATA”
  • 9. Value of ERP Process & Functional > Gives real-time global view of information that allows proactive business decision making facilitating improvements > Lower information handling and overall cost of doing business > Enhances compliance with regulatory standards and reduces financial risk > Automates core business operations and processes such as order-to-fulfilment, and procurement processes > Eliminates redundant processes > Improves customer service by centralising customer information and collation Strategic Delivery ► Decision making
  • 10. Timeliness Enable Strategic Decisions Master Data Products, Customers, Employees, Suppliers Transactional Data Orders, Invoices, Payments, Deliveries Historical Data Comparability, Measurability Accuracy Consistency Completeness Data Quality Intrinsic, Accessibility, Usefulness > Quality > Dimension > Type Adapted from: The Cost of Poor Data Quality; Huag, Zachariassen, Liempd, Journal of Industrial Engineering & Management doi:10.3926/jiem.2011.v4n2.p168-193
  • 11. Sharp End – Business Intelligence In what circumstance does data turned into information, decision trees, software and performance management tools fail?
  • 12. Understand the Context of Decision Making
  • 13. Right Open Vigilant Alertness Iain McGilchrist Psychiatrist Author: The Master and his Emissary Left Narrow Detail Attention
  • 14. ContextFocus But what makes Humans Different?
  • 15. Humans are different? > Frontal Lobe > Separation from current world > Manipulate > Machiavellian
  • 16. Strategic Tools Porters Five Forces SWOT Business Process Reengineering Lean Manufacturing/Services Six Sigma BSC and Strategic Mapping Hoshin Kaizen Kanban ABM
  • 17. Progress Take 2….. Strategic Delivery & ERP ERP Paradox Strategy & Strategic Outcomes ERP & transform - ation of Data Decision Making – How we compute Case – Data, Decisions, Strategic Delivery 1. 4. 3. 2. 5.
  • 18. Where does this lead us? Right Data Right Tools Right Context Right Decision Strategic Outcomes
  • 19. Handelsbanken Focus - Customer Satisfaction at Low cost How? ► Greater Branch & Regional Authority ► Flat Structure ► Customer focus v Product ► Value Based Culture ► Transparent Performance Data ► No Budgets ► Strategy driven by internal transparent Benchmarking between Regions and Branch offices ► Freedom and responsibility to act – do what is right to fit local performance ► Common Bonus scheme not individual bonus scheme – Measure how the bank performs compared to other banks
  • 21. ERP Critical Success Factors > Align ERP systems with Strategy – Not just copy of dysfunctional systems > Business Process driven not systems driven > Eliminate Redundant processes > Involve the right people > Invest in Education and training > One technology platform and data consistency > One Company wide database > Embed disaster recovery procedures > Look to the future Hope & Player, Beyond Performance Management
  • 22. Leveraging ERP the Critical success Factors > Ensure Data Quality > Understand the Context of Data > Responsibility & Accountability at right Level > Agile decision making by presenting data in right element > Incorporate Relative Measures of Success •Accuracy •Completeness •Timely •Consistency Right Data •BSC & Strategic Mapping •ABM •Kaizen Right Tools •Executive •Business Unit Leaders •Functional Manager Right Audience •Competitors •PESTLE •Five Forces •Market condition Right Context •Actions •Initiatives •Investments Right Decisions •Strategic Outcomes Strategic Delivery Enterprise Resource Planning
  • 23. Strategic Delivery & ERP ERP Paradox Strategy & Strategic Outcomes ERP & transform - ation of Data Decision Making – How we compute Case – Data, Decisions, Strategic Delivery 1. 4. 3. 2. 5. How well do you leverage your tools?
  • 25. Disclaimer This presentation represents the opinion of the author(s) and not necessarily those of the Institute of Chartered Accountants in Australia (The Institute) or its members. The contents are for general information only. They are not intended as professional advice – for that you should consult a Chartered Accountant or other suitably qualified professional. The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers/presentation.